NOTES PAYABLE | NOTE 9 – NOTES PAYABLE The Company borrows funds from various creditors to finance its equipment, operations, and acquisitions. The collateralized loans below are secured by interest in the financed equipment. The Company’s notes payables balance as of June 30, 2023 and December 31, 2022 consisted of the following: SCHEDULE OF LONG-TERM DEBT June 30, December 31, 2023 2022 Current Non-current Current Non-current Loans: WTI Global Inc. (a) $ - $ - $ 170,000 $ - Collateralized Loans: Peoples United (b) 81,865 - 177,539 - M&T Bank (c) 127,377 256,112 121,927 321,192 Daimler Truck (d) 63,320 21,293 74,873 53,429 Ascentium Capital (e) 156,303 508,868 152,467 587,991 Balboa Capital (f) 40,815 158,534 38,895 179,433 Blue Bridge Financial (g) 11,043 45,263 10,394 50,951 Financial Pacific (h) 30,454 117,669 29,187 133,220 M2 Equipment (i) 41,275 156,955 39,527 178,039 Meridian Equipment (j) 26,730 99,931 25,518 113,606 Navitas (k) 38,286 139,199 36,791 158,723 Pawnee (l) 43,639 171,386 41,480 193,759 Signature (m) 76,797 335,803 73,973 374,921 Trans Lease (n) 42,540 135,783 40,524 157,569 Verdant (o) 45,727 146,170 44,324 169,390 Western Equipment (p) 43,059 164,597 41,186 186,605 Issued prior to Titan Merger: Michaelson Capital (q) 2,732,090 - - - Loanbuilder (r) 113,777 145,563 - - Individual (s) 25,000 - - - Kabbage Loans (t) 64,544 - - - Baxter Credit Union (u) 99,995 - - - Related Parties: Titan Holdings 2 (v) 653,470 - - - Total outstanding principal $ 4,558,106 $ 2,603,126 $ 1,118,605 $ 2,858,828 Less: discounts $ (25,936 ) $ (63,302 ) $ (20,447 ) $ (73,297 ) Total notes payable $ 4,532,170 $ 2,539,824 $ 1,098,158 $ 2,785,531 Less: Notes payable – related parties $ 653,470 - - - Notes payable $ 3,878,700 $ 2,539,824 $ 1,098,158 $ 2,785,531 (a) On December 15, 2022, Titan entered into a $ 170,000 7 (b) On December 10, 2021, Titan entered into a collateralized loan agreement for $ 354,876 5.75 16,614 (c) Titan entered into a collateralized loan on December 23, 2022 with M&T Bank which matures on February 23, 2025. The loan has an interest rate of 8.78 % and the Company remits monthly payments of $ 13,000 176,497 (d) On February 12, 2018, Titan entered into a collateralized loan agreement with Daimler Trucks for $ 131,940 2,487 4.95 On June 3, 2019, Titan entered into another collateralized loan agreement with Daimler Trucks for $ 160,601 2,795 6 On June 14, 2019, Titan entered into another collateralized loan agreement with Daimler Trucks for $ 155,740 2,762 6 (e) On May 5, 2022, Titan entered into an equipment financing agreement with Ascentium Capital for $ 250,000 4,812 5.82 On May 10, 2022, Titan entered into an equipment financing agreement with Ascentium Capital for $ 259,646 4,753 3.75 On June 5, 2022, Titan entered into an equipment financing agreement with Ascentium Capital for $ 311,795 5,935 5.36 (f) On August 13, 2022, Titan entered into a collateralized loan agreement with Balboa Capital for $ 230,482 4,860 9.68 (g) On August 11, 2022, Titan entered into an equipment finance agreement with Blue Bridge Financial for $ 64,539 1,442 12.18 (h) On July 15, 2022, Titan entered into an equipment financing agreement with Financial Pacific for $ 74,841 1,585 9.87 On October 15, 2022, Titan entered into an additional equipment financing agreement with Financial Pacific for $ 95,127 , which matures five years from commencement. Titan makes monthly payments of $ 1,906 towards principal and interest. Interest accrues at a rate of 7.49 % per annum. (i) On August 10, 2022, Titan entered into an equipment financing agreement with M2 Equipment for $ 230,000 4,739 8.68 (j) On August 16, 2022, Titan entered into an equipment financing agreement with Meridian for $ 149,076 3,118 9.32 (k) On July 23, 2022, Titan entered into an equipment financing agreement with Navitas for $ 210,000 4,257 7.99% (l) On August 15, 2022, Titan entered into an equipment financing agreement with Pawnee Leasing Corp. for $ 248,157 5,296 10.19% (m) On June 22, 2022, Titan entered into a collateralized loan agreement with Signature Bank for $ 284,951 4,849 6.93% On September 15, 2022, Titan entered into a collateralized loan agreement with Signature Bank for $ 191,250 3,901 8.25% (n) On August 20, 2022, Titan entered into a collateralized loan agreement with Trans Lease, Inc. for $ 210,750 4,838 9.75% (o) On April 27, 2022, Titan entered into a collateralized debt agreement with Verdant Commercial Capital for $ 241,765 4,702 6.25% (p) On August 15, 2022, Titan entered into an equipment financing agreement with Western Equipment Capital for $ 240,726 4,989 8.93% Note Payables issued prior to Titan Merger: (q) On January 5, 2023 the Company completed its asset acquisition of the Recoup Digester Assets and as part of the consideration, assumed the liabilities of a $ 3,017,090 12 35,000 250,000 (r) Between January 14, 2022 and July 6, 2022 the Company signed four loan agreements with the Loanbuilder service of Paypal, Inc (the “Loanbuilder Notes”). Three of the four Loanbuilder Notes were settled prior to May 19, 2023. The remaining note (“Loanbuilder – 3”) was in default on May 19, 2023. On May 19, 2023, the outstanding liabilities owed due to the Loanbuilder Notes was $ 299,710 50,599 On June 15, 2023, the Company agreed to settle Loanbuilder – 3. In accordance with ASC 470-60, “ Troubled Debt Restructuring by Debtors 25,299 6,325 Excluding the Loanbuilder -3 repayments, and as of June 30, 2023, the Company has 34 remaining required monthly repayments of $ 6,046 1,545 (s) On May 16, 2022, the Company issued a $ 25,000 12% 0.5% (t) On September 28, 2022 and September 29, 2022 the Company agreed to two Kabbage Funding Loan Agreements (together known as the “Kabbage Loans”) owed to American Express National Bank. The Kabbage Loans had an initial principal value of $ 120,800 77,748 4,077 3,658 35,507 (u) The Company signed a revolving loan with Baxter Credit Union, which was renewed on April 26, 2023, with a principal liability of $ 99,995 8.50% Related Parties: (v) Titan continually borrows from Titan Holdings 2, a stockholder of the Company, as working capital needs arise. The loan is due on demand and accrues interest at a rate of 10.5% Interest expense on these notes for the six and three months ended June 30, 2023 was $ 213,720 and $ 136,367 , respectively. Interest expense on these notes for the six and three months ended June 30, 2022 was $ 78,391 and $ 46,838 Principal maturities for the next five years and thereafter as of June 30, 2023 were as follows: SCHEDULE OF PRINCIPAL MATURITIES OF NOTES PAYABLE Remainder of 2023 $ 4,090,960 2024 915,197 2025 935,069 2026 747,646 2027 442,419 Thereafter 29,941 Total principal payments $ 7,161,232 Less: debt discounts (89,238 ) Total notes payable $ 7,071,994 Paycheck Protection Program Note Forgiveness Titan applied for and received loans from the Paycheck Protection Program (the “PPP”) in the amounts of $ 406,152 406,152 812,304 |