Note 5. Convertible Notes Payable

Convertible notes payable consisted of the following at June 30, 2019 and September 30, 2018:

	June 30, 2019			September 30, 2018
Convertible note dated April 13, 2017 in the original principal amount of $20,000, no stated maturity date, bearing interest at 3% per year, convertible into common stock at a rate of $0.01 per share.	$	20,000		$	20,000

Convertible note dated May 14, 2018 in the original principal amount of $58,000, maturing February 28, 2019, bearing interest at 12% per year, convertible beginning November 14, 2018 into common stock at a rate of 65% of the average of the two lowest trading prices during the 15 trading days prior to conversion. In November and December 2018, principal in the amount of $58,000 and accrued interest in the amount of $3,480 were converted into a total of 6,959,142 shares of common stock.		-			58,000

Convertible note dated June 25, 2018 in the original principal amount of $43,000, maturing April 15, 2019, bearing interest at 12% per year, convertible beginning December 25, 2018 into common stock at a rate of 65% of the average of the two lowest trading prices during the 15 trading days prior to conversion. In December 2018, principal in the amount of $12,000 was converted into a 2,006,689 shares of common stock; in January 2019, principal in the amount of $19,000 and accrued interest in the amount of $2,580, respectively, were converted into an aggregate of 5,245,708 shares of common stock.		-			43,000

Convertible note dated August 2, 2018 in the original principal amount of $33,000, maturing May 15, 2019, bearing interest at 12% per year, convertible beginning February 2, 2019 into common stock at a rate of 65% of the average of the two lowest trading prices during the 15 trading days prior to conversion. In February 2019, principal in the amount of $33,000 and accrued interest in the amount $1,980 were converted into an aggregate of 2,608,527 shares of common stock.		-			33,000

Convertible note dated September 7, 2018 in the original principal amount of $40,000, maturing June 30, 2019, bearing interest at 12% per year, convertible beginning March 7, 2019 into common stock at a rate of 65% of the average of the two lowest trading prices during the 15 trading days prior to conversion. In March 2019, principal in the amount of $40,000 and accrued interest in the amount of $2,400 were converted into an aggregate of 7,298,763 shares of common stock.		-			40,000

Convertible note dated October 31, 2018 in the original principal amount of $38,000, maturing August 15, 2019, bearing interest at 12% per year, convertible beginning April 29, 2019 into common stock at a rate of 65% of the average of the two lowest trading prices during the 15 trading days prior to conversion. In May 2019, principal in the amount of $38,000 and accrued interest in the amount of $2,280 were converted into an aggregate of 8,597,234 shares of common stock.		-			-

Convertible note dated December 20, 2018 in the original principal amount of $33,000, maturing October 15, 2019, bearing interest at 12% per year, convertible beginning June 18, 2019 into common stock at a rate of 65% of the average of the two lowest trading prices during the 15 trading days prior to conversion.		33,000			-

Convertible note dated January 22, 2019 in the original principal amount of $38,000, maturing November 15, 2019, bearing interest at 12% per year, convertible beginning July 21, 2019 into common stock at a rate of 65% of the average of the two lowest trading prices during the 15 trading days prior to conversion.		38,000			-

Convertible note dated February 19, 2019 in the original principal amount of $38,000, maturing December 15, 2019, bearing interest at 12% per year, convertible beginning August 18, 2019 into common stock at a rate of 65% of the average of the two lowest trading prices during the 15 trading days prior to conversion.		38,000			-

Convertible note dated April 1, 2019 in the original principal amount of $45,000, maturing February 15, 2019, bearing interest at 12% per year, convertible beginning September 28, 2019 into common stock at a rate of 65% of the average of the two lowest trading prices during the 15 trading days prior to conversion.		45,000			-

Convertible note dated May 21, 2019 in the original principal amount of $35,000, maturing March 15, 2019, bearing interest at 12% per year, convertible beginning November 17, 2019 into common stock at a rate of 65% of the average of the two lowest trading prices during the 15 trading days prior to conversion.		35,000			-

Total current convertible notes payable		209,000			194,000

Less: discount on convertible notes payable		(37,999	)		(8,720	)
Total convertible notes payable, net of discount	$	171,001		$	185,280

All principal along with accrued interest is payable on the maturity date. The notes are convertible into common stock at the option of the holder. The holder of the notes cannot convert the notes into shares of common stock if that conversion would result in the holder owning more than 4.9% of the outstanding stock of the Company. During the nine months ended June 30, 2019, the Company recorded discounts to notes payable in connection with beneficial conversion features in the aggregate amount of $232,828, and recorded amortization of discounts in the amount of $222,048.

As of June 30, 2019 and September 30, 2018, accrued interest on notes payable was $226,314 and $232,307, respectively.

During the three months ended June 30, 2019 and 2018, interest expense on the notes payable was $6,931 and $4,083, respectively; during the nine months ended June 30, 2019 and 2018, interest expense on the notes payable was $17,561 and $7,963, respectively

Conversions of Notes Payable to Common Stock

During the nine months ended June 30, 2019, the holders of the Convertible Note Payable dated May 14, 2018 elected to convert, in four separate transactions, principal of $58,000 and accrued interest of $3,480 into a total of 6,959,142 shares of common stock. A loss in the aggregate amount of $13,663 was recognized on the conversions.

Also during the nine months ended June 30, 2019, the Company issued 3,300,001 shares of common stock with a fair value of $98,670 for the conversion of a note payable with a basis of $0. A loss in the amount of $98,670 was recorded on this transaction.

Also during the nine months ended June 30, 2019, the holders of the Convertible Note Payable dated June 25, 2018, elected to convert principal of $12,000 into 2,006,689 shares of common stock. The Company recorded a loss of $4,840 on this transaction.

Also during the nine months ended June 30, 2019, the holders of the Convertible Note Payable dated June 25, 2018, elected to convert, in two separate transactions, principal of $31,000 and accrued interest of $2,580 into a total of 5,245,708 shares of common stock. A loss in the aggregate amount of $7,643 was recognized on the conversions.

Also during the nine months ended June 30, 2019, the holders of the Convertible Note Payable dated August 2, 2018 elected to convert, in two separate transactions, principal of $33,000 and accrued interest of $1,980 into a total of 2,608,527 shares of common stock. A loss in the aggregate amount of $2,008 was recognized on the conversions.

Also during the nine months ended June 30, 2019, the holders of the Convertible Note Payable dated September 7, 2018 elected to convert, in three separate transactions, principal of $40,000 and accrued interest of $2,400 into a total of 7,298,763 shares of common stock. A loss in the aggregate amount of $4,723 was recognized on the conversions.

Also during the nine months ended June 30, 2019, the holders of the Convertible Note Payable dated October 31, 2018 elected to convert, in three separate transactions, principal of $38,000 and accrued interest of $2,280 into a total of 8,597,234 shares of common stock. A loss in the aggregate amount of $6,274 was recognized on the conversions.