Quarterly report pursuant to Section 13 or 15(d)

DEBT

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DEBT
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
DEBT

NOTE 3 – DEBT

 

Notes Payable - Financing Agreements

  

The Company’s notes payable relating to financing agreements classified as current liabilities consist of the following as of March 31, 2023 and December 31, 2022:

 

                         
    March 31, 2023     December 31, 2022  
Notes Payable   Principal     Interest     Principal     Interest  
Third Party - Insurance Note 1   $ 18,737       8.73 %   $ —       —  
Third Party - Insurance Note 2     —               17,753       6.24 %
Third Party - Insurance Note 3     6,526       —       16,094       —  
Third Party - Insurance Note 4     167,830       —       40,728       —  
Total   $ 193,094             $ 74,575          

 

The Company entered into an agreement on December 23, 2022 with its insurance provider by issuing a $26,484 note payable (Insurance Note 1) for the purchase of an insurance policy, secured by that policy with an annual interest rate of 8.73% payable in monthly installments of principal and interest totaling $2,755 through October 23, 2023. The balance of Insurance Note 1 as of March 31, 2023 and December 31, 2022 was $18,737 and zero, respectively.

 

The Company entered into an agreement on April 15, 2022 with its insurance provider by issuing a note payable (Insurance Note 2) for the purchase of an insurance policy in the amount of $63,766, secured by that policy with an annual interest rate of 6.24% and payable in 11 monthly installments of principal and interest totaling $5,979. At March 31, 2023 and December 31, 2022, the balance of Insurance Note 2 was zero and $17,753, respectively.

 

The Company entered into an agreement on September 15, 2022 with its insurance provider by issuing a note payable (Insurance Note 3) for the purchase of an insurance policy in the amount of $24,140 and payable in 12 monthly installments of $4,024. At March 31, 2023 and December 31, 2022, the balance of Insurance Note 3 was $6,526 and $16,094, respectively.

 

The Company entered into an agreement on February 3, 2022 with its insurance provider by issuing a note payable (Insurance Note 4) for the purchase of an insurance policy in the amount of $242,591 with a down payment paid in the amount of $102,075 in the first quarter of 2022 and ten monthly installments of $20,073. The Company received a refund on September 30, 2022 as result of the annual audit of the policy resulting in the refund being applied to the outstanding amount of $53,175. The policy renewed on February 3, 2023 and, in connection therewith, the Company issued a new note payable to the insurer in the amount of $293,520 with a down payment paid in the amount of $125,690 and payable in ten monthly installments of $23,976. At March 31, 2023 and December 31, 2022, the balance of Insurance Note 4 was $167,830 and $40,728, respectively.

 

Equipment Financing

 

The Company entered into an agreement on May 22, 2020 with an equipment financing company by issuing a $121,637 secured note, with an annual interest rate of 9.90% and payable in monthly installments of principal and interest totaling $3,919 through June 1, 2023. At March 31, 2023 and December 31, 2022, the aggregate balance of this note was $11,566 and $22,851, respectively.

 

At March 31, 2023, future minimum lease payments due under the equipment financing is as follows:

 

         
Calendar year: Amount  
         
2023     11,757  
Total minimum equipment financing payments   $ 11,757  
Less: interest     (191 )
Total equipment financing at March 31, 2023   $ 11,566  
Less: current portion of equipment financing     (11,566 )
Long term portion of equipment financing   $ —