v3.22.1
Convertible Notes
12 Months Ended
Dec. 31, 2021
Convertible Notes [Abstract]  
CONVERTIBLE NOTES

NOTE 6. CONVERTIBLE NOTES

 

On December 1, 2018, the Company issued a grid note payable to a third party for $13,500. The note bears interest at 10% per annum and was due on December 31, 2019. This note was extended to December 31, 2020. Through December 31, 2020, the Company borrowed an additional $102,255 relating to this note payable. On November 20, 2020 the Company received a forbearance letter amending the terms of the grid promissory note by adding a conversion feature to the note, thereby making the note a convertible note. The amended note is due on December 31, 2022, bearing interest at 10% per annum. The holder has the option to lend additional amounts to the borrower from time to time in the future, on the terms set forth in this agreement. This grid promissory note contains a provision for conversion at the holder’s option of any outstanding principal balance including accrued interest, into the Company’s common stock at a conversion price equal to par value, $0.001 per share. The Company analyzed if the changes to this note were considered a modification or an extinguishment of debt, and determined it was an extinguishment of debt. The Company recognized there was a beneficial conversion feature associated with this note, and recorded a debt discount of $115,755, and for the years ended December 31, 2021 and 2020 amortization of debt discount associated with this note was $50,013 and $3,458, respectively. For the years ended December 31, 2021 and 2020, debt discount for this note was $35,784 and $112,297, respectively.

 

On March 24, 2021 the note holder converted $12,500 of principal from their convertible note into 12,500,000 shares of common stock at a rate of $0.001 per share in accordance with the terms of the convertible note. On December 13, 2021 the note holder converted $14,000 of principal from their convertible note into 14,000,000 shares of common stock at a rate of $0.001 per share in accordance with the terms of the convertible note. These shares have been recorded as common shares to be issued on the consolidated financial statements. The principal amount of the note at December 31, 2021 and 2020 is $89,255 and $115,755 and the related accrued interest is $11,278 and $744, respectively.

 

On June 1, 2019, the Company issued a grid note payable to a third party for $10,118 which was used for audit and filing fees. The note bears interest at 10% per annum and is due on December 31, 2019. This note was extended to December 31, 2020. Through December 31, 2020, the Company borrowed an additional $32,600 relating to this note payable. On November 20, 2020 the Company received a forbearance letter amending the terms of the grid promissory note by adding a conversion feature to the note, thereby making the note a convertible note. The amended note is due on December 31, 2022, bearing interest at 10% per annum. The holder has the option to lend additional amounts to the borrower from time to time in the future, on the terms set forth in this agreement. This grid promissory note contains a provision for conversion at the holder’s option of any outstanding principal balance including accrued interest, into the Company’s common stock at a conversion price equal to par value, $0.001 per share. The Company analyzed if the changes to this note were considered a modification or an extinguishment of debt, and determined it was an extinguishment of debt. The Company recognized there was a beneficial conversion feature associated with this note, and recorded a debt discount of $46,718, and for the years ended December 31, 2021 and 2020 amortization of debt discount associated with this note was $22,692 and $2,277, respectively. For the years ended December 31, 2021 and 2020, debt discount for this note was $29,749 and $44,441, respectively.

 

The principal amount of the note at December 31, 2021 and 2020 is $54,718 and $46,718 and the related accrued interest is $5,215 and $492, respectively.