Annual report pursuant to Section 13 and 15(d)

Loans Payable

v3.24.1
Loans Payable
 12 Months Ended
Dec. 31, 2023
Loans Payable [Abstract]  
LOANS PAYABLE

NOTE 8 - LOANS PAYABLE

 

The following tables summarize the activity of loans payable during the years ended December 31, 2023 and 2022:

 

    Principal
Balance at
January 1,
2023		     Adjustments     Principal
Repaid in
Cash		     New Issuances     Effect of
Foreign
Exchange
Rates		     Principal
Balance at
December 31,
2023		  
Bounce Back Loan Scheme   $ 43,129     $
        -
     $ (12,326 )   $ -     $ 2,015     $ 32,818  
First Assurance – 2022     1,060,890      
-
       (1,060,890 )    
-
      
-
      
-
  
First Assurance – 2023    
-
      
-
       (184,172 )     969,322      
-
       785,150  
Other loans payable     235,686      
-
              
-
       406       236,092  
Total loans payable     1,339,705     $
-
     $ (1,257,388 )   $ 969,322     $ 2,421       1,054,060  
Less: loans payable – current portion     1,308,516                                       1,034,124  
Loans payable – non-current portion   $ 31,189                                     $ 19,936  

 

    Principal
Balance at
January 1,
2022		     Adjustments     Principal
Repaid in
Cash		     New Issuances     Effect of
Foreign
Exchange
Rates		     Principal
Balance at
December 31,
2022		  
Paycheck Protection Program   $ 41,312     $
-
     $ (41,312 )   $
-
     $
-
     $
-
  
Bounce Back Loan Scheme     61,169      
-
       (11,646 )    
-
       (6,394 )     43,129  
First Assurance – 2021     1,618,443      
(14,042
 )(1)     (1,604,401 )    
-
      
-
      
-
  
First Assurance – 2022    
-
      
-
      
-
       1,060,890      
-
       1,060,890  
Other loans payable     155,320       80,366 (2)            
-
      
-
       235,686  
Total loans payable     1,876,244     $ 66,324     $ (1,657,359 )   $ 1,060,890     $ (6,394 )     1,339,705  
Less: loans payable – current portion     1,828,079                                       1,308,516  
Loans payable – non-current portion   $ 48,165                                     $ 31,189  

 

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

 

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

 

Loans Payable, Current Portion

 

    Simple
Interest Rate		     December 31,
2023		     December 31,
2022		  
Loan payable issued September 18, 2019     8 %   $ 50,000     $ 50,000  
Loan payable issued September 18, 2019     8 %     50,000       50,000  
Loan payable issued October 8, 2019     0 %     4,000       4,000  
Loan payable issued October 29, 2019     8 %     69,250       69,250  
Loan payable issued December 31, 2019     0 %     5,000       5,000  
Loan payable issued February 5, 2020     8 %     3,500       3,500  
Loan payable issued February 5, 2020     8 %     3,500       3,500  
Loan payable issued March 31, 2020     8 %     4,537       4,537  
Loan payable issued March 31, 2020     8 %     4,537       4,537  
Loan payable issued June 8, 2020     0 %     5,000       5,000  
Loan payable issued June 17, 2020     8 %     485       485  
Loan payable issued July 15, 2020 *     8 %     4,695       4,695  
Loan payable issued July 15, 2020     8 %     5,503       5,503  
Loan payable issued October 8, 2020 *     8 %     8,204       7,798  
Loan payable issued October 13, 2020     8 %     13,337       13,337  
Loan payable issued October 14, 2020     8 %     4,544       4,544  
Current portion of Bounce Back Loans (1) (2)     1 %     12,882       11,940  
First Assurance Funding payable issued December 2023 and 2022(2)     2 %     785,150       1,060,890  
            $ 1,034,124     $ 1,308,516  

 

* These loans are denominated in currencies other than USD.

 

(1) See Loans Payable, Non-Current Portion for a description of the PPP Loans and the Bounce Back Loans.

 

(2) Note that these loans are not currently in default.

 

Loans Payable, Non-Current Portion

 

The non-current portion of the Company’s loans payable as of December 31, 2023 and 2022 are as follows:

 

    Simple Interest Rate     December 31,
2023		     December 31,
2022		     Maturity
Date
BBLS loan payable issued June 10, 2020     2.5 %     32,818       43,129     6/10/2026
Subtotal             32,818       43,129      
Less: Current portions of BBLS loans, respectively (see above)             (12,882 )     (11,940 )    
Non-current portion           $ 19,936     $ 31,189      

 

On June 10, 2020, the Company received GBP £50,000 (USD $64,353) of cash proceeds pursuant to the Bounce Back Loan Scheme (“BBLS”), which provides financial support to businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak. The BBLS is unsecured and bears interest at 2.5% per annum. The maximum loan amount is GBP £50,000 and the length of the loan is six years, with payments beginning 12 months after the date of disbursement. Early repayment is allowed, without early repayment fees. As of December 31, 2023 and 2022, the Company recorded accrued interest of GBP £248 (USD $316) and GBP £477 (USD $732), respectively, related to the BBLS loan. During the years ended December 31, 2023 and 2022, the Company recorded interest expense of GBP £549 (USD $683) and GBP £721 (USD $901), respectively, related to the BBLS loan.

 

On December 10, 2022, the Company entered into a financing arrangement for a Directors and Officers Insurance Policy (the “D&O Insurance”) with First Insurance Funding to finance $872,034 of a total D&O Insurance amount of $1,060,891 inclusive of premiums, taxes, and fees. During 2023, the Company paid in full the balance of the 2022 D&O Insurance. On December 10, 2023, the Company entered into a financing arrangement for another policy with First Insurance Funding to finance $903,098 of a total D&O Insurance amount of $969,322 inclusive of premiums, taxes, and fees. As of December 31, 2023, a total of $872,390 remains financed in loans payable, due in monthly installments of $90,310.

  

Interest Expense (Income) on Loans Payable

        

For the years ended December 31, 2023 and 2022, the Company recognized interest expense — related parties associated with outstanding loans payable of $18,436 and $14,156, respectively.

 

For the years ended December 31, 2023 and 2022, the Company recognized interest income — related parties associated with outstanding loans payable of $0 and ($1,490), respectively.

 

As of December 31, 2023, the Company had accrued interest and accrued interest — related parties associated with outstanding loans payable of $70,923 and $0, respectively. See Note 12 — Related Parties for additional details.

 

As of December 31, 2022, the Company had accrued interest and accrued interest — related parties associated with outstanding loans payable of $37,960 and $16,770, respectively. See Note 12 — Related Parties for additional details.