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Notes Payable
9 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Notes Payable

NOTE 2 - NOTES PAYABLE

 

At December 31, 2018 the company is obligated for several notes payable and accrued interest in the total amount of $65,000 and $2,774, respectively; on the balance sheet this is shown net of a debt discount of ($5,251). The note terms dictate 12% simple interest, compounding daily based on a 365-day year, paid out 6 months from the date of the note and the issuance of a detachable warrant for purchase of half of the principal amount in shares exercisable at $1.00 per share for a 3-year term.

 

During the nine months ended December 31, 2018 the Company entered into bridge note agreements with several bridge note holders in the principal amount of $215,000. There were 107,500 detachable warrants issued in conjunction with bridge notes entered into in the nine-month period ending December 31, 2018. Pursuant to ASC 470 the fair value of the warrants attributable to a discount on the debt is ($49,880); this amount is to be amortized to interest expense on a straight-line basis over the term of the loans.

 

During the nine-month period ended December 31, 2018 and pursuant to bridge note conversion agreements, $150,000 in principal and $4,280 in accrued interest was converted into 514,264 shares of common stock at a rate of $.30 per share. Pursuant to the conversion of the notes, each note-holder who converted their note(s) received a warrant for purchase of half of the outstanding balance in shares exercisable at $.30 per share through December 31, 2018; 77,140 of these warrants were issued.

 

An additional $33,822 in equity issuance expense was recognized due to a beneficial conversion feature whereby $50,734 in principal and interest was converted at $.30 per share when the stock price on the date of the conversion agreement was $.50 per share.

 

Each of the warrants issued pursuant to conversion of these notes, if exercised, qualified for 1 additional share of common stock transferred from a founder of the Company for every 3 shares received through exercising of these warrants; 33,351 shares were transferred to these note-holders by a founder. During the nine months ended December 31, 2018 a total of $44,628 in debt discount has been relieved to interest expense due to amortization and the conversions.