v3.22.2.2
Convertible Notes Payable
 3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Convertible Notes Payable

Note C – Convertible Notes Payable

 

Convertible Notes Payable

 

We have uncollateralized convertible debt obligations with unaffiliated investors outstanding at March 31, 2020 and December 31, 2019 as follows:

  

    March 31, 2020   December 31, 2019
                                          
Note    Principal    

Less Debt

Discount

    

Plus

Premium

    

Net Note

Balance

    

Accrued

Interest

    Principal    

Less Debt

Discount

    

Plus

Premium

    

Net Note

Balance

    Accrued Interest 
(a)   $65,187$   -   $-   $65,187   $7,553   $66,691   $-   $-   $66,691   $5,177 
(c)    45,610    -    -    45,610    10,785    49,925    -    -    49,925    8,584 
(i)    273,000    -    -    273,000    30,867    273,000    -    -    273,000    11,070 
(k)    67,101    -    -    67,101    8,510    67,101    (1,076)   10,293    76,318    6,156 
(n)    8,800    (8,891)   47,166    47,075    -    8,800    (10,066)   53,399    52,133    - 
(o)    100,000    -    -    100,000    13,007    100,000    (62)   17,542    117,480    8,750 
(p)    26,540    -    -    26,540    2,842    26,540    (982)   10,833    36,391    1,254 
(q)    200    -    -    200    4,942    200    (369)   15,757    15,588    4,936 
(r)    610,000    -    -    610,000    61,564    610,000    (10,792)   267,243    866,451    433,615 
(s)    85,380    (764)   4,074    88,690    8,068    85,380    (3,514)   18,741    100,607    5,940 
(t)    63,000    (282)   4,691    67,409    6,946    63,000    (1,157)   19,247    81,090    5,061 
(u)    282,000    -    -    282,000    23,506    282,000    -    -    282,000    14,284 
(v)    40,000    (888)   2,928    42,040    3,564    40,000    (2,938)   9,685    46,747    2,567 
(w)    65,185    (3,261)   12,611    74,535    5,095    65,185    (6,004)   23,218    82,399    3,632 
(x)    165,800    (2,550)   17,000    180,250    14,068    165,800    (6,800)   45,333    204,333    9,934 
(y)    200,000    (3,660)   48,347    244,687    15,264    200,000    (7,535)   99,537    292,002    10,278 
(z)    63,000    (1,914)   12,367    73,453    8,506    63,000    (3,539)   22,867    82,328    2,296 
(aa)    282,641    (3,923)   18,988    297,706    35,311    282,641    (7,049)   34,113    309,705    35,311 
(bb)    69,300    (4,408)   14,758    79,650    4,240    69,300    (7,858)   26,308    87,750    2,685 
(cc)    100,000    (3,050)   22,592    119,542    6,604    100,000    (5,300)   39,259    133,959    4,111 
(dd)    88,000    (1,245)   35,915    122,670    6,798    88,000    (2,118)   61,168    147,048    4,165 
(ee)    950    -    -    950    -    -    -    -    -    - 
Totals   $2,701,694   $(34,836)  $241,437   $2,908,295   $278,040   $2,706,563   $(77,159)  $774,541   $3,403,945   $181,466 

 

 

From January 17, 2019, through August 7, 2019, the Company issued nineteen (19) Convertible Promissory Notes to third parties ranging in face values from a low of $40,000 to a high of $610,000 all with maturity dates ranging of nine (9) months to one (1) year. Annual interest rates ranged from a low of 0% to a high of 12%. All notes are convertible at any time after 6 months of the funding of the note into a variable number of the Company’s common stock, based on a conversion rate from 58% to 62% of the of the lowest trading price from a range of 15 to 25 of the previous days to conversion. When the Company received proceeds, proceeds ranged from $31,800 to $557,500, after disbursements for the lender’s transaction costs, fees and expenses which in aggregate resulted in a total discount ranging from $500 to $52,500 that are amortized to interest expense over the life of each note. Additionally, the note’s variable conversion rate component requires that the note be valued at its stock redemption value (i.e., “if-converted” value) pursuant to ASC 480, Distinguishing Liabilities from Equity, with the excess over the note’s undiscounted face value being deemed a premium to be added to the principal balance and amortized to additional paid-in capital over the life of the note. As such, the Company recorded premiums on the note(s) ranging from $42,200 to $1,300,101 as a reduction to additional paid-in capital based on a discounted “if-converted” rates from $ .04 to $ .33 per share based on the trading prices ranging from 15 to 25 days preceding the note’s issuance), which computed to a range of 181,159 to 3,080,808 shares ‘if converted’ common stock with redemption values between $67,029 and $191,101 due to the range from $.06 to $.45 per share fair market value of the Company’s stock on the note’s date of issuance. Debt discount amortization is recorded as interest expense, while debt premium amortization is recorded as an increase to additional paid-in capital.

 

During the three months ended March 31, 2020 and 2019, the Company received $0 and $1,142,250, respectively, in proceeds from issuance of convertible notes, and made repayments of $0 and $253,000, respectively. During the three months ended March 31, 2020, and 2019, the Company converted $5,819 and $0, respectively, in principal and $8,021 and $0, respectively, in accrued interest on convertible notes to common stock. Debt discount and premium amortizations for the three months ended March 31, 2020, totaled $42,325 and $533,106, respectively, while interest expense was $104,595. Debt discount and premium amortizations for the three months ended March 31, 2019, totaled $70,465 and $485,670, respectively, while interest expense was $31,561.