XML 21 R11.htm IDEA: XBRL DOCUMENT v3.21.2
NOTE PAYABLE AND CONVERTIBLE NOTE PAYABLE (PIK NOTES)
 6 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
NOTE 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. During the six months ended June 30, 2021, the Company paid off the balance of this note’s principal and accrued interest.

 

As of June 30, 2021 and December 31, 2020, the Company owes $0 and $0 on the outstanding note, respectively.

 

Convertible Notes Payable

 

During the six months ended June 30, 2021 and 2020, the Company amortized $72,110 and $40,095 of the debt discount, respectively. At June 30, 2021 and December 31, 2020, the Company had an unamortized debt discount of $257,221 and $516,116, respectively.

 

During the six months ended June 30, 2021, a total of 839,724 shares of the Company’s common stock was issued for the conversion of notes and interest. A total of $990,000 in principal and $64,544 in accrued interest was converted. As part of this conversion, the Company also expensed $186,785 in unamortized debt discount related to these converted notes.

 

 

As of June 30, 2021 and December 31, 2020, the Company owes $607,500 and $1,597,500 on the outstanding Convertible Notes, respectively.

 

     
Maturity Date of Notes for Twelve Months Ending June 30, 2021,  Amount due 
2022  $- 
2023   - 
2024   607,500 
2025   - 
2026   - 
Total  $607,500 

 

Convertible Notes Payable – Related Parties

 

During the six months ended June 30, 2021 and 2020, the Company amortized $18,724 and $18,828 of the debt discount, respectively. At June 30, 2021 and December 31, 2020, the Company had an unamortized debt discount of $88,864 and $107,588, respectively.

 

As of June 30, 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 June 30, 2021,  Amount due 
2022  $- 
2023   - 
2024   400,000 
2025   - 
2026   - 
Total  $400,000