Convertible Notes Payable

12 Months Ended

Dec. 31, 2021

Convertible Notes Payable

Convertible Notes Payable

Note 5 – Convertible Notes Payable

On August 2, 2021 a convertible note was issued in the amount of $3,500. The convertible note bears interest at 8% as is due six months from the issue date.

On September 13, 2021 the Company issued 200,000 shares of common stock upon conversion of two convertible notes for $3,000 each with an interest rate of 3% and due within one year.

On November 6, 2021 the Company issued 112,064 shares of common stock upon conversion of a convertible note of $3,400.

In previous years the Company borrowed additional money from investors and issued convertible notes, due on demand, bearing interest at an annual rate of 8%. The notes are convertible into shares of Company common stock at a conversion price of $0.01 to $0.05 per share. As December 31, 2021 and 2020, the outstanding principal and interest on these notes was $54,500, respectively.

As of December 31, 2021, an analysis of the principal amount of convertible notes payable that have elected conversion to common stock amounted to $366,000. The Company’s transfer agent has been constrained in its efforts to issue the common stock for these convertible notes due to the noncompliance of the Company’s filing requirements. The Company has ceased accruing interest on these convertible notes but continues to accrue interest on the remaining convertible notes of $54,500. The convertible notes that have elected conversion without the stock being issued have been included in ‘Accrued liabilities’ on the Balance Sheet.