5. CONVERTIBLE DEBT SECURITIES

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

CONVERTIBLE DEBT SECURITIES

NOTE 5 – CONVERTIBLE DEBT SECURITIES

The Company uses the Black-Scholes Model to calculate the derivative value of its convertible debt. The valuation result generated by this pricing model is necessarily driven by the value of the underlying common stock incorporated into the model. The values of the common stock used were based on the price at the date of issue of the debt security as of December 31, 2019. Management determined the expected volatility between 402.91-545.47%, a risk free rate of interest between 1.58-1.59%, and contractual lives of the debt varying from zero months to seven months. Management made the determination to use an expected life rather than contractual life for the calculations for the matured debt as of December 31, 2019. The expected life is equal to the contractual life extended by one year which vary from two to seven months. The table below details the Company's outstanding convertible notes, with totals for the face amount, amortization of discount, initial loss, change in the fair market value, and the derivative liability.

	Face		Debt		Initial		Change			Derivative Balance
	Amount		Discount		Loss		in FMV			12/31/2019
	$	90,228	$	–	$	58,959	$	(10,369	)	$	134,662
		162,150		–		74,429		101,920			243,386
		72,488		–		11,381		1,286			79,663
		208,436		–		–		134,777			257,815
		76,657		–		8,904		19,762			94,925
		65,372		–		5,651		27,560			104,959
		53,864		4,040		28,566		32,262			32,262
		25,468		2,175		16,558		15,254			15,254
		29,250		1,220		–		25,157			27,920
		49,726		2,418		–		43,210			47,465
		41,774		2,032		–		36,300			39,875
		29,250		1,423		–		25,157			27,920
		40,000		9,945		10,605		22,954			22,954
		128,000		16,161		17,676		146,440			146,440
Subtotal		1,072,663		39,414		232,729		(621,670	)		1,275,500
Transaction expense		–		–		–		–			–
	$	1,072,663	$	39,414	$	232,729	$	(621,670	)	$	1,275,500

On July 17, 2018, The Company entered into a securities purchase agreement with Carebourn Capital L.P., (“Carebourn”) issuing to Carebourn a convertible promissory note in the aggregate principal amount of $189,750 with a $24,750 original issue discount and $15,000 in transactional expenses due to Carebourn. The note bears interest at 12% per annum and may be converted into common shares of DPI's common stock at a conversion price equal to 60% of the average of the three lowest trading prices of the DPI's common stock during the 20 prior trading days. For the years ended December 31, 2019 and 2018, the Company made repayments totaling $32,090 and $42,200. For the year ended December 31, 2019, Carebourn converted $53,932 in principal of its' convertible note into 7,688,347 shares of common stock.

On July 27, 2018, The Company entered into a securities purchase agreement with Carebourn, issuing to Carebourn a convertible promissory note in the aggregate principal amount of $276,000 with a $36,000 original issue discount and $15,000 in transactional expenses due to Carebourn. The note bears interest at 12% per annum and may be converted into common shares of the Company's common stock at a conversion price equal to 60% of the average of the three lowest trading prices of the Company's common stock during the 20 prior trading days. As of December 31, 2019, the Company received $150,000 net cash, and $75,000 is not expected to be received. For the years ended December 31, 2019 and 2018, the Company made repayments totaling $10,150 and $0.

On August 20, 2018, the Company entered into a securities purchase agreement with More Capital LLC, ("More") issuing to More a convertible promissory note in the aggregate principal amount of $152,000 with a $20,000 original issue discount and $7,000 in transactional expenses due to More. The note bears interest at 12% per annum and may be converted into common shares of the Company's common stock at a conversion price equal to 60% of the average of the three lowest trading prices of the Company's common stock during the 20 prior trading days. As of December 31, 2019, the Company received $70,000 net cash, and $55,000 is not expected to be received. For the years ended December 31, 2019 and 2018, More converted $24,512 and $0 in principal of its' convertible note into 20,880,639 and 0 shares of common stock.

On September 24, 2018, the Company entered into a securities purchase agreement with Auctus Fund, LLC, (“Auctus”) issuing to Auctus a convertible promissory note in the aggregate principal amount of $100,000 with $10,250 in transactional expenses due to Auctus and its counsel. The note bears interest at 8% per annum and may be converted into common shares of the Company's common stock at a conversion price equal to 70% of the lowest trading price of the Company's common stock during the 20 prior trading days. As of November 30, 2018, the Company has been in breach of the note and default interest as of that date at the rate of 24% due to the failure to maintain the required amount of reserve shares. The Company received $89,750 net cash on September 27, 2018. For the years ended December 31, 2019 and 2018, Auctus converted $23,343 and $0 in principal of its' convertible note into 377,325,592, and 0 shares of common stock. On May 18, 2020, the Company received a default notice from Auctus demanding full payment of the note and damages of $155,729. The Company has notified Auctus that a full review of their conversions is underway due to some inconsistencies in previous conversion prices thus conversion amounts.

On September 25, 2018, the Company entered into a securities purchase agreement with EMA Financial, LLC, (“EMA”) issuing to EMA a convertible promissory note in the aggregate principal amount of $100,000 with a 6% original issue discount and $4,000 in transactional expenses due to EMA. The note originally bore interest at 8% per annum and was converted into common shares of the Company's common stock at a conversion price equal to the lower of current market price, $0.25, or 70% of the lowest trading price of the Company's common stock during the 20 prior trading days. Due to an outstanding balance of the convertible promissory note at maturity, the conversion price is now 55%, down from 70%, and the interest rate has increased to 24% from 8%. The Company received $90,000 net cash on September 28, 2018. For the years ended December 31, 2019 and 2018, EMA converted $37,628 and $0 in principal of its' convertible note into 188,100,000 and 0 shares of common stock.

On September 24, 2018, the Company entered into a securities purchase agreement with FirstFire Global Opportunities Fund LLC, (“FirstFire”) issuing to FirstFire a convertible promissory note in the aggregate principal amount of $247,500, with a $22,500 original issue discount and $5,000 in transactional expenses due to FirstFire's counsel. The note bears interest at 8% per annum and may be converted into common shares of the Company's common stock at a conversion price equal to the lower of $0.25, or 70% of the lowest trading price of the Company's common stock during the 20 prior trading days. The Company received $220,000 net cash on October 9, 2018. For the years ended December 31, 2019 and 2018, EMA converted $37,628 and $0 in principal of its' convertible note into 188,100,000 and 0 shares of common stock.

On January 10, 2019, the Company entered into a Securities Purchase Agreement with GS Capital Partners, LLC, (“GS Capital”) issuing a convertible redeemable note in the principal amount of $65,000. The note may be converted into common shares of the Company's common stock at a conversion price equal to the lower of $0.25, or 70% of the lowest trading price of the Company's common stock during the 20 prior trading days. For the year ended December 31, 2019, GS Capital converted $11,136 in principal of its' convertible note into 79,605,027 shares of common stock.

On February 12, 2019, the Company entered into a securities purchase agreement with Crown Bridge Partners, LLC, (“Crown”) issuing a convertible promissory note in the aggregate principal amount of up to $35,000. The note may be converted into common shares of the Company's common stock at a conversion price equal 70% of the lowest trading price of the Company's common stock during the 20 prior trading days. For the year ended December 31, 2019, Crown converted $9,532 in principal of its' convertible note into 259,259,259 shares of common stock.

On April 23, 2019, the Company entered into a securities purchase agreement with GS Capital Partners, LLC, ("GS Capital") issuing to GS Capital a convertible promissory note in the aggregate principal amount of $40,000 with a $2,000 original issue discount and $2,000 in transactional expenses due to GS Capital and its counsel. The note bears interest at 8% per annum and may be converted into common shares of the Company's common stock at a conversion price equal to 70% of the average of the three lowest trading prices of the Company's common stock during the 20 prior trading days. As of the date the consolidated financial statements were available for issuance, DPI received $36,000 net cash. For the year ended December 31, 2019, GS Capital has not converted principal into common stock.

On May 3, 2019, the Company entered into a securities purchase agreement with Geneva Roth Remark Holdings, Inc. (“Geneva”) issuing to Geneva a convertible promissory note in the aggregate principal amount of $64,000 with a $6,000 original issue discount and $2,800 in transactional expenses due to Geneva and its counsel. The note bears interest at 9% per annum and may be converted into common shares of the Company's common stock at a conversion price equal to 70% of the lowest trading price of the Company's common stock during the 20 prior trading days. The Company received $55,200 net cash. For the year ended December 31, 2019, Geneva has not converted principal into common stock. The Company was notified on October 15, 2019 that the note was in default and subject to a 200% penalty. The additional $64,000 was recorded as interest expense as of December 31, 2019.

As of December 31, 2019 and 2018 respectively, there was $1,040,663 and $601,250 of convertible debt outstanding, net of debt discount of $93,138, and $440,800, As of December 31, 2019 and 2018 respectively, there was derivative liability of $323,481 and $653,831 related to convertible debt securities.