NOTE 3                  NOTES RECEIVABLE AND ADVANCES, NET

Notes receivable and advances, net at June 30, 2024 and  December 31, 2023 include:

RenFuel K2B AB (“RenFuel”)

On January 2, 2024, the Company funded $250,000 to RenFuel for a term loan, bearing interest at 7% per annum and matured on February 15, 2024. On April 19, 2024, the Company and RenFuel entered into a securities purchase agreement in which the Company agreed to fund RenFuel in twelve tranches of $250,000 up to the aggregate principal amount of $3,000,000 for a 7% Senior Secured Convertible Note (“Senior Secured Convertible Note”). On June 27, 2024, the parties signed the Amended Agreement to the RenFuel SPA to include certain legal fees of up to $450,000, increasing the aggregate principal amount of the Senior Secured Convertible Note to $3,450,000. The full principal and 7% interest rate per annum are due on April 30, 2034. The Senior Secured Convertible Note is secured by (i) a first priority lien on all material assets of RenFuel and RenFuel K2B Ipco AB (“SPV”), senior to all other currently outstanding and hereinafter existing RenFuel indebtedness pursuant to the securities purchase agreement, (ii) a first priority security interest and lien granted by RenFuel on 100% of the issued and outstanding equity of the SPV pursuant to the securities purchase agreement, and (iii) a first priority security interest and lien on 100% of the SPV's now and hereafter existing assets pursuant to the Guaranty and securities purchase agreement. The Parties have agreed to fully satisfy the term loan by issuance of the Senior Secured Convertible Note. For the six-months ended June 30, 2024, the Company funded $580,000 to RenFuel in accordance with the Senior Secured Convertible Note. For the three and six-months ended June 30, 2024, the Company recognized interest income of $8,078 and $12,345, respectively. 

GenMat Advances

For the six-months ended June 30, 2024, the Company advanced GenMat $235,636 in cash. The remaining balance of $412,206 represents the fair value of the Company's common stock held by GenMat which will be applied against future investment in GenMat by the Company. The advances are non-interest bearing (see Note 2, Investments).