SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2024

NOTE 8 – SUBSEQUENT EVENTS

On April 10, 2024, the Company received funding from a Bridge Loan and Security Agreement (“Agreement”) entered into with Clearview Funding Group LLC (“Lender”) on March 26, 2024. Pursuant to the terms of the Agreement, the Company borrowed an aggregate of $800,000 from the Lender and is required to repay to Lender a total of $1,080,000 (“Repayment Amount”). The Repayment Amount will be made to Lender over a period of forty-eight (48) weeks on a weekly basis. The Company shall pay $7,375 per week during the first twelve weeks and $27,375 per week for the next thirty-six weeks. In connection with the Agreement, the Company has granted a security interest to Lender in certain of the Company’s assets, subject to prior security interests as more fully described in the Agreement, as collateral for the repayment of the Repayment Amount. The Company may prepay the then outstanding Repayment Amount at any time, however, if the Company seeks to repay the Repayment Amount within 120 days from April 10, 2024 the Lender has agreed to provide the Company an early prepayment discount. In connection with the Agreement, the Company agreed to issue 100,000 shares of its common stock to the Lender as a commitment fee. The proceeds received from this Agreement will be used for general corporate purposes.

On May 9, 2024, the Company entered into a $100,000 note agreement. The note requires monthly interest payments at a rate of 2% per month with the principal due at maturity on July 5, 2024. In connection with the note agreement, the Company issued a total of 100,000 warrants exercisable at $0.85 per share, as adjusted for stock splits and other adjustments. The warrants were fully vested at issuance and expire May 9, 2027.

Correlate Energy Corp. 10-Q