CONVERTIBLE NOTE

12 Months Ended

Sep. 30, 2020

CONVERTIBLE NOTE

NOTE 9 - CONVERTIBLE NOTE

On July 1, 2014, the Company issued a USD $67,215 (CAD $75,000) convertible note for cash. The note bears an interest rate of 9.5% and matured on December 31, 2015. The note, plus accrued interest, is convertible by the holder, as, in part or whole, until the date of maturity into common stock of the Company at CAD $0.00275 per share. The Company by resolution has elected to allow conversion of any and all the notes outstanding principal and interest until the note is fully paid. On September 30, 2017, the Company issued 700,000 shares of common stock with a value of $5,612 (CDN $7,000) for partial conversion of the convertible note. The note was amended stating the note in US dollars with an agreed principal balance of $82,496 maturing on December 31, 2018. As of April 1, 2020 the note was further amended extending the closing date to December 31, 2021, interest increased as of April 1, 2020 to 18% per annum, the note’s principal increased by $30,000 and the note holder receiving 10,000,000 shares of the Company’s common stock with a value of $40,000. As of September 30, 2020, the convertible debt outstanding was USD $19,065 plus accrued interest of USD $29,538 for a total liability of USD $48,603.

On November 12, 2018, the Company issued a $36,000 convertible note to Crown Partners, LLC. The note bears an original discount of $3,500, matures in 12 months from the origination date and bears interest at 5% per annum. The note is convertible at any time, in part or whole, at $0.50 per share until the 180^th date of the note at which time it is convertible at 55% of the market price which is defined as the lowest trading price 25 days prior to conversion. An interest amount of $2,430 has been accrued along with a principal balance of $4,922, for a total of $7,422 outstanding as of September 30, 2020. The outstanding balance as of September 30, 2019 was $31,850. As of September 30, 2020 the note is in default and no litigation pending.

On May 15, 2019 the Company issued a $100,000 convertible note plus 500,000 warrants to Auctus Funding, LLC. The note bears an original discount of $3,500, matures February 17, 2020 and bears interest at 5% per annum. The note is convertible at any time, at 55% of the market price which is defined as the lowest trading price 25 days prior to conversion. Interest of $9,972 has been accrued as of September 30, 2020. The warrants are exercisable at $0.20 per share or if the price of the company’s common stock is greater than the exercise price of the warrant, the warrant may be exercised by the holder as a cashless warrant in lieu of a cash warrant. As of September 30, 2020 and 2019 the outstanding balance was $9,972 and $100,000 respectively. As of September 30, 2020 the note is in default and no litigation pending. (See Note 6: Warrants)

On May 16, 2019 the Company issued a $125,000 convertible note and 625,000 warrants to Firstfire Global Opportunity Fund, LLC. The note bears an original discount of $12,500, matures in 12 months from the origination date and bears interest at 7% per annum. The note is convertible at any time, in part or whole, at $0.25 per share or 60% of the market price which is defined as the lowest trading price 20 days prior to conversion. The warrants are exercisable at $0.20 per share or if the price of the company’s common stock is greater than the exercise price of the warrant, the warrant may be converted by the holder as a cashless warrant in lieu of a cash warrant. As of September 30, 2020 and 2019 , the outstanding balances were $90,307 and $125,000, respectively. (See Note 6: Warrants)

On June 26, 2020, the Company issued a convertible note to Harp Sangha for $21,500 which matures one year from date of issuance. The note bears interest of 8% per annum and is convertible into common stock of the Company at $0.10 per share. The note has accrued interest of $448 as of September 30, 2020.

On July 17, 2020 the Company issued a convertible note to Harp Sangha, Chairman and CFO of the Company for $25,000 which matures one year from date of issuance. The note bears interest of 8% per annum and is convertible into common stock of the Company at $0.10 per share. As of September 30, 2020 the outstanding balances included principal of $25,000 plus interest of $411.

On August 11, 2020 the Company issued a convertible note to Harp Sangha, Chairman and CFO of the Company for $45,000 which matures one year from date of issuance. The note bears interest of 8% per annum and is convertible into common stock of the Company at $0.10 per share. As of September 30, 2020 the outstanding balances included principal of $45,000 plus interest of $493.

As of September 30, 2020 the Company calculated the derivative liability of $94,275 using a closing price of $0.0028 volatility of 351%, conversion prices of $0.0015 to $0.0017 dividend of 0.00 and discount rate of 1.8% and expensed $132,793 in debt discount. (See Note 8 Derivative)

During the year ended September 30, 2020 the Company issued 257,736,366 shares of common stock with a value of $405,849 for the reduction of convertible notes. The Company further determined the difference between the value of the issuance at date of issuance and the conversion price of the shares.

As of September 30, 2020 the Company has $226,314, net of unamortized debt discount, convertible notes outstanding compared to $175,494 net of $132,793 of unamortized debt discount. The Company amortized $132,793 of debt discount and $147,745 for the years ended September 30, 2020 and 2019, respectively.