Note 8 - Convertible Notes - Related Party

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Long-term Convertible Notes Related Party [Text Block]

NOTE 8 – CONVERTIBLE NOTES – RELATED PARTY

Convertible notes – related party consists of the following At June 30, 2022 and December 31 2021:

	2022		2021
Convertible notes, in default, due to Joseph Byrne, former President, CEO, 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	$	121,796
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		48,000
Total convertible notes payable – related parties		169,796		169,796
Less unamortized debt discount		7,157		7,157
Total convertible notes payable - related parties (all current)	$	162,639	$	162,639

Attributable related party accrued interest was $1,977,812 and $1,201,790 as of June 30, 2022, and December 31, 2021, respectively. Interest expense attributable to related party convertible notes was $104,357 and $229,318 in June 2022 and December 2021, 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 2021 to be $18,141. 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 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 170,611 common shares.

During 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 August 14, 2022, we are currently in default of $121,796 of convertible notes payable, which are convertible into 76,123 shares of common stock.