Quarterly report pursuant to Section 13 or 15(d)

DEBT

v3.23.2
DEBT
 6 Months Ended
Jun. 30, 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 June 30, 2023 and December 31, 2022:

 

               
    June 30, 2023   December 31, 2022
Notes Payable   Principal   Interest   Principal   Interest
Third Party - Insurance Note 1   $ 10,824       8.73 %   $ —         —    
Third Party - Insurance Note 2     117,552       8.00       17,753       6.24 %
Third Party - Insurance Note 3     10,811       —         16,094       —    
Third Party - Insurance Note 4     119,875       —         40,728       —    
Total   $ 259,062             $ 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 June 30, 2023 and December 31, 2022 was $10,824 and 0 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. The Company entered into an agreement on April 15, 2023 with its insurance provider by issuing a note payable (Insurance Note 2) for the purchase of an insurance policy in the amount of $142,734, secured by that policy with an annual interest rate of 8.00% and payable in 11 monthly installments of principal and interest totaling $13,501. At June 30, 2023 and December 31, 2022, the balance of Insurance Note 2 was $117,552 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. The policy was renewed on February 3, 2023 and payable in 12 monthly installments of $2,012. At June 30, 2023 and December 31, 2022, the balance of Insurance Note 3 was $10,811 and $16,094, respectively.

 

The Company entered into an agreement on February 3, 2022 with its insurance provider by issuing a note payable 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 (Insurance Note 4) 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 June 30, 2023 and December 31, 2022, the balance of Insurance Note 4 was $119,875 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 June 30, 2023 and December 31, 2022, the aggregate balance of this note was zero and $22,851, respectively.