v3.26.1
Note 9 - Notes Payable
 12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Debt Disclosure [Text Block]

9. Notes payable

 

  

December 31,

  

December 31,

  

Stated Interest

   

Effective

 

Maturity

  

2025

  

2024

  

Rate

   

Interest Rate

 

Date

                   

Promissory note dated November 4, 2015, with semi-annual interest at 5.0%, secured by deed of trust, due December 1, 2019

  -   884,000   5.0%

(1)

  5.0%

12/1/2019

Promissory Note to Former VidaCann Shareholders, unsecured with interest accrued at 5.0%, maturity date April 1, 2025

  -   4,869,695   5.0%

(2)

  15.0%

4/1/2025

Promissory Note to La Fayette State Bank, unsecured with interest paid monthly at 10%, maturity date February 20, 2025

  -   2,927,989   10.0%

(3)

  15.0%

2/20/2025

Promissory Note to VidaCann former managers, unsecured with interest paid monthly at 7.5%, maturity date May 6, 2029

  1,234,353   1,177,722   7.5%

(4)

  15.0%

5/6/2029

Revolving Line of Credit, cash secured with monthly interest paid at an annual rate of 5.65%

  9,750,000   -   5.65%

(5)

  5.65%

6/30/2026

                   
  $10,984,353  $9,859,406           

Less current portion

  (9,750,000)  (8,681,684)          
  $1,234,353  $1,177,722           
                   

Stated maturities of debt obligations are as follows:

                  
                   

2024

 $-  $-           

2025

  -   8,681,684           

2026

  9,750,000   -           

2027

  -   -           

2028

  -   -           

2029

  1,234,353   1,177,722           

Total

 $10,984,353  $9,859,406           

 

(1) The Promisory note dated November 4, 2015 had a face value of $884,000.  The Company settled with the note holder for a parcel of land secured by the note in exchange for cancellation of the note in full and relief of all accrued interest.  Total interest expense including accrued interest for the year ended December 31, 2025 equaled $0 (2024 - $44,200).  

 

(2) The Promisory note to former VidaCann Shareholders had a face value of $5,000,000.  The Company determined a fair value of $4,632,129 at the May 9, 2024 acquisition date using a 15% estimated borrowing rate.  Total interest expense including accrued interest and amortization of the note discount for the year ended December 31, 2025 equaled $213,182 (2024 - $378,662).  This note was paid in full on April 1, 2025.

 

(3) The Promisory note to Lafayette State Bank had a face value of $2,947,632.  The Company determined a fair value of $2,862,159 at the May 9, 2024 acquisition date using a 15% estimated borrowing rate.  Total interest expense including paid and accrued interest and amortization of the note discount for the year ended December 31, 2025 equaled $84,327 (2024 - $260,658).  This note was paid in full on February 11, 2025.

 

(4) The Promisory note to VidaCann former managers had a face value of $1,500,000.  The Company determined a fair value of $1,148,423 at the May 9, 2024 acquisition date using a 15% estimated borrowing rate.  Total interest expense including paid interest and amortization of the note discount for the year ended December 31, 2025 equaled $169,119 (2024 - $98,339).  

 

(5) The Company entered into a cash secured line of credit up to $9,750,000, effective June 13, 2024, with no other collateral securing the credit line (the "revolving line of credit"). The revolving line of credit contains no financial, or other incurrence-based covenants or no material maintenance covenants. The revolving line of credit balance at December 31, 2025 equaled $9,750,000 (2024 - $0). Total interest expense for the year ended December 31, 2025 equaled $434,442 (2024 - $0).