Convertible Notes and Notes Payable |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
| Convertible Notes and Notes Payable |
Note 7 – Convertible Notes and Notes Payable
Notes Payable
For all information regarding the related party note payable see note 6.
On July 9, 2021, Krypto Ventures, Inc. formerly known as KryptoBank Co. issued an unsecured promissory note in the amount of $25,000 to Lyons Capital LLC, a significant shareholder of Krypto Ventures, Inc. The note carries an interest rate of 12% and is due on the earlier of July 8, 2022 or the date on which Krypto Ventures, Inc. raises at least $200,000. As of July 29, 2021, the Company has accrued interest of $164. The note and accrued interest were deconsolidated as part of deconsolidation of Krypto Ventures, Inc. (See Notes 3). The loan balance is recorded as current convertible note payable on the balance sheet as of December 31, 2022 and December 31, 2021.
BALANCE LABS, INC. Condensed Notes to Consolidated Financial Statements As of March 31, 2023 (Unaudited)
Convertible Notes Payable
On April 1, 2016, the Company received $500,000 from Newell Trading Group in exchange for a convertible debenture due April 2, 2017 bearing interest at 10% and convertible into common stock at $.25 per share unless the note is paid by the Company prior to the election of the holder to convert. The Company recognized a beneficial conversion feature expense of $500,000 that has been fully amortized. As of December 31, 2021, accrued interest on the note is $287,671. On October 3, 2019, Newell Trading Group assigned its rights and interests in its $500,000 convertible debenture to the Sammy Farkas Foundation Inc., (the “Foundation”), a related party. The Foundation then entered into an agreement with the Company to extend the maturity date of the convertible debenture to October 10, 2024 in exchange for shares of the Company’s stock. The shares have a fair value of $56,700 which was recorded as a debt discount and amortized over the life of the extension. On November 11, 2019, The Sammy Farkas Foundation transferred all the rights and interests of the note to another party, 16th Avenue Associates. The terms remain the same and the transfer has no effect on the financial statements. During the period ended March 31, 2023 and December 31, 2022, the Company amortized $2,835 and $11,340, respectively of debt discount. The convertible note payable, net of debt discount of $17,010 and $19,845 as of March 31, 2023 and December 31, 2022 was $482,990 and $480,155, respectively, and was recorded under long term liability on the balance sheet.
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