		December 31,			December 31,
		2018			2017
July 16, 2018 Note	$		25,000	$		-
August 16, 2018 Note			55,130			-
October 1, 2018 Note			33,021			-
December 4, 2018 Note			78,750			-
December 5, 2018 Note			30,000			-
Total convertible notes payable			221,901			-
Less: Unamortized debt discount			(158,696)			-
Total convertible notes			63,205			-

Less: current portion of convertible notes			-			-
Long-term convertible notes	$		63,205	$		-

During the year ended December 31, 2018 and 2017, the Company recorded interest expense of $4,906 and recognized amortization of discount, included in interest expense, of $55,054 and $0, respectively.

Certain convertible notes held by the company were in default. During the period ended December 31, 2018, the Company did not maintain the covenant requiring the Company to be current with all financial filings. As a result of the breach, the company recorded a penalty of $8,151 as principal amount.

During the year ended December 31, 2018, the Company issued a total of $213,750 notes with the following terms:

· Conversion prices are typically based on the discounted (50% discount) lowest trading prices of the Company’s shares during various periods prior to conversion.

Certain notes allow the Company to redeem the notes at rates ranging from 130% to 150% depending on the redemption date provided that no redemption is allowed after the 180th day. Likewise, the notes include financing costs totaling to $12,250 and the Company received cash of $201,500.

The Company determined that the conversion option in the note met the definition of a liability in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity’s Own Stock. The Company will bifurcate the embedded conversion option in the note once the note becomes convertible and account for it as a derivative liability.

The Company valued the conversion features using the Black Scholes valuation model. The fair value of the derivative liability for all the note and warrants that became convertible for the year ended December 31, 2018 amounted to $896,593. $201,500 of the value assigned to the derivative liability was recognized as a debt discount to the notes while the balance of $695,093 was recognized as a “day 1” derivative loss.