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CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE

NOTE 6 – CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE

 

Convertible Notes Payable

 

PAYABLE

 

The following table reflects the convertible notes payable as of December 31, 2021 and 2020:

 

 

   Issue Date  Maturity
Date		  December 31,
2021		   December 31,
2020		   Rate   Conversion
Price		 
        Principal
Balance		   Principal
Balance		       
Convertible notes payable                    
Notes payable, Face Value  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		  December 31,
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
Notes payable, Face Value  10/13/21  04/13/22   3,000    —      2.00%  0.0020
Notes payable, Face Value  11/10/21  05/10/22   3,000    —      2.00%  0.0020
Face value         6,000    110,600          
                          
Less unamortized discounts         (3,864)    (24,431)         
                          
Balance convertible notes payable - related parties        $2,136   $86,169          

 

   Issue Date  Maturity
Date		  December 31,
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     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  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     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  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     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     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  $235,300   $308,300               
   Issue Date  Maturity
Date		  December 31,
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  $875,936   $953,944                

Notes Payable

 

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

 

 

   Issue Date  Maturity
Date		  December 31,
2021		   December 31,
2020		   Rate
         Principal
Balance		   Principal
Balance		     
Notes payable                    
Notes payable, Face Value  12/08/21  01/08/22  $50,000   $-   6.00%
Balance notes payable        $50,000   $-     

 

    Issue Date   Maturity
Date		   December 31,
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     18,000       20,000     6.00%
Notes payable, Face Value  11/29/17   11/29/19     105,000       105,000     2.06%
Balance notes payable – default           $ 128,000     $ 130,000      

 

   Issue Date  Maturity
Date		  December 31,
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        $196,500   $148,500     

 

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, 2021 and 2020, the Company recognized beneficial conversion features totaling $6,000 and $202,100, 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, 2021 and 2020, the Company recorded interest expense related to the amortization of debt discounts in the amount of approximately $40,000 and $240,000 which is included in interest expense on the consolidated statements of operations.

 

New Convertible Notes Payable Issued During the Years Ended December 31, 2021 and 2020

 

During the year ended December 31, 2021, the Company entered into the following Convertible Notes Payable and Notes Payable Agreements:

 

In October of 2021, the Company entered into a convertible promissory note agreement in the amount of $3,000 with a related party who is a member of the Board of Directors. This note pays interest at a rate of 2% per annum and the principal and accrued interest is due on or before April 13, 2022. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0020 per share.

 

In November of 2021, the Company entered into a convertible promissory note agreement in the amount of $3,000 with a related party who is a member of the Board of Directors. This note pays interest at a rate of 2% per annum and the principal and accrued interest is due on or before May 10, 2022. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0020 per share.

 

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

 

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

 

Note Conversions

 

During the year ended December 31, 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 interest on a convertible note payable with a total share value of $79,530.

 

The Company issued 35,615,390 shares of restricted common stock to a convertible note holder to settle $73,000 of the principal balance and $28,761 of accrued interest on four convertible notes payable with a total share value of $146,024.

 

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. 

 

Repayment of Promissory Note

 

During the years ended December 31, 2021 and 2020, the Company repaid a total of $2,000 and $45,000, respectively, 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 December 31, 2021 was $18,000.

 

Shareholder Loan

 

At December 31, 2021, the Company had the following four loans outstanding to its CEO in the aggregate amount of $7,900:

 

-A loan with no due date with a $1,500 remaining balance and an interest rate of 2% and a conversion rate of $0.0005;

 

-A loan due on October 26, 2021 with a remaining balance of $4,000 and an interest rate of 1%;

 

-A loan due on January 22, 2022 with a remaining balance of $1,400 and an interest rate of 1%; and

 

-A loan due on January 26, 2022 with a remaining balance of $1,000 and an interest rate of 1%;

 

Repayment of Shareholder Loan

 

During the year ended December 31, 2021 the Company repaid its CEO $2,000 for a loan dated April 26, 2021 that had an original principle balance of $6,000.

 

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.