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Convertible Notes and Derivative Liability
3 Months Ended
Mar. 31, 2020
Notes  
Convertible Notes and Derivative Liability

 

NOTE 6 – CONVERTIBLE POMISSORY NOTES – Related Party

 

$100,000 Convertible Promissory Note

On November 12, 2012, the Company issued a $100,000 convertible promissory note to SCS, a related party and significant shareholder, as compensation for services provided during the period April 1, 2012 through March 31, 2013.  The note is due on demand, had an annual interest of 5.5%, and is convertible into shares of common stock at a conversion price to be agreed upon immediately prior to conversion.  On September 27, 2013, the Company amended the note to include a conversion price which of $0.01 per share for all unpaid principal and interest.  As of March 31, 2020 and December 31, 2019 interest accrued, but unpaid, was $62,343 and $60,953, respectively.

 

$130,100 Convertible Promissory Note

Prior to 2015, the Company entered into a convertible promissory note with SCS, a related party and significant shareholder, due on demand, bearing interest at 8% per annum, unsecured and convertible at $0.01 per share, with a price protection provision to a lower convertsion price.  The balance of this note was $130,100 at March 31, 2020 and December 31, 2019 with the accrued interest balances of $55,188 and $52,557, respectively.