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

7. NOTES PAYABLE

 

In connection with the July 2021 acquisition of 100% of the equity of TopPop, on July 26, 2021, the Company issued to the sellers promissory notes in the aggregate principal amount of $4,900,000 (the “TopPop Notes”). The TopPop Notes bear interest at the rate of 10% per annum, matured on July 26, 2022 and are secured by all of the outstanding membership interest in TopPop. Holders of approximately $3.55 million of these notes have agreed to extend the term for 30 days and have indicated that they will not seek cash settlement prior to August 2023. The Company expects to be able get further extension of notes if needed. The Company has not received any demand for payment on any of the other notes.

 

On July 26, 2021, the Company assumed an SBA note from the acquisition of TopPop. The note bears an interest rate of 3.75% per annum and matures on January 22, 2051. 

 

As of June 30, 2022, notes payable consisted of a $150,000 SBA note and the $5,042,467 notes to former owners of TopPop.

 

The future payments on principal of notes payable are as follows:

 

Amount

 

Remainder of the year ending December 31, 2022

 

$ 5,045,466

 

Year ending December 31, 2023

 

 

3,114

 

Year ending December 31, 2024

 

 

3,233

 

Year ending December 31, 2025

 

 

3,356

 

Year ending December 31, 2026

 

 

3,484

 

Thereafter

 

 

133,814

 

Total

 

$ 5,192,467

 

 

Interest expense on these notes for the three and six months ended June 30, 2022 was $125,308 and $249,261, respectively. Interest expense on notes payable for the three and six months ended June 30, 2021 was $30,754 for both periods.