v3.26.1
CONVERTIBLE DEBT
 3 Months Ended
Mar. 31, 2026
CONVERTIBLE DEBT  
CONVERTIBLE DEBT

NOTE 8. CONVERTIBLE DEBT

 

 

 

Three months ended

Mar 31, 2026

 

 

Year ended

December 31, 2025

 

 

 

($)

 

 

($)

 

Balance, beginning of period

 

 

82,630

 

 

 

49,612

 

Convertible notes issued

 

 

2,500

 

 

 

27,113

 

Interest accrued (recorded as finance cost)

 

 

1,990

 

 

 

6,065

 

Balance, end of period

 

 

87,120

 

 

 

82,630

 

 

The Company has financed a portion of its operating costs through the issuance of convertible notes to a third party, which the Company used to settle its outstanding accounts payable and accrued expenses. All notes outstanding share the same terms: each matures on December 31, 2028, bears interest at 10% per annum, and is convertible into common stock at a conversion price of $0.04 per share. The governing indentures contain no financial covenants and no restrictions on the payment of dividends, the incurrence of senior or other indebtedness, or the issuance or repurchase of the Company’s securities.

 

During the three months ended March 31, 2026, the carrying amount of the convertible notes increased from $82,630 at December 31, 2025 to $87,120 at March 31, 2026. The increase reflects the $2,500 convertible note issued on March 31, 2026 and $1,991 of interest accrued on the outstanding notes during the period, which was recorded as finance cost and added to the carrying amount of the notes. No interest was paid in cash during the period.