| Notes Payable, Related Parties |
Note
10 – Notes Payable, Related Parties
Notes
payable, related parties, consists of the following at March 31, 2024 and December 31, 2023, respectively:
Schedule
of Notes Payable Related Party
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March 31, |
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December 31, |
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2024 |
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2023 |
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| On March 19, 2024, the Company,
through its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $50,000 from Joerg Sommer, our President, pursuant
to an unsecured promissory note, maturing on March 1, 2027, that carries a 10% interest rate. |
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$ |
50,000 |
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$ |
- |
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| On March 15, 2024, the Company, through
its wholly-owned subsidiary, OWP Ventures, Inc., issued an unsecured promissory note in the amount of $26,116 to Joerg Sommer, our
President, maturing on March 1, 2027, that carries a 10% interest rate. The note was issued in exchange for the cancellation of another
promissory note, consisting of $25,000 of principal and $1,116 of accrued interest. |
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26,116 |
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- |
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| On March 15, 2024, the Company, through
its wholly-owned subsidiary, OWP Ventures, Inc., issued an unsecured promissory note in the amount of $1,803,398 to Dr. John McCabe,
an affiliate investor, maturing on March 1, 2027, that carries a 7% interest rate. The note was issued in exchange for the cancellation
of a $840,740 convertible note, consisting of $750,000 of principal and $90,740 of accrued interest., and other promissory notes
in the aggregate amount of $962,658, consisting of a total of $850,000 of principal and $112,658 of accrued interest. |
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1,803,398 |
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- |
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| On March 15, 2024, the Company, through
its wholly-owned subsidiary, OWP Ventures, Inc., issued an unsecured promissory note in the amount of $337,000 to Dr. Kenneth Perego,
II, M.D., our Vice Chairman of the Board, maturing on March 1, 2027, that carries a 10% interest rate. The note was issued in exchange
for the cancellation of promissory notes in the aggregate amount of $337,000, consisting entirely of principal. |
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337,000 |
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- |
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| On March 15, 2024, the Company, through
its wholly-owned subsidiary, OWP Ventures, Inc., issued an unsecured promissory note in the amount of $27,467 to Isiah L. Thomas,
III, our Chairman of the Board and CEO, maturing on March 1, 2027, that carries a 10% interest rate. The note was issued in exchange
for the cancellation of another promissory note, consisting of $24,500 of principal and $2,967 of accrued interest. |
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27,467 |
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- |
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| On March 12, 2024, the Company, through
its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $100,000 from Dr. Kenneth Perego, II, M.D., our Vice Chairman
of the Board, pursuant to an unsecured promissory note due on demand that carries a 10% interest rate. |
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100,000 |
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- |
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| On March 1, 2024, the Company, through its
wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $100,000 from Dr. John McCabe, an affiliate investor, pursuant
to an unsecured promissory note, maturing on March 1, 2025, that carried an 8% interest rate. The note was cancelled on March 15,
2024, in exchange for the note maturing on March 1, 2027, listed above. |
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- |
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- |
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| On February 26, 2024, the Company, through
its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $27,000 from Dr. Kenneth Perego, II, M.D., our Vice Chairman
of the Board, pursuant to an unsecured promissory note due on demand that carries a 10% interest rate. |
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27,000 |
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- |
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| On January 29, 2024, the Company, through
its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $50,000 from Dr. John McCabe, an affiliate investor, pursuant
to an unsecured promissory note, maturing on January 29, 2025, that carried an 8% interest rate. The note was cancelled on March
15, 2024, in exchange for the note maturing on March 1, 2027, listed above. |
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- |
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- |
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| On January 11, 2024, the Company, through
its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $10,000 from Dr. Kenneth Perego, II, M.D., our Vice Chairman
of the Board, pursuant to an unsecured promissory note due on demand that carries a 10% interest rate. |
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10,000 |
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- |
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| On January 8, 2024, the Company, through
its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $10,000 from Dr. Kenneth Perego, II, M.D., our Vice Chairman
of the Board, pursuant to an unsecured promissory note due on demand that carries a 10% interest rate. |
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10,000 |
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- |
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| On November 28, 2023, the Company, through
its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $60,000 from Dr. Kenneth Perego, II, M.D., our Vice Chairman
of the Board, pursuant to an unsecured promissory note due on demand that carries a 10% interest rate. |
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60,000 |
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60,000 |
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| On October 11, 2023, the Company, through
its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $25,000 from the Company’s President, Joerg Sommer,
pursuant to an unsecured promissory note due on demand that carries a 10% interest rate. The note was cancelled on March 15, 2024,
in exchange for the note maturing on March 1, 2027, listed above. |
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- |
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25,000 |
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| On September 11, 2023, the Company, through
its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $52,000 from Dr. Kenneth Perego, II, M.D., our Vice Chairman
of the Board, pursuant to an unsecured promissory note due on demand that carries a 10% interest rate. The note was cancelled on
March 15, 2024, in exchange for the note maturing on March 1, 2027, listed above. |
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- |
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52,000 |
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| On August 31, 2023, the Company, through
its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $4,000 from Dr. Kenneth Perego, II, M.D., our Vice Chairman
of the Board, pursuant to an unsecured promissory note due on demand that carries a 6% interest rate. The note was cancelled on March
15, 2024, in exchange for the note maturing on March 1, 2027, listed above. |
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- |
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4,000 |
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| On August 14, 2023, the Company, through
its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $6,000 from Dr. Kenneth Perego, II, M.D., our Vice Chairman
of the Board, pursuant to an unsecured promissory note due on demand that carries a 6% interest rate. The note was cancelled on March
15, 2024, in exchange for the note maturing on March 1, 2027, listed above. |
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- |
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6,000 |
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| On August 5, 2022, the Company, through
its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $50,000 from Dr. Kenneth Perego, II, M.D., our Vice Chairman
of the Board, pursuant to an unsecured promissory note due on demand that carries a 6% interest rate. The note was cancelled on March
15, 2024, in exchange for the note maturing on March 1, 2027, listed above. |
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- |
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50,000 |
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| On August 2, 2022, the Company, through
its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $4,500 from Isiah L. Thomas, III, our Chairman of the Board
and CEO, pursuant to an unsecured promissory note due on demand that carries a 6% interest rate. The note was cancelled on March
15, 2024, in exchange for the note maturing on March 1, 2027, listed above. |
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- |
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4,500 |
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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 Dr. John McCabe, an affiliate investor, pursuant
to an unsecured promissory note, maturing on January 1, 2024, that carries an 8% interest rate. The note was cancelled on March 15,
2024, in exchange for the note maturing on March 1, 2027, listed above. |
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- |
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100,000 |
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| On July 7, 2022, the Company, through its
wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $5,000 from Dr. Kenneth Perego, II, M.D., our Vice Chairman of
the Board pursuant to an unsecured promissory note due on demand that carries a 6% interest rate. The note was cancelled on March
15, 2024, in exchange for the note maturing on March 1, 2027, listed above. |
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- |
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5,000 |
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| On June 3, 2022, the Company, through its
wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $10,000 from Isiah L. Thomas, III, our Chairman of the Board
and CEO, pursuant to an unsecured promissory note due on demand that carries a 6% interest rate. The note was cancelled on March
15, 2024, in exchange for the note maturing on March 1, 2027, listed above. |
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- |
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10,000 |
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| On May 5, 2022, the Company, through its
wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $10,000 from Isiah L. Thomas, III, our Chairman of the Board
and CEO, pursuant to an unsecured promissory note due on demand that carries a 6% interest rate. The note was cancelled on March
15, 2024, in exchange for the note maturing on March 1, 2027, listed above. |
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- |
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10,000 |
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| On May 5, 2022, the Company, through its
wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $20,000 from Dr. Kenneth Perego, II, M.D., our Vice Chairman
of the Board, pursuant to an unsecured promissory note due on demand that carries a 6% interest rate. The note was cancelled on March
15, 2024, in exchange for the note maturing on March 1, 2027, listed above. |
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- |
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20,000 |
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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 Dr. John McCabe, an affiliate investor, pursuant
to an unsecured promissory note, maturing on January 1, 2024, that carries an 8% interest rate. The note was cancelled on March 15,
2024, in exchange for the note maturing on March 1, 2027, listed above. |
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- |
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400,000 |
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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 Dr. John McCabe, an affiliate investor, pursuant
to an unsecured promissory note, maturing on January 1, 2024, that carries an 8% interest rate. The note was cancelled on March 15,
2024, in exchange for the note maturing on March 1, 2027, listed above. |
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- |
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200,000 |
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| On December 29, 2021,
the Company, through its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $200,000 from Dr. Kenneth Perego, II,
M.D., our Vice Chairman of the Board, pursuant to an unsecured promissory note due January 1, 2024 that carries an 8% interest rate.
The note was cancelled on March 15, 2024, in exchange for the note maturing on March 1, 2027, listed above. |
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- |
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200,000 |
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| Total notes payable, related parties |
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2,450,981 |
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1,146,500 |
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| Less:
unamortized debt discounts |
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9,729 |
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- |
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| Notes payable, related
parties, net of discounts |
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2,441,252 |
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1,146,500 |
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| Less:
current maturities |
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- |
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1,146,500 |
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| Notes payable, related
parties, long-term portion |
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$ |
2,441,252 |
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$ |
- |
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The
Company recorded interest expense pursuant to the stated interest rates on the notes payable, related parties, in the amount of $29,686
and $5,467 for the three months ended March 31, 2024 and 2023, respectively, including $110 on the amortization of debt discounts for
the three months ended March 31, 2024.
On
March 15, 2024, the Company, through its wholly-owned subsidiary, OWP Ventures, Inc., agreed to issue shares of common stock to officers
and directors in consideration for extending the maturity dates and terms of previously received debt financing, as listed below. The
aggregate fair value of the common stock was $724,086, based on the closing price of the Company’s common stock on the date of
grant, which was recognized as a loss on early extinguishment of debt. As noted above, the previously issued promissory notes were cancelled
in exchange for promissory notes with a maturity date of March 1, 2027, bearing interest at 10% per annum, with the exception of the
promissory note issued to Dr. John McCabe, which carries an interest rate of 7% per annum.
Schedule
of Consideration Related Party Debt
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Aggregate |
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| Name |
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Position |
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Debts Extended |
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Shares |
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Fair Value |
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| Isiah L. Thomas, III |
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Chairman and CEO |
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$ |
27,467 |
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138,000 |
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$ |
9,108 |
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| Dr. Kenneth Perego, II |
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Vice Chairman |
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337,000 |
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1,685,000 |
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111,210 |
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| Joerg Sommer |
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President |
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26,116 |
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131,000 |
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|
8,646 |
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| Dr. John McCabe |
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>5% Shareholder |
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1,803,398 |
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9,017,000 |
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595,122 |
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$ |
2,193,981 |
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10,971,000 |
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$ |
724,086 |
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ONE WORLD
PRODUCTS, INC.
Notes to Condensed
Consolidated Financial Statements
(Unaudited)
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