Debt Extinguishment

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Debt Extinguishment

14. Debt extinguishment

The Company entered into debt extinguishment agreement with the following convertible debt holders as disclosed in note 8 above.

· Auctus Fund, LLC

· First Fire Global Opportunities Fund

· Labrys Fund LP

· Leonite Capital LLC

· Power Up Lending Group LTD

In terms of the agreements entered into with the convertible debt holders debt the following amounts were recorded as gain on debt extinguishment:

	Nine months ended September 30, 2020
Convertible debt extinguished		971,564
New debt issued		(668,100	)
Fair value gain on preferred stock issued		280,311
Derivative liability mark-to-market on convertible debt extinguishment		(126,444,276	)
Derivative liability on revised convertible notes and warrants arising from convertible debt extinguishment		(6,349,265	)
Derivative liability eliminated on debt extinguishment		144,893,444
Gain on debt extinguishment		12,683,678