Convertible Notes Payable and Other Related Party Notes Payable

9 Months Ended

Sep. 30, 2021

Convertible Notes Payable and Other Related Party Notes Payable

6. Convertible Notes Payable and Other Related Party Notes Payable

6. Convertible Notes Payable and Other Related Party Notes Payable. As of September 30, 2021 and December 31, 2020, the amount of convertible and non-convertible debt principal was $2,185,953 and $953,001, respectively. The details of the convertible and other non-convertible promissory notes payable are shown in the table below.

			Annual Interest Rate				Unpaid Principal Balance
No#	Effective Date	Due Date	From Effective	Following Maturity	Payee	Issuing Purpose	Sep 30, 2021	Dec 31, 2020
Payee: Dr. Stephen T. Chen, resigned as Chairman of the Board, President, and Board director April 15, 2021
#1.16	2016/01/30	Payable on demand	0.75%	NA	Stephen Chen	working capital	114,026	114,026
#2.16	2016/03/18	Payable on demand	0.65%	NA	Stephen Chen	working capital	262,500	262,500
#3.19	2019/09/01	2020/09/01	1.85%	10%	Stephen Chen	salary	39,392	39,620
#4.19	2019/12/01	2020/12/31	1.61%	10%	Stephen Chen	working capital	14,879	14,879
#6.20	2020/01/01	2021/01/01	1.85%	10%	Stephen Chen	salary	216,600	216,600
#7.20	2020/01/01	2021/01/02	1.60%	10%	Stephen Chen	working capital	23,366	23,366
#9.20	2020/01/01	2021/04/14	0.13%	10%	Stephen Chen	working capital	279,405	134,010
#10.21	2021/01/01	2021/04/01	1.85%	10%	Stephen Chen	salary	59,025
#11.21	2021/04/01	2021/05/01	1.85%	10%	Stephen Chen	salary	10,000
							1,019,193	805,001
Payee: Ainos KY, an affiliated company
#12.21	2021/04/27	2021/10/27	1.85%	NA	Ainos KY	working capital	15,000
#13.21	2021/05/05	2021/11/05	1.85%	NA	Ainos KY	working capital	20,000
#14.21	2021/05/25	2021/11/25	1.85%	NA	Ainos KY	working capital	30,000
#15.21	2021/05/28	2021/11/28	1.85%	NA	Ainos KY	working capital	35,000
#16.21	2021/06/09	2021/12/09	1.85%	NA	Ainos KY	working capital	300,000
#17.21	2021/06/21	2021/12/21	1.85%	NA	Ainos KY	working capital	107,000
#18.21	2021/07/02	2022/01/02	1.85%	NA	Ainos KY	working capital	54,000
#19.21	2021/09/01	2021/03/01	1.85%	NA	Ainos KY	working capital	120,000
#20.21	2021/09/28	2021/03/28	1.85%	NA	Ainos KY	working capital	300,000
							981,000	0
			Convertible and other notes payable- related parties				2,000,193	805,001
Payee: i2China Management Group LLC, a management consultant
#5.19	2019/09/01	2020/09/01	1.85%	10%	i2China	consulting fee	16,000	16,000
#8a.20	2020/01/01	2021/01/01	1.85%	10%	i2China	consulting fee	48,000	48,000
#8b.20	Retroactive from 2020/01/01	2021/01/01	1.85%	10%	i2China	consulting fee	84,000	84,000
#11.21	2021/01/01	2021/04/01	1.85%	10%	i2China	consulting fee	37,000
			Convertible and other notes payable				185,000	148,000
			Total Convertible and other notes payable				2,185,193	953,001

All of the aforementioned convertible and non-convertible promissory notes are unsecured and due on demand. All shares issued upon conversion are restricted and subject to Rule 144 promulgated under the U.S. Securities Act of 1933 (the “Securities Act”); subject to any exemptions or exclusions under the Act. 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.

i2China Management Group, LLC (“i2China”) and Dr. Stephen T. Chen (together the “Payees”), have both agreed to waive any and all rights pertaining to the conditional term “Annual Interest Rate on Matured, Unpaid Amounts: 10% per annum, compounded annually of Convertible Notes” in regards to interest charged on any unpaid amounts following maturity for all of their respective notes. The Company and the Payees agree that the originally agreed annual interest rate will continue to be valid for any unpaid amounts after maturity. The amended terms of the above convertible notes were made during 2021 Q3 on September 1, 2021. The waived interest amount was $45,875.

				Unpaid	Interest Rate		Interest amount			Interest
No#	Date	Payee	Description	Principal Amount	Original	after Maturity	Original rate	10%	Total	after Maturity	Interest Waived
#1.16	1/30/2016	Stephen	working capital	114,026	0.75%	NA	5,624	0	5,624	5,624	0
#2.16	3/18/2016	Stephen	working capital	262,500	0.65%	NA	9,447	0	9,447	9,447	0
#3.19	9/1/2019(DS)	Stephen	salary	39,392	1.85%	10%	714	4,340	5,054	1,518	3,536
#4.19	12/1/2019(DE)	Stephen	working capital	14,879	1.61%	10%	257	1,132	1,389	439	950
#6.20	1/1/2020(DS)	Stephen	salary	216,600	1.85%	10%	2,179	16,363	18,543	5,206	13,336
#7.20	1/1/2020(DE)	Stephen	working capital	23,366	1.60%	10%	72	1,753	1,825	352	1,473
#9.20	11/2020 (Open)	Stephen	working capital	279,405	0.13%	10%	81	12,864	12,945	248	12,697
#10.21	1/1/2021(DS)	Stephen	salary	59,025	1.85%	10%	178	2,968	3,146	725	2,421
#11.21	4/1/2021(DS)	Stephen	salary	10,000	1.85%	10%	15	420	435	93	342
				1,019,193	1.85%	10%	18,566	39,841	58,407	23,653	34,754
#5.19	9/1/2019	i2China	consulting fee	16,000	1.85%	10%	253	1,759	2,012	579	1,433
#8a.20	1/1/2020	i2China	consulting fee	48,000	1.85%	10%	483	3,626	4,109	1,154	2,955
#8b.20	1/1/2020	i2China	retroactive increase	84,000	1.85%	10%	1,554	6,399	7,953	2,738	5,215
#11.21	1/1/2021(DS)	i2China	consulting fee	37,000	1.85%	10%	107	1,860	1,967	450	1,517
				185,000			2,397	13,645	16,041	4,920	11,121
TOTAL ACCRUED				1,204,193			20,963	53,485	74,448	28,573	45,875

The accrued interest amount was $31,983 and $18,691 as of September 30, 2021 and December 31, 2020, respectively.