Quarterly report pursuant to Section 13 or 15(d)

Notes Payable

v3.21.1
Notes Payable
 3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Notes Payable

Note 6- Notes Payable

 

Notes Payable

 

During the three months ended March 31, 2021, the Company issued two (2) fixed rate promissory notes totaling $250,000 for funding of $250,000 with original terms of twelve months and interest rates of 15%. The holders of the promissory notes can convert the outstanding unpaid principal and accrued interest at a fixed conversion rate, subject to standard anti-dilution features.

 

During the three months ended March 31, 2021, the Company amended the terms of two of its promissory notes to accelerate the conversion feature and amend the conversion price of the instruments. The Company recorded the modification in accordance with ASC 470-50 Debt-Modifications and Extinguishments and recorded $58,407 as loss from debt extinguishment in the condensed consolidated statements of operations.

  

During the three months ended March 31, 2021, the Company paid $8,000 in cash for one of its fixed rate promissory notes.

 

During the three months ended March 31, 2021, the Company converted $234,700 in principal and $75,346 in accrued but unpaid interest into 17,686,548 shares of common stock.

 

The gross amount of all convertible notes with variable conversion rates outstanding at March 31, 2021 is $4,936,846, of which $2,778,246 are past maturity.

 

Notes payable to a former related party in the aggregate amount of $137,500 were outstanding at March 31, 2021 which are past maturity date. The notes bear interest between 10% and 12% per annum. During the three months ended March 31, 2021, the Company paid $5,500 principal to this former related party.

 

As of March 31, 2021, fixed rate notes payable outstanding totaled $1,137,747, of which $50,000 is past maturity.

 

    March 31, 2021     December 31, 2020  
             
Notes payable at beginning of period   $ 6,835,196     $ 6,874,795  
Notes payable issued     250,000       1,364,611  
Liquidated damages     -       452,095  
Note modification     -       25,190  
Loan fees added to note payable     -       120,389  
Repayments of notes payable in cash     (13,500 )     (22,000 )
Settlements on note payable     -       (697,253 )
Less amounts converted to stock     (234,700 )     (1,282,631 )
Notes payable at end of period     6,836,996       6,835,196  
Less debt discount     (100,987 )     (201,157 )
    $ 6,736,009     $ 6,634,039  
                 
Notes payable issued to a former related party   $ 137,500     $ 143,000  
Notes payable issued to non-related parties   $ 6,598,509     $ 6,491,039  

 

The maturity dates on the notes-payable are as follows:

 

    Notes to        
12 months ending,   Former Related party     Non-related parties     Total  
                   
Past due   $ 137,500     $ 3,453,149     $ 3,590,649  
March 31, 2022     -       3,246,347       3,246,347  
    $ 137,500     $ 6,699,496     $ 6,836,996