Note 6 – Note Receivable

On September 30, 2021, Balance Labs Inc. made a loan to Four Acquisition, Ltd., an unrelated party in the principal amount of $22,000 which loan has an interest rate of 10% per annum and a maturity date of September 30, 2022. For the three and six months ended June 30, 2022, the Company recorded $549 and $1,091 of interest income in relation to this note.

On June 29, 2021, Balance Labs Inc. made a loan to Descrypto Holdings, Inc. formerly known as Krypto Ventures, Inc, and KryptoBank Co., a related party in the principal amount of $25,000 which loan has an interest rate of 12% per annum and a maturity date of June 28, 2022. For the six months ended June 30, 2022, the Company recorded $698 of interest income in relation to this note. On April 1, 2022, the note receivable and interest receivable totalling $27,218 were converted into 68,045 shares of common stock of Descrypto Holdings, Inc. common stock (See Notes 3 and 5).

BALANCE LABS, INC. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

As of June 30, 2022

(Unaudited)

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 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 purchase price of $43,000, which was recorded as a discount from the note which will be amortized over the life of the note. The note is currently in default.

For the three and six months ended June 30, 2022, the Company recorded $0 and $3,308 in accreted interest income in relation to this note. The remaining discount as of June 30, 2022 is $0. For the three and six months ended June 30, 2022, the Company recorded $2,967 and $5,901 of interest income in relation to this note.