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Note 8: Convertible Loan
6 Months Ended
Jun. 30, 2019
Disclosure Text Block [Abstract]  
Note: 8. Convertible Loan

8. Convertible Loans

 

On May 18, 2016, the Company issued a convertible promissory note (“Convertible Note”) pursuant to which the Company received $50,000 from CaiE due on November 17, 2017. The $50,000 Convertible Note is convertible into common stock, in whole or in part, at any time and from time to time before maturity at the option of the holder at a fixed price of $0.20 per share. Due to the conversion price being lower than the closing share price on the issuance date, a beneficial conversion feature was recognized as a discount against the convertible note. The Convertible Note accrues interest at a rate equal to 10% per year. During the three and six months ended June 30, 2019 and 2018, $nil and $nil of the discount was amortized as interest expense, respectively. Interest expense recognized on this loan was $1,250 for the three months ended June 30, 2019, compared to $1,250 for the three months ended June 30, 2018. Interest expense recognized on this loan was $2,500 for the six months ended June 30, 2019, compared to $2,500 for the six months ended June 30, 2018. As at June 30, 2019 and December 31, 2018, the balance of the Convertible Note was $50,000. On November 17, 2017, the Company entered into an amending agreement to extend the maturity date to March 31, 2018; all other terms remained unchanged. On March 31, 2018, the Company entered into an additional amending agreement to further extend the maturity date of the Convertible Note to March 31, 2019. All other terms remained unchanged. On March 31, 2019, the Company entered into an additional amending agreement to further extend the maturity date of the Convertible Note to March 31, 2020. All other terms remained unchanged.

 

On October 12, 2018, the Company issued an additional convertible note with CaiE pursuant to which the Company received $27,800 during the year ended December 31, 2017 and $30,000 during the year ended December 31, 2018. The $57,800 convertible note is due on October 11, 2019 and is convertible into common stock, in whole or in part, at any time and from time to time before maturity at the option of the holder at a fixed price of $0.20 per share. Due to the conversion price being lower than the closing share price on the issuance date, a beneficial conversion feature was recognized as a discount against the convertible note. The convertible note accrues interest at a rate equal to 10% per year. During the three months ended June 30, 2019 and 2018, $14,450 and $nil of the discount was amortized as interest expense, respectively. During the six months ended June 30, 2019 and 2018, $28,900 and $nil of the discount was amortized as interest expense, respectively. Interest expense recognized on this loan was $1,445 for the three months ended June 30, 2019, compared to $nil for the three months ended June 30, 2018. Interest expense recognized on this loan was $2,890 for the six months ended June 30, 2019, compared to $nil for the six months ended June 30, 2018. As at June 30, 2019 and December 31, 2018, the balance of the convertible note was $57,800.