Note 7 - Convertible Notes

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Long-term Debt [Text Block]

NOTE 7 – CONVERTIBLE NOTES

Convertible notes payable consists of the following at:

	June 30, 2021		December 31, 2020
Convertible note payable, due on demand, for the original amount of CAD 1,104,713, bearing interest at 7% per annum with conversion rights for 335,833 common shares.	$	891,282	$	867,641
Convertible notes payable to multiple private investors, including certain notes in default, bearing interest at 5% per annum with conversion rights for 776,467 common shares, maturing at various dates between May 2018 and September 2022.		1,236,794		5,862,807
Convertible notes payable with beneficial conversion features at original issuance to multiple private investors, bearing interest at 5% per annum with conversion rights for 91,877 common shares, maturing at various dates in June 2022.		30,562		-
Total convertible notes payable		2,158,638		6,730,448
Less unamortized debt discount		19,248		-
Total convertible notes payable, net of unamortized debt discount		2,139,390		6,730,448
Less current portion		2,115,390		6,652,448
Convertible notes payable, less current portion	$	24,000	$	78,000

The Company issues convertible notes as a method to raise operating capital. These notes convert to a fixed number of shares specified in the convertible note, at the option of the note holder. Certain of these notes are considered to contain a beneficial conversion feature if in-the-money at the time of issuance. The Company has determined the value associated with the beneficial conversion feature in connection with the notes issued during both the three and six-month periods ended June 30, 2021 to be $93,164. This value has been recorded as a component of equity during 2021 and the aggregate original issue discount is accreted and charged to interest expense as a financing expense from the date of issuance until maturity. Upon conversion, any remaining unaccreted discount is charged to interest expense. No convertible notes with beneficial conversion features were issued during the three or six-month periods ended June 30, 2020.

These notes may be converted at the option of the note holder upon written notice by the note holder. These notes are convertible into a total of 1,204,177 common shares.

During the three-month period ended June 30, 2021, certain private investors elected to exercise their convertible notes payable totaling $4,855,861 in exchange for 3,290,180 common shares. As a result, the associated convertible notes have been extinguished and reclassified as additional paid in capital.

During the three-month period ended June 30, 2021, certain private investors elected to convert $78,893 of accrued interest owed on convertible notes into 94,357 shares of common stock.

As of August 12, 2021, we are currently in default of $985,111 of convertible notes payable, which are convertible into 619,167 shares of common stock.