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Notes and Convertible Notes Payable
9 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Notes and Convertible Notes Payable

Note 4. Notes and Convertible Notes Payable

 

On March 20, 2019, an unrelated individual loaned VRVR $10,000. The note carries a 6% interest rate and was initially payable March 20, 2020, and then amended on July 27, 2022 to mature on March 20, 2024. The maturity date has been extended to March 20, 2025. As of June 30, 2023 and September 30, 2022, the note balance was $10,000, and accrued interest on the note totaled $2,569 and $2,121, respectively.

 

On September 23, 2021, an unrelated third party loaned VRVR $235,000 that consisted of cash received by the Company in the amount of $217,375 and an original issue discount of $17,625. This discount was amortized over the life of the note commencing October 1, 2021. The note carried a 12.5% annual interest rate and matured on March 23, 2022. Under the terms of the agreement, the Company paid any accrued interest on a monthly basis. In addition, under the terms of the agreement, the Company issued 82,500 commitment shares to the holder at $2.00 per share and an expense of $165,000 was applied as an additional discount to the note and amortized over the life of the note. The Company had the right to redeem 41,250 of the commitment shares if the note was repaid on or before the maturity date. On September 30, 2021, principal and accrued interest totaled $235,000 and $571, respectively. On March 23, 2022, the note payable balance of $235,000 and unpaid interest of $1,958 were repaid in full in the amount of $236,958. During the period of October 1, 2021 through March 23, 2022, interest payments totaling $12,811 were made, resulting in $14,769 total interest payments during the nine months ended June 30, 2022, and $0 principal and interest balances at June 30, 2022. As a result of this repayment, 41,250 of the commitment shares were redeemed at $0 cost and are being held in treasury.

 

On March 15, 2022, an unrelated third party loaned VRVR $235,000 that consisted of cash received by the Company in the amount of $217,375 and an original issue discount of $17,625. This discount was amortized over the life of the note commencing March 15, 2022. The note carries a 15% annual interest rate and matured on March 15, 2023. As of June 30, 2023 and September 30, 2022, the note balance was $235,000 and $235,000, respectively, and the accrued interest was $45,584 and $19,218, respectively. The note is convertible at a price of $1.25 per share. As of March 15, 2023, the note was in default. On March 28, 2023, June 9, 2023 and July 13, 2023, the Company paid a total of $10,000 to extend the maturity date to August 31, 2023. These fees are included in interest expense on the statements of operations.

 

On March 21, 2022, an unrelated third party loaned VRVR $235,000 that consisted of cash received by the Company, on April 4, 2022, in the amount of $217,375 and an original issue discount of $17,625. This discount was amortized over the life of the note commencing March 15, 2022. The note carries a 12% annual interest rate and matures on March 21, 2023. As of June 30, 2023 and September 30, 2022, the note balance was $235,000 and $235,000, respectively, and the accrued interest was $38,503 and $14,911, respectively. The note is convertible at a price of $1.25 per share. As of March 15, 2023, the note was in default. On March 29, 2023 and July 13, 2023, the Company paid a total of $10,000 to extend the maturity date to August 31, 2023. These fees are included in interest expense on the statements of operations.

 

Debt discount amortization on the above notes totaled $4,570 and $96,376 during the three months ended June 30, 2023 and 2022, respectively. Debt discount amortization on the above notes totaled $207,314 and $310,203 during the nine months ended June 30, 2023 and 2022, respectively. Total unamortized debt discount totaled $0 and $207,314 at June 30, 2023 and September 31, 2022, respectively.