Annual report pursuant to Section 13 and 15(d)

Convertible Note Payable, Related Party

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Convertible Note Payable, Related Party
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Convertible Note Payable, Related Party

Note 14 – Convertible Note Payable, Related Party

 

Convertible note payable, related party consists of the following at December 31, 2023 and 2022, respectively:

 

    December 31,     December 31,  
    2023     2022  
             
On September 27, 2022   $ 750,000     $ 750,000  
On September 27, 2022, the Company completed the sale of a Convertible Promissory Note in the principal amount of $750,000 (the “Convertible McCabe Note”) to Dr. John McCabe, an affiliate investor. The unsecured note matures on September 16, 2024 (the “Maturity Date”), bears interest at a rate of 8% per annum, and the principal and interest is convertible into shares of the Company’s convertible Series B common stock at a conversion price of $15 per share.   $ 750,000     $ 750,000  
                 
Total convertible note payable, related party     750,000       750,000  
Less: current maturities     750,000       -  
Convertible note payable, related party, long-term portion   $ -     $ 750,000  

 

Aggregate debt discounts of $869,329 incurred on convertible note that were extinguished during the year ended December 31, 2022, were amortized over the life of the loans using the straight-line method, which approximated the effective interest method. The Company recognized $412,673 of interest expense related to debt discounts on extinguished convertible notes during the year ended December 31, 2022, consisting of $106,894 related to the issuance of 3,250,000 commitment shares of common stock, $255,026 on the fair value of warrants to purchase 3,500,000 shares of common stock, $32,055 of original issue discounts and $18,698 of legal and brokerage fees.

 

The convertible note limits the maximum number of shares that can be owned by the note holder as a result of the conversions to common stock to 4.99% of the Company’s issued and outstanding shares.

 

The Company recorded interest expense pursuant to the stated interest rates on the convertible notes in the amount of $60,000 and $59,023 for the years ended December 31, 2023 and 2022, respectively.