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CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE
 12 Months Ended
Dec. 31, 2020
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, 2020 and 2019:

 

    Issue Date   Maturity Date   December 31, 2020     December 31, 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
    09/01/20   03/01/21     45,000       -     6.00%   0.00300
Face value     45,000       51,000          
                                 
Less unamortized discounts     (13,425 )     (17,935 )        
                                 
Balance convertible notes payable   $ 31,575     $ 33,065          
                             
    Issue Date   Maturity
Date		   December 31, 2020     December 31,
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
    08/06/20   02/06/21     25,200       -     6.00%   0.00350
    08/06/20   02/06/21     35,000       -     6.00%   0.00350
    08/14/20   02/14/21     50,400       -     6.00%   0.00350
Face value     110,600       77,200          
                                 
Less unamortized discounts     (24,431 )     (57,413 )        
                                 
Balance convertible notes payable - related parties   $ 86,169     $ 19,787          

 

                         
    Issue Date   Maturity Date   December 31, 2020     December 31, 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   December 31, 2020     December 31, 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%   0.00300
    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
    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   $ 953,944     $ 780,852          

 

Notes Payable

 

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

 

    Issue Date   Maturity Date   December 31, 2020     December 31, 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     20,000       65,000     6.00%
    11/29/17   11/29/19     105,000       105,000     2.06%
Balance notes payable - default   $ 130,000     $ 175,000      
                             
    Issue Date   Maturity Date   December 31, 2020     December 31, 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   $ 148,500     $ 193,500      

         

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 years ended December 31, 2020 and 2019, the Company recognized beneficial conversion features totaling $202,100 and $168,175, 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 years ended December 31, 2020 and 2019, the Company recorded interest expense related to the amortization of debt discounts in the amount of approximately $240,000 and $101,000 which is included in interest expense on the consolidated statements of operations.

 

New Convertible Notes Payable Issued During the Years Ended December 31, 2020 and 2019

 

During the year ended December 31, 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 was 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. This note is currently in default due to non payment of principal and interest.

 

In August of 2020, the Company entered into a convertible promissory note agreement in the amount of $25,200 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 was due on or before February 6, 2021. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0035 per share. This note went into default subsequent to December 31, 2020.

 

In August of 2020, the Company entered into a convertible promissory note agreement in the amount of $35,000 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 February 6, 2021. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0035 per share. This note went into default subsequent to December 31, 2020.

 

In August of 2020, the Company entered into a convertible promissory note agreement in the amount of $50,400 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 was due on or before February 14, 2021. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0035 per share. This note went into default subsequent to December 31, 2020.

 

In September of 2020, the Company entered into a convertible promissory note agreement in the amount of $45,000 with an individual. This note pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before March 1, 2021. 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 went into default subsequent to December 31, 2020.

 

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 $0.001 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. This note is currently in default due to non payment of principal and interest.

 

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. This note is currently in default due to non payment of principal and interest.

 

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 $0.003 per share. This note is currently in default due to non payment of principal and interest.

 

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 $0.003 per share. This note is currently in default due to non payment of principal and interest.

 

Note Conversions

 

During the year ended December 31, 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 December 31, 2020.

 

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.

 

Repayment of Promissory Note

 

During the year ended December 31, 2020, the Company repaid a total of $45,000 of the principal of a promissory note that was due on December 14, 2018 with an original principal balance of $75,000 and a principal balance outstanding of $65,000 at December 31, 2019. The remaining principal balance of the note at December 31 2020 was $20,000.

 

Shareholder Loan

 

At December 31, 2020 and 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.

 

Collateralized Promissory Notes

 

Two convertible notes outstanding with related parties, dated January 9, 2009 and January 18, 2012 are collateralized by Company assets.

 

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.