Note 8. Asset-based loan

The Company is party to a recourse loan and security agreement with an unrelated lender whereby the lender will provide loans secured by certain accounts receivable for up to 90% of the face amount, which is paid to the Company in the form of a cash advance. The Company has a revolving line-of-credit for $2 million with a loan interest rate of 15.2% annum on outstanding balances. Additionally, in the event of default the Lender at its option can increase the loan interest rate by 5% per annum for each month or partial month default on outstanding balances. Under the loan and security agreement, the Company must pay back any invoices that become uncollectable. As of June 30, 2023 and December 31, 2022, the asset-based loan was $216,382 and $502,349, respectively. For the six months ended June 30, 2023 and 2022, the costs and interest incurred by the Company in connection with the loan and security agreement activities were $79,567 and $0, respectively.