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Convertible Notes (Related and Unrelated Party)
 3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Convertible Notes (Related and Unrelated Party)

Note 7. Convertible Notes (Related and Unrelated Party)

 

As of March 31, 2021 the principal balance for the convertible notes (CN Notes 1) which mature on March 20, 2022 was $1,071,000 and bears interest at 15% and the convertible notes (CN Notes 2) which mature on November 30, 2021 was $168,000 and bears interest at 10%.

 

The CN Notes 1 consist of the following components as of March 31, 2021 and December 31, 2020:

 

    March 31, 2021     December 31, 2020  
Convertible notes   $ 1,181,167     $ 1,181,167  
Less: Debt discount (warrant value)     (92,266 )     (92,266 )
Less: Debt discount (issuance costs paid)     (6,004 )     (6,004 )
Less: Note conversion/settlements     (110,166 )     (110,166 )
Add: Debt discount amortization     50,457       38,173  
    $ 1,023,188     $ 1,010,904  

 

The CN Notes 2 consist of the following components as of March 31, 2021 and December 31, 2020:

 

    March 31, 2021     December 31, 2020  
Convertible notes   $ 235,200     $ 235,200  
Less: Debt discount (warrant value)     (1,817 )     (1,817 )
Less: Debt discount (derivative value) (Note 7)     (13,528 )     (13,528 )
Less: Debt discount (issuance costs paid)     (6,004 )     (6,004 )
Less: Note repayment     (67,200 )     (67,200 )
Add: Debt discount amortization     12,539       9,487  
    $ 159,190     $ 156,138  

 

The total of the two tables above, net of discount, equals $1,182,378 which is presented on the balance sheet as Current Liabilities: $981,753 Convertible Note, Net of Discount and $200,625 Convertible Note, Related Party, Net of Discount. The total of $1,167,042 shown in the two tables above at December 31, 2020, are presented in the balance sheet as Current Liabilities: $158,243 Convertible Note-Net of Discount and Long-Term Liabilities: $197,804 Convertible Note – related party net of Discount, and $810,095 Convertible Note – net of Discount.

 

Future maturity of convertible notes at face value before effect of all discount, are as follow:

 

    Total Convertible Notes  
Years ending December 31,        
2021     168,000  
2022     1,071,000  
    $ 1,139,000