Note 5 – Note Receivable

On June 29, 2021, Balance Labs Inc. made a loan to Krypto Ventures, Inc, formerly known as 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 three and nine months ended September 30, 2021, the Company recorded $757 and $765, respectively of interest income in relation to this note. This note was converted into equity in 2021

In 2021, Balance Labs Inc. made a loan to Four Acquisitions Ltd., an unrelated party in the principal amount of $141,000 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 fair value of $43,000, which was recorded as a discount from the note which will be amortized over the life of the note. The Company recorded an allowance of 100% against this receivable.

For the three and nine months ended September 30, 2022, the Company recorded $11,244 and $8,654 in accreted interest income, respectively. The remaining discount as of September 30, 2022, is $0. For the three and nine months ended September 30, 2022, the Company recorded $5,343 and $11,244 respectively of interest income in relation to this note.