| Convertible Note Payable, Related Party |
Note
9 – Convertible Note Payable, Related Party
Convertible
note payable, related party consists of the following at March 31, 2024 and December 31, 2023, respectively:
Schedule
of Convertible Note Payable Related Party
| |
|
March
31, |
|
|
December
31, |
|
| |
|
2024 |
|
|
2023 |
|
| On September 27, 2022 |
|
|
-
|
|
|
|
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 matured on September 16, 2024 (the “Maturity
Date”), carried interest at a rate of 8% per annum, and the principal and interest were convertible into shares of the Company’s
convertible Series B common stock at a conversion price of $15 per share. On March 15, 2024, the Company, through its wholly-owned
subsidiary, OWP Ventures, Inc., exchanged the $750,000 of principal, and $90,740 of accrued interest, along with other debts and
interest, for a promissory note with a maturity date of March 1, 2027, bearing interest at 7% per annum. As consideration for condensing
these loans and extending the maturity dates, the Company awarded Mr. McCabe 9,017,000 shares of common stock. The aggregate fair
value of the common stock was $595,122, based on the closing price of the Company’s common stock on the date of grant. |
|
$ |
-
|
|
|
$ |
750,000 |
|
| |
|
|
|
|
|
|
|
|
| Total
convertible note payable, related party |
|
|
- |
|
|
|
750,000 |
|
| Less:
current maturities |
|
|
- |
|
|
|
- |
|
| Convertible
note payable, related party, long-term portion |
|
$ |
- |
|
|
$ |
750,000 |
|
The
Company recorded interest expense pursuant to the stated interest rates on the convertible note, related party in the amount of $15,124
and $14,795 for the three months ended March 31, 2024 and 2023, respectively.
ONE
WORLD PRODUCTS, INC.
Notes
to Condensed Consolidated Financial Statements
(Unaudited)
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