| Schedule of Notes Payable |
Schedule
of Notes Payable
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September 30, |
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December 31, |
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| |
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2023 |
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2022 |
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| On August 18, 2023, the Company, through its wholly-owned subsidiary, OWP Ventures, Inc., issued an unsecured promissory note of $35,000 to LDL8 Consulting, LLC for the purchase of equipment from another vendor. The promissory note bears interest at 10% per annum and is due on demand. In the event of default, the interest rate increases to 15% until repayment. |
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$ |
35,000 |
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$ |
- |
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On June 23, 2023, the Company completed the sale of a Promissory Note in the principal amount of $300,000 (the “Third AJB Note”) to AJB Capital Investments LLC (“AJB Capital”) for an aggregate purchase price of $276,000, pursuant to a Securities Purchase Agreement between the Company and AJB Capital (the “Purchase Agreement”). The Company received net proceeds of $262,500 after deduction of an original issue discount of $24,000, $7,500 of legal fees and a $6,000 of broker fee, which are being amortized as a debt discount over the life of the loan.
The Third AJB Note matures on March 23, 2024 (the “Maturity Date”), bears interest at a rate of 12% per annum, and, following an event of default only, is convertible into shares of the Company’s common stock at a conversion price equal to the lesser of the Volume Weighted Average Price (“VWAP”) during (i) the 10 trading day period preceding the issuance date of the note, or (ii) the 10 trading day period preceding date of conversion of the Note. The Note is also subject to covenants, events of defaults, penalties, default interest and other terms and conditions customary in transactions of this nature.
Pursuant to the Purchase Agreement, the Company paid a commitment fee to AJB Capital in the amount of $100,000 (the “Commitment Fee”) in the form of 1,666,667 shares of the Company’s common stock (the “Commitment Fee Shares”). During the period commencing on the six-month anniversary of the closing date and ending on the five-year anniversary of the closing date, AJB Capital is entitled to be issued additional shares of common stock or receive a cash payment to the extent AJB Capital’s sale of the Commitment Fee Shares has resulted in net proceeds in an amount less than the Commitment Fee. The Commitment Fee Shares resulted in a debt discount of $42,175 that is being amortized over the life of the loan.
In connection with the issuance of the Third AJB Note and Commitment Fee Shares, the Company entered into a Registration Rights Agreement with AJB Capital in which the Company agreed to file a registration statement with the SEC within 180 days of June 23, 2023, registering the shares of common stock issuable under the Third AJB Note and Purchase Agreement. |
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|
300,000 |
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|
|
- |
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| |
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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 $1,823 due to foreign currency translation adjustments. |
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|
17,268 |
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|
|
14,552 |
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| |
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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 $3,383 due to foreign currency translation adjustments. |
|
|
59,204 |
|
|
|
49,894 |
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| |
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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, which matured on November 28, 2022 and is currently past due. 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 $1,586 due to foreign currency translation adjustments. |
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|
88,806 |
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|
74,841 |
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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 $88 due to foreign currency translation adjustments. |
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|
4,934 |
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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 $44 due to foreign currency translation adjustments. |
|
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2,467 |
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|
|
2,079 |
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| |
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|
|
|
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| Total notes payable |
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|
507,679 |
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|
|
145,524 |
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| Less: unamortized debt discounts |
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|
53,442 |
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|
|
- |
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| Notes payable, net of discounts |
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|
454,237 |
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|
|
145,524 |
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| Less: current maturities |
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|
454,237 |
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|
|
145,524 |
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| Notes payable, long-term portion |
|
$ |
- |
|
|
$ |
- |
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| Schedule of Interest Expenses |
The
Company recognized interest expense for the nine months ended September 30, 2023 and 2022, as follows:
Schedule of Interest Expenses
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September 30, |
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|
September 30, |
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2023 |
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2022 |
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| Finance cost on equity line of credit |
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$ |
- |
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|
$ |
15,000 |
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| Interest on convertible notes, related party |
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|
44,877 |
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|
|
43,899 |
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| Interest on notes payable, related parties |
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|
58,804 |
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|
|
43,763 |
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| Interest on notes payable |
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|
47,255 |
|
|
|
21,120 |
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| Amortization of debt discounts |
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|
13,549 |
|
|
|
50,753 |
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| Amortization of debt discounts, common stock |
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|
12,684 |
|
|
|
106,894 |
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| Amortization of debt discounts, warrants |
|
|
- |
|
|
|
255,026 |
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| Series B preferred stock issued as a commitment on an ELOC |
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|
- |
|
|
|
205,005 |
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| Common stock issued as a commitment on the 2nd AJB Note |
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|
- |
|
|
|
134,128 |
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| Interest on accounts payable |
|
|
- |
|
|
|
11,249 |
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| Total interest expense |
|
$ |
177,169 |
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|
$ |
886,837 |
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