v3.26.1
CONVERTIBLE DEBT
 6 Months Ended
Jun. 30, 2026
CONVERTIBLE DEBT  
CONVERTIBLE DEBT

NOTE 8. CONVERTIBLE DEBT

 

 

 

Six months

ended

Jun 30,

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)

 

 

3,482

 

 

 

5,905

 

Extinguishment of convertible notes – note 9

 

 

(88,612)

 

 

-

 

Balance, end of period

 

 

-

 

 

 

82,630

 

 

The Company 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 shared the same terms: each matured on December 31, 2028, bore interest at 10% per annum, and was convertible into common stock at a conversion price of $0.04 per share. The governing indentures contained 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.

 

On June 10, 2026, the Company and the holder of the convertible notes entered into a convertible termination agreement pursuant to which all of the convertible notes were terminated and all amounts owing were deemed paid in full. None of the notes was converted into equity of the Company and no right of conversion survived the termination. The carrying amount of $88,612 at that date was recognized as a gain on debt forgiveness. As of June 30, 2026, the balance of the convertible notes was $nil (December 31, 2025 – $82,630). See note 9.