Note 9 - Convertible Notes

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Long-term Debt [Text Block]

NOTE 9 – CONVERTIBLE NOTES

Convertible notes payable consists of the following at:

	September 30, 2021		December 31, 2020
Convertible notes payable in default to multiple private investors, including certain notes in default, bearing interest at 5% per annum with conversion rights for 457,517 common shares, which matured at various dates between May 2018 and October 2021.	$	726,472	$	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 94,298 common shares, maturing at various dates in June 2022.		35,000		-
Convertible note payable, due on demand, for the original amount of CAD 1,104,713, bearing interest at 7% per annum which had conversion rights for 335,833 common shares. Effective August 17, 2021, the note was amended and reclassified as the conversion feature was removed, see Note 7.		-		867,641
Total convertible notes payable		761,472		6,730,448
Less unamortized debt discount		11,946		-
Total convertible notes payable, net of unamortized debt discount		749,526		6,730,448
Less current portion		749,526		6,652,448
Convertible notes payable, less current portion	$	-	$	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 nine-month period ended September 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-month period ended September 30, 2021 or the three or nine-month periods ended September 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 551,815 common shares.

During the three-month period ended September 30, 2021, certain private investors elected to exercise their convertible notes payable totaling $167,924 in exchange for 104,953 common shares. During the nine-month period ended September 30, 2021, certain private investors elected to exercise their convertible notes payable totaling $5,023,785 in exchange for 3,395,133 common shares. As a result, the associated convertible notes have been extinguished and reclassified as additional paid in capital. There were no such elections to convert any of the convertible notes payable during the three or nine-month periods ended September 30, 2020.

During the nine-month period ended September 30, 2021, certain private investors elected to convert $78,893 of accrued interest owed on convertible notes into 94,357 shares of common stock. There were no such elections to convert any of the accrued interest on convertible notes payable during the three-month periods ended September 30, 2021 or 2020 or the nine-month period ended September 30, 2020.

As of November 19, 2021, we are currently in default of $726,472 of convertible notes payable, which are convertible into 457,517 shares of common stock.