Quarterly report pursuant to Section 13 or 15(d)

Notes Payable

v3.22.2.2
Notes Payable
 6 Months Ended
Jun. 30, 2022
Notes Payable  
Notes Payable

Note 11 – Notes Payable

 

Notes payable consists of the following at June 30, 2022 and December 31, 2021, respectively:

      June 30,       December 31,  
    June 30,     December 31,  
    2022     2021  
             
On June 13, 2022, the Company, through its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $100,000 from an individual pursuant to an unsecured promissory note, maturing on January 1, 2024, that carries an 8% interest rate.   $ 100,000     $ -  
                 
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 USD, on a loan with a face value of 240,000,000 COP, or approximately $58,147 USD, from an individual pursuant to an unsecured promissory note, bearing interest at 4% per annum, due on demand. The debt discount of $2,326 USD was expensed as finance costs at the time of origination.     58,147       -  
                 
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 USD, on a loan with a face value of 360,000,000 COP, or approximately $87,220 USD, from an individual pursuant to promissory note, security by equipment, bearing interest at 2.1% per annum, maturing on November 28, 2022. The debt discount of $10,990 USD was expensed as finance costs at the time of origination.     87,220       -  
                 
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 USD, from an individual pursuant to an unsecured promissory note, due on demand.     4,846       -  
                 
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 USD, from an individual pursuant to an unsecured promissory note, due on demand.     2,423       -  
                 
On March 1, 2022, the Company, through its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $400,000 from an individual pursuant to an unsecured promissory note, maturing on January 1, 2024, that carries an 8% interest rate.     400,000       -  
                 
On February 15, 2022, the Company, through its wholly-owned subsidiary, OWP Ventures, Inc., received an advance of $200,000 from an individual pursuant to an unsecured promissory note, maturing on January 1, 2024, that carries an 8% interest rate.     200,000       -  
                 
On May 4, 2020, the Company, through its wholly-owned subsidiary OWP Ventures, Inc., borrowed $119,274 from Customers Bank (“Lender”), pursuant to a Promissory Note issued by OWP Ventures to Lender (the “PPP Note”). The loan was made pursuant to the Payroll Protection Program established as part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The PPP Note carried interest at 1.00% per annum, payable monthly beginning December 4, 2020, and was due on May 4, 2022. The PPP Note could have been repaid at any time without penalty.
 
Under the Payroll Protection Program, the Company was eligible for loan forgiveness up to the full amount of the PPP Note and any accrued interest. The forgiveness amount was equal to the amount that the Company spent during the 24-week period beginning May 4, 2020 on payroll costs, payment of rent on any leases in force prior to February 15, 2020 and payment on any utility for which service began before February 15, 2020. The maximum amount of loan forgiveness for non-payroll expenses was 40% of the amount of the PPP Note. A total of $121,372, consisting of $119,274 of principal and $2,098 of interest, was forgiven on February 11, 2022.		     -       119,274  
                 
Total notes payable     852,636       119,274  
Less: current maturities     152,636       119,274  
Notes payable, long-term portion   $ 700,000     $ -  

 

The Company recorded interest expense pursuant to the stated interest rates on the notes payable in the amount of $20,032 and $18,987 for the six months ended June 30, 2022 and 2021, respectively.