Quarterly report pursuant to Section 13 or 15(d)

DEBT

v3.22.1
DEBT
 3 Months Ended
Mar. 31, 2022
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, 2022 and December 31, 2021:

 

                                 
    March 31, 2022   December 31, 2021  
Notes Payable   Principal       Interest   Principal       Interest  
Third Party - Insurance Note 1   $ 16,349       7.75 %   $ 22,266       7.75 %  
Third Party - Insurance Note 2     —       —       12,667       6.24 %  
Third Party - Insurance Note 3     9,792       —       17,570       —    
Third Party - Insurance Note 4     140,516       —       —       —    
Total   $ 166,657             $ 52,503            

 

The Company entered into an agreement on December 23, 2021 with its insurance provider by issuing a $22,266 note payable (Insurance Note 1) for the purchase of an insurance policy, secured by that policy with an annual interest rate of 7.75% payable in monthly installments of principal and interest totaling $2,104 through November 23, 2022. The balance of Insurance Note 1 as of March 31, 2022 and December 31, 2021 was $16,349 and $22,266, respectively.

 

The Company entered into an agreement on April 15, 2021 with its insurance provider by issuing a note payable in the amount of $62,041, secured with an annual interest rate of 6.24% and payable in 10 monthly installments of principal and interest totaling $6,383. At March 31, 2022 and December 31, 2021, the balance of Insurance Note 2 was zero and $12,667, respectively.

 

The Company entered into an agreement on September 15, 2021 with its insurance provider by issuing a note payable in the amount of $19,965 and payable in 10 monthly installments of $1,997. At March 31, 2022 and December 31, 2021, the balance of Insurance Note 3 was $9,792 and $17,570, respectively.

 

The Company entered into an agreement on February 3, 2021 with its insurance provider by issuing a note payable in the amount of $215,654 with a down payment paid in the amount of $37,000 on April 6, 2021 and ten monthly installments of $17,899. The Company received a refund for the annual audit of the policy resulting in the refund being applied to the outstanding amount of $35,787. The policy renewed on February 3, 2022 in the amount of $242,591 with a down payment paid in the amount of $41,854 and payable in ten monthly installments of $20,074. At March 31, 2022 and December 31, 2021, the balance of Insurance Note 4 was $140,516 and zero, respectively.

 

Equipment Financing

 

The Company entered into an agreement on August 26, 2019 with an equipment financing company by issuing a $147,810 secured note, with an annual interest rate of 12.72% and payable in monthly installments of principal and interest totaling $4,963 through August 1, 2022. The Company entered into an additional agreement on May 22, 2020 with the same 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, 2022 and December 31, 2021, the balance of these notes was $79,227 and $103,186, respectively.

 

At March 31, 2022, future minimum lease payments due under the equipment financing is as follows:

 

       
As of March 31, Amount  
2022     60,187  
2023     23,515  
Total minimum equipment financing payments   $ 83,702  
Less: interest     (4,475 )
Total equipment financing at March 31, 2022   $ 79,227  
Less: current portion of equipment financing     (67,563 )
Long term portion of equipment financing   $ 11,664