Related Party Transactions

3 Months Ended

Mar. 31, 2019

Related Party Transactions [Abstract]

Related Party Transactions

NOTE 4: RELATED PARTY TRANSACTIONS

Related Party Convertible Notes Payable

As of March 31, 2019 (unaudited) and December 31, 2018, the Company had the following related party convertible notes outstanding:

		March 31, 2019				December 31, 2018
		Principal (net)		Accrued Interest		Principal (net)		Accrued Interest
March 2017 $332,195 Note, 10% interest, due May 2017	$	-	$	-	$	-	$	-
Total Convertible Notes Payable, Net	$	-	$	-	$	-	$	-

In March 2017, the Company combined Outstanding Notes owed to a director and major stockholder, along with $51,576 of accrued interest payable, into one promissory note (the “Related Party Note”). The Related Party Note accrues interest at a rate of 10% and was due and payable on December 31, 2017. The note holder agreed to an extension of the due date until May 9, 2018. On August 9, 2018 the Company entered into a Path Forward and Restructuring Agreement whereby this Convertible Note would convert at a conversion price of $0.004 per share concurrently with a funding of at least $500,000 (the “Qualified Financing”). The Qualified Financing occurred on October 10, 2018 at which time this note was fully converted into 50,000,000 shares of Company common stock, 385,302 Series B Convertible Preferred shares of the Company, and 44,265,100 warrants that are exercisable into common shares with an exercise price of $0.01. The Company valued this transaction at a price of $0.013 per share as the conversion occurred October 19, 2018 upon board approval. As of March 31, 2019 and December 31, 2018 the Related Party Note was including accrued interest was fully paid off.

The Company has outstanding accrued interest in the amount of $1,054 from old related party notes that the principal had been paid off in full.

Interest expense for the three-months ended March 31, 2019 and 2018 on the related party convertible notes payable amounted to $0 and $9,463, respectively.

Related Party Notes Payable

As of March 31, 2019 (unaudited) and December 31, 2018, the Company had the following related partynotes outstanding:

	March 31, 2019				December 31, 2018
	Principal (net)		Accrued Interest		Principal (net)		Accrued Interest
January 2019 $60,000 Note, 8% interest, due January 2020	$	60,000	$	866	$	-	$	-
March 2019 $48,000 Note, 8% interest, due March 2020		48,000		42
Total Notes Payable, Net	$	108,000	$	908	$	-	$	-

On January 24, 2019 the Company entered into a note payable with a trust related to one of the Company’s directors in the amount of $60,000. The note is for a one-year period maturing January 24, 2020 and bears interest at an annual rate of 8.00%. On March 27, 2019 the Company entered into a note payable with a trust related to one of our directors in the amount of $48,000. The note is for a one-year period maturing March 27, 2020 and bears interest at an annual rate of 8%. Interest expense for these notes for the three-months ended March 31, 2019 and accrued interest at March 31, 2019 is $908.

Related Party Payables

The Company periodically receives advances for operating funds from related parties or has related parties make payments on the Company’s behalf. As a result of these activities the Company had related party payables of $42,110 and $38,610 as of March 31, 2019 (unaudited) and December 31, 2018, respectively.

Preferred and Common Shares Issued to Officers and Directors

During 2018, the Company issued 38,662,562 shares of common stock and warrants to purchase shares of common stock totaling 19,331,281 in settlement of accrued compensation valued at $541,276. The warrants were valued at $238,973 and the Company reflected $586,936 as a loss on conversion of debt.

During 2018, the Company issued 3,600,000 shares of common stock in settlement of accounts payable and notes payable valued at $50,400. The Company granted 1,800,000 warrants in connection with this transaction and recognized a loss of $35,400 in accordance with this settlement.