CONVERTIBLE NOTES

3 Months Ended

Jun. 30, 2019

CONVERTIBLE NOTES

NOTE 6 - CONVERTIBLE NOTES

During the three months ended June 30, 2019, the Company issued separate Convertible Promissory Notes (Notes) having a total principal amount of $249,939 to an accredited holder at an interest rate of 1% per month. The note holder, at his sole discretion and election, is allowed to convert any part or all of the then outstanding principal and/or interest on these Notes into shares of common stock of the Company at a fixed price per share of $1.00. As of June 30, 2019, none of the Notes were converted, and as such, principal balance of was $249,939 as of the period then ended.

The Notes were issued when the market price of the Companys common stock was in excess of the $1.00 per share conversion price creating a beneficial conversion feature associated with these Notes with an aggregate amount of $71,381 at issuance dates. As such, the Company recorded the $71,381 intrinsic value of the beneficial conversion feature at issuance dates of the Notes as additional paid-in capital, and recognized as a debt discount. The debt discount is being amortized as interest expense over the terms of the related notes. During the three-month period ended June 30, 2019, the Company recorded amortization of the debt discount of $21,045 as interest expense. As such, unamortized debt discount as of June 30, 2019 related to these Notes was $50,336.