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NOTE 13 - SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2018
Subsequent Events [Abstract]  
(13) SUBSEQUENT EVENTS

(13) SUBSEQUENT EVENTS

 

a) Stockholders’ Deficit

In the third quarter 2018 the Company issued 764,205 shares of common stock valued at $19,869 to settle $7,102 of convertible debt.

 

b) Convertible Notes

In the third quarter 2018, the Company entered into a convertible note in exchange for $35,000 in cash. This note matures in eight and one-half months and carries a 12% interest rate. The note converts into shares of the Company’s common stock at a price of 61% of the average of the two lowest trade prices and the lowest trade price for the Common Stock during the 15 Trading Day period ending on the latest complete Trading Day prior to the Conversion Date.

 

In the third quarter 2018, a third party acquired, through an assignment, the remaining unconverted balances and accrued interest plus prepayment fees of three convertible notes. The purchased principal balances were $173,744, accrued interest of $10,303 and prepayment fees of $73,928 for total consideration of $257,974. The notes were immediately amended from a variable conversion rate to a fixed conversion rate.

 

In the third quarter the remaining convertible note with a remaining balance of $153,472 matured and the Company defaulted on payment. The lender commenced legal action to collect on the default. The Company is negotiating to reach a settlement with the lender for payment over 5 months which prohibits the lender from any conversions as long as the payments are made timely.

 

c) Real Property Leases

In the third quarter 2018, the Company entered into a 10 year lease for a new Illegal Burger to be located in Glendale, CO.