XML 24 R12.htm IDEA: XBRL DOCUMENT v3.19.1
6. Convertible Notes
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Convertible Notes

NOTE 6 – CONVERTIBLE NOTES

 

As of December 31, 2018 and December 31, 2017, the balance of convertible notes was $277,649 and $-0- respectively.

 

In April 2018, the Company commenced a private offering of up to $250,000 in convertible debenture (the “Debentures”), to non-residents of the US. These notes accrue interest at the rate of 8% per annum and are convertible into shares of the Company’s Common Stock and are only convertible until such time as the Company’s Common Stock is approved for trading, of which there is no assurance, at a conversion rate of $0.0667 per share. Interest is payable annually, on or before February 15 of each year. The Debentures mature three years after the issuance date. As of the date hereof, an aggregate of $277,649 in Debentures have been issued. None have been converted.

 

Since the Company’s shares were previously sold in a private placement at a price of $0.10 per share, the difference in price is considered a beneficial conversion feature. Since the holders of the Notes have the right to convert immediately, the beneficial conversion feature of $92,457 has been immediately expensed and recorded as interest expense.