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NOTE PAYABLE AND CONVERTIBLE NOTE PAYABLE (PIK NOTES)
 12 Months Ended
Dec. 31, 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 was due on February 28, 2026 and accrued interest at a rate of 5% per annum or 7.5% per annum in the case of default. Since the Company completed a financing of no less than $7.5 million, the note holder was 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 have a term of five years. During the year ended December 31, 2021, the Company paid off the balance of this note’s principal and accrued interest.

 

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

 

Convertible Notes Payable

 

During the years ended December 31, 2021 and 2020, the Company amortized $333,400 and $117,036 of the debt discount, respectively. At December 31, 2021 and December 31, 2020, the Company had an unamortized debt discount of $182,716 and $516,116, respectively.

 

During the year ended December 31, 2021, a total of 1,093,519 shares of the Company’s common stock was issued for the conversion of notes and interest. A total of $1,282,500 in principal and $91,593 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, which is included in the $333,400 amortized during the year ended December 31, 2021.

 

 

As of December 31, 2021 and December 31, 2020, the Company owes $315,000 and $1,597,500 on the outstanding Convertible Notes, respectively.

 

Maturity Date of Notes for Year Ending December 31, 2021,  Amount due 
2022  $- 
2023   315,000 
2024   - 
2025   - 
2026   - 
Total  $315,000 

 

Convertible Notes Payable – Related Parties

 

During the year ended December 31, 2021 and 2020, the Company amortized $93,737 and $28,345 of the debt discount, respectively. At December 31, 2021 and December 31, 2020, the Company had an unamortized debt discount of $13,851 and $107,588, respectively.

 

During year ended December 31, 2021, a total of 176,666 shares of the Company’s common stock was issued for the conversion of notes and interest. A total of $200,000 in principal and $20,875 in accrued interest was converted. As part of this conversion, the Company also expensed $63,607 in unamortized debt discount related to these converted notes, which is included in the $93,737 amortized during the year ended December 31, 2021.

 

As of December 31, 2021 and December 31, 2020, the Company owes $200,000 and $400,000 on the outstanding Convertible Notes, respectively.

 

Maturity Date of Notes for Year Ending December 31, 2021,  Amount due 
2022  $- 
2023   200,000 
2024   - 
2025   - 
2026   - 
Total  $200,000