XML 22 R11.htm IDEA: XBRL DOCUMENT v3.23.1
CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE
 12 Months Ended
Dec. 31, 2022
Convertible Notes Payable And Notes Payable  
CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE

NOTE 5 – CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE

 

Convertible Notes Payable

 

The following table reflects the convertible notes payable as of December 31, 2022 and 2021:  

 

    Issue Date   Maturity
Date		   December 31,
2022		   December 31,
2021		   Rate   Conversion
Price
            Principal
Balance		   Principal
Balance		        
Convertible notes payable - related parties                                    
                                     
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
Notes payable, Face Value   07/06/22   01/06/23     20,000       -       6.00 %    0.0015
Notes payable, Face Value   07/29/22   01/28/23     10,000       -       6.00 %    0.0020
Notes payable, Face Value   08/04/22   02/04/23     10,000       -       6.00 %    0.0020
Face value             40,000       6,000              
                                     
Less unamortized discounts             -       (3,864 )            
                                     
Balance convertible notes payable - related parties           $ 40,000     $ 2,136              

 

    Issue Date     Maturity
Date		   December 31,
2022		     December 31,
2021		     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   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   07/19/16     07/19/17     4,000       4,000       6.00 %     0.0015  
Notes payable, Face Value   02/06/18     11/07/18     6,000       6,000       6.00 %      0.0006  
Notes payable, Face Value   03/06/18     09/06/18     6,000       6,000       6.00 %     0.0006  
Notes payable, Face Value   01/03/19     07/03/19     1,000       1,000       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     $ 235,300                  
                                             
    Issue Date   Maturity
Date		   December 31,
2022		     December 31,
2021		     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   01/09/18   01/09/19     7,000       7,000       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   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       25,200       6.00 %     0.0035  
Notes payable, Face Value   08/06/20   02/06/21     35,000       35,000       6.00 %     0.0035  
Notes payable, Face Value   08/14/20   02/14/21     50,400       50,400       6.00 %     0.0035  
Notes payable, Face Value   10/31/21   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  
Balance convertible notes payable - related parties, in default   $ 644,500     $ 638,500                  
                                         
Balance all convertible notes payable   $ 919,800     $ 875,936                  

Notes Payable

 

The following tables reflect the notes payable at December 31, 2022 and 2021:

 

 

    Issue Date   Maturity
Date		   December 31,
2022		     December 31,
2021		     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,
2022		     December 31,
2021		     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     8,000       18,000     6.00%
Notes payable, Face Value   11/29/17   11/29/19     105,000       105,000     2.06%
Balance notes payable – default           $ 118,000     $ 128,000      
                             
    Issue Date   Maturity
Date		   December 31,
2022		     December 31,
2021		     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           $ 136,500     $ 196,500      

 

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, 2022 and 2021, the Company recognized beneficial conversion features totaling $0 and $6,000, 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, 2022 and 2021, the Company recorded interest expense related to the amortization of debt discounts in the amount of approximately $3,864 and $40,000, respectively, which is included in interest expense on the consolidated statements of operations.

 

New Convertible Notes Payable Issued During the Years Ended December 31, 2022 and 2021

 

During the year ended December 31, 2022, the Company entered into the following Convertible Notes Payable and Notes Payable Agreements:

 

In July of 2022, the Company entered into a convertible promissory note agreement in the amount of $20,000 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 January 6, 2023. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.0015 per share.

 

In July of 2022, the Company entered into a convertible promissory note agreement in the amount of $10,000 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 January 29, 2023. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.002 per share.

 

In August of 2022, the Company entered into a convertible promissory note agreement in the amount of $10,000 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 February 4, 2023. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.002 per share.

In August of 2022, the Company entered into a promissory note agreement in the amount of $5,000 with a related party. This note paid interest at a rate of 6% per annum and the principal and accrued interest was due on or before August 26, 2022. The lender received 500,000 shares of the Company’s restricted common stock as a loan origination fee. The note was repaid and the balance at December 31, 2022 was $0.

 

In August of 2022, the Company entered into a convertible promissory note agreement in the amount of $50,000 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 September 29, 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 $0.002 per share. This convertible note payable was converted during 2022.

 

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. This convertible note payable is in default due to non payment of principal and accrued interest.

 

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. This convertible note payable is in default due to non payment of principal and accrued interest.

 

Note Conversions

 

During the year ended December 31, 2022:

 

The Company issued 25,221,918 shares of restricted common stock with a total share value of $73,117 to a related party to settle $50,444 of the principal and accrued interest owed on a convertible note payable that was due on September 29, 2022.

 

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.

 

Repayment of Promissory Note

 

During the year ended December 31, 2022, the Company repaid a total of $50,213 of the principal and accrued interest of a promissory note with an original principal balance of $50,000 that was due on January 8, 2022.

 

During the years ended December 31, 2022 and 2021, the Company repaid a total of $10,000 and $2,000, 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, 2022 was $8,000.

 

Shareholder Loan

 

At December 31, 2022 the Company had the following loans outstanding to its CEO in the total amounts of $7,400 as follows:

 

  - A loan with no due date with a remaining balance of $1,500 and an interest rate of 2% and a conversion rate of $0.0005;
     
  - A loan due on January 22, 2022 with a remaining balance of $1,400 and an interest rate of 1%;
     
  - A loan due on January 26, 2022 with a remaining balance of $1,000 and an interest rate of 1%; and  
     
  - A loan due on September 9, 2022 with a remaining balance of $3,500, and an interest rate of 1%.

At December 31, 2021, the Company had the following 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, 2022 the Company repaid its CEO $3,017 of the principal balance and accrued interest for a loan dated May 17, 2022 that had an original principal balance of $3,000 and $4,078 of the principal balance plus accrued interest for a loan dated April 26, 2021 that had an original principal balance of $6,000.

 

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 principal 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.