Note 6 – Debt Loan payable – Economic Injury Disaster Loan (“EIDL”) On July 17, 2020 and April 22, 2022, the Company received loans in the amount of $150,000 and $350,000 from the Small Business Administration (“SBA”) EIDL program administered by the SBA pursuant to the CARES Act. In accordance with the requirements of the CARES Act, the Company used the proceeds from the SBA loans primarily for working capital to alleviate economic injury caused by the COVID Pandemic occurring in the month of January 2020 and continuing thereafter. The two SBA loans are scheduled to mature on July 17, 2050 with a 3.75% interest rate and is subject to the terms and conditions applicable to loans administered by the SBA under the CARES Act. The monthly payable for the two loans, including principal and interest of $2,539 is payable over 30 years, commencing on July 17, 2022. The obligation is payable as follows: Twelve months ended June 30, | | Amount | | | | (Unaudited) | | 2023 | | $ | 30,468 | | 2024 | | | 30,468 | | 2025 | | | 30,468 | | 2026 | | | 30,468 | | 2027 | | | 30,468 | | Thereafter | | | 658,959 | | Total SBA loan payment | | | 811,299 | | Less: interest | | | (298,330 | ) | Present value of SBA loan | | | 512,969 | | Less; current portion of SBA loan | | | (30,468 | ) | Non-current portion of SBA loan | | $ | 482,501 | |
Interest expense for the three months ended June 30, 2022 and 2021 amounted to $3,594 and $1,406, respectively. Interest expense for the six months ended June 30, 2022 and 2021 amounted to $5,000 and $2,812, respectively Long term debt In March 2020, the Company purchased and financed a vehicle with a six year loan for a total of approximately $124,000. The Company traded in a fully depreciated vehicle and received a credit of $16,000. The monthly payments are $1,715 from March 2020 to February 2026, with interest at 4.56% per annum.
The obligation is payable as follows: Twelve months ended June 30, | | Amount | | | | (Unaudited) | | 2023 | | $ | 17,795 | | 2024 | | | 18,621 | | 2025 | | | 19,487 | | 2026 | | | 13,491 | | 2027 | | | - | | Total long-term debt payment | | | 69,394 | | Current portion of long-term debt | | | (17,795 | ) | Long term debt | | $ | 51,599 | |
Interest expense for the three months ended June 30, 2022 and 2021 for the above loan amounted to $822 and $1,153, respectively. Interest expense for the six months ended June 30, 2022 and 2021 for the above loan amounted to $1,693 and $2,075, respectively. Due to third party, non-interest bearing The Company has borrowed money from a third party to fund operations. This third party is a friend of the Company’s Chief Executive and Financial Officer. This advance does not bear interest, is unsecured, and is due on demand. As of June 30, 2022, the Company owed $16,667 to this third party. Due to third party, interest bearing The Company has borrowed money from a third party to fund operations. This third party is a friend of the Company’s Chief Executive and Financial Officer. This advance has an annual interest rate of 20%, is unsecured, and is due on December 31, 2022. As of June 30, 2022, the Company owed $40,000 in principal and $3,871 in accrued interest to this third party.
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