Note 10 - Convertible Notes Payable - Related Parties

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Long-term Convertible Notes Related Party [Text Block]

NOTE 10 – CONVERTIBLE NOTES PAYABLE - RELATED PARTIES

Convertible notes payable - related parties consists of the following at:

	September 30, 2021		December 31, 2020
Convertible notes in default due to Harold Aubrey de Lavenu, a Vice President and Director of CEN, bearing interest at 5% per annum. These notes are convertible to 548,980 common shares and matured on March 31, 2019.	$	878,368	$	878,368
Convertible notes in default due to Joseph Byrne, former CEO, and current President and member of the board of CEN, bearing interest at 12% per annum. This note is convertible to 76,123 common shares and matured on August 17, 2020.		121,796		224,191
Convertible notes with beneficial conversion features due to the parents of Jeffery Thomas, a Director of CEN, bearing interest at 5% per annum. These notes are convertible to 94,488 common shares with a maturity date of May 24, 2022.		48,000		-
Convertible note in default due to the spouse of Bill Chaaban, CEO of CEN, which bears an interest at 12% per annum. This note was convertible to 867,576 common shares and matured on August 17, 2020. Effective August 17, 2021, the note was amended and reclassified as the conversion feature was removed, see Note 8.		-		1,388,122
Convertible note in default due to Alex Tarrabain, CFO and a Director of CEN, bearing interest at 5% per annum. On April 10, 2021, this note was converted to 30,000 common shares.		-		48,000
Convertible note due to Darren Ferris, brother of Ameen Ferris, a Vice President and a Director of CEN, bearing interest at 5% per annum. On April 26, 2021, this note was converted to 12,500 common shares.		-		20,000
Total convertible notes payable – related parties		1,048,164		2,558,681
Less unamortized debt discount		11,730		-
Total convertible notes payable - related parties (all current)	$	1,036,434	$	2,558,681

Attributable related party accrued interest was $1,160,088 and $1,046,911 as of September 30, 2021 and December 31, 2020, respectively. Interest expense attributable to related party convertible notes was $61,918, and $60,529 for the three months ended September 30, 2021 and 2020, respectively, and was $183,043 and $180,268 for the nine-months ended September 30, 2021 and 2020, respectively.

The Company issues convertible notes to related parties 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 to related parties during the nine-month period ended September 30, 2021 to be $18,142. 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 to related parties 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 719,591 common shares.

During the nine-month period ended September 30, 2021, a convertible note due to Joseph Byrne in the amount of $102,395, convertible into 63,997 shares, was transferred to a private investor and reclassified.

As of November 19, 2021, we are currently in default of $1,000,164 of convertible notes payable, which are convertible into 625,103 shares of common stock.