| DEBT |
NOTE
11 – DEBT
Debt
as of December 31, 2022, and 2021 was comprised of the following:
SCHEDULE OF DEBT
| |
|
December
31, |
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|
December
31, |
|
| |
|
2022 |
|
|
2021 |
|
| PAYROLL PROTECTION PROGRAM |
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|
|
|
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| |
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| Under the Small
Business Administration (“SBA”), the Company applied for the Paycheck Protection Program (“PPP”) loan. These
loans are forgiven if used for payroll, payroll benefits, including health insurance and retirement plans, as well as certain rent
payments, leases, and utility payments, which are limited to 40% of the loan proceeds, all of which if paid within either 8 weeks
or 24 weeks of the receipt of the loan proceeds. At the time of this filing, the loans were forgiven by the SBA and recorded as a gain on debt extinguishment. |
|
$ |
- |
|
|
$ |
96,600 |
|
| |
|
|
|
|
|
|
|
|
| SHORT TERM NOTES |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Secured short term note
payable dated October 13, 2017 with principal and interest due 60 days from issuance. The note requires a one-time fee in the amount
of $4,000 to compensate for the first two weeks of the term and each week thereafter (weeks 3-8) a fee of $400 shall be due and owing
accruing on the first day of the week. The total one-time fee paid was $6,400 and was recorded as interest. A fee of 40,000 shares
of restricted common stock shall be issued as a penalty for each month or prorated for any two-week portion of any month the note
is outstanding past the original maturity date for months 3 through 6, and a fee of 80,000 shares of restricted common stock shall
be issued to lender for each month or prorated for each two-week portion of any month the note is outstanding past the original maturity
date beginning in month 7 until paid in full. The note is secured by the future sale of CoronaLux units and a personal guarantee
of an officer of the Company. The penalty period for shares to be issued has been reached, however, the debt holder agreed to a reduction
and a fixed amount of penalty shares in 2018, as issuable under the terms of this agreement. No additional shares will be issued
by the Company. The reduction of penalty shares was accounted for as debt extinguishment and a gain was recorded in 2018. No
interest accrues on the unpaid balance. |
|
|
100,000 |
|
|
|
100,000 |
|
| |
|
|
|
|
|
|
|
|
| Secured short term note
payable dated November 6, 2017 with principal and interest due 60 days from issuance. The note requires a one-time fee in the amount
of $5,000 to compensate for the first two weeks of the term and each week thereafter (weeks 3-8) a fee of $400 shall be due and owing
accruing on the first day of the week. The total one-time fee paid was $7,400 and was recorded as interest. A fee of 50,000 shares
of restricted common stock shall be issued as a penalty for each month or prorated for any two-week portion of any month the note
is outstanding past the original maturity date for months 3 through 6, and a fee of 100,000 shares of restricted common stock shall
be issued to lender for each month or prorated for each two-week portion of any month the note is outstanding past the original maturity
date beginning in month 7 until paid in full. The note is secured by the future sale of CoronaLux units and a personal guarantee
of an officer of the Company. The penalty period for shares to be issued has been reached, however, the debt holder agreed to a reduced
and fixed amount of penalty shares during 2018. No additional shares will be issued by the Company. The reduction of penalty shares
was accounted for as debt extinguishment and a gain was recorded in 2018. No interest accrues on the unpaid balance. |
|
|
125,000 |
|
|
|
125,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable dated November
20, 2017, interest at 30% per annum, principal and accrued interest due on or before February 28, 2018. The note is unsecured. During
2018, a verbal agreement was made to allow month-to-month extension of the due date as long as interest payments were made monthly.
The Company made interest payments totaling $84,100 of which $37,726 of interest and principal reduction of $1,900 was paid by the
issuance of 140,000 shares of common stock during 2018 and the note holder has continued to extend the due date. Unpaid interest
at December 31, 2022 is approximately $375,700. |
|
|
297,000 |
|
|
|
298,100 |
|
| Secured short
term note payable dated February 1, 2019 with principal and interest due 90 days from issuance. The note requires a one-time fee
in the amount of $15,000 to compensate for the first two weeks of the term and each week thereafter (weeks 3-12) a fee of $1,500
shall be due and owing accruing on the first day of the week. The total one-time fee totals $30,000 and was recorded as interest.
A fee of 50,000 shares of restricted common stock shall be issued as a penalty for each month or prorated for any two-week portion
of any month the note is outstanding past the original maturity date for months 4 through 6, and a fee of 100,000 shares of restricted
common stock shall be issued to lender for each month or prorated for each two-week portion of any month the note is outstanding
past the original maturity date beginning in month 7 until paid in full. The note is secured by the future sale of any and all PelleChar
products and a personal guarantee of an officer of the Company. The penalty period for shares to be issued has been reached, and
the maximum agreed common shares have been accrued, and has been recorded as interest expense in prior periods. Unpaid one-time fees
at December 31, 2022 is approximately $30,000. |
|
|
500,000 |
|
|
|
500,000 |
|
| |
|
|
|
|
|
|
|
|
| Secured short term note
payable dated July 2, 2019 with principal and interest due 60 days from issuance. The note requires a one-time issuance of 500,000
options, which the company recorded the fair value of $37,300 as debt discount, amortized over the life of the note. The note accrues
interest at 12% annually. The note is past due as the date of this filing. The Company has not received notice from the lender and
continue to accrue interest. For the year ended December 31, 2022, the Company recorded interest expense of $12,000. Unpaid interest
at December 31, 2022 is approximately $30,000. |
|
|
100,000 |
|
|
|
100,000 |
|
| |
|
|
|
|
|
|
|
|
| Secured short term note
payable dated July 18, 2019 with principal and interest due 60 days from issuance. The note requires a one-time fee in the amount
of $5,000 to compensate for the first two weeks of the term and each week thereafter (weeks 3-12) a fee of $500 shall be due and
owing accruing on the first day of the week and was recorded as interest. A fee of 15,000 shares of restricted common stock shall
be issued as a penalty for each month or prorated for any two-week portion of any month the note is outstanding past the original
maturity date for months 3 through 6, and a fee of 30,000 shares of restricted common stock shall be issued to lender for each month
or prorated for each two-week portion of any month the note is outstanding past the original maturity date beginning in month 7 until
paid in full. The note is secured by the future sale of any and all MV Technology, LLC products. The penalty period for shares to
be issued has been reached, and the maximum agreed common shares have been accrued, and has been recorded as interest expense in
prior periods. Unpaid interest at December 31, 2022 is approximately $10,000. |
|
|
150,000 |
|
|
|
150,000 |
|
| |
|
|
|
|
|
|
|
|
| Secured short term note
payable dated October 17, 2019 with principal and interest due 6 months from issuance. On April 24, 2020, this note was extended
to October 15, 2020. The note requires a one-time issuance of 200,000 common shares of the Company upon the maturity date of the
note, which the company recorded the fair value of $13,000 as debt discount, amortized over the life of the note. The note extension
requires a one-time issuance of 200,000 common shares of the Company upon the extended maturity date of the note, which the company
recorded the fair value of $20,000 as debt discount, amortized over the life of the note. On November 3, 2020, this note
was extended to October 15, 2021. The note is past due as the date of this filing. The note accrues interest at 15% annually. For
the year ended December 31, 2022, the Company recorded interest expense of $45,000. Unpaid interest at December 31, 2022 is approximately
$144,500. |
|
|
300,000 |
|
|
|
300,000 |
|
| |
|
|
|
|
|
|
|
|
| Secured short term note
payable dated December 14, 2019 with principal and interest due 6 months from issuance. The note requires a one-time issuance of
250,000 common shares of the Company upon the maturity date of the note, which the company recorded the fair value of $16,300 as
debt discount, amortized over the life of the note. The note accrues interest at 15% annually. The note is past due as the date of
this filing. For the year ended December 31, 2022, the Company recorded interest expense of $67,500. Unpaid interest at December
31, 2022 is approximately $205,800. |
|
|
450,000 |
|
|
|
450,000 |
|
| |
|
|
|
|
|
|
|
|
|
Secured short term note
payable dated October 1, 2019. The note accrues interest at 6%
annually. The note’s principal is to be paid in twelve
monthly installments commencing on January 15,
2020. In 2021, an extension was negotiated with the lender. In 2022 the lender’s note balance of $50m800 and $15,400 of accrued interest
was paid by the repurchase of units the Company held in the lender.
|
|
|
- |
|
|
|
50,800 |
|
| Secured short term note payable
dated March 16, 2020, maturing on March 15, 2021. The note bears annual simple interest, at a rate of 14%, and matures
on March 15, 2021. The Lender receives a one-time option grant to purchase 60,000 shares of the Company’s common stock for
$0.10 per share for a period of 3 years from grant date, on the maturity date, with payment of principal and interest. These
options were value at approximately $3,500, and are recorded as debt discount, and amortized over the life of the loan. The
note is past due as the date of this filing. For the year ended December 31, 2022, the Company recorded interest expense of $14,000,
and $800 of interest related to debt discount. Unpaid interest at December 31, 2022 is approximately $39,100. |
|
|
100,000 |
|
|
|
100,000 |
|
| |
|
|
|
|
|
|
|
|
| Secured short term note payable dated March
17, 2020, maturing on March 16, 2021. The note bears annual simple interest, at a rate of 14%. The Lender receives a one-time option
grant to purchase 30,000 shares of the Company’s common stock for $0.10 per share for a period of 3 years from grant date,
on the maturity date, on the maturity date, with payment of principal and interest. These options were value
at approximately $2,000, and are recorded as debt discount, and amortized over the life of the loan. The note is past
due as the date of this filing. For the year ended December 31, 2022, the Company recorded interest expense of $7,000. Unpaid interest
at December 31, 2022 is approximately $19,500. |
|
|
50,000 |
|
|
|
50,000 |
|
| |
|
|
|
|
|
|
|
|
| Secured short term note payable dated July
8, 2020, maturing on December 7, 2020, bearing annual simple interest at a rate of 15%. The note requires a one-time issuance
of 200,000 common shares of the Company upon the maturity date of the note, which the company recorded the fair value of $11,300
as debt discount, amortized over the life of the note. The note is past due as the date of this filing. For the year ended
December 31 2022, the Company recorded interest expense of $33,000. Unpaid interest at December 31, 2022 is approximately
$81,900 |
|
|
220,000 |
|
|
|
220,000 |
|
| |
|
|
|
|
|
|
|
|
| Unsecured short term note payable dated
August 18, 2020, maturing on November 17, 2020, bearing annual simple interest at a rate of 15%. The note is past due
as the date of this filing. For theyear ended December 31, 2022, the Company recorded interest expense of $18,000. Unpaid
interest at December 31, 2022 is approximately $42,600. |
|
|
120,000 |
|
|
|
120,000 |
|
| |
|
|
|
|
|
|
|
|
| Secured short term note payable dated September
3, 2020, maturing on December 4, 2020, bearing annual simple interest at a rate of 15%. The note is past due as the date
of this filing. For the year ended December 31, 2022, the Company recorded interest expense of $42,000. Unpaid interest
at December 31, 2022 is approximately $97,700. |
|
|
280,000 |
|
|
|
280,000 |
|
| |
|
|
|
|
|
|
|
|
| A secured note payable of $500,000
dated August 15, 2022, secured by net revenue from sale of any and all MV Technology products, bearomg interest at an annual
rate of 10%
simple interest and matures on August 15, 2023. Monthly payments of $25,000
a month on the last day of the third month and continue in months four and five. At the end of the sixth month monthly payments in
the amount of $50,000
and continue until the end month twelve at which time all outstanding principal and interest shall be due. For the year ended
December 31, 2022 the company recorded interest expense of $18,800. Unpaid interest at December 31, 2022 was approximately $18,800. |
|
|
500,000 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| An unsecured note of $100,000
payable, dated July 20, 2022, interest at an annual rate of 8%
payable on or before July 19, 2023. For the year ended December 31, 2022 the Copmany recorded interest expense of $3,600. Unpaid
interest at December 31, 2022 was approximately $3,600. |
|
|
100,000 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| Secured short term note payable dated November 17, 2022, interest at an annual rate of 12% payable on or before February
17, 2023. Unpaid interest at December 31, 2022 was approximately $5,000. |
|
|
125,000 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| Total Short-term notes |
|
$ |
3,517,000 |
|
|
$ |
2,843,900 |
|
| Secured short term note payable dated August
21, 2019 with principal and interest due 60 days from issuance. The note requires a one-time fee in the amount of $4,150 to compensate
for the first two weeks of the term and each week thereafter (weeks 3-8) a fee of $415 shall be due and owing accruing on the first
day of the week, after which the fee is $600 per week, which is recorded as interest expense. The note is from a family member of
the CEO, and thus classified as a related party note. For the year ended December 31, 2021, the Company recorded interest expense
of $28,800. Unpaid interest as of December 31, 2021 is approximately $55,200. |
|
|
125,000 |
|
|
|
125,000 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Total short-term
notes - related party |
|
$ |
125,000 |
|
|
$ |
125,000 |
|
| |
|
|
|
|
|
|
|
|
| Convertible notes payable, interest at 8%
per annum, unpaid principal and interest maturing 3 years from note date between August 2018 and October 2019, convertible into common
stock at the option of the lenders at a rate of $0.70 per share; one convertible note for $250,000 has a personal guarantee of an
officer of the Company. The notes that matured in August 2018, were subsequently extended by one year to August 2019, all other terms
remained the same. The note that matured November 2018 was subsequently extended to May 2019 and the interest rate increased to 13%
per annum. No default notice has been received from the noteholders. For the year ended December 31, 2022, the Company recorded interest
expense of $155,300. Unpaid interest at December 31, 2022 is approximately $666,700. |
|
$ |
1,605,000 |
|
|
$ |
1,605,000 |
|
| |
|
|
|
|
|
|
|
|
| Total convertible notes |
|
|
1,605,000 |
|
|
|
1,605,000 |
|
| Less: current
portion |
|
|
(1,605,000 |
) |
|
|
(1,605,000 |
) |
| Long term convertible
notes, including debt discount |
|
$ |
- |
|
|
$ |
- |
|
| LONG TERM NOTES |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Note payable dated July 13,
2018, interest at 20% per annum, payable July 13, 2021. No monthly payments are due for the first six months, commencing in month
seven, principal and accrued interest will be amortized and payable over the remaining 30 months. Monthly payments of principal and
accrued interest did not commence in 2019. The note is secured by all assets of SEM and personally guaranteed by an officer of the
Company. A fee of 200,000 shares of restricted common stock was issuable at the time of funding. During the year ended December 31,
2018, the Company recorded 200,000 shares of its common stock as issuable under the terms of this agreement. The shares were valued
at $44,000 recorded as debt discount. For the year ended December 31, 2022, the Company recorded interest expense of $100,000. Unpaid
interest at December 31, 2022 was approximately $446,600. |
|
$ |
500,000 |
|
|
$ |
500,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable dated April 2020, interest
at 6.8% per annum, secured by a piece of heavy equipment, of which the borrowing was used to purchase. Forty-eight monthly payments
of principal and accrued interest of $2,400, commence on April 17, 2020. For the year ended December 31, 2022, the Company recorded
interest expense of $2,600. |
|
|
34,600 |
|
|
|
60,200 |
|
| |
|
|
|
|
|
|
|
|
| Note payable dated January 19, 2021, interest
at an annual rate of 8% simple interest and matures on January 18, 2026. This note is included as part of a series of anticipated
notes, all of which will be converted into common equity of Paragon Waste Services, LLC., in accordance with the note’s provisions.
For the year ended December 31, 2022, the Company recorded interest expense of $12,000 Unpaid interest at December 31, 2022 was approximately
$23,400 |
|
|
150,000 |
|
|
|
150,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable dated February 2, 2021, interest
at an annual rate of 8% simple interest and matures on January 18, 2026. This note is included as part of a series of anticipated
notes, all of which will be converted into common equity of Paragon Waste Services, LLC., in accordance with the note’s provisions.
For the year ended December 31, 2022, the Company recorded interest expense of $40,000. Unpaid interest at December 31, 2021 was
approximately $76,400. |
|
|
500,000 |
|
|
|
500,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable dated May 25, 2021, interest
at an annual rate of 8% simple interest and matures on January 18, 2026. This note is included as part of a series of anticipated
notes, all of which will be converted into common equity of Paragon Waste Services, LLC., in accordance with the note’s provisions.
For the year ended December 31, 2022, the Company recorded interest expense of $14,800. Unpaid interest at December 31, 2022 was
approximately $23,300. |
|
|
185,000 |
|
|
|
185,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable dated August 5, 2021, interest
at an annual rate of 8% simple interest and matures on January 18, 2026. This note is included as part of a series of anticipated
notes, all of which will be converted into common equity of Paragon Waste Services, LLC., in accordance with the note’s provisions.
For the year ended December 31, 2022, the Company recorded interest expense of $40,000. Unpaid interest at December 31, 2022 was
approximately $55,900. |
|
|
500,000 |
|
|
|
500,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable dated November 2, 2021, interest
at an annual rate of 8% simple interest and matures on January 18, 2026. This note is included as part of a series of anticipated
notes, all of which will be converted into common equity of Paragon Waste Services, LLC., in accordance with the note’s provisions.
For the year ended December 31, 2022, the Company recorded interest expense of $20,000. Unpaid interest at December 31, 2021 was
approximately $23,300. |
|
|
250,000 |
|
|
|
250,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable of $250,000 dated February
11, 2022, interest at an annual rate of 8% simple interest and matures on February 10, 2027. This note is included as part of a series
of anticipated notes, all of which will be converted into common equity of Paragon Waste Services, LLC. (Note 1), in accordance with
the note’s provisions. For the year ended December 31, 2022, the Company recorded interest expense of $17,800. Unpaid interest
at December 31, 2022 was approximately $17,800. |
|
|
250,000 |
|
|
|
- |
|
| Other |
|
|
10,800
|
|
|
|
|
|
| Total long-term notes |
|
|
2,380,400 |
|
|
|
2,145,200 |
|
| Less: current portion |
|
|
(531,300 |
) |
|
|
(525,600 |
) |
| Long term notes, long-term, including debt discount |
|
$ |
1,849,100 |
|
|
$ |
1,619,600 |
|
Debt
maturities as of December 31, 2022, are as follows:
SCHEDULE
OF DEBT MATURITIES
| Year Ending
December 31, |
|
|
|
| 2022(Past Due) |
|
$ |
3,290,300 |
|
| 2023 |
|
|
759,500 |
|
| 2024 |
|
|
11,400 |
|
| 2025 |
|
|
1,200 |
|
| 2026 |
|
|
1,835,000 |
|
| Thereafter |
|
|
- |
|
| |
|
|
|
|
|
Debt
maturities
|
|
$ |
5,897,400 |
|
|