| Notes Payable |
Note
15 – Notes Payable
Notes
payable consists of the following at December 31, 2022 and 2021, respectively:
Schedule of Notes Payable
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December 31, |
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December 31, |
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2022 |
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2021 |
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| On September
15, 2022, the Company, through its wholly-owned subsidiary, One World Pharma, SAS, received proceeds of 55,488,000 COP, or approximately
$12,243, on a loan with a face value of 70,000,000 COP, or approximately $15,445, from an individual pursuant to an unsecured promissory
note, bearing interest at 4% per month, or 48% per annum, due on demand. The debt discount of $3,202 was expensed as finance costs
at the time of origination. The face value of the note has been adjusted by $893 due to foreign currency translation adjustments. |
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$ |
14,552 |
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$ |
- |
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| On June 17, 2022, the Company,
through its wholly-owned subsidiary, One World Pharma, SAS, received proceeds of 230,400,000 COP, or approximately $55,821, on a
loan with a face value of 240,000,000 COP, or approximately $58,147, from an individual pursuant to an unsecured promissory note,
bearing interest at 4% per month, or 48% per annum, due on demand. The debt discount of $2,326 was expensed as finance costs at the
time of origination. The face value of the note has been adjusted by $8,253 due to foreign currency translation adjustments. |
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49,894 |
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- |
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| On June 13, 2022, the Company,
through its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $100,000 from an individual pursuant to an unsecured
promissory note, maturing on January 1, 2024, that carries an 8% interest rate. |
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100,000 |
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- |
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| On May 31, 2022, the Company,
through its wholly-owned subsidiary, One World Pharma, SAS, received proceeds of 314,640,000 COP, or approximately $76,231, on a
loan with a face value of 360,000,000 COP, or approximately $87,220, from an individual pursuant to promissory note, security by
equipment, bearing interest at 2.1% per month, or 25% per annum, maturing on November 28, 2022. The debt discount of $10,990 was
expensed as finance costs at the time of origination. The face value of the note has been adjusted by $12,380 due to foreign currency
translation adjustments. |
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74,841 |
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- |
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| On May 30, 2022, the Company,
through its wholly-owned subsidiary, One World Pharma, SAS, received a non-interest bearing loan of 20,000,000 COP, or approximately
$4,846, from an individual pursuant to an unsecured promissory note, due on demand. The face value of the note has been adjusted
by $688 due to foreign currency translation adjustments. |
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4,158 |
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- |
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| On April 29, 2022, the
Company, through its wholly-owned subsidiary, One World Pharma, SAS, received a non-interest bearing loan of 10,000,000 COP, or approximately
$2,423, from an individual pursuant to an unsecured promissory note, due on demand. The face value of the note has been adjusted
by $344 due to foreign currency translation adjustments. |
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2,079 |
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- |
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| On March 1, 2022, the Company,
through its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $400,000 from an individual pursuant to an unsecured
promissory note, maturing on January 1, 2024, that carries an 8% interest rate. |
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400,000 |
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- |
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| On February 15, 2022, the
Company, through its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $200,000 from an individual pursuant to
an unsecured promissory note, maturing on January 1, 2024, that carries an 8% interest rate. |
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200,000 |
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- |
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On
May 4, 2020, the Company, through its wholly-owned subsidiary OWP Ventures, Inc., borrowed $119,274 from Customers Bank (“Lender”),
pursuant to a Promissory Note issued by OWP Ventures to Lender (the “PPP Note”). The loan was made pursuant to the Payroll
Protection Program established as part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The
PPP Note carried interest at 1.00% per annum, payable monthly beginning December 4, 2020, and was due on May 4, 2022. The PPP Note
could have been repaid at any time without penalty.
Under the Payroll Protection Program, the Company was eligible
for loan forgiveness up to the full amount of the PPP Note and any accrued interest. The forgiveness amount was equal to the amount
that the Company spent during the 24-week period beginning May 4, 2020 on payroll costs, payment of rent on any leases in force prior
to February 15, 2020 and payment on any utility for which service began before February 15, 2020. The maximum amount of loan forgiveness
for non-payroll expenses was 40% of the amount of the PPP Note. A total of $121,372, consisting of $119,274 of principal and $2,098
of interest, was forgiven on February 11, 2022. |
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- |
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119,274 |
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| Total notes payable |
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845,524 |
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119,274 |
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| Less:
current maturities |
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145,524 |
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119,274 |
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| Notes
payable, long-term portion |
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$ |
700,000 |
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$ |
- |
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The
Company recorded interest expense in the amount of $85,653 and $18,945 for the years ended December 31, 2022 and 2021, respectively.
ONE
WORLD PRODUCTS, INC.
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
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