DEBT

9 Months Ended

Sep. 30, 2024

NOTE 7 – DEBT

Schedule of debt
	September 30, 2024			December 31, 2023
Note payables	$	177,500		$	100,000
Loan payable – related party		153,989			153,989
Convertible notes payable		1,727,650			2,810,250
Convertible notes payable – related party		22,000			22,000
		2,081,139			3,086,239
Debt discount		(105,679	)		(161,011	)
		1,975,460			2,925,228
Less current portion		428,819			154,154
Long term portion	$	1,546,641		$	2,771,074

The following is a schedule of debt maturity and the years in which the debt is scheduled to mature:

Schedule of debt maturity
Year		Amount
	2024		523,150
	2025		1,557,989
		$	2,081,139

Notes payable

At December 31, 2022, the Company had a note payable to a shareholder for $100,000 along with interest of $10,000. Repayment was due in January 2023. The shareholder decided to take $50,000 in cash and converted the remaining $60,000 to common stock.

At December 31, 2022, the Company had a note payable to a related party for $15,000 with an interest rate of 7%. This loan was paid off in January 2023.

In May 2023, the Company acquired certain intellectual property rights from KAM Biotechnology. The total acquisition price was $800,000 ($758,501 after discount). As of December 31, 2023, the Company has repaid the full balance.

In June 2023, the Company had a loan payable to an individual for $100,000 which was repaid in full with interest of $22,718 in September 2023. In December 2023, the Company borrowed $100,000 from the same individual and it was outstanding as of December 31, 2023. This loan does not have an expiration date and accrues interest at $250 day, of which $50 will be paid in cash and $200 in stock at $0.15 a share, when paid plus an additional $7,500 in cash. In June 2024, this individual lent another $40,000. This loan was paid off in the 3^rd quarter 2024 including $3,000 in interest.

In September 2023, a related party issued a loan to the Company for a total amount of $153,989 ($130,074 after discount at December 31, 2023). The loan is at 12.5% and is due in September of 2025. At September 30, 2024, the net after discount is $142,641.

In March 2024, the Company borrowed a total of $90,000 from an individual which consisted of two loans. During the third quarter, $40,000 of principal was paid reducing the total at September 30, 2024 to $50,000. The total interest paid as of September 30, 2024 was $6,500. The remaining loan has no expiration date and accrues interest at the rate of $125 a day.

Convertible notes payable

In 2020, the Company executed a convertible note payable with a related party for $25,000 that is unsecured, non-interest bearing and convertible into shares of common stock at $0.001. In 2023, $3,000 of this note was converted its loan into 3,000,000 shares of common stock. The note matured on September 23, 2020 and is in default.

During the year ended December 31, 2022, the Company received $1,461,000 from the issuance of thirty-two separate convertible notes payable. $1,075,000 worth of notes payable were converted into common stock in 2023. The remaining $386,000 worth of notes payable bear interest at 8% and are convertible into common stock at a range of $0.10 to $0.25 a share. These notes had a two-year maturity date when issued. As of June 30, 2024 and December 31, 2023, the balance remaining on these notes issued in December 2022 was $75,000.

During the year ended December 31, 2023, the Company raised a net of $3,971,500 in convertible notes payable. The terms were the same as the convertible notes payable issued in December 2022, with the exception of three notes, one for $69,250 incurred in January 2023 and paid off in July 2023, the second for $90,000 incurred in September 2023 and the third for $79,250 incurred in December 2023. Each of these three notes bears interest at 8% and the second and third note were payable at maturity of September 25, 2024 and December 29, 2024, respectively. The second note was convertible into common stock at issuer’s option beginning March 20, 2024 at a 35% discount off of the lowest price for the ten preceding trading days. On March 21, 2024, CETI paid $60,000 towards this loan and the remainder in April 2024. The third note had the same terms with the issuer’s option starting June 25, 2024 and was paid off in June 2024.

During the year ended December 31, 2023, the Company converted $1,178,787 of convertible notes payable, plus accrued interest, into 10,830,890 shares of common stock. As of December 31, 2023, 8,110,690 common shares remain unissued. Also, as of December 31, 2023, $2,810,250 worth of convertible notes payable remain outstanding.

During the first nine months of 2024, the Company raised a net of $1,659,000 in convertible notes payable. The terms were the same as the convertible notes payable issued in during 2023 with the exception of four notes – two for a total of $150,000 and two for a total of $173,650. For the notes totaling $150,000, these notes bear interest at 10% and were payable at maturity of September 2024. The notes are convertible into common stock at issuer’s option beginning thirty days after issuance at $0.35 share. In addition, a total of 150,000 common shares were issued in April 2024 as additional loan incentive. For the notes totaling $173,650, these notes bear interest at 8% and are paid back in installments beginning on October 30, 2024 and December 30, 2024, respectively. Both notes have an option beginning six months after issuance to be converted into common stock at a 35% discount off of the lowest price for the ten preceding trading days

During the nine months ended September 30, 2024, the Company converted $2,768,380 of convertible notes payable, plus accrued interest, into 23,495,801 shares of common stock. As of September 30, 2024, 3,620,522 common shares remain unissued. Also, as of September 30, 2024, $1,749,630 worth of convertible notes payable remain outstanding.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

Cyber Enviro-Tech, Inc. 10-Q