CONVERTIBLE NOTES |
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7. CONVERTIBLE NOTES | 7. CONVERTIBLE NOTES
Convertible notes on June 30, 2022, and December 31, 2021, consists of the following:
For the six months ended June 30, 2022, and 2021, the interest expense on convertible notes was $25,556 and $28,146, respectively. As of June 30, 2022, and December 31, 2021, the accrued interest was $84,873 and $63,100, respectively.
The Company recognized amortization expense related to the debt discount of $79,547 and $48,048 for the six months ended June 30, 2022 and 2021, respectively, which is included in interest expense in the statements of operation.
Conversion
During the six months ended June 30, 2022, the Company converted notes with principal amounts of $75,650 and accrued interest of $3,783 into 26,637,703 shares of common stock. The corresponding derivative liability at the date of conversion of $94,200 was credited to additional paid in capital.
Convertible Notes - Issued during the year ended December 31, 2018
During the year ended December 31, 2018, the Company issued a total principal amount of $426,000 convertible notes for cash proceeds of $426,000. The convertible notes were also provided with a total of 107,000 common shares valued at $22,210. The terms of convertible notes are summarized as follows:
Convertible Notes - Issued during the year ended December 31, 2021
During the year ended December 31, 2021, the Company issued a total principal amount of $277,500 in convertible note for cash proceeds of $257,000. The terms of convertible note are summarized as follows:
During the six months ended June 30, 2022, the Company converted principal of $50,450 and accrued interest of $3,783 into 16,557,703 shares of common stock. Convertible Notes - Issued during the year ended December 31, 2022
During the six months ended June 30, 2022, the Company issued a total principal amount of $134,000 in convertible notes for cash proceeds of $125,000. The terms of convertible notes are summarized as follows:
The Company valued the conversion feature using the Black-Scholes pricing model. The fair value of the derivative liability for all the notes that became convertible, including the notes issued in prior years, during the six months ended June 30, 2022, amounted to $120,960, and $92,000 of the value assigned to the derivative liability was recognized as a debt discount to the notes while the balance of $28,960 was recognized as a “day 1” derivative loss. |