CONVERTIBLE NOTES

9 Months Ended

Sep. 30, 2019

Convertible notes at September 30, 2019 and December 31, 2018 consists of the following:

	September 30,			December 31,
	2019			2018
Convertible Notes - originated in April 2018	$	95,000		$	95,000
Convertible Notes - originated in June 2018		166,000			166,000
Convertible Notes - originated in October 2018		50,000			50,000
Total convertible notes payable		311,000			311,000

Less: Unamortized debt discount		(106,871	)		(223,189	)
Total convertible notes		204,129			87,811

Less: current portion of convertible notes		204,129			-
Long-term convertible notes	$	-		$	87,811

For the nine months ended September 30, 2019 and 2018, the interest expense on convertible notes was $28,926 and $34,491, respectively. As of September 30, 2019, and December 31, 2018, the accrued interest was $10,420 and $8,185, respectively.

The Company recognized amortization expense related to the debt discount of $116,318 and $147,719 for the nine months ended September 30, 2019 and 2018, respectively, which is included in interest expense in the statements of operation.

Convertible Notes – Issued during the year ended December 31, 2018

During the year ended December 31, 2018, the Company issued a total principal amount of $426,000 convertible notes for cash proceeds of $426,000. The convertible notes were also provided with a total of 107,000 common shares valued at $22,210. The terms of convertible notes are summarized as follows:

	·	Term two years;
	·	Annual interest rates 12%;
	·	Convertible at the option of the holders at any time
	·	Conversion prices are based on 50% discount to market value for the common stock based on a 4-week weekly average of the closing price.