CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE

9 Months Ended

Sep. 30, 2021

CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE

CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE

NOTE 8 – CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE

On December 12, 2018, the Company issued 400,000 shares of common stock in consideration for the execution of this note. These shares are restricted and subject to SEC Rule 144. This note had $25,500 in original discount and $20,000 in discount for the 400,000 shares issued. The original debt discount was $45,500; we amortized $40,250 for the year ended December 31, 2020 and $0 for the nine months ended September 30, 2021 and we had a remaining debt discount of $0 as of September 30, 2021.

On January 7, 2019, we issued a convertible promissory note to David Stoccardo in the amount of $157,500 with an interest rate of 8% per annum and a maturity date of January 8, 2020. The note carries a prepayment feature or is convertible 180 days from the date of the note, at a fixed price of $.05 or if publicly traded at the rate of the lessor of $.05 or the lowest of 65% of the lowest closing bid price for 3 trading days previous to the conversion or based on any subsequent financings with better terms to other investors. On January 17, 2019 the Company issued 400,000   shares of common stock in consideration for the execution of this note. These shares restricted and subject to SEC Rule 144. These shares were valued at $20,000 recorded to debt discount. This note also included an original discount fee of  $7,500 recorded to debt discount, we amortized $798 recorded to interest expense during the year ended December 31, 2020 and $0 for the nine months ended September 30, 2021 and the balance as of September 30, 2021 was $0.  On May 14, 2019 we paid $5,000 of principal on this note and as of September 30, 2021 the outstanding balance was $152,500.

On December 4, 2019, we entered into a convertible promissory note in the amount of $189,000, with an interest rate of 8% per annum and a maturity date of December 4, 2020. The note carries a prepayment feature or is convertible 180 days from the date of the note, at a fixed price of $.05 or if publicly traded at the rate of the lessor of $.05 or the lowest of 65% of the lowest closing bid price for 3 trading days previous to the conversion or based on any subsequent financings with better terms to other investors. This note included an original discount fee of $9,000 recorded to debt discount, We also issued 500,000 commitment shares valued at $25,000 on December 11, 2019 and recorded to debt discount. we amortized $31,672 recorded to interest expense during the year ended December 31, 2020 and $0 for the nine months ended September 30, 2021, with a balance of $0 as of September 30, 2021. The outstanding balance on the note was $189,000 as of September 30, 2021.

On January 17, 2020 we issued a convertible promissory note to The Hillyer Group Inc. in the amount of $157,500 with an interest rate of 8% per annum and a maturity date of January 17, 2021. The note carries a prepayment feature or is convertible 180 days from the date of the note, at a fixed price of $.05 or if publicly traded at the rate of the lessor of $.05 or the lowest of 65% of the lowest closing bid price for 3 trading days previous to the conversion or based on any subsequent financings with better terms to other investors. On January 17, 2019 the Company issued 400,000 shares of common stock in consideration for the execution of this note. These shares are restricted and subject to SEC Rule 144. These shares were valued at $20,000 and recorded to debt discount. This note also included an original discount fee of $7,500 recorded to debt discount, we amortized $26,452 recorded to interest expense during the year ended December 31, 2020 and $1,048 for the nine months ended September 30 2021. with a balance of $0 as of September 30, 2021. The outstanding balance on the note was $157,500 as of September 30, 2021.

On July 21, 2021 we issued a convertible promissory note to Hillyer Group LLC. in the amount of $26,250 with an interest rate of 8% per annum and a maturity date of July 21, 2022. The note carries a prepayment feature or is convertible 180 days from the date of the note, at a fixed price of $.05 or if publicly traded at the rate of the lessor of $.05 or the lowest of 65% of the lowest closing bid price for 3 trading days previous to the conversion or based on any subsequent financings with better terms to other investors. On July 21, we agreed to issued 60,000 shares of common stock in consideration for the execution of this note, which were subsequently issued on October 1, 2021. These shares are restricted and subject to SEC Rule 144. These shares were valued at $3,000 and recorded to debt discount. We amortized $708 of the debt discount for the nine months ended September 30, 2021, leaving a balance of $2,292. This note also included an original discount fee of $1,250 recorded to debt discount, we amortized $237 recorded to interest expense during the nine months ended September 30, 2021 with a balance of $1,013 as of September 30, 2021. The outstanding balance on the note was $26,250 as of September 30, 2021.

On September 16, 2021 we issued a convertible promissory note to Stout LLC. in the amount of $20,000 with an interest rate of 12% per annum and a maturity date of September 16, 2022. The note carries a prepayment feature or is convertible 180 days from the date of the note, at a fixed price of $.05 or if publicly traded at the rate of the lessor of $.05 or the lowest of 65% of the lowest closing bid price for 3 trading days previous to the conversion or based on any subsequent financings with better terms to other investors. The outstanding balance on the note was $20,000 as of September 30, 2021.

On April 30, 2020 Elite Beverage International was approved for a loan for $201,352 through the Payment Protection Program with an interest of 0.98% per annum and a maturity date of April 23, 2022. Forgiveness in the amount of $105,868 was given on September 2, 2021, which was recorded as a gain on forgiveness on debt in the statement of operations.

During the nine months ended September 30, 2021 the Company received $24,000 proceeds from a non-convertible, non-interest bearing note from a related party and $14,000 of the proceeds were repaid in July 2021.

Total interest expense on the above notes for the nine months ended September 30, 2021 and 2020 was $70,922 and $85,058, respectively.