Convertible Notes to Related Party

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Convertible Notes to Related Party

Note 4. Convertible Notes to Related Party

Convertible notes payable at June 30, 2020 and December 31, 2019 consist of the following:

	June 30, 2020		December 31, 2019
Note 1, accrued interest and premium – Majority shareholder	$	190,755	$	165,107
Note 2 and accrued interest – Majority shareholder		125,586		124,972
Note 3 and accrued interest – Shareholder		59,642		56,387
Note 4 and accrued interest – Majority shareholder		93,094		88,723
Total Convertible notes payable and accrued interest	$	469,077	$	435,189

Note 1 – In October, 2009, the Company issued a convertible promissory with a principal amount of $73,500 to its majority shareholder (Note 1). The note bears interest at the rate of 12% per annum until paid or the note and accrued interest is converted into shares of the Company’s common stock at a conversion price of $0.001. On February 27, 2020, the note was modified to extend the maturity date to March 31, 2023 and increase the conversion price to $0.10 per share. In accordance with ASC 470-50-40, the modification was accounted for as an extinguishment with a loss on the extinguishment of debt and an offsetting premium on the new note recorded during the quarter ended March 31, 2020. As of June 30, 2020 and December 31, 2019, this note had accumulated $95,956 and $91,607, respectively, in accrued interest.

Note 2 – Effective September 1, 2019, the Company issued a Convertible Promissory Note in the principal amount of $124,562 to its majority shareholder in consideration for advances previously made to the Company (Note 2). This note bears interest at the rate of 1% per annum and is due and payable on December 30, 2022. The Note is convertible into shares of common stock at a price of $0.25 per share. As of June 30, 2020 and December 31, 2019, this note had accumulated $1,024 and $410, respectively of accrued interest.

Note 3 – Effective September 12, 2019, the Company issued a Convertible Promissory Note in the principal amount of $55,000 to a shareholder (Note 3). This Note bears interest at the rate of 12% per annum and principal plus any accrued but unpaid interest is due and payable on January 1, 2021. The Note is convertible at the option of the holder into shares of common stock at a price of $0.25 per share. As of June 30, 2020 and December 31, 2019, this note had accumulated $4,642 and $1,387, respectively of accrued interest. As of June 30, 2020 the Note and associated accrued interest are included in current liabilities.

Note 4 – Effective December 27, 2019, the Company issued a Convertible Promissory Note in the principal amount of $88,626 to its majority shareholder in consideration for advances previously made to the Company (Note 4). This note bears interest at the rate of 10% per annum and is due and payable on December 30, 2022. The Note is convertible into shares of common stock at a price of $0.55 per share. As of June 30, 2020 and December 31, 2019 this note had accumulated $4,468 and $97, respectively of accrued interest.