NOTES PAYABLE AND DERIVATIVE LIABILITIES |
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Mar. 31, 2023 | ||||||||||||||||||||||||||||
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| NOTES PAYABLE AND DERIVATIVE LIABILITIES | NOTE 8 - NOTES PAYABLE AND DERIVATIVE LIABILITIES
On December 28, 2021, the company issued a 12-month Convertible Note for the sum of $38,000 to Sixth Street Lending at 6%. Convertible at 65% of the averaged 3 lowest trading prices during the prior 15 day trading period. We recognized a derivative liability in the amount of $117,851 as a result.
On March 18, 2022, the company issued a 12-month Convertible Note for the sum of $50,000 to RB Capital at 10%. Convertible at $0.06. No beneficial conversion was recognized as the conversion price was higher than the stock price.
On July 11, 2022, the company issued a 12-month Convertible Note for the sum of $50,000 to RB Capital at 10%. Convertible at $0.02. No beneficial conversion was recognized as the conversion price was higher than the stock price.
On July 15, 2022, the company issued a 12-month Convertible Note for the sum of $1,050,000 to RB Capital at 8%. Convertible at $0.05. This Note is a result of consolidation of [21] previous Notes ranging from 2/2/2018 up to and including 10/5/2021. No beneficial conversion was recognized as the conversion price was higher than the stock price.
On September 27, 2022, the company received a 12-month line of credit for the sum of $50,000 from RB Capital at 10%.
On November 1, 2022, the company received a 12-month line of credit of $100,000 from RB Capital at 8%.
On February 17, 2023, the company issued a 12-month Convertible Note for the sum of $41,750 to Sixth Street Lending at 6%. Convertible at 65% of the averaged 3 lowest trading prices during the prior 15 day trading period.
As a result of the convertible notes we recognized the embedded derivative liability on the date that the note was convertible. We also revalued the remaining derivative liability on the outstanding note balance on the date of the balance sheet. The inputs used were a weighted volatility of 174% and a risk-free discount rate of 4.74%
The convertible notes have interest rates that range from 6% to 10% per annum and default rates that range from 10% to 22% per annum. The maturity dates range from six months to one year. The conversion rates range from 60% discount to the market to 65% discount to the market. As of March 31, 2023, there were seven convertible notes outstanding,
The remaining derivative liabilities valued using the level 3 inputs in the fair value hierarchy were:
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