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CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE
 9 Months Ended
Sep. 30, 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 September 30, 2024 and December 31, 2023: 

 

    Issue Date   Maturity
Date		   September 30,
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     (33,628)       -          
Balance convertible notes payable   $ 116,372     $ -          

   

    Issue Date   Maturity
Date		   September 30,
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		   September 30,
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 $ 1,041,172     $ 1,144,800                  

Notes Payable

 

The following tables reflect the notes payable at September 30, 2024 and December 31, 2023:

 

    Issue Date   Maturity
Date		   September 30,
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 %
Notes payable, Face Value   04/01/24   04/01/25     150,000       -       6.00 %
Total             1,000,000       500,000          
Less unamortized discounts       (40,202 )     (95,214 )        
Balance notes payable       $ 959,798     $ 404,786          
                             
    Issue Date   Maturity
Date		   September 30,
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		   September 30,
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 $ 1,090,298     $ 535,286          

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

 

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 normally be agreeable to non related third parties.

 

New Convertible Notes Payable Issued During the Nine Month Periods Ended September 30, 2024 and 2023

 

During the nine month period ended September 30, 2024, 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.

 

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.

 

In April 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 $150,000 in April 2024. Per the note agreement, the $150,000 received in April 2024 is due on April 1, 2025. The aggregate balance of the note payable at September 30, 2024 and December 31, 2023 is $1,000,000 and $500,000, respectively.

 

During the nine month period ended September 30, 2023 the Company entered into the following notes payable agreements:

 

In May of 2023, the Company entered into a convertible promissory note agreement in the amount of $50,000 with an individual. This note paid interest at a rate of 6% per annum and the principal and accrued interest was due on or before June 30, 2023. The lender received 1,000,000 shares of the Company’s restricted common stock as a financing fee for providing the loan. The principal balance and accrued interest of $115 was repaid prior to June 30, 2023.

 

In July of 2023, the Company entered into a convertible promissory note agreement in the amount of $5,000 with a related party who is a member of the Board of Directors. This note pays interest at a rate of 1% per annum and the principal and accrued interest was due on or before September 24, 2023. The lender received 500,000 shares of the Company’s restricted common stock as a loan origination fee. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.00175 per share.

 

In August of 2023, the Company entered into a promissory note agreement in the amount of $100,000 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 October 2, 2023. The lender received 2,000,000 shares of the Company’s restricted common stock as a loan origination fee. 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 September of 2023, the Company entered into a convertible promissory note agreement in the amount of $120,000 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 October 18, 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.

 

Repayments of Notes Payable

 

Period Ended September 30, 2024

 

During the nine month period ended September 30, 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 September 30, 2024.

 

Period Ended September 30, 2023

 

During the nine month period ended September 30, 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 September 30, 2024 and December 31, 2023 was $3,000.

Note Conversions

 

Period Ended September 30, 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 September 30, 2024.

 

The Company issued 5,091,402 shares of restricted common stock with a total share value of $44,804 to a limited related party to settle $12,405 of the accrued interest owed on sixteen convertible notes payable.

 

Period Ended September 30, 2023

 

There were no conversions of convertible promissory notes during the nine month period ended September 30, 2023. 

 

Shareholder Loan

 

At September 30, 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.