Quarterly report pursuant to Section 13 or 15(d)

Convertible Note Payable, Related Party

v3.24.3
Convertible Note Payable, Related Party
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Convertible Note Payable, Related Party

Note 10 – Convertible Note Payable, Related Party

 

Convertible note payable, related party consists of the following at September 30, 2024 and December 31, 2023, respectively:

 

    September 30,     December 31,  
    2024     2023  
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 $44,877 for the nine months ended September 30, 2024 and 2023, respectively.