Note 5 – Note Receivable

On January 29, 2021, Balance Labs Inc. made a loan to Four Acquisitions Ltd., an unrelated party in the principal amount of $119,000 which loan has an interest rate of 10% per annum and a maturity date of January 28, 2022. Additionally, in connection with the loan, the Company received a 20% interest in the recently acquired business and related assets of Four Acquisitions Ltd. Initially, this investment had a fair value of $43,000, which was recorded as a discount from the note which will be amortized over the life of the note. For the three and six months ended June 30, 2021, the Company recorded $10,603 and $17,809 in accreted interest income, respectively. The remaining discount as of June 30, 2021 is $25,191. For the three and six months ended June 30, 2021, the Company recorded $2,942 and $4,931, respectively of interest income in relation to this note.