RELATED PARTY LOANS |
12 Months Ended | |||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||
| Related Party Transactions [Abstract] | ||||||||||||||||
| RELATED PARTY LOANS | NOTE 6: RELATED PARTY LOANS Convertible Notes Payable On February 21, 2018 Crown Bridge Partners LLC, sold part of its convertible note to D&D Capital, Inc, a related party. The Company valued this conversion feature using the Black Scholes valuation model with the following assumptions: (i) as of December 31, 2018 dividend yield of zero, 86 days term to maturity, risk free interest rate of 2.45% and annualized volatility of 456%, valued at $10,032. The value of the conversion feature was assigned to the derivative liability and created a loss and a debt discount to be amortized over the life of the convertible debt. (See NOTE 4 Fair Value of Financial Instruments) During 2018, D&D Capital, Inc. exercised the convertible option, resulting in 2,298,212 shares issued at a price of $0.04 per share issued for $95,008 (including $2,387 in accrued interest) (See NOTE 7 Equity) The remaining principal and interest balances as of December 31, 2018 were $7,379 and $541, respectively. On February 15, 2018, S&E Capital, LLC, a related party to Canna Corporation, reached an agreement with Kodiak Capital to purchase the Kodiak note and interest totaling approximately $140,000. The newly-issued S&E note extended the maturity date to October 15, 2018, carried an interest rate of 8%, and included a conversion rate of 75% of the average of the three lowest trading prices during the 50 days prior to receiving the Notice of Conversion. During 2018, S&E Capital, Inc. exercised the convertible option, resulting in 2,450,000 shares issued; at a price of $0.04 per share issued for $101,283 (including $116,974 in default interest). The Company valued this conversion feature using the Black Scholes valuation model with the following assumptions: (i) as of December 31, 2018 dividend yield of zero, 0 days term to maturity, risk free interest rate of 0% and annualized volatility of 0%, valued at $89,926. The value of the conversion feature was assigned to the derivative liability and created a loss and a debt discount to be amortized over the life of the convertible debt. The remaining principal and interest balances as of December 31, 2018 were $49,775 and $14,257, respectively. There was debt discount amortization of $27,874 on these notes during 2018, resulting in unamortized debt discount of $12,126 and net convertible notes - related party balance of $45,028 at December 31, 2018. Total accrued interest - related parties was $14,798 at December 31, 2018. Other Related Party Loans
The following are related party loans with original principal of $379,401 in the aggregate upon issuance during 2018 bear no interest, are due on demand, and are shown net of $18,874 in current year repayments:
The Company did not engage in any related party note activities during 2017. |