SCHEDULE OF CONVERTIBLE NOTES PAYABLE |
As
of June 30, 2021 and December 31, 2020, the Company had a total of $688,000
and $840,673,
respectively, of outstanding convertible notes payable, which consisted of the following:
SCHEDULE
OF CONVERTIBLE NOTES PAYABLE
| |
June
30, 2021 | | |
December
31, 2020 | |
a) Convertible Notes – with
fixed conversion terms | |
$ | 688,000 | | |
$ | 713,750 | |
b) Convertible Notes
– with variable conversion | |
| - | | |
| 126,923 | |
Total convertible notes,
net of debt discount | |
$ | 688,000 | | |
$ | 840,673 | |
|
a) |
Included
in Convertible Notes - with fixed conversion terms, are loans provided to the Company from various investors These notes carry simple
interest rates ranging from 0% to 14% per annum and with terms ranging from 1 to 2 years. In lieu of the repayment of the principal
and accrued interest, the outstanding amounts are convertible, at the option of the note holder, generally at any time on or prior
to maturity and automatically under certain conditions, into the Company’s common shares at $0.015 to $0.30 per share. These
notes became due in 2017 and prior, and are currently past due. |
|
|
|
|
|
At
December 31, 2020, balance of the convertible notes was $713,750. During the six months ended June 30, 2021, we issued 1,616,667
shares of common stock to convert $24,250 and issued an additional 250,000 shares of common stock as bonus shares due on of these
outstanding convertible notes for a value of $3,750. Additionally, we paid down $1,500 of the debt with cash. As of June 30, 2021,
the balance of the outstanding convertible notes was $688,000. These notes are currently past due. |
|
b) |
Convertible
notes payable with principal balance of $0 as of June 30, 2021 consisted of loans provided to the Company from various investors.
These notes are non-interest bearing and with terms ranging from 1 to 2 years. In lieu of the repayment of the principal and accrued
interest, the outstanding amounts are convertible, at the option of the note holder, generally at any time on or prior to maturity
and automatically under certain conditions, into the Company’s common shares at 60% of the lowest trading price in the prior
30 days. The Company determined that since the conversion floor of these notes had no limit to the conversion price, the Company
could no longer determine if it had enough authorized shares to fulfil its conversion obligation. As such, pursuant to current accounting
guidelines, the Company determined that the conversion feature of these notes created a derivative at the date of issuance which
was recorded as a valuation discount that was fully amortized as of December 31, 2020. At December 31, 2020, the balance of the loans
was $126,923. During the six months ended June 30, 2021 the balance of all the notes had been converted and fulfilled. As explained
in Note 11, there is no derivative liability needed for the balance remaining on these variable notes, as the common stock shares
will be increased as needed. |
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