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 December 31, 2023 and 2022, consisted of the following: SCHEDULE OF LONG-TERM DEBT December 31, December 31, 2023 2022 Current Non-current Current Non-current Loans: WTI Global Inc. (a) $ - $ - $ 170,000 $ - Collateralized Loans: Peoples United (b) - - 177,539 - M&T Bank (c) 133,072 188,121 121,927 321,192 Daimler Truck (d) 53,429 - 74,873 53,429 Ascentium Capital (e) 195,519 612,674 152,467 587,991 Balboa Capital (f) 42,829 136,604 38,895 179,433 Blue Bridge Financial (g) 11,733 39,218 10,394 50,951 Channel Equipment Finance (h) 93,818 98,230 - - Financial Pacific (i) 33,006 100,214 29,187 133,220 M2 Equipment (j) 43,099 134,940 39,527 178,039 Meridian Equipment Finance (k) 28,001 85,606 25,518 113,606 Navitas (l) 39,840 118,883 36,791 158,723 Pawnee Leasing Corp (m) 45,910 147,848 41,480 193,759 Signature Bank (n) 79,732 295,189 73,973 374,921 Trans Lease (o) 44,657 112,912 40,524 157,569 Verdant Commercial Credit (p) 47,175 122,215 44,324 169,390 Western Equipment Capital (q) 45,016 141,589 41,186 186,605 Amur Equipment Finance (r) 33,465 187,381 - - Issued prior to Titan Merger: Michaelson Capital (s) 2,307,090 - - - Loanbuilder (t) 91,096 102,916 - - Individual (u) 25,000 - - - Kabbage Loans (v) 9,344 - - - Baxter Credit Union (w) - - - - Related Parties: Titan Holdings 2 (x) 175,000 603,470 - - Titan Holdings 5 (y) 40,000 - - - Miller (z) 250,000 - - - Rizzo (aa) 65,000 - - - Total outstanding principal 3,932,831 3,228,010 1,118,605 2,858,828 Less: discounts (21,385 ) (53,325 ) (20,447 ) (73,297 ) Total notes payable 3,911,446 3,174,685 1,098,158 2,785,531 Less: Notes payable – related parties 530,000 603,470 - - Notes payable $ 3,381,446 $ 2,571,215 $ 1,098,158 $ 2,785,531 (a) On December 15, 2022, Titan Trucking entered into a $ 170,000 7 (b) On December 10, 2021, Titan Trucking entered into a collateralized loan agreement for $ 354,876 5.75 16,614 (c) Titan Trucking 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 13,000 176,497 (d) On February 12, 2018, Titan Trucking entered into a collateralized loan agreement with Daimler Trucks for $ 131,940 2,487 4.95 On June 3, 2019, Titan Trucking entered into another collateralized loan agreement with Daimler Trucks for $ 160,601 2,795 6 On June 14, 2019, Titan Trucking entered into another collateralized loan agreement with Daimler Trucks for $ 155,740 2,762 6 (e) On May 5, 2022, Titan Trucking entered into an equipment financing agreement with Ascentium Capital for $ 250,000 4,812 5.82 On May 10, 2022, Titan Trucking entered into an equipment financing agreement with Ascentium Capital for $ 259,646 4,753 3.75 On June 5, 2022, Titan Trucking entered into an equipment financing agreement with Ascentium Capital for $ 311,795 5,935 5.36 On December 25, 2023 Titan Trucking entered into an equipment financing agreement with Ascentium Capital for $ 220,202 4,742 10.58 (f) On August 13, 2022, Titan Trucking entered into a collateralized loan agreement with Balboa Capital for $ 230,482 4,860 9.68 (g) On August 11, 2022, Titan Trucking entered into an equipment finance agreement with Blue Bridge Financial for $ 64,539 1,442 12.18 (h) On September 19, 2023, Titan Trucking entered into a business advance finance agreement with Channel Equipment Finance for $ 123,574 3,051 16.69 On October 31, 2023, Titan Trucking entered into an equipment finance agreement with Channel Equipment Finance for $ 84,000 7,448 56.95 (i) On July 15, 2022, Titan Trucking entered into an equipment financing agreement with Financial Pacific for $ 74,841 1,585 9.87 On October 15, 2022, Titan Trucking entered into an additional equipment financing agreement with Financial Pacific for $ 95,127 1,906 7.49 (j) On August 10, 2022, Titan Trucking entered into an equipment financing agreement with M2 Equipment for $ 230,000 4,739 8.68 (k) On August 16, 2022, Titan Trucking entered into an equipment financing agreement with Meridian for $ 149,076 3,118 9.32 (l) On July 23, 2022, Titan Trucking entered into an equipment financing agreement with Navitas for $ 210,000 4,257 7.99 (m) On August 15, 2022, Titan Trucking entered into an equipment financing agreement with Pawnee Leasing Corp. for $ 248,157 5,296 10.19 (n) On June 22, 2022, Titan Trucking entered into a collateralized loan agreement with Signature Bank for $ 284,951 4,849 6.93 On September 15, 2022, Titan Trucking entered into a collateralized loan agreement with Signature Bank for $ 191,250 3,901 8.25 (o) On August 20, 2022, Titan Trucking entered into a collateralized loan agreement with Trans Lease, Inc. for $ 210,750 4,838 9.75 (p) On April 27, 2022, Titan Trucking entered into a collateralized debt agreement with Verdant Commercial Capital for $ 241,765 4,702 6.25 (q) On August 15, 2022, Titan Trucking entered into an equipment financing agreement with Western Equipment Capital for $ 240,726 4,989 8.93 (r) On November 8, 2023, Titan Trucking entered into an equipment financing agreement with Amur Equipment Finance for $ 223,428 5,215 14.14 Note Payables issued prior to Titan Merger: (s) On January 5, 2023, the Company completed its asset acquisition of the Recoup Digester Assets and as part of the consideration the Company paid for such assets, the Company assumed the liabilities of a 3,017,090 12 35,000 250,000 In October of 2023 the Company and Michaelson agreed to forbear the principal payments owed to Michaelson during the three months ended September 30, 2023 until October 30, 2023. On December 28, 2023 the Company and Michaelson signed a Forbearance Agreement (the “December Michaelson Amendment”) which was accounted for as a debt modification in accordance with ASC 470 – Debt The December Michaelson Amendment established a period ending on March 31, 2024 during which Michaelson agreed to forbear from exercising its rights against the Company with respect to a default. Additionally, it set the following repayment terms: 1) on or before December 31, 2023 the Company is to make a $ 125,000 principal payment, 2) on or before January 31, 2024 the Company is make a principal payment of $ 50,000 , 3) on or before March 31, 2023 the Company shall repay its remaining principal obligations to Michaelson, 4) beginning on January 2024, the Company is make three monthly interest payments of $ 22,571 , and 5) following the payment of its other obligations owed to Michaelson the company shall issue Michaelson $ 50,000 worth of preferred stock at the current offering terms and conditions. In April 2024, the Company and Michaelson agreed to extend the term of the Michaelson Note until June 30, 2024, and forbear all other terms until May 1, 2024. In exchange for such extension and forbearance, the Company agreed to: 1) pay $ 600,000 500,000 100,000 50,000 50,000 25 6.0 (t) 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 December 31, 2023, the Company has 28 remaining required monthly repayments of $ 6,046 1,545 (u) On May 16, 2022, the Company issued a $ 25,000 12 0.5 (v) 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 (w) 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: (x) On April 30, 2023, the Company signed a promissory note (the “Titan Holdings 2 Note”) with Titan Holdings 2, LLC (“Titan Holdings 2”), a stockholder of the Company. On November 10, 2023 Titan Trucking and Titan Holdings 2 agreed to a restated promissory note (together the two notes are the “Titan Holdings 2 Note”). The Titan Holdings 2 Note has a principal amount of $ 712,470 10.5 13.00 175,000 50,000 Titan has an informal agreement with Titan Holdings 2 to continually borrow from Titan Holdings 2 as working capital needs arise. These additional funds are to be repaid as funding becomes available. As of December 31, 2023, Titan had borrowed $ 66,000 (y) On December 31, 2023, the Company and a stockholder of the Company agreed to an informal agreement (the “Titan Holdings 5 Note”) to borrow funds from the stockholder as working capital needs arise. These additional funds are to be repaid as funding becomes available. As of December 31, 2023, Titan had borrowed $ 40,000 (z) On October 30, 2023, the Company and its CEO, Glen Miller, agreed to a promissory note for a principal amount of $ 250,000 10 (aa) On November 30, 2023, the Company and its COO, Jeff Rizzo, agreed to a promissory note for a principal amount of $ 65,000 10 Interest expense on these notes for the years ended December 31, 2023 and 2022 was $ 593,383 183,567 Principal maturities for the next five years and thereafter as of December 31, 2023 were as follows: SCHEDULE OF PRINCIPAL MATURITIES OF NOTES PAYABLE 2024 $ 3,932,831 2025 1,036,070 2026 861,456 2027 571,005 2028 156,009 Thereafter 603,470 Total principal payments $ 7,160,841 Less: debt discounts (74,710 ) Total notes payable $ 7,086,131 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 |