NOTES PAYABLE

6 Months Ended

Jun. 30, 2022

NOTES PAYABLE

NOTES PAYABLE

8. NOTES PAYABLE

Short Term Notes Payable

At June 30, 2022 and December 31, 2021, the Company maintained short term notes payable to related and non-related parties totaling approximately $28,285 and $87,615, respectively. These notes are short term, straight-line amortizing notes. The notes carry annual interest rates between 4.3% and 16%, or 18% in the event of default.

On July 4, 2021, the Company entered into a premium finance agreement to finance its insurance policies totaling $117,560. The note required monthly payments of $11,968, including interest at 4.3%, until it matured in April of 2022. As of June 30, 2022, the outstanding balance was nil.

During 2019, the Company issued promissory notes to Mr. Cartwright totaling $45,829. The note was initially issued with 0% interest, however interest increased to 6.0% interest 90 days after the Company received $1,000,000 in financing proceeds. As of June 30, 2022, the balance on the notes was $28,285.

On December 21, 2016 and January 19, 2017, the Company issued promissory notes to Mr. Fowler, in the amounts of approximately $12,500 and $13,900. The notes were initially issued with 0% interest and then went into default with an interest rate of 18%. As part of the March 22, 2021 exchange agreement these notes were combined into one short term note payable of $26,400 and $18,718 in principal and interest of the two previous notes, respectively, for a total balance of $45,118. The aforementioned agreement brought the note current. The note carried a monthly payment of $3,850, including interest at 6.0%, until it matured in March of 2022. As of June 30, 2022, the outstanding balance was nil.

The following table summarizes short-term notes payable, including related parties:

	Short-term notes payable,  including related parties
	June 30, 2022		December 31, 2021
Dr. Cartwright	$	28	$	34
Mr. Fowler		-		6
Premium Finance (insurance)		-		48
Short-term notes payable	$	28	$	88

The short-term notes payable due to related parties was $28,285 at June 30, 2022 and $39,900 of the $87,514 balance at December 31, 2021.