XML 20 R9.htm IDEA: XBRL DOCUMENT v3.10.0.1
Notes Payable - Related Party
9 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Notes Payable - Related Party

NOTE 3 – NOTES PAYABLE – RELATED PARTY

 

At December 31, 2018, the Company is obligated for a Director note payable and accrued interest in the total amount of $91,193. We are obligated to pay $3,100 per month applied towards accrued interest first, then the principal amount due. The entirety of the outstanding principal and accrued interest due is payable upon sales of equity in excess of $3,500,000 within a two-year period.

 

During the nine months ended December 31, 2018, the Company entered into bridge note agreements with related parties totaling $70,000 in principal. Upon entering into these bridge note agreements, the note-holders were issued one warrant for every $2.00 in principal loaned to the Company. These warrants were exercisable at $1.00 for a term of three years and vested immediately. Pursuant to ASC 470 the fair value of the warrants attributable to a discount on the debt is $15,677. 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 along with the principal amount loaned to the Company. The entire $70,000 in principal and $1,722 in accrued interest was converted into 239,073 shares of common stock at a rate of $.30 per share pursuant to bridge note conversion agreements.

 

An additional $13,333 in equity issuance expense was recognized due to a beneficial conversion feature whereby $20,000 in principal was converted at $.30 per share when the stock price on the date of the conversion agreement was $.50 per share.

 

Also pursuant to the bridge note conversion agreements, for every $2.00 in outstanding balance converted into equity the note-holder received one warrant exercisable at $.30 per share through December 31, 2018; 35,861 of these warrants were issued. The entire balance remaining in debt discount of $15,677 was relieved to interest expense upon conversion of these notes.