v3.23.1
CONVERTIBLE NOTES PAYABLE
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
CONVERTIBLE NOTES PAYABLE

 

10.CONVERTIBLE NOTES PAYABLE

 

As of December 31, 2022 and 2021, the Company had convertible debt outstanding net of amortized debt discount of $3,515,752 and $2,077,753, respectively. During the year ending December 31, 2022, the Company received proceeds of $1,490,706 from convertible notes and repaid $5,908 to convertible noteholders. During the year ending December 31, 2021, the Company received proceeds of $444,500 from convertible notes and repaid $66,315 to convertible noteholders. There are debt discounts associated with the convertible debt of $46,798 and $0 at December 31, 2022 and 2021, respectively. For the year ended December 31, 2022 and 2021, the Company recorded amortization of debt discounts of $253,823 and $1,051,264, respectively.

 

On September 22, 2022, the Company entered into a security exchange and purchase agreement with its largest lender to consolidate all promissory notes held by them and related accrued interest in exchange for (1) one consolidated senior secured convertible promissory note (“New Promissory Note”) in the amount of $2,600,000 and (2) 375,000 shares of series X senior convertible preferred stock totaling $1,500,000 with a par value of $0.001, stated value of $4.00, convertible into common shares at a 1:1 conversion rate, non-dilutive and non-voting shares. Prior to conversion, all promissory notes with this lender totaled to $4,791,099 consisting of principal of $3,840,448 and accrued interest of $950,651 resulting in a gain on debt consolidation of $1,397,271.

 

During the year ended December 31, 2021, the Company converted $885,691 of convertible debt, $388,143 in accrued interest and $13,000 in penalties and fees into 109,234,241 shares of the Company’s common stock. In addition to the conversions of convertible debt into common stock, the Company converted convertible debt principal of $150,000 and accrued interest of $225,800 into 140,799 shares of series B preferred stock.

 

Convertible notes as of December 31, 2022 and 2021 are summarized as follows: 

          
   December 31, 
   2022   2021 
Convertible notes payable  $3,562,550   $2,077,753 
Discounts on convertible notes payable   (46,798)   – 
Total convertible debt less debt discount   3,515,752    2,077,753 
Current portion   3,515,752    2,077,753 
Long-term portion  $–   $– 

 

The following is a schedule of convertible notes payable as of and for the year ended December 31, 2022. 

                                                   
Note #  Issuance  Maturity  Principal Balance 12/31/21   New Loan   Debt Consolidation   Cash Paydown   Principal Balance 12/31/22   Accrued Interest on Convertible Debt at 12/31/21   Interest Expense On Convertible Debt For the Period Ended 12/31/22   Accrued Interest on Convertible Debt at 12/31/22   Unamortized Debt Discount At 12/31/22 
7-1  10/28/2016  10/28/2017   10,000   $–   $–   $–   $10,000   $10,899   $2,000   $2,263   $– 
9  9/12/2016  9/12/2017   50,080    –    –    –    50,080    4,141    10,016    14,157    – 
10  1/24/2017  1/24/2018   54,991    –    9    –    55,000    14,831    11,000    69,876    – 
11-2  3/16/2017  3/16/2018   –    –    –    –    –    9,843    –    –    – 
13-2  7/24/2018  1/24/2019   43,961    –    (43,961)   –    –    34,113    8,075    –    – 
22  7/10/2018  1/10/2021   772,118    –    (766,210)   (5,908)   –    –    68,808    –    – 
22-1  2/20/2019  1/10/2021   61,704    –    (61,704)   –    –    28,523    11,076    –    – 
22-3  4/10/2019  1/10/2021   56,095    –    (56,095)   –    –    25,303    10,069    –    – 
26  8/10/2017  1/27/2018   20,000    –    (20,000)   –    –    10,525    –    –    – 
29-1  11/8/2019  11/8/2020   –    –    –    –    –    2,283    –    –    – 
29-2  11/8/2019  11/8/2020   36,604    –    –    –    36,604    11,374    8,785    20,160    – 
31  8/28/2019  8/28/2020   –    –    –    –    –    8,385    –    8,385    – 
32  5/22/2019  5/22/2020   –    –    –    –    –    12,277    –    –    – 
34  5/18/2020  5/18/2021   –    –    –    –    –    219    –    –    – 
35  8/24/2020  8/24/2021   –    –    –    –    –    74    –    –    – 
36-1  9/3/2020  1/3/2021   122,400    –    (122,400)   –    –    25,906    16,479    –    – 
36-2  11/3/2020  3/3/2021   122,400    –    (122,400)   –    –    23,906    16,479    –    – 
36-3  12/29/2020  4/29/2021   122,400    –    (122,400)   –    –    22,070    16,479    –    – 
36-4  5/5/2021  9/5/2021   187,500    –    (187,500)   –    –    22,131    25,243    –    – 
36-5  1/11/2022  5/11/2022   –    202,300    (202,300)   –    –    –    26,138    –    – 
36-6  3/9/2022  7/9/2022   –    146,667    (146,667)   –    –    –    14,827    –    – 
36-7  3/22/2022  7/22/2022   –    202,000    (202,000)   –    –    –    19,126    –    – 
36-8  4/25/2022  8/25/2022   –    201,293    (201,293)   –    –    –    15,684    –    – 
36-9  7/25/2022  11/25/2022   –    68,692    (68,692)   –    –    –    2,270    –    – 
36-10  8/4/2022  12/4/2022   –    74,120    (74,120)   –    –    –    2,083    –    – 
36-11  9/12/2022  1/12/2023   –    95,000    (95,000)   –    –    –    843    –    – 
37-1  9/3/2020  6/30/2021   67,000    46,667    –    –    113,667    8,878    12,060    28,756    – 
37-2  11/2/2020  8/31/2021   66,500    46,667    –    –    113,167    7,722    11,970    27,510    – 
37-3  12/29/2020  9/30/2021   66,500    46,667    –    –    113,166    6,686    11,970    26,474    – 
38  2/9/2021  2/9/2022   64,000    32,000    –    –    96,000    4,614    21,120    27,939    – 
39  4/26/2021  4/26/2022   153,500    15,366    –    –    168,866    5,915    37,150    39,684    – 
40-1  9/22/2022  9/22/23   –    2,600,000    –    –    2,600,000    –    71,233    71,233    – 
40-2  11/4/2022  11/4/2023   –    68,666    –    –    68,666    –    1,072    1,072    14,486 
40-3  11/28/2022  11/28/2023   –    68,667    –    –    68,667    –    621    620    15,615 
40-4  12/21/2022  12/21/2023   –    68,667    –    –    68,667    –    188    187    16,697 
                                                    
         $2,077,753   $3,983,439   $(2,492,733)  $(5,908)  $3,562,550   $300,618   $452,864   $338,316   $46,798 

 

Note 7-1

 

On October 28, 2016, the Company issued a convertible promissory note in the principal amount of $50,000, which matured on October 28, 2017. Note 7-1 is currently in default and accrues at a default interest rate of 20% per annum.

 

Note 9

 

On September 12, 2016, the Company issued a convertible promissory note in the principal of $80,000 for services rendered, which matured on September 12, 2017. Note 9 is currently in default and accrues at a default interest rate of 20% per annum.

 

Note 10

 

On January 24, 2017, the Company issued a convertible promissory note in the principal of $80,000 for services rendered, which matured on January 24, 2018. Note 10 is currently in default and accrues at a default interest rate of 20% per annum.

 

Note 11-2

 

On March 16, 2017, the Company issued a convertible promissory note in the principal amount of $40,000, which matured on March 16, 2018. Note 11-2 was consolidated to Note 40-1 on September 22, 2022.

 

Note 13-2

 

On July 24, 2018, the Company issued a convertible promissory note in the principal amount of $237,909, which matured on January 24, 2019. Note 13-2 was consolidated to Note 40-1 on September 22, 2022.

 

Notes 22, 22-1 and 22-3

 

On July 10, 2018, the Company issued a convertible promissory note in the principal amount of $1,040,000 with an original issue discount of $103,000. On February 20, 2019, the Company executed an addendum to this note, whereby the Company will receive two additional tranches. On February 20, 2019, the Company received $55,216 less expenses of $5,216 resulting in net cash to the Company of $50,000 and on April 10, 2019, the Company received $55,616 less expenses of $5,616 resulting in net cash of $50,000, which was paid directly to a certain vendor. The notes 22, 22-1 and 22-3 matured on January 1, 2021. Note 22, 22-1 and 22-3 were consolidated to Note 40-1 on September 22, 2022.

 

Note 26

 

On August 10, 2017, the Company issued a convertible promissory note in the principal amount of $20,000, which matured on January 27, 2018. Note 26 is currently in default and accrues interest at a default interest rate of 15% per annum.

 

Note 29, 29-1 and 29-2

 

On May 10, 2019, the Company issued a convertible promissory note in the principal amount of $150,000. On November 8, 2019, this note (Note 29) was purchased by and assigned to an unrelated party. The amount assigned was the existing principal amount of $150,000 and accrued interest of $5,917.81, which was issued as Note 29-1, plus a new convertible promissory note in the principal amount of $62,367.12, which was issued as Note 29-2. Notes 29-1 and 29-2 are currently in default and accrue interest at a default interest rate of 24% per annum.

 

Note 31

 

On August 28, 2019, the Company issued a convertible promissory note in the principal amount of $120,000, which matured on August 28, 2020.

 

Note 32

 

On May 22, 2019, the Company issued a convertible promissory note in the principal amount of $25,000 from a draw on a line of credit, which matured on May 22, 2020. Note 32 is currently in default and accrues interest at a default interest rate of 20% per annum. 

 

Note 34

 

On May 18, 2020, the Company entered into a 6% Convertible Promissory Note with an unrelated entity in the amount $63,000 and expenses of $3,000 resulting in net cash to the company of $60,000. Note 34 matured May 18, 2021.

 

Note 35

 

On August 24, 2020, the Company entered into a 6% Convertible Promissory Note with an unrelated entity in the amount $85,000 with expenses of $3,500 resulting in net cash to the company of $81,500. Note 35 matured August 24, 2021.

 

Note 36-1, 36-2 and 36-3, 36-4, 36-5, 36-6, 36-7, 36-8, 36-9, 36-10 and 36-11

 

On September 3, 2020, the Company issued a convertible promissory note in the principal amount of $733,500, with an original issue discount of $183,500, which could be drawn in several tranches. On September 3, 2020, the first tranche executed the first tranche in the principal amount of $122,400, less original issue discount of $30,000, which matured on January 3, 2021 (Note 36-1).

 

On November 3, 2020, the Company executed the second tranche in the principal amount of $120,000, less original issue discount of $30,000, which matured on March 3, 2021 (Note 36-2). On December 29, 2020, the Company executed the third tranche in the principal amount of $120,000, less original issue discount of $30,000, which matured on April 29, 2021 (Note 36-3).

 

Notes 37-1, 37-2 and 37-3

 

On September 3, 2020, the Company issued a convertible promissory note in the principal amount $200,000, with original issue discount of $50,000, which could be drawn in several tranches. On September 3, 2020, the Company executed the first tranche in the principal amount of $67,000, less original issue discount of $17,000, which matured on June 30, 2021 (Note 37-1).

 

On November 2, 2020, the Company executed the second tranche in the principal amount of $66,500, less original issue discount of $16,500, which matured on August 31, 2021 (Note 37-2).

 

On December 29, 2020, the Company executed the third tranche in the principal amount of $66,500, less original issue discount of $16,500, which matured on September 30, 2021 (Note 37-3). Notes 37-1, 37-2 and 27-3 are currently in default and accrue interest at a default interest rate of 18% per annum.

 

Note 38

 

On February 9, 2021, the Company issued a convertible promissory note in the principal amount $103,500, which matured on February 9, 2022. Note 38 is currently in default and accrues interest at a default interest rate of 22% per annum.

 

Note 39

 

On April 26, 2021, the Company issued a convertible promissory note in the principal amount $153,500, which matured on May 10, 2022. Note 19 is currently in default and accrues interest at a default interest rate of 22% per annum.

 

Note 40-1, 40-2, 40-3 and 40-4

 

On September 22, 2022, the Company issued a convertible promissory note in the principal amount of $2,600,000 in exchange for total of $4,791,099 of defaulted promissory notes balances (Note 40-1).

 

On November 4, 2022, the Company executed a second tranche under this note principal amount of $68,667, less original issue discount and fee of $18,667 (Note 40-2).

 

On November 28, 2022, the Company executed the third tranche under this note in the principal amount of $68,667, less original issue discount and fee of $18,667 (Note 40-3).

 

On November 28, 2022, the Company executed a fourth tranche under this note in the principal amount of $68,667, less original issue discount and fee of $18,667 (Note 40-4). Notes 40-1, 40-2, 40-3 and 40-4 mature on the first anniversary of issuance and accrued interest at a rate of 10% per annum.