Quarterly report pursuant to Section 13 or 15(d)

CONVERTIBLE NOTES PAYABLE

v3.20.2
CONVERTIBLE NOTES PAYABLE
6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
CONVERTIBLE NOTES PAYABLE
9 CONVERTIBLE NOTES PAYABLE

 

Convertible notes payable consists of the following: 

 

                          Unamortized     June 30, 2020     December 31,
2019
 
Description   Interest
rate
    Maturity
Date
  Principal     Accrued
interest
    debt
discount
    Balance,
net
    Balance,
net
 
                                         
Power Up Lending Group     12%     November 12, 2020     54,000       6,641       (20,420 )     40,221       11,643  
      12%     December 23, 2020     63,000       3,935       (30,295 )     36,640       1,543  
      12%     January 22, 2021     43,000       2,262       (24,202 )     21,060       -  
                                                     
GS Capital Partners, LLC     8%     August 14, 2019     -       -       -       -       27,557  
      8%     August 14, 2019     150,000       42,740       -       192,740       174,789  
      8%     February 4, 2020     -       -       -       -       49,243  
                                                     
Crown Bridge Partners, LLC     8%     August 31, 2019     19,914       4,898       -       24,812       30,803  
      8%     October 16, 2019     27,500       4,533       -       32,033       30,387  
                                                     
Odyssey Funding LLC     10%     November 15, 2020     200,000       12,493       (75,410 )     137,083       27,658  
      10%     January 13, 2021     100,000       4,630       (53,825 )     50,805       -  
                                                     
Black Ice Advisors, LLC     10%     November 25, 2020     15,500       2,931       (6,268 )     12,163       5,739  
                                                     
Adar Alef, LLC     10%     February 5, 2021     105,000       4,200       (63,115 )     46,085       -  
                                                     
LG Capital Funding LLC     10%     February 24, 2021     78,750       2,740       (51,424 )     30,066          
                                                     
Total convertible notes payable               $ 856,664     $ 92,003     $ (324,959 )   $ 623,708     $ 359,362  

 

Interest expense totaled $29,535 and $83,526 for the three and six months ended June 30, 2020, respectively and $46,371 and $117,719 for the three and six months ended June 30, 2019, respectively.

 

Amortization of debt discount totaled $213,100 and $373,178 for the three and six months ended June 30, 2020, respectively and $454,321 and $1,012,537 for the three and six months ended June 30, 2019, respectively.

 

The convertible notes have variable conversion prices based on a discount to market price of trading activity over a specified period of time. The variable conversion features were valued using a Black Scholes valuation model. The difference between the fair market value of the common stock and the calculated conversion price on the issuance date was recorded as a debt discount with a corresponding credit to derivative financial liability.

 

The total value of the beneficial conversion feature recorded as a debt discount during the three and six months ended June 30, 2020 was $0 and $326,750, respectively and for the three and six months ended June 30, 2019 was $109,510 and $394,394, respectively.

 

Power Up Lending Group Ltd 

 

 

On November 21, 2019, the Company issued a Convertible Promissory Note in the aggregate principal amount of $93,000 to Power up Lending Group Ltd. The note has a maturity date of November 12, 2020 and a coupon of 12% per annum. The Company may prepay the note with prepayment penalties ranging from 115% to 135%. The outstanding principal amount of the note is convertible after 180 days, at the election of the holder into shares of the Company's common stock at a conversion price equal to 61% of the lowest three trading prices during the previous fifteen trading days.

 

Between June 16, 2020 and June 22, 2020, the Company received notices of conversion from Power Up Lending Group converting $39,000 of principal into 3,360,149 shares of common stock at an average conversion price of $0.0116. The Company incurred a loss on conversion of $41,096.

 

The balance of the note plus accrued interest at June 30, 2020 was $40,221 after unamortized debt discount of $20,420.

  

 

On December 23, 2019, the Company issued a Convertible Promissory Note in the aggregate principal amount of $63,000 to Power up Lending Group Ltd. The note has a maturity date of December 23, 2020 and a coupon of 12% per annum. The Company may prepay the note with prepayment penalties ranging from 115% to 135%. The outstanding principal amount of the note is convertible after 180 days, at the election of the holder into shares of the Company's common stock at a conversion price equal to 61% of the lowest three trading prices during the previous fifteen trading days.

 

The balance of the note plus accrued interest at June 30, 2020 was $36,640, after unamortized debt discount of $30,295.

 

 

On January 22, 2020, the Company issued a Convertible Promissory Note in the aggregate principal amount of $43,000 to Power Up Lending Group Ltd. The note has a maturity date of January 22, 2021 and a coupon of 12% per annum. The Company may prepay the note with prepayment penalties ranging from 115% to 135%. The outstanding principal amount of the note is convertible after 180 days, at the election of the holder into shares of the Company's common stock at a conversion price equal to 61% of the lowest trading price during the previous fifteen trading days.

 

The balance of the note plus accrued interest at June 30, 2020 was $21,060, after unamortized debt discount of $24,202.

 

GS Capital Partners, LLC

 

 

On August 14, 2018, the Company issued a Convertible Promissory Note in the aggregate principal amount of $150,000 to GS Capital Partners, LLC. The note had a maturity date of August 14, 2019 and a coupon of 8% per annum. The Company had the right to prepay the note up to 180 days, provided it makes a pre-payment penalty as specified in the note. The outstanding principal amount of the note is convertible at any time after the six-month anniversary of the note, at the election of the holder into shares of the Company's common stock at a conversion price equal to 62% of lowest trading bid prices during the previous ten (10) trading days, including the date the notice of conversion is received.

 

Between August 12, 2019 and September 11, 2019, the Company received notices of conversion from GS Capital Partners converting $50,000 of principal and $3,945 of interest into 17,432,265 pre reverse split (1,743,227 post reverse split that was effected in November 2019) shares of common stock at an average conversion price of $0.00309 pre reverse stock split ($0.031 post reverse stock split that was effected in November 2019) per share. The Company incurred a loss on conversion of $56,315.

 

As of August 14, 2019 the note was in default and accrues interest at the default interest rate of 24% per annum.

 

On December 30, 2019, the Company repaid the principal sum of $90,000 on the convertible note.

 

On January 28, 2020, in terms of a conversion notice received, the remaining principal balance of $10,000 plus accrued interest thereon of $17,741was converted into 1,132,764 shares of common stock at a conversion price of $0.02449, thereby extinguishing the note. 

 

 

On September 11, 2018, the Company issued a Convertible Promissory Note in the aggregate principal amount of $150,000 to GS Capital Partners, LLC. The note has a maturity date of August 14, 2019 and a coupon of 8% per annum. The note may not be prepaid. The outstanding principal amount of the note was convertible at any time after the six month anniversary of the note, at the election of the holder into shares of the Company's common stock at a conversion price equal to 62% of lowest trading bid prices during the previous ten (10) trading days, including the date the notice of conversion is received.

 

As of August 14, 2019 the note was in default and accrues interest at the default interest rate of 24% per annum.

 

The balance of the note plus accrued interest at June 30, 2020 was $192,740.

 

 

On February 4, 2019, the Company issued a Convertible Promissory Note in the aggregate principal amount of $96,000 to GS Capital Partners LLC. The note has a maturity date of February 4, 2020 and a coupon of 8% per annum. The Company may not prepay the note. The outstanding principal amount of the note is convertible after 180 days, at the election of the holder into shares of the Company's common stock at a conversion price equal to 62% of the lowest three trading prices during the previous ten (10) trading days.

 

On December 19, 2019, the Company repaid the principal sum of $48,000 on the convertible note.

 

On January 14, 2020, the Company repaid the principal sum of $48,000 and accrued interest and penalty interest of $33,030, thereby extinguishing the note.

 

Crown Bridge Partners

 

 

On August 31, 2018, the Company issued a Convertible Promissory Note in the aggregate principal amount of $27,500 to Crown Bridge Partners. The note had a maturity date of August 31, 2019 and a coupon of 8% per annum. The Company had the right to prepay the note for the first 180 days, subject to a penalty ranging from 10% to 35% of the prepayment, dependent upon the timing of the prepayment. The outstanding principal amount of the note is convertible at any time and from time to time at the election of the holder into shares of the Company's common stock at a conversion price equal to 60% of the lowest trading price during the previous ten (10) trading days.

 

As of August 31, 2019 the note is in default and interest accrues at the default interest rate of 12% per annum and the note holder may require the Company to pay a penalty of 50% of the value of the note outstanding, including default interest.

 

On March 11, 2020, the Company received a conversion notice from Crown Bridge Partners, converting an aggregate principal amount of $7,586 and fees thereon of $500, at a conversion price of $0.01444 into 560,000 shares of common stock.

 

The balance of the note plus accrued interest at June 30, 2020 was $24,812.

 

 

On October 16, 2018, the Company issued a Convertible Promissory Note in the aggregate principal amount of $27,500 to Crown Bridge Partners. The note has a maturity date of October 16, 2019 and a coupon of 8% per annum. The Company may not prepay the note. The outstanding principal amount of the note is convertible after 180 days, at the election of the holder into shares of the Company's common stock at a conversion price equal to 60% of the lowest trading price during the previous fifteen (15) trading days.

 

As of October 31, 2019 the note is in default and accrues interest at the default interest rate of 12% per annum and the note holder may require the Company to pay a penalty of 50% of the value of the note outstanding, including default interest.

 

The balance of the note plus accrued interest at June 30, 2020 was $32,033.

   

Odyssey Funding, LLC

  

 

On November 15, 2019, the Company issued a Convertible Promissory Note in the aggregate principal amount of $200,000 to Odyssey Funding, LLC. The note has a maturity date of November 15, 2020 and a coupon of 10% per annum. The Company may prepay the note with prepayment penalties ranging from 120% to 145%. The outstanding principal amount of the note is convertible after 180 days, at the election of the holder into shares of the Company's common stock at a conversion price equal to 58% of the lowest trading price during the previous fifteen trading days.

 

The balance of the note plus accrued interest at June 30, 2020 was $137,083, after unamortized debt discount of $75,410.

 

 

On January 13, 2020, the Company issued a Convertible Promissory Note in the aggregate principal amount of $100,000 to Odyssey Funding, LLC. The note has a maturity date of January 13, 2021 and a coupon of 10% per annum. The Company may prepay the note with prepayment penalties ranging from 120% to 145%. The outstanding principal amount of the note is convertible after 180 days, at the election of the holder into shares of the Company's common stock at a conversion price equal to 58% of the lowest trading price during the previous fifteen trading days.

 

The balance of the note plus accrued interest at June 30, 2020 was $50,805, after unamortized debt discount of $53,825.

 

Black Ice Advisors, LLC

 

On November 25, 2019, the Company issued a Convertible Promissory Note in the aggregate principal amount of $52,500 to Black Ice Advisors, LLC. The note has a maturity date of November 25, 2020 and a coupon of 10% per annum. The Company may prepay the note with prepayment penalties ranging from 120% to 145%. The outstanding principal amount of the note is convertible after 180 days, at the election of the holder into shares of the Company's common stock at a conversion price equal to 58% of the lowest trading price during the previous fifteen trading days.

 

Between May 27, 2020 and June 8, 2020, the Company received notices of conversion from Black Ice Advisors, LLC converting $37,000 of principal into 1,970,588 shares of common stock at an average conversion price of $0.0188. The Company incurred a loss on conversion of $38,371.

 

The balance of the note plus accrued interest at June 30, 2020 was $12,163, after unamortized debt discount of $6,268.

 

Adar Alef, LLC

 

On February 5, 2020, the Company issued a Convertible Promissory Note in the aggregate principal amount of $105,000 to Adar Alef, LLC. The note has a maturity date of February 5, 2021 and a coupon of 10% per annum. The Company may prepay the note with prepayment penalties ranging from 120% to 145%. The outstanding principal amount of the note is convertible after 180 days, at the election of the holder into shares of the Company's common stock at a conversion price equal to 58% of the lowest trading price during the previous fifteen trading days.

 

The balance of the note plus accrued interest at June 30, 2020 was $46,085, after unamortized debt discount of $63,115.

 

LG Capital Funding, LLC

 

 On February 24, 2020, the Company issued a Convertible Promissory Note in the aggregate principal amount of $78,750 to LG Capital Funding LLC. The note has a maturity date of February 24, 2021 and a coupon of 10% per annum. The Company may prepay the note with prepayment penalties ranging from 120% to 145%. The outstanding principal amount of the note is convertible after 180 days, at the election of the holder into shares of the Company's common stock at a conversion price equal to 58% of the lowest trading price during the previous fifteen trading days.

 

The balance of the note plus accrued interest at June 30, 2020 was $30,066, after unamortized debt discount of $51,424.