Annual report [Section 13 and 15(d), not S-K Item 405]

Loans Payable

v3.25.1
Loans Payable
 12 Months Ended
Dec. 31, 2024
Loans Payable [Abstract]  
LOANS PAYABLE

NOTE 8 - LOANS PAYABLE

 

The following tables summarize the activity of loans payable during the years ended December 31, 2024 and 2023: 

 

    Principal
balance at
December 31,
2023		     Principal
additions		     Principal
repayments
in cash		     Cancellation     Effects
of foreign
exchange
rates		     Principal
balance at
December 31,
2024		  
Bounce Back Loan Scheme   $ 32,818     $
-
     $ (12,948 )   $
-
     $ (268 )   $ 19,602  
First Insurance - 2023     785,150      
-
       (523,434 )     (261,716 )    
-
      
-
  
First Insurance - 2024    
-
       777,702       (777,118 )    
-
      
-
       584  
Other loans payable     236,092      
-
       (20,000 )     (81,720 )     (53 )     134,319  
Total loans payable   $ 1,054,060     $ 777,702     $ (1,333,500 )   $ (343,436 )   $ (321 )   $ 154,505  
Less: loans payable – current portion     1,034,124                                       147,889  
Loans payable – noncurrent portion   $ 19,936                                     $ 6,616  

 

    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 Insurance – 2022     1,060,890      
-
       (1,060,890 )    
-
      
-
      
-
  
First Insurance – 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  

Loans Payable, Current Portion

 

    Simple
Interest Rate		     December 31,
2024		     December 31,
2023		  
Loan payable issued September 18, 2019              8 %   $
-
     $ 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 %     54,250       69,250  
Loan payable issued December 31, 2019     0 %    
-
       5,000  
Loan payable issued February 5, 2020     8 %     3,500       3,500  
Loan payable issued February 5, 2020     8 %    
-
       3,500  
Loan payable issued March 31, 2020     8 %    
-
       4,537  
Loan payable issued March 31, 2020     8 %     4,537       4,537  
Loan payable issued June 8, 2020     0 %    
-
       5,000  
Loan payable issued June 17, 2020     8 %    
-
       485  
Loan payable issued July 15, 2020 *     8 %     4,695       4,695  
Loan payable issued July 15, 2020     8 %    
-
       5,503  
Loan payable issued October 8, 2020 *     8 %    
-
       8,204  
Loan payable issued October 13, 2020     8 %     13,337       13,337  
Loan payable issued October 14, 2020     8 %    
-
       4,544  
Current portion of Bounce Back Loans (1) (2)     1 %     12,986       12,882  
First Insurance Funding payable issued December 2024 and 2023 (2)     2 %     584       785,150  
            $ 147,889     $ 1,034,124  

 

  * These loans are denominated in currencies other than USD.

 

  (1) See Loans Payable, Non-Current Portion for a description of 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, 2024 and 2023 are as follows:

 

    Simple Interest Rate     December 31,
2024		     December 31,
2023		     Maturity
Date
BBLS loan payable issued June 10, 2020     2.5 %     19,602       32,818     6/10/2026
Subtotal             19,602       32,818      
Less: Current portions of BBLS loans, respectively (see above)             (12,986 )     (12,882 )    
Non-current portion           $ 6,616     $ 19,936      

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, 2024 and 2023, the Company recorded accrued interest of GBP £92 (USD $115) and GBP £248 (USD $316), respectively, related to the BBLS loan. During the years ended December 31, 2024 and 2023, the Company recorded interest expense of GBP £373 (USD $467) and GBP £549 (USD $683), 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 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. In June 2024, the Company cancelled the 2023 insurance policy with First Insurance Funding and on October 1, 2024, the Company received the return premiums of $178,514 related to the cancelled insurance policy. The Company entered into a new replacement policy effective June 14, 2024, and entered into a financing agreement related to the new policy for $777,702 in July 2024. As of December 31, 2024, a total of $584 remains financed in loans payable.

  

Interest Expense (Income) on Loans Payable

        

For the years ended December 31, 2024 and 2023, the Company recognized interest expense — related parties associated with outstanding loans payable of $18,436 and $18,436, respectively.

 

As of December 31, 2024, the Company had accrued interest and accrued interest — related parties associated with outstanding loans payable of $58,940 and $0, respectively. See Note 13 — Related Parties for additional details

 

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 13 — Related Parties for additional details.