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CONVERTIBLE PROMISSORY NOTES – PAST DUE (Tables)
6 Months Ended
Jun. 30, 2021
Convertible Promissory Notes Past Due  
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:

 

   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.