Quarterly report pursuant to Section 13 or 15(d)

Loans Payable

v3.22.2.2
Loans Payable
 9 Months Ended
Sep. 30, 2022
Loans Payable [Abstract]  
LOANS PAYABLE

NOTE 7 - LOANS PAYABLE

 

Loans Payable

 

The following table summarizes the activity of loans payable during the nine months ended September 30, 2022:

 

    Principal
Balance at
December 31,
2021		     Forgiveness     Principal
Repaid in
Cash		     Adjustment     Effect of
Foreign
Exchange
Rates		     Principal
Balance at
September 30,
2022		  
Paycheck Protection Program   $ 41,312     $
             -
     $ (41,312 )   $ -     $
-
     $
-
  
Bounce Back Loan Scheme     61,169      
-
       (6,711 )     -       (12,000 )     42,458  
First Assurance Funding     1,618,443      
-
       (1,443,963 )     (14,042 )(1)    
-
       160,438  
Other loans payable     155,320      
-
      
-
       (5,000 )(2)    
-
       150,320  
Total loans payable   $ 1,876,244     $
-
     $ (1,491,986 )   $ (19,042 )   $ (12,000 )   $ 353,216  
Less: loans payable - current portion     1,828,079                                       321,694  
Loans payable - noncurrent portion   $ 48,165                                     $ 31,522  

 

(1) Note that this amount was related to finance charges and was reclassified.

(2) Note that this amount was reclassified to related party payables.

 

During the three months ended September 30, 2022, the Company paid $481,321 and $2,692 in partial satisfaction of the First Assurance Funding loan and the Bounce Back Loan Scheme, respectively. During the nine months ended September 30, 2022, the Company paid an aggregate of $1,443,963 and $6,711 in partial satisfaction of the First Assurance Funding loan and the Bounce Back Loan Scheme, respectively, and paid $41,312 in full satisfaction of the Paycheck Protection Program loan.

 

Loans Payable – Related Parties

 

The below table summarizes the activities of loans payable – related parties during the nine months ended September 30, 2022 (see Note 10 – Related Parties for additional details):

 

    Principal
Balance at
December  31,
2021		     Reclass
from Loans
Payable		     Effect of
Foreign
Exchange
Rates		     Principal
Balance at
September 30,
2022		  
Loans payable issued between                        
September 18, 2019 through November 4, 2020   $ 81,277     $ 5,000     $ (1,521 )   $ 84,756  

 

Interest Expense on Loans Payable

 

For the three months ended September 30, 2022 and 2021, the Company recognized interest expense associated with loans payable of $7,348 and $2,315, respectively, and interest expense — related parties associated with loans payable of $1,536 and $10,566, respectively. During the nine months ended September 30, 2022 and 2021, the Company recognized interest expense associated with loans payable of $22,117 and $20,498, respectively, and interest income (expense) — related parties associated with loans payable of $1,495 and ($30,898), respectively.

 

As of September 30, 2022, the Company had accrued interest and accrued interest — related parties associated with loans payable of $32,914 and $16,676, respectively. As of December 31, 2021, the Company had accrued interest and accrued interest — related parties associated with loans payable of $24,212 and $812, respectively. See Note 10 — Related Parties for additional details.