v3.26.1
Note 8 - Notes Payable
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Debt Disclosure [Text Block]

8. Notes Payable

 

  

March 31,

  

December 31,

  

Stated Interest

   

Effective

  

Maturity

  

2026

  

2025

  

Rate

   

Interest Rate

  

Date

                    

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

  1,249,574   1,234,353   7.5%

(1)

  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   9,750,000   5.65%

(2)

  5.65% 

6/30/2026

                    
  $10,999,574  $10,984,353            

Less current portion

  (9,750,000)  (9,750,000)           
  $1,249,574  $1,234,353            
                    

Stated maturities of debt obligations are as follows:

                   
                    

2026

 $9,750,000  $9,750,000            

2027

  -   -            

2028

  -   -            

2029

  1,249,574   1,234,353            

2030

  -   -            

2031

  -   -            

Total

 $10,999,574  $10,984,353            

 

(1) The Promissory 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 three-month period ended March 31, 2026 equaled $42,961 (2025 - $68,715).

 

(2) 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 March 31, 2026 equaled $9,750,000 (2025 - $3,000,000).  Total interest expense for the three months ended March 31, 2026 equaled $137,719 (2025 - $0).