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Convertible Promissory Notes (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Convertible Promissory Notes

As of September 30, 2019, and December 31, 2018, convertible promissory notes payable consists of:

	September 30, 2019		December 31, 2018
Convertible note payable to GBT Technologies Inc. dated September 27, 2019 with no interest; due March 27, 2021; convertible into common stock ¹	$	4,000,000	$	-
Convertible note payable to Power Up Lending Group Ltd. dated September 18, 2019 with at 12% per annum; due September 18, 2020; convertible into common stock ²		233,000		-
	$	4,233,000	$	-

¹As discussed above in Note 5, the Purchase Agreement provides that the consideration is to be paid by the Company through the issuance of a convertible promissory note in the amount of $4,000,000 to GBT, and through the issuance of three million three hundred thirty-three thousand three hundred thirty-three restricted shares of the Company’s common stock. The conversion price of the note shall equal the volume weighted average price of the Company’s common stock on the trading market which the common stock is then trading over the previous twenty (20) days prior to the conversion date, provided that the conversion price shall never be lower than $0.10 or higher than $0.70. The note provides that the Company retains the right to prepay all or any portion of the principal without any prepayment penalty.

²The conversion price of the note shall equal 65% the average price of the two lowest trading prices of the Company’s common stock on the trading market which the common stock is then trading over the previous twenty (20) days prior to the conversion date.