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CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE
 6 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE

NOTE 5 – 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, 2021 and December 31, 2020:

 

   Issue Date  Maturity
Date		  June 30,
2021		   December 31,
2020		   Rate  Conversion
Price
         Principal
Balance		   Principal
Balance		       
Convertible notes payable
  09/01/20  03/01/21  $-   $45,000   6.00%  0.0030
Face value   -    45,000       
                       
Less unamortized discounts   -    (13,425)      
                       
Balance convertible notes payable  $-   $31,575       
                       
   Issue Date  Maturity
Date		  June 30,
2021		   December 31,
2020		   Rate  Conversion
Price
         Principal
Balance		   Principal
Balance		       
Convertible notes payable - related parties
Notes payable, Face Value  08/06/20  02/06/21  $-   $25,200   6.00%  0.0035
Notes payable, Face Value  08/06/20  02/06/21   -    35,000   6.00%  0.0035
Notes payable, Face Value  08/14/20  02/14/21   -    50,400   6.00%  0.0035
Face value   -    110,600       
                       
Less unamortized discounts   -    (24,431)      
                       
Balance convertible notes payable - related parties  $-   $86,169       
   Issue Date  Maturity
Date		  June 30,
2021		   December 31,
2020		   Rate  Conversion
Price
         Principal
Balance		   Principal
Balance		       
Convertible notes payable - in default
Notes payable, Face Value  08/28/09  11/01/09  $4,300   $4,300   10.00%  0.0150
Notes payable, Face Value  11/20/12  05/20/13   50,000    50,000   6.00%  0.0050
Notes payable, Face Value  01/19/13  07/30/13   5,000    5,000   6.00%  0.0040
Notes payable, Face Value  02/11/13  08/11/13   9,000    9,000   6.00%  0.0060
Notes payable, Face Value  09/25/13  03/25/14   10,000    10,000   6.00%  0.0125
Notes payable, Face Value  10/04/13  04/04/14   50,000    50,000   6.00%  0.0125
Notes payable, Face Value  10/30/13  10/30/14   50,000    50,000   6.00%  0.0125
Notes payable, Face Value  05/15/14  11/15/14   40,000    40,000   6.00%  0.0070
Notes payable, Face Value  10/13/14  04/13/15   -    -   6.00%  0.0050
Notes payable, Face Value  09/18/15  03/18/16   25,000    25,000   6.00%  0.0020
Notes payable, Face Value  04/04/16  10/04/16   10,000    10,000   6.00%  0.0010
Notes payable, Face Value  07/19/16  07/19/17   4,000    4,000   6.00%  0.0015
Notes payable, Face Value  08/24/16  02/24/17   -    -   6.00%  0.0010
Notes payable, Face Value  03/06/18  09/06/18   6,000    6,000   6.00%  0.0006
Notes payable, Face Value  02/06/18  11/07/18   6,000    6,000   6.00%  0.0006
Notes payable, Face Value  10/29/18  04/29/19   3,000    3,000   6.00%  0.0007
Notes payable, Face Value  01/03/19  07/03/19   1,000    1,000   6.00%  0.0010
Notes payable, Face Value  03/16/19  09/16/19   10,000    10,000   6.00%  0.0010
Notes payable, Face Value  09/04/19  03/04/20   25,000    25,000   6.00%  0.0030
Balance convertible notes payable - in default  $308,300   $308,300       
   Issue Date  Maturity
Date		  June 30,
2021		   December 31,
2020		   Rate  Conversion
Price
         Principal
Balance		   Principal
Balance		       
Convertible notes payable - related parties, in default
Notes payable, Face Value  01/09/09  01/09/10  $10,000   $10,000   10.00%  0.0150
Notes payable, Face Value  01/25/10  01/25/11   6,000    6,000   6.00%  0.0050
Notes payable, Face Value  01/18/12  07/18/12   50,000    50,000   8.00%  0.0040
Notes payable, Face Value  01/19/13  07/30/13   15,000    15,000   6.00%  0.0040
Notes payable, Face Value  07/26/13  01/26/14   10,000    10,000   6.00%  0.0100
Notes payable, Face Value  01/17/14  07/17/14   31,500    31,500   6.00%  0.0060
Notes payable, Face Value  05/27/14  11/27/14   7,000    7,000   6.00%  0.0070
Notes payable, Face Value  07/21/14  01/25/15   17,000    17,000   6.00%  0.0080
Notes payable, Face Value  10/16/14  04/16/15   21,000    21,000   6.00%  0.0045
Notes payable, Face Value  07/14/15  01/14/16   9,000    9,000   6.00%  0.0030
Notes payable, Face Value  01/12/16  07/12/16   5,000    5,000   6.00%  0.0020
Notes payable, Face Value  05/10/16  11/10/16   5,000    5,000   6.00%  0.0005
Notes payable, Face Value  05/10/16  11/10/16   5,000    5,000   6.00%  0.0005
Notes payable, Face Value  05/20/16  11/20/16   5,000    5,000   6.00%  0.0005
Notes payable, Face Value  07/12/16  01/12/17   2,400    2,400   6.00%  0.0006
Notes payable, Face Value  01/26/17  03/12/17   5,000    5,000   6.00%  0.0005
Notes payable, Face Value  02/14/17  08/14/17   25,000    25,000   6.00%  0.0008
Notes payable, Face Value  08/16/17  09/16/17   3,000    3,000   6.00%  0.0008
Notes payable, Face Value  03/14/18  05/14/18   25,000    25,000   6.00%  0.0007
Notes payable, Face Value  04/04/18  06/04/18   3,000    3,000   6.00%  0.0007
Notes payable, Face Value  04/11/18  06/11/18   25,000    25,000   6.00%  0.0007
Notes payable, Face Value  05/08/18  07/08/18   25,000    25,000   6.00%  0.0007
Notes payable, Face Value  05/30/18  08/30/18   25,000    25,000   6.00%  0.0007
Notes payable, Face Value  06/12/18  09/12/18   3,000    3,000   6.00%  0.0007
Notes payable, Face Value  06/20/18  09/12/18   500    500   6.00%  0.0007
Notes payable, Face Value  01/09/18  01/09/19   12,000    12,000   6.00%  0.0006
Notes payable, Face Value  08/27/18  02/27/19   2,000    2,000   6.00%  0.0007
Notes payable, Face Value  10/02/18  04/02/19   1,000    1,000   6.00%  0.0008
Notes payable, Face Value  10/23/18  04/23/19   4,200    4,200   6.00%  0.0007
Notes payable, Face Value  11/07/18  05/07/19   2,000    2,000   6.00%  0.0008
Notes payable, Face Value  11/14/18  05/14/19   8,000    8,000   6.00%  0.0008
Notes payable, Face Value  01/08/19  07/08/19   7,000    7,000   6.00%  0.0008
Notes payable, Face Value  04/25/19  12/23/19   20,000    20,000   6.00%  0.0040
Notes payable, Face Value  06/07/19  12/07/19   5,100    5,100   6.00%  0.0030
Notes payable, Face Value  09/17/19  04/17/20   12,000    12,000   6.00%  0.0030
Notes payable, Face Value  11/12/19  05/12/20   25,000    25,000   6.00%  0.0025
Notes payable, Face Value  11/26/19  05/26/20   25,200    25,200   6.00%  0.0030
Notes payable, Face Value  12/03/19  06/03/20   15,000    15,000   6.00%  0.0030
Notes payable, Face Value  01/07/20  06/20/20   51,000    51,000   6.00%  0.0030
Notes payable, Face Value  08/06/20  02/06/21   25,200    -   6.00%  0.0035
Notes payable, Face Value  08/06/20  02/06/21   35,000    -   6.00%  0.0035
Notes payable, Face Value  08/14/20  02/14/21   50,400    -   6.00%  0.0035
Balance convertible notes payable - related parties, in default  $638,500   $527,900       
                       
Balance all convertible notes payable  $946,800   $953,944       

Notes Payable

 

The following tables reflect the notes payable at June 30, 2021 and December 31, 2020:

 

   Issue Date  Maturity
Date		  June 30,
2021		   December 31,
2020		   Rate
         Principal
Balance		   Principal
Balance		    
Notes payable - in default
Notes payable, Face Value  04/27/11  04/27/12  $5,000   $5,000   6.00%
Notes payable, Face Value  12/14/17  12/14/18   20,000    20,000   6.00%
Notes payable, Face Value  11/29/17  11/29/19   105,000    105,000   2.06%
Balance notes payable – default  $130,000   $130,000    
                    
   Issue Date  Maturity
Date		  June 30,
2021		   December 31,
2020		   Rate
         Principal
Balance		   Principal
Balance		    
Notes payable - related parties, in default
Notes payable, Face Value  02/24/10  02/24/11  $7,500   $7,500   6.00%
Notes payable, Face Value  10/06/15  11/15/15   10,000    10,000   6.00%
Notes payable, Face Value  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   $148,500    

 

New Convertible Notes Payable Issued During the Six Month Period Ended June 30, 2021 and 2020

 

During the six month period ended June 30, 2021, the Company did not enter into any Convertible Notes Payable or Notes Payable Agreements. 

 

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 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.

 

Note Conversions

 

During the six month period ended June 30, 2021:

 

The Company issued 8,734,640 shares of restricted common stock to a related party to settle $20,302 of accrued interest owed on sixteen convertible notes payable with a total share value of $57,648

 

The Company issued 15,594,247 shares of restricted common stock to a convertible note holder to settle $45,000 of the principal balance and $1,783 of accrued on a convertible notes payable with a total share value of $79,530.

 

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 six convertible notes payable.

 

Shareholder Loan

 

At June 30, 2021 and December 31, 2020, the Company had loans outstanding to its CEO in the total amount of $7,500 and $1,500 respectively, as follows:

 

-A loan due and payable on October 26, 2021 in the amount of $6,000 with a 1% annual rate of interest; and

 

-A loan with no due date in the amount of $1,500 with 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.