Convertible Note Payable

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Convertible Note Payable

NOTE 4 - CONVERTIBLE NOTE PAYABLE

Convertible notes payable consists of the following:

	December 31, 2018		December 31, 2017
Total convertible notes payable		20,000		214,764
Less discounts		-		(42,534	)
Convertible notes, net of discount	$	20,000	$	172,230

The Company accounts for the fair value of the conversion features of its convertible debt in accordance with ASC Topic No. 815-15 “Derivatives and Hedging; Embedded Derivatives” (“Topic No. 815-15”). Topic No. 815-15 requires the Company to bifurcate and separately account for the conversion features as an embedded derivative contained in the Company’s convertible debt. The Company is required to carry the embedded derivative on its balance sheet at fair value and account for’ any unrealized change in fair value as a component of results of operations. The Company values the embedded derivatives using the Black-Scholes pricing model.

The following table presents details of the changes in the Company’s derivative liabilities associated with its convertible notes for the year ended December 31, 2018:

	Amount
Balance December 31, 2017	$	319,041
Adjustment to derivative liability due to debt conversion		(199,671	)
Change in fair market value of derivative liabilities		(119,370	)
Balance December 31, 2018	$	-

Settlement Agreements

During the nine months ended September 30, 2018, the Company entered into certain cancellation agreements with the holder of a certain notes payable in the amounting to $96,721, including accrued interest issued from December 10, 2015 through August 27, 2017. The face value of the canceled debt of $96,721 has been recorded as a gain on settlement of notes payable as of September 30, 2018. The company also have settled convertible notes amounting to $172,230 for a total amount of $32,500

On October 12, 2018, Textmunication Holdings, Inc. entered into a Settlement Agreement and Release (the “Agreement”) with Lester Einhaus (“Holder”) concerning a $25,000 convertible note issued by the Company to the Holder on September 23, 2015 (the “Note”).

The Agreement requires the Company to issue to the Holder 475,000 shares of the Company’s common stock, subject to the condition that the Holder does not own more than 4.99% of the Company’s outstanding shares at any time. As such, the shares will be issued out in tranches, with the first such tranche due within 10 days of signing the Agreement for 198,000 shares. The Holder agreed to a daily leak out of the greater of 10,000 shares or 15% of the trading volume