oximately 26% of total accounts receivable. As of December 31, 2023, two franchisees represented approximately 29% of total accounts receivable. For the year ended December 31, 2024, there were no concentrations in the Company's total revenues. For the years ended December 31, 2023 and 2022, one franchisee accounted for approximately 10% and 12% of the Company's total revenues, respectively.

NOTE 5. NOTES RECEIVABLE

On December 18, 2018, the Company entered into a note agreement with a direct franchisee in the amount of $400,000 to expand the territory under the direct franchisee. The agreement expires after 10 calendar years starting on January 1, 2019. At the end of each calendar year, the note is evaluated based on a revenue metric. If the metric is satisfied, one-tenth of the principal balance will be forgiven by the Company. The evaluation performed on December 31, 2022 resulted in a partial forgiveness of debt. As a result of the adoption of ASC 326, effective January 1, 2023, and management's expectation that revenue metrics will be met, a full allowance was taken against the remaining balance of this note. The loan receivable does not bear interest if the direct franchisee remains within the terms of the agreement and stated revenue metric.

On October 21, 2022, the Company entered into a note agreement with a direct franchisee in the amount of $200,000 to expand the territory under the direct franchisee. The agreement expires after three calendar years starting on January 1, 2023. At the end of each calendar year, the note is evaluated based on a revenue metric. If the metric is satisfied, one-third of the principal balance will be forgiven by the Company. As a result of the adoption of ASC 326, effective January 1, 2023, and management's expectation that revenue metrics will be partially met, a partial allowance was taken against the remaining balance of this note. The loan receivable does not bear interest if the direct franchisee remains within the terms of the agreement and stated revenue metric.

On January 31, 2023, the Company entered into a note agreement with a direct franchisee in the amount of $1,000,000 to expand the territory under the direct franchisee. The agreement had an original maturity date of January 31, 2024. On January 1, 2024, the agreement was amended to extend the maturity date to November 31, 2024. The principal amount bore interest at 10.5%, paid in full at the end of each quarter. The Company calculated interest based on the amount of days from the beginning of the year for the first payment, and the amount of days since the last payment. The total amount of interest income for the year ended December 31, 2024, amounted to $56,786. The note receivable and corresponding interest was collected during 2024.

NOTE 5. NOTES RECEIVABLE (CONTINUED)

During 2023, the Company entered into four additional Market Development note agreements with direct franchisees, totaling approximately $556,000. At the end of each calendar year, the notes are evaluated based on a revenue metric. If the metric is satisfied, a portion of the principal balance will be forgiven by the Company. A partial allowance was taken against the remaining balance of these notes. The loans receivable do not bear interest if the direct franchisee remains within the terms of the agreement and stated revenue metric.

During 2024, the Company entered into additional Market Development note agreements with direct franchisees, totaling approximately $360,000. At the end of each calendar year, the notes are evaluated based on a revenue metric. If the metric is satisfied, a portion of the principal balance will be forgiven by the Company. A partial allowance was taken against the remaining balance of these notes.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)