NOTE 5. SHORT TERM BORROWINGS

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

NOTE 5. SHORT TERM BORROWINGS

NOTE 5.  SHORT TERM BORROWINGS

On June 14, 2018, the Company issued a short-term convertible note payable for $50,000.  The note was originally due on February 14, 2019 and bears interest at a rate of 15% per annum.  The note is convertible into shares of common stock at $0.10 per share. The company is currently negotiating an extension with the note holder.

Short-term and Long-term borrowings consist of the following:	December 31,    December 31,
Short term debt;	2018		2017
Convertible Promissory Notes, bearing an annual interest rate of 15% secured, due 02/14/2019		$   50,000		$             -
Convertible Promissory Notes, bearing an annual interest rate of 12% secured, due 08/27/2019		250,000
		300,000		-
Long term debt;
Convertible Promissory Notes, bearing an annual interest rate of 15% secured, due 08/07/2020		717,391		-
Total short-term and long term borrowings, before debt discount		$1,017,391		-
Less debt discount		(792,777)	$	-
Total Debt net of Discounts		$ 224,614	$	-

On March 28, 2018 the Company entered into a convertible promissory note and a security purchase agreement (SPA). The SPA was for a total of $1,000,000, consisting of seven tranches of funding, the initial tranche was in the amount of $50,000 with the second tranche funded for $100,000 for an aggregate of $150,000. The lender was Iliad Research and Trading, L.P. The notes have a maturity of seventeen (17) months from issuance are due on August 28, 2019, have an interest rate of 10% per annum, and are convertible at a price of $0.15 per share. If, at the Company’s option, they decide to repay the loan with shares of its common stock, the conversion price becomes 65% of the lowest trading price on the primary trading market on which the Company’s Common Stock is then listed for the twenty (20) trading days immediately prior to conversion. The notes may be prepaid, but carry a penalty in association with the remittance amount, as there is an accretion component to satisfy the note with cash. The Notes are secured with 39,000,000 shares of the Company’s $0.001 par value common stock. On July 2, 2018, Iliad Research and Trading, L.P. decided to limit their funding exposure with Beyond Commerce, Inc. and have subsequently stopped any funding of their notes. These two notes totaling $150,000 were satisfied during August of 2018. Although the agreement provided for the issuance of warrants with each tranche of funding, as remaining funding was not provided we are currently negotiating a settlement with respect to the warrants.

On August 7, 2018, we entered into a securities purchase agreement (“SPA”) with Discover Growth Fund, LLC (“Discover”), pursuant to which we issued a senior secured redeemable convertible debenture in the principal amount of $2,717,391 (of which $217,391was retained by Discover as an original issue discount) (the “Debenture”), in exchange for $500,000 cash consideration and a promissory note issued to BYOC in the amount of $2,000,000 (the “Note”).  Pursuant to the terms of the SPA, we issued to Discover a warrant to purchase up to 16,666,667 shares of our common stock, exercisable beginning on the six (6) month anniversary from the date of issuance for a period of three (3) years at an exercise price of $0.15 per share (the “Warrant”).  

The Debenture is subject to interest at a rate of 8.0% per annum and be converted into shares of the Company’s common stock at a price equal to the lower (i) $0.15 per share of common stock, and (ii) if there has never been a trigger event (as defined in the Debenture), (A) the average of the 5 lowest individual trades of the shares of common stock, less $0.01 per share, or following any such trigger event, (B) 60% of the foregoing.

On November 27, 2018, the Company received funding in conjunction with a convertible promissory note and a security purchase agreement dated November 27, 2018, in the amount of $250,000. The lender was Auctus Fund LLC. The note has a maturity of August 27, 2019 and interest rate of 12% per annum and is convertible at a price of 60% of the lowest trading price on the primary trading market on which the Company’s Common Stock is then listed for the twenty-five (25) trading days immediately prior to conversion. The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy the note with cash.

The Company reevaluated several loans as to their continued liability in relation to the statute of limitations and retired several of these items as the term had expired. The Company recognized a gain from the retirement of certain notes of $1,427,506 for the year ended December 31, 2017.  The Company recorded $378,552 and $38,670 as interest expense for the year ended December 31, 2018 and 2017, respectively.