Convertible Notes Payable and Other Related Party Notes Payable

6 Months Ended

Jun. 30, 2021

Convertible Notes Payable and Other Related Party Notes Payable

6. Convertible Notes Payable and Other Related Party Notes Payable

Convertible Notes Payable and Other Related Party Notes Payable. As of December 31, 2020, the amount of convertible and non-convertible debt principal, on the Company’s balance sheet was $953,001. The total balance of the principal for convertible and other non-convertible promissory notes as of June 30, 2021, is $1,711,421. This amount consisted of the following convertible and other non-convertible promissory notes payable to Dr. Stephen T. Chen, who resigned as Chairman of the Board, President, and Board director April 15, 2021, i2China Management Group LLC, a management consultant, and Ainos KY, as shown in the table below.

Note #.	Conversion Rate		Interest Rate			June 30, 2021		December 31, 2020
Note 1 - Chen	$	0.1680		0.75	%	$	114,026	$	114,026
Note 2 - Chen	$	0.1875		0.65	%	$	262,500	$	262,500
Note 3.19 - Chen	$	0.25		1.85	%	$	39,620	$	39,620
Note 4.19 - Chen	$	0.25		1.61	%	$	14,879	$	14,879
Note 5.19 – i2China	$	0.25		1.85	%	$	16,000	$	16,000
Note 6.20 - Chen	$	0.25		1.85	%	$	216,600	$	216,600
Note 7.20 - Chen	$	0.25		1.60	%	$	23,366	$	23,366
Note 8.20a – i2China	$	0.25		1.85	%	$	48,000	$	48,000
Note 8.20b – i2China		N/A		1.85	%	$	84,000	$	84,000
Note 9.21 - Chen		N/A		0.13	%	$	279,405	$	134,010
Note 10.21 – Chen	$	0.25		1.85	%	$	59,025		-
Note 11 – i2China	$	0.25		1.85	%	$	37,000		-
Note 11.21 – Chen	$	0.25		1.85	%	$	10,000		-
Note 12.21 - AinosKY	$	0.20		1.85	%	$	15,000		-
Note 13.21 - AinosKY	$	0.20		1.85	%	$	20,000		-
Note 14.21 - AinosKY	$	0.20		1.85	%	$	30,000		-
Note 15.21 - AinosKY	$	0.20		1.85	%	$	35,000		-
Note 16.21 - AinosKY	$	0.20		1.85	%	$	300,000		-
Note 17.21 - AinosKY	$	0.20		1.85	%	$	107,000		-
Total Notes Payable Principal– Related Party and Others						$	1,711,421	$	953,001

Dr. Stephen T. Chen and i2China Management Group, LLC elected to defer cash compensation during a period of development and fundraising. The parties received both convertible and non-convertible promissory notes in consideration of the deferrals. Ainos KY provided working capital to the Company and received convertible promissory notes in consideration of the working capital loans.

On January 1, 2021, the Company issued Note #10.21 for deferred compensation to Dr. Stephen T. Chen in the amount of $59,025. The Note is payable on April 1, 2021, or on demand and bears interest at the AFR short-term rate of 1.85% up to maturity, then an annual interest rate of 10.00% per annum upon maturity. The note is an advancing note with a maximum limit of $59,025 whereby the Company promises to repay the aggregate Principal Amount advanced to date up to the stated maximum amount at Maturity. The Company may request and the payee shall advance up to $9,025 on the 15th and last day of each month until the note matures. The Note may be convertible in whole or in part at a conversion price of $0.25 per share into the Company’s common voting stock.

On January 1, 2021, the Company issued Note #11 for deferred compensation to i2China Management Group, LLC in the amount of $37,000. The Note is payable on April 1, 2021, or on demand and bears interest at the AFR short-term rate of 1.85% up to maturity, then an annual interest rate of 10.00% per annum upon maturity. The note is an advancing note with a maximum limit of $37,000 whereby the Company promises to repay the aggregate Principal Amount advanced to date up to the stated maximum amount at Maturity. The Company may request and the payee shall advance up to $11,000 on the last day of each month until the note matures. The Note may be convertible in whole or in part at a conversion price of $0.25 per share.

On April 1, 2021, the Company issued Note #11.21 for deferred compensation to Dr. Stephen T. Chen in the amount of $18,050. The Note is payable on May 1, 2021, or on demand and bears interest at the AFR short-term rate of 1.85% up to maturity, then an annual interest rate of 10.00% per annum upon maturity. The note is an advancing note with a maximum limit of $18,050 whereby the Company promises to repay the aggregate Principal Amount advanced to date up to the stated maximum amount at Maturity. The Company may request and the payee shall advance up to $9,025 on the 15th and last day of each month until the note matures. The Note may be convertible in whole or in part at a conversion price of $0.25 per share into the Company’s common voting stock.

On April 27, 2021, the Company issued Note #12.21 for a short-term loan for working capital purposes from Ainos KY in the amount of $15,000. The Note is payable on October 27, 2021, or on demand and bears interest at the AFR short-term rate of 1.85%. The note has a maximum limit of $15,000 whereby the Company promises to repay the aggregate Principal Amount to date up to the stated maximum amount at Maturity. The Note may be convertible in whole or in part at a conversion price of $0.20 per share.

On May 5, 2021, the Company issued Note #13.21 for a short-term loan for working capital purposes from Ainos KY in the amount of $20,000. The Note is payable on November 5, 2021, or on demand and bears interest at the AFR short-term rate of 1.85%. The note has a maximum limit of $20,000 whereby the Company promises to repay the aggregate Principal Amount to date up to the stated maximum amount at Maturity. The Note may be convertible in whole or in part at a conversion price of $0.20 per share.

On May 25, 2021, the Company issued Note #14.21 for a short-term loan for working capital purposes from Ainos KY in the amount of $30,000. The Note is payable on November 25, 2021, or on demand and bears interest at the AFR short-term rate of 1.85%. The note has a maximum limit of $30,000 whereby the Company promises to repay the aggregate Principal Amount to date up to the stated maximum amount at Maturity. The Note may be convertible in whole or in part at a conversion price of $0.20 per share.

On May 28, 2021, the Company issued Note #15.21 for a short-term loan for working capital purposes from Ainos KY in the amount of $35,000. The Note is payable on November 28, 2021, or on demand and bears interest at the AFR short-term rate of 1.85%. The note has a maximum limit of $35,000 whereby the Company promises to repay the aggregate Principal Amount to date up to the stated maximum amount at Maturity. The Note may be convertible in whole or in part at a conversion price of $0.20 per share.

On June 9, 2021, the Company issued Note #16.21 for a short-term loan for working capital purposes from Ainos KY in the amount of $300,000. The Note is payable on December 9, 2021, or on demand and bears interest at the AFR short-term rate of 1.85%. The note has a maximum limit of $300,000 whereby the Company promises to repay the aggregate Principal Amount to date up to the stated maximum amount at Maturity. The Note may be convertible in whole or in part at a conversion price of $0.20 per share.

On June 21, 2021, the Company issued Note #17.21 for a short-term loan for working capital purposes from Ainos KY in the amount of $107,000. The Note is payable on December 21, 2021, or on demand and bears interest at the AFR short-term rate of 1.85%. The note has a maximum limit of $107,000 whereby the Company promises to repay the aggregate Principal Amount to date up to the stated maximum amount at Maturity. The Note may be convertible in whole or in part at a conversion price of $0.20 per share.

All of the aforementioned convertible and non-convertible promissory notes are un-secured and are due on demand. All shares issued on conversion are to be restricted subject to Rule 144 promulgated under the U.S. Securities Act of 1933. The Company may prepay the notes in whole or in part at any time without penalty. The promissory notes due to Dr. Stephen T. Chen and Ainos KY are related party notes.