NOTES AND LOANS PAYABLE |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NOTES AND LOANS PAYABLE | 7. NOTES AND LOANS PAYABLE
The following table summarizes the components of our short-term borrowings:
(a) Term loans
Prior to 2023, the Company entered into term loans with third parties at an interest rate of 5% per annum, for which certain of these adjusted to 10% upon default. These notes total $146,195 and are past due.
During the first quarter ended March 31, 2025, the Company entered into a term loan agreement with a third party for $60,300, which includes interest of $15,300 and weekly payments of $1,160 over the next 52 payment periods.
(b) Line of Credit
The Company had a revolving line of credit with an accredited investor for up to $500,000, which is no longer active.
The line boar interest of 8.5%. As of June 30, 2025, the facility had a residual balance is $7,000.
(c) Line of Credit – Converted to Term Loan
The Company also has an unsecured line of credit, guaranteed by its CEO, with its business bank, Union Bank, whereby funds can be borrowed at a revolving adjustable rate of 2 points over prime, currently 8.25%, with a maximum borrowing amount of $100,000. The balance at June 30, 2025 and December 31, 2024 was $69,881 and $78,642, respectively, with $0 having been borrowed and $7,493 paid back during June 30, 2025. This line of credit has been converted to a term loan with a fixed monthly payment schedule, with no additional line available.
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