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NOTES PAYABLE
12 Months Ended
Dec. 31, 2019
NOTES PAYABLE  
NOTE 10 - NOTES PAYABLE

Payee: Sign N Drive

Principal Value: $1,850,000

Issue date: June 2, 2014, amended March 10, 2017

Terms: Interest Free, Fixed Conversion Rate at $.003 per share

Embedded Conversion Option: Given the fixed rate conversion price, no derivative liability calculation for the conversion option was deemed required.

There is no maturity date for this note.

 

The following table shows the amount of interest waived on annual basis through December 31, 2019:

 

Year

 

Interest

Waived

 

2017

 

$

7,318

 

2018

 

 

4,351

 

2019

 

 

4,770

 

 

The following table sets forth the number of shares of common stock issued pursuant to each conversion under the Note:

 

 

 

Quantity

of Shares

 

 

Conversion

Price

 

 

Amount

Converted

 

August 13, 2014

 

 

161,127,812

 

 

 

0.00032

 

 

$

51,561

 

April 4, 2016

 

 

2,750,000

 

 

 

0.004

 

 

 

11,000

 

August 2, 2016

 

 

4,500,000

 

 

 

0.0012

 

 

 

5,400

 

November 8, 2016

 

 

2,500,000

 

 

 

0.00152

 

 

 

3,800

 

December 22, 2016

 

 

10,000,000

 

 

 

0.00088

 

 

 

8,800

 

July 5, 2017

 

 

42,000,000

 

 

 

0.003

 

 

 

126,000

 

September 27, 2017

 

 

40,000,000

 

 

 

0.003

 

 

 

120,000

 

February 2, 2018

 

 

25,000,000

 

 

 

0.003

 

 

 

75,000

 

May 29, 2018

 

 

25,000,000

 

 

 

0.003

 

 

 

75,000

 

June 5, 2018

 

 

25,000,000

 

 

 

0.003

 

 

 

75,000

 

December 4, 2018

 

 

1,550,000

 

 

 

0.003

 

 

 

4,650

 

December 14, 2018

 

 

6,000,000

 

 

 

0.003

 

 

 

18,000

 

December 20, 2018

 

 

12,333,334

 

 

 

0.003

 

 

 

37,000

 

April 17, 2019

 

 

46,050,000

 

 

 

0.003

 

 

 

138,150

 

June 26, 2019

 

 

26,000,000

 

 

 

0.003

 

 

 

78,000

 

 

Per the above table:

 

$246,000 was converted into common stock in 2017;

 

$284,650 was converted into common stock in 2018; and

 

$216,150 was converted into common stock in 2019.

 

Payee: Iliad Research & Trading LP

 

On October 25, 2018, the Company issued a Note in the face amount of $5,525,000 which accrues interest at the rate of 10% per annum. The note has an Original Issue Discount (OID) of $500,000. The Note and any interest thereon is convertible at a fixed rate of $0.45 per share of common stock or after 12 months, at a variable conversion rate, the “redemption conversion price” at the lower of the fixed rate of $.45 per share, or a discount to the market price as defined in the Note. The Note is comprised of five (5) tranches (each, a “Tranche”), consisting of (i) an Initial Tranche in an amount equal to $1,400,000.00 and any interest, costs, fees or charges accrued thereon or added thereto under the terms of this Note and the other Transaction Documents (as defined in the Purchase Agreement) (the ‘‘Initial Tranche”), and (ii) four (4) additional Tranches, one (l) in the amount of $1,375,000.00, one (l) in the amount of $550,000.00, and two (2) in the amount of $1,100,000.00, plus any interest, costs, fees or charges accrued thereon or added thereto under the terms of this Note and the other Transaction Documents.

 

 

•

$1,400,000 was received on 10/31/2018

 

 

 

 

•

$825,000 was received on 12/18/2018

 

 

 

 

•

$18,410 is the accrued interest for 2018

 

On February 8, 2019, the Company issued a Note in the face amount of $3,325,000 which accrues interest at the rate of 10% per annum. The note has an Original Issue Discount (OID) of $300,000. The Note and any interest thereon is convertible at a fixed rate of $0.45 per share of common stock or after 12 months, at a variable conversion rate, the “redemption conversion price” at the lower of the fixed rate of $.45 per share, or a discount to the market price as defined in the Note. The Note is comprised of three (3) tranches (each, a “Tranche”), consisting of (i) an Initial Tranche in an amount equal to $1,125,000.00 and any interest, costs, fees or charges accrued thereon or added thereto under the terms of this Note and the other Transaction Documents (as defined in the Purchase Agreement) (the ‘‘Initial Tranche”), and (ii) two (2) additional Tranches, one (l) in the amount of $500,000.00, and one (l) in the amount of $1,650,000.00, plus any interest, costs, fees or charges accrued thereon or added thereto under the terms of this Note and the other Transaction Documents.

 

 

•

$1,125,000 was received on 2/17/2019

 

 

 

 

•

$77,794 is the accrued interest through 3/31/19

 

 

 

 

•

$84,144 is the accrued interest from 4/1/2019 to 6/30/2019

 

 

•

$169,641 is the accrued interest from 7/1/2019 to 12/31/19