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Notes Payable And Convertible Note Payable (PIK Notes)
 3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Notes Payable And Convertible Note Payable (PIK Notes)

NOTE 5 – NOTE PAYABLE AND CONVERTIBLE NOTE PAYABLE (PIK NOTES)

 

Note Payable

 

On March 1, 2021, the Company entered into a $100,000 promissory note. This note is due on February 28, 2026 and accrues interest at a rate of 5% per annum or 7.5% per annum in the case of default. In the event that the Company completes a financing of no less than $7.5 million, then the note holder will be issued warrants valued at $25,000 with an exercise price equal to 110% of the offering cost of the common stock in the financing. These warrants will have a term of five years.

 

As of March 31, 2021 and December 31, 2020, the Company owes $100,000 and $0 on the outstanding Note, respectively.

 

Convertible Notes Payable

 

During the three months ended March 31, 2021 and 2020, the Company amortized $44,664 and $17,943 of the debt discount, respectively. At March 31, 2021 and December 31, 2020, the Company had an unamortized debt discount of $471,452 and $516,116, respectively.

 

As of March 31, 2021 and December 31, 2020, the Company owes $1,597,500 and $1,597,500 on the outstanding Convertible Notes, respectively.

 

Maturity Date of Notes for Twelve Months Ending March 31, 2021,   Amount due  
2022   $ -  
2023     -  
2024     1,597,500  
2025     -  
2026     100,000  
Total   $ 1,697,500  

 

Convertible Notes Payable – Related Parties

 

During the three months ended March 31, 2021 and 2020, the Company amortized $9,311 and $9,414 of the debt discount, respectively. At March 31, 2021 and December 31, 2020, the Company had an unamortized debt discount of $98,277 and $107,588, respectively.

 

As of March 31, 2021 and December 31, 2020, the Company owes $400,000 and $400,000 on the outstanding Convertible Notes, respectively.

 

 

Maturity Date of Notes for Twelve Months Ending March 31, 2021,   Amount due  
2022   $ -  
2023     -  
2024     400,000  
2025     -  
2026     -  
Total   $ 400,000