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Convertible Notes Payable and Notes Payable
 6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Convertible Notes Payable And Notes Payable

NOTE 6 – CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE

 

Upon inception, the Company evaluates each financial instrument to determine whether it meets the definition of “conventional convertible” debt under ASC 470.

 

Convertible Notes Payable

 

The following tables reflect the convertible notes payable at June 30, 2020 and December 31, 2019:

 

    Issue Date   Maturity
Date		   June 30, 2020     December 30,
2019		     Rate   Conversion
Price
            Principal
Balance		     Principal
Balance		          
Convertible notes payable                           
    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          
                                 
Less unamortized discounts         -       17,935          
                                 
Balance convertible notes payable       $ -     $ 33,065          
                             
    Issue Date   Maturity
Date		   June 30, 2020     December 30,
2019		     Rate   Conversion
Price
            Principal
Balance		     Principal
Balance		          
Convertible notes payable - related parties                       
    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          
                                 
Less unamortized discounts       -       57,413          
                                 
Balance convertible notes payable - related parties   $ -     $ 19,787          
                                 

 

    Issue Date   Maturity
Date		   June 30, 2020     December 30,
2019		     Rate   Conversion
Price
            Principal
Balance		     Principal
Balance		          
Convertible notes payable - in default                           
    08/28/09   11/01/09   $ 4,300     $ 4,300     10.00%   0.01500
    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     6.00%   0.00500
    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     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       3,000     6.00%   0.00070
    01/03/19   07/03/19     1,000       1,000     6.00%   0.00100
    03/16/19   09/16/19     10,000       10,000     6.00%   0.00100
    09/04/19   03/04/20     25,000       -     6.00%   0.00300
Balance convertible notes payable - in default   $ 308,300     $ 328,300          
                                 

 

    Issue Date   Maturity
Date		   June 30, 2020     December 30,
2019		     Rate   Conversion
Price
            Principal
Balance		     Principal
Balance		          
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       12,000     6.00%   0.00060
    08/27/18   02/27/19     2,000       2,000     6.00%   0.00070
    10/02/18   04/02/19     1,000       1,000     6.00%   0.00080
    10/23/18   04/23/19     4,200       4,200     6.00%   0.00070
    11/07/18   05/07/19     2,000       2,000     6.00%   0.00080
    11/14/18   05/14/19     8,000       8,000     6.00%   0.00080
    01/08/19   07/08/19     7,000       7,000     6.00%   0.00080
    04/25/19   12/23/19     20,000       20,000     6.00%   0.00400
    06/07/19   12/07/19     5,100       5,100     6.00%   0.00300
    09/17/19   04/17/20     12,000       -     6.00%   0.00250
    11/12/19   05/12/20     25,000       -     6.00%   0.00300
    11/26/19   05/26/20     25,200       -     6.00%   0.00300
    12/03/19   06/03/20     15,000       -     6.00%   0.00300
    01/07/20   06/20/20     51,000       -     6.00%   0.00300
Balance convertible notes payable - related parties, in default   $ 527,900     $ 399,700          
                                 
Balance all convertible notes payable   $ 836,200     $ 780,852          

 

Notes Payable

 

The following tables reflect the notes payable at June 30, 2020 and December 31, 2019:

 

    Issue Date   Maturity
Date		   June 30, 2020     December 30,
2019		     Rate
            Principal
Balance		     Principal
Balance		      
Notes payable - in default                    
    04/27/11   04/27/12   $ 5,000     $ 5,000     6.00%
    12/14/17   12/14/18     35,000       65,000     6.00%
    11/29/17   11/29/19     105,000       105,000     2.06%
Balance notes payable - default     $ 145,000     $ 175,000      
                             
    Issue Date   Maturity
Date		   June 30, 2020     December 30,
2019		     Rate
            Principal
Balance		     Principal
Balance		      
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      
                             
Balance all notes payable     $ 163,500     $ 193,500      

 

New Convertible Notes Payable Issued During the Six Month Period Ended June 30, 2020

 

During the six month period ended June 30, 2020, the Company entered into the following Convertible Notes Payable and Notes Payable Agreements:

 

In January of 2020, the Company entered into a convertible promissory note agreement in the amount of $51,000 with a related party who is a member of the Board of Directors. This note pays interest at a rate of 6% per annum and the principal and accrued interest is due on or before June 30, 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.

 

Note Conversions

 

During the six month period ended June 30, 2020:

 

The Company issued 39,781,082 shares of restricted common stock to settle $84,086 of principal and accrued interest owed on three convertible notes payable. The remaining principal balance of all of these notes was $0 at March 31, 2020.

 

During the six month period ended June 30, 2019:

 

A lender converted the principal and accrued interest for a convertible promissory note outstanding with a principal balance of $1,028 into 1,284,938 shares of the Company’s common stock.

 

Repayment of Promissory Note

 

During the six month period ended June 30, 2020, the Company repaid a total of $30,000 of the principal of a promissory note with an original principal balance of $75,000 that was due on December 14, 2018. The remaining principal balance of the note at June 30, 2020 was $35,000.

 

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 it is very possible that such dilution may significantly negatively affect the trading price of the Company’s common stock.