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Convertible Notes Payable and Notes Payable
 12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Convertible Notes Payable And Notes Payable

NOTE 6 – CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE

 

Convertible Notes Payable

 

The following table reflects the convertible notes payable as of December 31, 2019 and 2018:

 

  Issue Date Maturity Date Principal Balance   Principal Balance Rate Conversion Price
      2019   2018    
Convertible notes payable              
  10/29/18 04/29/19 -   $3,000 6.00% 0.00070
  09/04/19 03/04/20 25,000   - 6.00% 0.00300
  09/04/19 03/04/20 26,000   - 6.00% 0.00300
Face value     51,000   3,000    
               
Less unamortized discounts     17,935   1,401    
               
Balance convertible notes payable     33,065   1,599    
               
               
Convertible notes payable - related parties              
  01/09/18 01/09/19 -   12,000 6.00% 0.00060
  08/27/18 02/27/19 -   2,000 6.00% 0.00070
  10/02/18 04/02/19 -   1,000 6.00% 0.00080
  10/23/18 04/23/19 -   4,200 6.00% 0.00070
  11/07/18 05/07/19 -   2,000 6.00% 0.00080
  11/14/18 05/14/19 -   8,000 6.00% 0.00080
  09/17/19 04/17/20 12,000   - 6.00% 0.00300
  11/12/19 05/12/20 25,000   - 6.00% 0.00250
  11/26/19 05/26/20 25,200   - 6.00% 0.00300
  12/03/19 06/03/20 15,000   - 6.00% 0.00300
Face value     77,200   29,200    
               
Less unamortized discounts     57,413   7,588    
               
Balance convertible notes payable - related parties     $19,787   $21,612    
               
               
Convertible notes payable - in default Convertible notes payable - in default        
  08/28/09 11/01/09 $4,300   $4,300 10.00% 0.01500
  4/7/2010 11/07/10 -   70,000 6.00% 0.00800
  11/12/10 11/12/11 -   40,000 6.00% 0.00500
  10/31/12 04/30/13 -   8,000 6.00% 0.00400
  11/20/12 05/20/13 50,000   50,000 6.00% 0.00500
  01/19/13 07/30/13 5,000   5,000 6.00% 0.00400
  02/11/13 08/11/13 9,000   9,000 6.00% 0.00600
  09/25/13 03/25/14 10,000   10,000 6.00% 0.01250
  10/04/13 04/04/14 50,000   50,000 6.00% 0.01250
  10/30/13 10/30/14 50,000   50,000 6.00% 0.01250
  05/15/14 11/15/14 40,000   40,000 6.00% 0.00700
  10/13/14 04/13/15 25,000   25,000 6.00% 0.00500
  06/29/15 12/29/15 -   25,000    
  09/18/15 03/18/16 25,000   25,000 6.00% 0.00200
  04/04/16 10/04/16 10,000   10,000 6.00% 0.00100
  07/19/16 07/19/17 4,000   4,000 6.00% 0.00150
  08/24/16 02/24/17 20,000   20,000 6.00% 0.00100
  03/06/18 09/06/18 6,000   6,000 6.00% 0.00060
  02/06/18 11/07/18 6,000   6,000 6.00% 0.00060
  10/29/18 04/29/19 3,000   - 6.00% 0.00070
  01/03/19 07/03/19 1,000   - 6.00% 0.00100
  03/16/19 09/16/19 10,000   - 6.00% 0.00100
Balance convertible notes payable - in default     $328,300   $457,300    
               
               
Convertible notes payable - related parties, in default              
  01/09/09 01/09/10 $10,000   $10,000 10.00% 0.01500
  01/25/10 01/25/11 6,000   6,000 6.00% 0.00500
  01/18/12 07/18/12 50,000   50,000 8.00% 0.00400
  01/19/13 07/30/13 15,000   15,000 6.00% 0.00400
  07/26/13 01/26/14 10,000   10,000 6.00% 0.01000
  01/17/14 07/17/14 31,500   31,500 6.00% 0.00600
  05/27/14 11/27/14 7,000   7,000 6.00% 0.00700
  07/21/14 01/25/15 17,000   17,000 6.00% 0.00800
  10/16/14 04/16/15 21,000   21,000 6.00% 0.00450
  07/14/15 01/14/16 9,000   9,000 6.00% 0.00300
  01/12/16 07/12/16 5,000   5,000 6.00% 0.00200
  05/10/16 11/10/16 5,000   5,000 6.00% 0.00050
  05/10/16 11/10/16 5,000   5,000 6.00% 0.00050
  05/20/16 11/20/16 5,000   5,000 6.00% 0.00050
  07/12/16 01/12/17 2,400   2,400 6.00% 0.00060
  01/26/17 03/12/17 5,000   5,000 6.00% 0.00050
  02/14/17 08/14/17 25,000   25,000 6.00% 0.00075
  08/16/17 09/16/17 3,000   3,000 6.00% 0.00080
  03/14/18 05/14/18 25,000   25,000 6.00% 0.00070
  04/04/18 06/04/18 3,000   3,000 6.00% 0.00070
  04/11/18 06/11/18 25,000   25,000 6.00% 0.00070
  05/08/18 07/08/18 25,000   25,000 6.00% 0.00070
  05/30/18 08/30/18 25,000   25,000 6.00% 0.00070
  06/12/18 09/12/18 3,000   3,000 6.00% 0.00070
  06/20/18 09/12/18 500   500 6.00% 0.00070
  01/09/18 01/09/19 12,000   - 6.00% 0.00060
  08/27/18 02/27/19 2,000   - 6.00% 0.00070
  10/02/18 04/02/19 1,000   - 6.00% 0.00080
  10/23/18 04/23/19 4,200   - 6.00% 0.00070
  11/07/18 05/07/19 2,000   - 6.00% 0.00080
  11/14/18 05/14/19 8,000   - 6.00% 0.00080
  01/08/19 07/08/19 7,000   - 6.00% 0.00080
  04/25/19 12/23/19 20,000   - 6.00% 0.00400
  06/07/19 12/07/19 5,100   - 6.00% 0.00300
Balance convertible notes payable - relatd parties, in default     $399,700   $338,400    

 

Notes Payable

 

The following table reflects the notes payable as of December 31, 2019 and 2018:

 

  Issue Date Maturity Date 2019   2018 Rate
      Principal Balance   Principal Balance  
Notes payable            
  11/29/17 11/29/19 -   $105,000 2.06%
Face value notes payable     -   105,000  
             
Less unamortized discounts     -   14,943  
             
Balance notes payable     -   90,057  
             
             
Notes payable - in default            
  04/27/11 04/27/12 5,000   5,000 6.00%
  06/23/11 08/23/11 -   25,000 6.00%
  12/14/17 12/14/18 65,000   75,000 6.00%
  03/07/18 04/15/18 -   25,000 6.00%
  04/20/18 05/04/18 -   21,500 6.00%
  08/21/18 09/21/18 -   1,000 6.00%
  11/29/17 11/29/19 105,000   - 2.06%
Balance notes payable - default     $175,000   $152,500  
             
             
Notes payable - related parties, in default            
  02/24/10 02/24/11 $7,500   $7,500 6.00%
  10/06/15 11/15/15 10,000   10,000 6.00%
  02/08/18 04/09/18 1,000   1,000 6.00%
Balance notes payable - related parties, in default     $18,500   $18,500  

 

The convertible notes payable are convertible into a fixed number of shares and with no down round protection features.  The Company accounted for the beneficial conversion features based on the intrinsic value at the date of issuance. During the year ended December 31, 2019 and 2018, the Company recognized beneficial conversion features totaling $168,175 and $107,623, respectively. The discount from the beneficial conversion features are being amortized through charges to interest expense over the term of the convertible notes payable.  For the year ended December 31, 2019 and 2018, the Company recorded interest expense related to the amortization of debt discounts in the amount of approximately $101,000 and $139,000 which is included in interest expense on the consolidated statements of operations.

 

Notes Payable and Convertible Notes Payable Issued in 2019

 

During the year ended December 31, 2019 the Company entered into the following Convertible Notes Payable and Notes Payable Agreements:

 

In January of 2019, the Company entered into a convertible promissory note agreement in the amount of $1,000 with an individual. This loan pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before July 3, 2019. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.001 per share. This note is currently in default due to non payment of principal and interest.

 

In January of 2019, the Company entered into a convertible promissory note agreement in the amount of $7,000 with a related party. This note pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before July 8, 2019. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.008 per share. This note is currently in default due to non payment of principal and interest.

 

In March of 2019, the Company entered into a convertible promissory note agreement in the amount of $10,000 with an individual. This loan pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before September 16, 2019. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0010 per share. This note is currently in default due to non payment of principal and interest.

 

In April of 2019, the Company entered into a convertible promissory note agreement in the amount of $20,000 with a related party. This note pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before October 23, 2019. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.004 per share. This note is currently in default due to non payment of principal and interest.

 

In June of 2019, the Company entered into a convertible promissory note agreement in the amount of $5,100 with a related party. This note pays interest at a rate of 6% per annum and the principal and accrued interest are due on or before December 7, 2019. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.003 per share. This note is currently in default due to non payment of principal and interest.

 

In September of 2019, the Company entered into a convertible promissory note agreement in the amount of $25,000 with an individual. This loan pays interest at a rate of 6% per annum and the principal and accrued interest are due on or before March 4, 2020. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.003 per share. This note is currently in default due to non payment of principal and interest.

 

In September of 2019, the Company entered into a convertible promissory note agreement in the amount of $26,000 with an individual. This loan pays interest at a rate of 6% per annum and the principal and accrued interest are due on or before March 4, 2020. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.003 per share. This note is currently in default due to non payment of principal and interest.

 

In September of 2019, the Company entered into a convertible promissory note agreement in the amount of $12,000 with a related party. This note pays interest at a rate of 6% per annum and the principal and accrued interest are due on or before April 17, 2020. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.003 per share.

 

In November of 2019, the Company entered into a convertible promissory note agreement in the amount of $25,000 with a related party. This note pays interest at a rate of 6% per annum and the principal and accrued interest are due on or before May 12, 2020. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0025 per share.

 

In November of 2019, the Company entered into a convertible promissory note agreement in the amount of $25,200 with a related party. This note pays interest at a rate of 6% per annum and the principal and accrued interest are due on or before May 26, 2020. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0030 per share.

 

In December of 2019, the Company entered into a convertible promissory note agreement in the amount of $15,000 with a related party. This note pays interest at a rate of 6% per annum and the principal and accrued interest are due on or before June 3, 2020. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0030 per share.

 

Convertible Notes Payable and Notes Payable Issued in 2018

 

During the year ended December 31, 2018, the Company entered into the following Convertible Notes Payable and Notes Payable Agreements:

 

In January of 2018, the Company entered into a convertible promissory note agreement in the amount of $12,000 with an individual who is both related to the Company’s CEO and a member of the Company’s Board of Directors. This loan pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before January 9, 2019. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0006 per share.

 

In January of 2018, the Company entered into a promissory note agreement in the amount of $25,000 with a related party. This note pays interest at a rate of 6% per annum and the principal and accrued interest were due on or before March 2, 2018. The related party lender received 2,000,000 shares of the Company’s restricted common stock as a loan origination fee. The Company agreed that if the note was not repaid in full by March 2, 2018 then the interest rate on the note would increase to 10% after that date until the note is paid in full and the Company would be obligated to pay an additional 1,000,000 shares of the Company restricted common stock to the related party lender. This note was repaid and the balance owed at December 31, 2018 was $0.

 

In February of 2018, the Company entered into a convertible promissory note agreement in the amount of $6,000 with an individual. This loan pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before November 7, 2018. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0006 per share. This note is currently in default due to non payment of principal and interest.

 

In February of 2018, the Company entered into a promissory note agreement in the amount of $1,000 with an individual who is both related to the Company’s CEO and a member of the Company’s Board of Directors. This note pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before April 9, 2018. This note was repaid and the balance owed at December 31, 2018 was $0.

 

In March of 2018, the Company entered into a convertible promissory note agreement in the amount of $6,000 with an individual. This note pays interest at a rate of 6% per annum and the principal and accrued interest is due on or before September 6, 2018. The lender received 500,000 shares of the Company’s restricted common stock as a loan origination fee. The note is unsecured. This note is currently in default due to non payment of principal and interest.

 

In March of 2018, the Company entered into a promissory note agreement in the amount of $25,000 with an individual. This note pays interest at a rate of 6% per annum and the principal and accrued interest were due on or before April 15, 2018. The lender received 5,000,000 shares of the Company’s restricted common stock as a loan origination fee. This note is currently in default due to non payment of principal and interest. The note is unsecured. 

 

In March of 2018, the Company entered into a convertible promissory note agreement in the amount of $25,000 with an individual who is both related to the Company’s CEO and a member of the Company’s Board of Directors. This note pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before May14, 2018. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0007 per share. This note is currently in default due to non payment of principal and interest.

 

In April of 2018, the Company entered into a convertible promissory note agreement in the amount of $3,000 with an individual who is both related to the Company’s CEO and a member of the Company’s Board of Directors. This loan pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before June 4, 2018. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0007 per share. This note is currently in default due to non payment of principal and interest.

 

In April of 2018, the Company entered into a convertible promissory note agreement in the amount of $25,000 with an individual who is both related to the Company’s CEO and a member of the Company’s Board of Directors. This loan pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before June 11, 2018. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0007 per share. This note is currently in default due to non payment of principal and interest.

 

In April of 2018, the Company entered into a promissory note agreement in the amount of $25,000 with an individual. This note pays interest at a rate of 6% per annum and the principal and accrued interest were due on or before May 15, 2018. The lender received 4,000,000 shares of the Company’s restricted common stock as a loan origination fee and a $1,250 financing fee. This note was repaid and the balance owed at December 31, 2018 was $0.

  

In April of 2018, the Company entered into a promissory note agreement in the amount of $40,000 with an individual. This note pays interest at a rate of 6% per annum and the principal and accrued interest were due on or before May 4, 2018. The lender received 4,000,000 shares of the Company’s restricted common stock as a loan origination fee. This note is currently in default due to non payment of principal and interest. The note is unsecured. The Company repaid principal balance of $18,500 and the principal balance owed was $21,500 at December 31, 2018.

 

In May of 2018, the Company entered into a convertible promissory note agreement in the amount of $25,000 with an individual who is both related to the Company’s CEO and a member of the Company’s Board of Directors. This loan pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before August 30, 2018. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0007 per share. This note is currently in default due to non payment of principal and interest.

 

In May of 2018, the Company entered into a convertible promissory note agreement in the amount of $25,000 with an individual who is both related to the Company’s CEO and a member of the Company’s Board of Directors. This loan pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before July 8, 2018. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0007 per share. This note is currently in default due to non payment of principal and interest.

 

In June of 2018, the Company entered into a convertible promissory note agreement in the amount of $3,000 with an individual who is both related to the Company’s CEO and a member of the Company’s Board of Directors. This loan pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before September 12, 2018. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0007 per share. This note is currently in default due to non payment of principal and interest.

 

In June of 2018, the Company entered into a convertible promissory note agreement in the amount of $500 with an individual who is both related to the Company’s CEO and a member of the Company’s Board of Directors. This loan pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before September 12, 2018. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0007 per share. This note is currently in default due to non payment of principal and interest.

 

In August of 2018, the Company entered into a promissory note agreement in the amount of $1,000 with an individual. This note pays interest at a rate of 6% per annum and the principal and accrued interest were due on or before September 21, 2018. The lender received 100,000 shares of the Company’s restricted common stock as a loan origination fee. This note is currently in default due to non payment of principal and interest. The note is unsecured.

  

In August of 2018, the Company entered into a convertible promissory note agreement in the amount of $2,000 with an individual who is both related to the Company’s CEO and a member of the Company’s Board of Directors. This loan pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before February 27, 2019. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0007 per share. This note is currently in default due to non payment of principal and interest.

 

In October of 2018, the Company entered into a promissory note agreement in the amount of $10,000 with an individual. This note pays interest at a rate of 1% per annum and the principal and accrued interest were due on or before October 9, 2018. The lender received 500,000 shares of the Company’s restricted common stock as a loan origination fee. This note was repaid and the balance owed at December 31, 2018 was $0. This note is currently in default due to non payment of principal and interest.

 

In October of 2018, the Company entered into a convertible promissory note agreement in the amount of $1,000 with an individual who is both related to the Company’s CEO and a member of the Company’s Board of Directors. This loan pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before April 2, 2019. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0008 per share. This note is currently in default due to non payment of principal and interest.

 

In October of 2018, the Company entered into a convertible promissory note agreement in the amount of $4,200 with an individual who is both related to the Company’s CEO and a member of the Company’s Board of Directors. This loan pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before April 23, 2019. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0008 per share. This note is currently in default due to non payment of principal and interest.

 

In October of 2018, the Company entered into a convertible promissory note agreement in the amount of $3,000 with an individual. This loan pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before April 29, 2019. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0006 per share. This note is currently in default due to non payment of principal and interest.

 

In November of 2018, the Company entered into a convertible promissory note agreement in the amount of $2,000 with an individual who is both related to the Company’s CEO and a member of the Company’s Board of Directors. This loan pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before May 7, 2019. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0008 per share. This note is currently in default due to non payment of principal and interest.

 

In November of 2018, the Company entered into a convertible promissory note agreement in the amount of $8,000 with an individual who is related to the Company’s CEO. This loan pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before May 7, 2019. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0008 per share. This note is currently in default due to non payment of principal and interest.

 

Note Conversions

 

During the year ended December 31, 2019 the Company issued 62,638,873 shares of common stock to settle $309,689 of principle and accrued interest owed on various convertible notes payable and one note payable.Due to the extinguishment of a note payable with common stock a loss in the amount of $5,274 was recognized upon settlement.

 

During the year ended December 31, 2018, two different lenders converted their outstanding principal and accrued interest into shares of the Company’s common stock. Upon these conversions, the Company issued an aggregate of 16,759,497 for $18,546 of principal balance and $930 of accrued interest.

 

Shareholder Loans

 

At December 31, 2019 the Company had a loan outstanding to its CEO in the amount of $1,500. The loan has a 2% annual rate of interest and an option to convert the loan into restricted shares of the Company’s common stock at $0.0005.

 

At December 31, 2018, the Company had eight loans outstanding to its CEO totaling $6,548, consisting of a loan in the amount of $468 with a 6% annual rate of interest, a loan in the amount of $1,500 at 2% rate of interest and an option to convert the loan into restricted shares of the Company’s common stock at $0.0005, and the remaining six loans of $4,580 at 1% rate of interest.

 

Convertible Notes Payable and Notes Payable, in Default

 

The Company does not have additional sources of debt financing to refinance its convertible notes payable and notes payable that are currently in default. If the Company is unable to obtain additional capital, such lenders may file suit, including suit to foreclose on the assets held as collateral for the obligations arising under the secured notes. If any of the lenders file suit to foreclose on the assets held as collateral, then the Company may be forced to significantly scale back or cease its operations which would more than likely result in a complete loss of all capital that has been invested in or borrowed by the Company. The fact that the Company is in default of several promissory notes held by various lenders makes investing in the Company or providing any loans to the Company extremely risky with a very high potential for a complete loss of capital.

 

The convertible notes that have been issued by the Company are convertible at the lender’s option. These convertible notes represent significant potential dilution to the Company’s current shareholders as the convertible price of these notes is generally lower than the current market price of the Company’s shares. As such when these notes are converted into shares of the Company’s common stock there is typically a highly dilutive effect on current shareholders and very possible that such dilution may significantly negatively affect the trading price of the Company’s common stock.