| Notes Payable |
Note
12 – Notes Payable
Notes
payable consists of the following at September 30, 2022 and December 31, 2021, respectively:
Schedule of Notes Payable
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September 30, |
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December 31, |
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2022 |
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2021 |
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| On September 15, 2022, the Company, through its wholly-owned subsidiary, One World
Pharma, SAS, received proceeds of 55,488,000 COP,
or approximately $12,243,
on a loan with a face value of 70,000,000 COP,
or approximately $15,445,
from an individual pursuant to an unsecured promissory note, bearing interest at 4%
per month, or 48% per annum, due on demand. The debt discount of $3,202
was expensed as finance costs at the time of origination. |
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$ |
15,445 |
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$ |
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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 an individual pursuant to an unsecured promissory note, maturing on January 1, 2024, that carries an 8% interest rate. |
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100,000 |
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| 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,
on a loan with a face value of 240,000,000
COP, or approximately $58,147,
from an individual pursuant to an unsecured promissory note, bearing interest at 4%
per month, or 48% per annum, due on demand. The debt discount of $2,326
was expensed as finance costs at the time of origination. The face value of the note has been adjusted by $5,191
due to foreign currency translation adjustments. |
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52,956 |
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| 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,
on a loan with a face value of 360,000,000
COP, or approximately $87,220,
from an individual pursuant to promissory note, security by equipment, bearing interest at 2.1%
per month, or 25% per annum, maturing on November 28, 2022. The debt discount of $10,990
was expensed as finance costs at the time of origination. The face value of the note has been adjusted by $7,786
due to foreign currency translation adjustments. |
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79,434 |
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| 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, from an individual pursuant to an unsecured promissory note, due on demand. The face value of the note has been adjusted by $433 due to foreign currency translation adjustments. |
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4,413 |
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| 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, from an individual pursuant to an unsecured promissory note, due on demand. The face value of the note has been adjusted by $216 due to foreign currency translation adjustments. |
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2,207 |
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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 an individual pursuant to an unsecured promissory note, maturing on January 1, 2024, that carries an 8% interest rate. |
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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 an individual pursuant to an unsecured promissory note, maturing on January 1, 2024, that carries an 8% interest rate. |
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200,000 |
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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 $2,098 of interest, was forgiven on February 11, 2022.
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119,274 |
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| Total notes payable |
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854,455 |
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119,274 |
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| Less: current maturities |
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154,455 |
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119,274 |
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| Notes payable, long-term portion |
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$ |
700,000 |
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$ |
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The
Company recorded interest expense pursuant to the stated interest rates on the notes payable in the amount of $51,345 and $8,434 for
the nine months ended September 30, 2022 and 2021, respectively.
ONE
WORLD PRODUCTS, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
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