| Convertible Notes Payable consists of the following: | |
December 31, | |
December 31, |
| | |
2024 | |
2023 |
| $40,000 face value 9% secured notes payable to investors, due in 2015. At the investor’s option until the repayment date, the note and related interest may be converted to shares of the Company’s common stock a discount of 90% of the current share price after the first anniversary of the note. The notes are secured by the accounts receivable of a license agreement the Company has with Womens Choice Pharmaceuticals, LLC on its proprietary prescription product, ProCort®. The Company determined that all the outstanding notes had met the statue of limitations and as such the Company was no longer legally obligated to pay the notes. As such, the Company wrote entire balance of the notes and accrued interest to gain on settlement of debt on the Statement of Operations. | |
| — | | |
| 40,000 |
| Original issue discount | |
| — | | |
| — |
| Unamortized debt discount | |
| — | | |
| — |
| Total, net of unamortized discount | |
| — | | |
| 40,000 |
| | |
| | | |
| |
On June 30, 2019, the Company renegotiated accrued salaries and interest and outstanding convertible notes for a former employee. Under the terms of the agreements, all outstanding notes totaling $224,064, accrued interest of $119,278, accrued salaries of $7,260 and accrued vacation of $1,473 were converted to a promissory note convertible into common stock with a warrant feature. The convertible promissory note is unsecured, due five years from issuance, and bears an interest rate of 10%. At the noteholder’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $0.20 per share along with warrants to purchase one share for every two shares issued at the exercise price of $0.30 per share for three years after the conversion date.
The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $152,642 as valued under the intrinsic value method. The aggregate beneficial conversion feature has been accreted and charged to interest expenses in the amount of $50,973 and $50,863 for the years ended December 31, 2024 and 2023, respectively. | |
| 352,075 | | |
| 352,075 |
| Unamortized debt discount | |
| — | | |
| (50,973) |
| Total, net of unamortized discount | |
| 352,075 | | |
| 301,102 |
| Total Convertible Notes |
|
$ |
352,075 |
|
|
$ |
341,102 |
| Current
portion: |
|
|
— |
|
|
|
40,000 |
| Total long-term convertible notes |
|
$ |
352,075 |
|
|
$ |
301,102 |