CONVERTIBLE DEBT |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| CONVERTIBLE DEBT | |
| CONVERTIBLE DEBT | NOTE 8. CONVERTIBLE DEBT
2025 Activity:
During 2025 the Company issued additional convertible notes for net cash proceeds of $27,113. The convertible notes are due to mature on December 31, 2028 unless earlier converted to common stock. The convertible notes will accrue interest at a rate of 10% per annum and have a conversion price of $0.04 per common stock.
The convertible notes are accounted for as conventional convertible debt in accordance with ASC 470-20 (as amended by ASU 2020-06). No beneficial conversion feature or derivative liability was required to be bifurcated.
During the year ended December 31, 2025, related interest expense of $5,905 was recorded as finance cost.
The total carrying amount (principal plus accrued interest) increased from $49,612 at December 31, 2024 to $82,630 at December 31, 2025.
Prior Period Activity:
On December 31, 2024, the Company issued a convertible note for a net proceed of $9,750. On September 30, 2024, the Company issued a convertible note for a net proceed of $5,136. On June 30, 2024, the Company issued a convertible note for a net proceed of $8,472. On March 31, 2024, the Company issued a convertible note for a net proceed of $17,400. On December 31, 2023, the Company issued a convertible note for a net proceed of $6,350. All convertible notes are due to mature on December 31, 2028 unless earlier converted to common stock, will accrue interest at a rate of 10% per annum and have a conversion price of $0.04 per common stock.
The convertible notes are governed by indentures dated as above. The Indentures do not contain any financial covenants or any restrictions on the payment of dividends, the incurrence of senior debt or other indebtedness or the issuance or repurchase of the Company's securities by the Company. |