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CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE
 3 Months Ended
Mar. 31, 2024
Convertible Notes Payable And Notes Payable  
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 March 31, 2024 and December 31, 2023:

 

 

   Issue Date  Maturity
Date		  March 31,
2024		   December 31,
2023		   Rate  Conversion
Price
         Principal
Balance		   Principal
Balance		       
Convertible notes payable              
Notes payable, Face Value  03/18/24  03/18/25  $50,000   $-   6.00%  Variable
Notes payable, Face Value  03/28/24  03/28/25   100,000    -   6.00%  Variable
Total         150,000    -       
Less unamortized discounts   45,054    -       
Balance convertible notes payable  $104,946   $-       
                 
   Issue Date  Maturity
Date		  March 31,
2024		   December 31,
2023		   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 
Notes payable, Face Value  09/18/23  10/18/23   -    120,000    6.00%   0.0020 
Balance convertible notes payable - in default  $235,300   $355,300           
   Issue Date  Maturity
Date		  March 31,
2024		   December 31,
2023		   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   12,000    12,000    6.00%   0.0006 
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    3,000    2.00%   0.0020 
Notes payable, Face Value  11/10/21  05/10/22   3,000    3,000    2.00%   0.0020 
Notes payable, Face Value  07/06/22  01/06/23   20,000    20,000    6.00%   0.0015 
Notes payable, Face Value  07/29/22  01/28/23   10,000    10,000    6.00%   0.0020 
Notes payable, Face Value  08/04/22  02/04/23   10,000    10,000    6.00%   0.0020 
Notes payable, Face Value  07/24/23  09/24/23   5,000    5,000    1.00%   0.00175 
Notes payable, Face Value  08/02/23  10/01/23   -    100,000    6.00%   0.0020 
                           
Balance convertible notes payable - related parties, in default $689,500   $789,500           
                           
Balance all convertible notes payable $936,342   $1,144,800           

Notes Payable

 

The following tables reflect the notes payable at March 31, 2024 and December 31, 2023:

 

 

   Issue Date  Maturity
Date		  March 31,
2024		   December 31,
2023		   Rate 
         Principal
Balance		   Principal
Balance		     
Notes payable                 
Notes payable, Face Value  11/10/23  11/10/24  $500,000   $500,000    6.00%
Notes payable, Face Value  02/28/24  02/28/25   350,000    -    6.00%
Total         850,000    500,000      
Less unamortized discounts     (67,708)   (95,214)     
Balance notes payable     $782,292   $404,786      
                   
   Issue Date  Maturity
Date		  March 31,
2024		   December 31,
2023		   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   2,000    2,000    6.00%
Notes payable, Face Value  11/29/17  11/29/19   105,000    105,000    2.06%
Balance notes payable – default $112,000   $112,000      
                      
   Issue Date  Maturity
Date		  March 31,
2024		   December 31,
2023		   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 $912,792   $535,286      

 

Terms of Related Party Convertible Notes Payable and Related Party Notes Payble

 

The Company’s related party convertible notes payable and related party notes payable may contain terms that are not indicative of the terms that would not normally be agreeable to non related third parties.

 

New Convertible Notes Payable Issued During the three Month Periods Ended March 31, 2024 and 2023

 

During the three month period ended March 31, 2024 Company the Company entered into the following Convertible Notes Payable and Notes Payable Agreements:

 

In February 2024, the Company drew down the second round of funding under a promissory note agreement dated November 10, 2023 in the amount of up to $1,000,000. This note pays interest at a rate of 6% per annum. The lender advanced $350,000 in February 2024. Per the note agreement, the $350,000 received in February 2024 is due on February 27, 2025. The aggregate balance of the note payable at March 31, 2024 and December 31, 2023 is $850,000 and $500,000, respectively.

 

In March of 2024, 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 is due on or before March 18, 2025. The lender received 1,000,000 shares of the Company’s restricted common stock as a financing fee for providing the loan. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate that is variable.

 

In March of 2024, the Company entered into a convertible promissory note agreement in the amount of $100,000 with an individual. This note pays interest at a rate of 6% per annum and the principal and accrued interest is due on or before March 28, 2025. The lender received 1,500,000 shares of the Company’s restricted common stock as a financing fee for providing the loan. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate that is variable.

 

During the three month period ended March 31, 2023 the Company did not enter not enter into any convertible notes payable or notes payable agreements.

Repayments of Notes Payable

 

Period Ended March 31, 2024

 

During the three month period ended March 31, 2024, the Company repaid a related party shareholder a total of $102,679 of the principal balance and accrued interest of a convertible note payable. The balance of the related party convertible note was $0 at March 31, 2024.

 

Period Ended March 31, 2023

 

During the three month period ended March 31, 2023, the Company repaid a total of $5,000 of the principal of a note payable with an original principal balance of $75,000 that was due on December 14, 2018. The remaining principal balance of the note at March 31, 2024 and December 31, 2023 was $3,000.

 

Note Conversions

 

Period Ended March 31, 2024

 

The Company issued 61,104,658 shares of restricted common stock with a total share value of $274,970 to a limited liability company to settle $122,209 of the principal and accrued interest owed on a convertible note payable that was due on October 18, 2023. The balance of the convertible note was $0 at March 31, 2024.

 

Period Ended March 31, 2023

 

There were no conversions of convertible promissory notes during the three month period ended March 31, 2023.

 

Shareholder Loan

 

At March 31, 2024 and December 31, 2023, the Company had the following loans outstanding to its CEO in the total amount of $5,000 as follows:

 

-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; and

 

-A loan due on September 9, 2022 with a remaining balance of $3,500, and an interest rate of 1%.

 

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. The Company’s convertible notes payable and notes payable in default represent a very significant risk to the viability of the Company.