v3.25.2
CONVERTIBLE NOTES PAYABLE
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
CONVERTIBLE NOTES PAYABLE

 

8.CONVERTIBLE NOTES PAYABLE

 

As of March 31, 2024 and December 31, 2023, the Company had convertible debt outstanding net of amortized debt discount of $3,820,545 and $3,807,030, respectively. During the three months ended March 31, 2024, the Company did not receive any proceeds from convertible notes and repaid $50,000 of accrued interest to convertible noteholder. During the three months ended March 31, 2023, the Company received net proceeds of $240,000 from convertible notes. There are debt discounts associated with the convertible debt of $11,305 and $24,820 at March 31, 2024 and December 31, 2023, respectively. For the three months ended March 31, 2024 and 2023, the Company recorded amortization of debt discounts of $13,515 and $17,983, respectively.

 

During the three months ended March 31, 2024, the Company converted $680 in accrued interest and $1,000 in conversion cost into 1,222 shares of common stock. The Company recognized $1,679 of additional paid-in capital to adjust fair value for the debt settlement during the three months ended March 31, 2024. During the three months ended March 31, 2023, the Company converted $58,800 of convertible debt, $5,873 in accrued interest and $2,000 in penalties and fees into 1,583 shares of common stock.

 

Convertible notes as of March 31, 2024 and December 31, 2023 are summarized as follows: 

        
   March 31, 2024   December 31, 2023 
Convertible notes payable  $3,831,850   $3,831,850 
Discounts on convertible notes payable   (11,305)   (24,820)
Total convertible debt less debt discount   3,820,545    3,807,030 
Current portion   3,820,545    3,807,030 
Long-term portion  $–   $– 

 

The following is a schedule of convertible notes payable as of and for the three months ended March 31, 2024. 

                                              
Note #  Issuance  Maturity  Principal Balance 12/31/23   New Loan   Principal Conversions  

Cash Paydown

   Shares Issued Upon Conversion   Principal Balance 03/31/24   Accrued Interest on Convertible Debt at 12/31/23   Interest Expense On Convertible Debt For the Period Ended 03/31/24   Accrued Interest on Convertible Debt at 03/31/24   Unamortized Debt Discount At 03/31/24 
9  09/12/2016  09/12/2017  $50,080    –    –    –    1,222   $50,080   $5,581   $2,496    7,399    – 
10  01/24/2017  01/24/2018   55,000    –    –    –    –    55,000    80,875    2,742    83,618    – 
10-1  02/10/2023  02/10/2024   50,000    –    –    –    –    50,000    6,658    1,870    8,527    – 
10-2  03/30/2023  03/30/2024   25,000    –    –    –    –    25,000    2,836    935    3,771    – 
10-3  08/11/2023  08/11/2024   25,000    –    –    –    –    25,000    1,469    935    2,404    – 
29-2  11/08/2019  11/08/2020   36,604    –    –    –    –    36,604    10,109    2,190    12,299    – 
31  08/28/2019  08/28/2020   –    –    –    –    –    –    8,385    –    –    – 
37-1  09/03/2020  06/30/2021   113,667    –    –    –    –    113,667    64,929    5,101    70,030    – 
37-2  11/02/2020  08/31/2021   113,167    –    –    –    –    113,167    63,594    5,079    68,673    – 
37-3  12/29/2020  09/30/2021   113,166    –    –    –    –    113,166    62,558    5,079    67,637    – 
40-1  09/22/2022  09/22/2024   2,600,000    –    –    –    –    2,600,000    252,665    64,821    267,488    – 
40-2  11/04/2022  09/22/2024   68,667    –    –    –    –    68,667    7,939    1,712    9,651    – 
40-3  11/28/2022  09/22/2024   68,667    –    –    –    –    68,667    7,506    1,712    9,217    – 
40-4  12/21/2022  09/22/2024   68,667    –    –    –    –    68,667    7,054    1,712    8,766    – 
40-5  01/24/2023  03/21/2024   90,166    –    –    –    –    90,166    8,284    2,248    10,531    – 
40-6  03/21/2023  09/22/2024   139,166    –    –    –    –    139,166    10,671    3,470    14,141    – 
40-7  06/05/2023  06/05/2024   139,166    –    –    –    –    139,166    7,826    3,470    11,295    6,530 
40-8  06/13/2023  06/13/2024   21,167    –    –    –    –    21,167    1,127    528    1,654    1,032 
40-9  07/19/2023  07/19/2024   35,500    –    –    –    –    35,500    1,605    885    2,490    2,650 
40-10  07/24/2023  07/24/2024   14,000    –    –    –    –    14,000    614    349    963    1,093 
41  08/25/2023  08/25/2024   5,000    –    –    –    –    5,000    175    125    300      
         $3,831,850   $–   $–   $–    1,222   $3,831,850   $612,460   $107,459   $660,854   $11,305 

 

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, 10-1, 10-2 and 10-3

 

On January 24, 2017, the Company issued a convertible promissory note in the principal amount of $80,000 for services rendered, which matured on January 24, 2018. Note 10 is currently in default and accrues interest at a default interest rate of 20% per annum. On February 10, 2023, the Company executed a second tranche under this note in the principal amount of $50,000 (Note 10-1). On March 30, 2023, the Company executed a third tranche under this note in the principal amount of $25,000 (Note 10-2). On August 11, 2023, the Company executed a fourth tranche under this note in the principal amount of $25,000 (Note 10-3). Notes 10-1 and 10-2 are currently in default and accrue interest at a default interest rate of 20% per annum. Note 10-3 accrues interest at a rate of 15% per annum.

 

Note 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 $5,918, which was issued as Note 29-1, plus a new convertible promissory note in the principal amount of $62,367, which was issued as Note 29-2. Note 29-2 is currently in default and accrues interest at a default interest rate of 24% per annum.

 

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

 

On September 3, 2020, the Company issued a convertible promissory note in the principal amount of $200,000, with an 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 an 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 an 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 an 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.

 

Notes 40-1, 40-2, 40-3, 40-4, 40-5, 40-6, 40-7, 40-8, 40-9 and 40-10

 

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 in the principal amount of $68,667, less an 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 an original issue discount and fee of $18,667 (Note 40-3). On December 21, 2022, the Company executed a fourth tranche under this note in the principal amount of $68,667, less an original issue discount and fee of $18,667 (Note 40-4). On January 24, 2023, the Company executed a fifth tranche under this note in the principal amount of $90,166, less an original issue discount and fee of $25,166 (Note 40-5). On March 21, 2023, the Company executed a sixth tranche under this note in the principal amount of $136,666, less an original issue discount and fee of $39,166 (Note 40-6). On June 5, 2023, the Company executed a seventh tranche under this note in the principal amount of $136,667, less original issue discount and fee of $39,167 (Note 40-7). On June 13, 2023, the Company executed an eighth tranche under this note in the principal amount of $21,167, less original issue discount and fee of $5,167 (Note 40-8). On July 19, 2023, the Company executed a ninth tranche under this note in the principal amount of $35,500, less an original issue discount and fee of $8,875 (Note 40-9). On July 24, 2023, the Company executed a tenth tranche under this note in the principal amount of $14,000, less an original issue discount and fee of $3,500 (Note 40-10). On December 1, 2023, the Company executed amendment on Notes series 40 consolidated senior secured convertible promissory note to extend the expired tranche note 40-1 through 40-5’ due date to September 20, 2024. All of the Note 40 tranches mature in one year from the note issuance date and accrue interest at a rate of 10% per annum.

 

Note 41

 

On August 25, 2023, the Company issued a twelve-month convertible promissory note in the principal amount of $5,000 to the Company’s CEO for the Company’s operating expenses. The rate of interest is 10% per annum.