3. NOTE PAYABLE

3 Months Ended

Mar. 31, 2022

Notes

3. NOTE PAYABLE

3.NOTE PAYABLE 

Amounts due to Lyons Capital Inc. are unsecured, and bear interest at the annual rate of 6%.  The loan due date has been extended to August 1, 2022.

On July 7, 2021, the Company entered into a Securities Purchase Agreement with Leonite Fund 1 LLC. (“Leonite”), whereby Leonite would advance to the Company a total of $500,000.  The Company will issue a convertible note for a total consideration of $568,181.82 with a discount of $68,181.82 given back to Leonite. The convertible note bears interest at the greater of bank prime plus 6% or 12% per annum.

As part of the consideration for the advancing of funds, the Company will issue to Leonite, 50,000 shares of restricted common stock and the issuance of stock warrants for a total of 200,000 shares of restricted common shares at $1.00 per share. These warrants expire on July 7, 2026.

To date the Company has received $250,000 from Leonite which is due July 2022. No common stock has been issued to date.