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5. CONVERTIBLE NOTE PAYABLE TO RELATED PARTY
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
CONVERTIBLE NOTE PAYABLE TO RELATED PARTY

Loan Agreement with Dr. Kevin Schewe

On February 23, 2017, the Company entered into a Loan Agreement with CEO Kevin Schewe whereby he agreed to fund the Company up to $100,000 over a two-year period based on requests from the Company.  The loans would be evidenced by a Secured Convertible Note.  Each individual loan will accrue interest at 8% per annum and are secured by all assets of the Company.  Each note would mature on the first anniversary of the issuance date of such note.  Each note is convertible at Dr. Schewe’s request, into a fixed number of shares of the Company’s common stock based on the closing price of the Company’s common stock for the twenty trading days prior to the issuance of the loan, less an 80% discount.  In connection with the separation from VGE on September 30, 2012, Dr. Schewe was granted an irrevocable proxy that permits him to vote the Preferred Share, giving him the majority shareholder vote. As the controlling shareholder of the Company he has the ability to increase the number of authorized shares without additional shareholder approval. As such, if the outstanding balance on the loan was convertible into more shares than the Company has authorized, he has the ability to increase the authorized shares. As a result, the conversion feature is not deemed to be a derivative instrument subject to bifurcation. During 2017, Dr. Schewe converted loans totaling $80,000 into 242,278,404 common shares of the Company.  At the time of the conversions, the company recorded the discount as additional interest expense. From February 26, 2018 to April 13, 2018, Dr. Schewe made loans of $20,000 and completed the funding.

On May 24, 2018, the Company entered into a Loan Agreement with Dr. Schewe whereby he agreed to fund the Company up to $100,000 over a two-year period.  The loans would be evidenced by a Secured Convertible Note.  Each individual loan will accrue interest at 8% per annum and are secured by all assets of the Company.  Each note would mature on the first anniversary of the issuance date of such note.  Each note is convertible at Dr. Schewe’s request, into a fixed number of shares of the Company’s common stock based on the closing price of the Company’s common stock for the twenty trading days prior to the issuance of the loan, less an 80% discount.  In connection with the separation from VGE on September 30, 2012, Dr. Schewe was granted an irrevocable proxy that permits him to vote the Preferred Share, giving him the majority shareholder vote. As the controlling shareholder of the Company he has the ability to increase the number of authorized shares without additional shareholder approval. As such, if the outstanding balance on the loan was convertible into more shares than the Company has authorized, he has the ability to increase the authorized shares. As a result, the conversion feature is not deemed to be a derivative instrument subject to bifurcation.   During 2018, Dr. Schewe converted loans totaling $40,000 into 390,218,194 common shares of the Company.  At the time of the conversions, the company recorded the discount as additional interest expense.

There are no loans outstanding at December 31, 2018 and December 31, 2017. As of December 31, 2018, the Company had remaining availability under the note of $60,000.

Loan Agreement with Haris Basit

Effective November 30, 2016, the Company entered into a Loan Agreement with Director Haris Basit whereby Mr. Basit agreed to loan up to $100,000 to the Company over a two-year period based on requests from the Company. Each individual loan will accrue interest at 8% per annum. Each note would mature on the first anniversary of the issuance date of such note. Each note is convertible at Mr. Basit’s request, into a fixed number of shares of the Company’s common stock based on the closing price of the Company’s common stock for the twenty trading days prior to the issuance of the loan, less an 80% discount. The Loan Agreement states that the Mr. Basit will not convert any loan into a number of shares that would exceed the number of available authorized common shares calculated as of the date of the conversion. As a result, the conversion feature is not deemed to be a derivative instrument subject to bifurcation.

During 2017 Mr. Basit made loans of $47,500 to the Company.  The Company recorded a discount on the loans of $47,500 as a result of a beneficial conversion feature, which will be amortized over the term of the note on a straight line basis, which approximates the effective interest method.  During 2017, Mr. Basit converted loans totaling $47,500 into 140,958,681 common shares of the Company. At the time of the conversions, the company recorded the discount as additional interest expense.

During 2018 Mr. Basit made loans of $27,500 to the Company.  The Company recorded a discount on the loans of $27,500 as a result of a beneficial conversion feature, which will be amortized over the term of the note on a straight line basis, which approximates the effective interest method.  During 2018, Mr. Basit converted loans totaling $27,500 into 127,691,910 common shares of the Company. At the time of the conversions, the company recorded the discount as additional interest expense.

There are $0 loans outstanding at December 31, 2018. As of December 31, 2018, the Company had $0 remaining availability under the note.

Loan Agreement with Dr. Carl Kukkonen

On July 25, 2017, the Company entered into a Loan Agreement with Dr. Carl Kukkonen, CTO of the Company, whereby Dr. Kukkonen agreed to fund the Company up to $25,000 over a two-year period.  Each individual loan will accrue interest at 8% per annum. Each note would mature on the first anniversary of the issuance date of such note. Each note is convertible at Dr. Kukkonen’s request, into a fixed number of shares of the Company’s common stock based on the closing price of the Company’s common stock for the twenty trading days prior to the issuance of the loan, less an 80% discount. The Loan Agreement states that the Dr. Kukkonen will not convert any loan into a number of shares that would exceed the number of available authorized common shares calculated as of the date of the conversion. As a result, the conversion feature is not deemed to be a derivative instrument subject to bifurcation.

During 2017 Dr. Kukkonen made loans of $11,500 to the Company.  The Company recorded a discount on the loans of $11,500 as a result of a beneficial conversion feature, which will be amortized over the term of the note on a straight line basis, which approximates the effective interest method.  During 2017, Dr. Kukkonen converted loans totaling $11,500 into 41,218,638 common shares of the Company. At the time of the conversions, the company recorded the discount as additional interest expense. There are $0 loans outstanding at December 31, 2018. As of December 31, 2018, the Company had remaining availability under the note of $13,500.