v3.23.3
Convertible Notes Payable
 6 Months Ended
Jun. 30, 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 June 30, 2020 and December 31, 2019 as follows:

 

 

   June 30, 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   $9,503   $66,691   $-   $-   $66,691   $5,177 
(c)   45,610    -    -    45,610    13,514    49,925    -    -    49,925    8,584 
(i)   273,000    -    -    273,000    36,312    273,000    -    -    273,000    11,070 
(k)   67,101    -    -    67,101    11,019    67,101    (1,076)   10,293    76,318    6,156 
(n)   8,800    (7,716)   40,932    42,016    -    8,800    (10,066)   53,399    52,133    - 
(o)   100,000    -    -    100,000    18,991    100,000    (62)   17,542    117,480    8,750 
(p)   26,540    -    -    26,540    4,430    26,540    (982)   10,833    36,391    1,254 
(q)   200    -    -    200    4,948    200    (369)   15,757    15,588    4,936 
(r)   610,000    -    -    610,000    98,064    610,000    (10,792)   267,243    866,451    433,615 
(s)   85,380    -    -    85,380    53,589    85,380    (3,514)   18,741    100,607    5,940 
(t)   63,000    -    -    63,000    9,952    63,000    (1,157)   19,247    81,090    5,061 
(u)   282,000    -    -    282,000    40,380    282,000    -    -    282,000    14,284 
(v)   40,000    -    -    40,000    4,846    40,000    (2,938)   9,685    46,747    2,567 
(w)   65,185    (518)   2,004    66,671    7,763    65,185    (6,004)   23,218    82,399    3,632 
(x)   165,800    -    -    165,800    18,201    165,800    (6,800)   45,333    204,333    9,934 
(y)   200,000    -    -    200,000    20,634    200,000    (7,535)   99,537    292,002    10,278 
(z)   63,000    (289)   1,867    64,578    12,276    63,000    (3,539)   22,867    82,328    2,296 
(aa)   282,641    (799)   3,865    285,707    52,223    282,641    (7,049)   34,113    309,705    35,311 
(bb)   69,300    (958)   3,208    71,550    5,795    69,300    (7,858)   26,308    87,750    2,685 
(cc)   100,000    (800)   5,926    105,126    9,097    100,000    (5,300)   39,259    133,959    4,111 
(dd)   88,000    (369)   10,662    98,293    9,431    88,000    (2,118)   61,168    147,048    4,165 
Totals  $2,700,744   $(11,449)  $68,464   $2,757,759   $440,968   $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 six months ended June 30, 2020 and 2019, the Company received $0 and $1,981,550, respectively, in proceeds from issuance of convertible notes, and made repayments of $0 and $608,000, respectively. During the six months ended June 30, 2020, and 2019, the Company converted $5,819 and $40,000, respectively, in principal and $8,021 and $2,685, respectively, in accrued interest on convertible notes to common stock. Debt discount and premium amortizations for the six months ended June 30, 2020, totaled $65,712 and $706,079, respectively, while interest expense was $333,235. Debt discount and premium amortizations for the six months ended June 30, 2019, totaled $162,425 and $1,448,214, respectively, while interest expense was $696,536.