Note 8 – Loans from Parent and Other Related Party Transactions

To fund the Company’s operations for the years ended December 31, 2022 and 2021, the former Parent advanced funds and paid expenses of InnovaQor and the Group in the amount of $918,307 and $374,473, respectively. The amounts as of December 31, 2022, and 2021 are included in Due to Former Parent and Notes Payable in the accompanying Consolidated Balance Sheets. During the year ended December 31, 2022, the former Parent converted $1,324,755 of these advances into a promissory note in the amount of $1,457,253 representing a 10% original issue discount. The loan is due on June 30, 2023. Also it provides interest at 18% per annum in the event of default.

During the year ended December 31, 2022, Ms. Hollis, the Chief Executive Officer of the Company, loaned the Company $96,100. The Company entered into promissory notes in the amount of $105,710, representing a 10% original issue discount. During the year ended December 31, 2022, $13,000 of these loans were repaid. The loans were due on September 6, 2022, and are currently in default. They provide for default interest at 18% per annum. In addition, the Company issued Ms. Hollis 25 shares of Series C-1 Preferred Stock on March 31, 2022, in connection with one of the loans. These shares of Series C-1 Preferred Stock were valued at $15,250 using the Option Price Method and the same assumptions as used to value the prior issuance of Series C-1 Preferred Stock.

During the year ended December 31, 2022, Alcimede Limited loaned the Company $32,500. Seamus Lagan, the Chief Executive Officer of Rennova, is the sole director of Alcimede Limited, this amount is due on demand. The Company entered into a promissory note in the amount of $35,750, representing a 10% original issue discount. During the year ended December 31, 2022, $12,554 of this loan were repaid, the loan is due on December 5, 2022 and are currently in default. Also, it provides for default interest at 18% per annum.

The above amounts are not indicative of what third parties would have agreed to.

Related Parties Revenue

Included in net revenues for the years ended December 31, 2022 and 2021 is $191,517 and $237,551, respectively, of related party revenue with Rennova (the former parent).

The Group has incurred certain costs that have been allocated from Rennova. Included in the Consolidated Statements of Operations are the following allocated costs:

 Schedule of Allocated Costs