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Note 8: Convertible Loans
3 Months Ended
Mar. 31, 2021
Disclosure Text Block [Abstract]  
Note: 8: Convertible Loans

8. Convertible Loans

 

On May 18, 2016, the Company issued a convertible promissory note to CaiE that accrues 10% per annum, in exchange for $50,000, initially due on November 17, 2017. The note is convertible into the Company’s common stock, in whole or in part, at any time prior to maturity at the option of the holder, at $0.20 per share. Since the conversion price was lower than the closing share price on the issuance date, a beneficial conversion feature was recognized as a discount against the debt. The maturity date of the note was extended by amendment, to March 31, 2021, while all other terms of the note remain unchanged. The Company reached out to CaiE to extend the maturity date of the convertible promissory note but no action to do so was agreed. During the three months ended March 31, 2021 and 2020, no discount was amortized as interest expense, while the interest expense on the note was $1,250 for the period ended March 31, 2021, and $1,250 for the period ended March 31, 2020. As at March 31, 2021 and December 31, 2020, the balance of the note was $50,000.

 

On October 12, 2018, the Company issued a convertible note to CaiE that accrues 10% per annum, in exchange for a series of loans that totaled $57,800 initially due on October 11, 2019. The note is convertible into the Company’s common stock, in whole or in part, at any time prior to maturity at the option of the holder at $0.20 per share. Since the conversion price was lower than the closing share price on the issuance date, a beneficial conversion feature was recognized as a discount against the debt. The maturity date of the note has been extended by amendment, to March 31, 2021, while all other terms of the note remain unchanged. The Company reached out to CaiE to extend the maturity date of the convertible promissory note but no action to do so was agreed. During the three months ended March 31, 2021 and 2020, $nil and $nil of the discount was amortized as interest expense, while the interest expense on the note was $1,445 for the period ended March 31, 2021, and $1,445 for the period ended March 31, 2020. As at March 31, 2021 and December 31, 2020, the balance of the note was $57,800.