CONVERTIBLE NOTES AND NOTES PAYABLE |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| CONVERTIBLE NOTES AND NOTES PAYABLE | |
| CONVERTIBLE NOTES AND NOTES PAYABLE | NOTE 4 – CONVERTIBLE NOTES AND NOTES PAYABLE
During January and February 2025, we sold an aggregate of $55,000 of convertible note units. Each unit costs $5,000 and consists of one convertible promissory note in the amount of $5,000 and one warrant to purchase 5,000 shares of the Company’s common stock at an exercise price of $0.01 per share. The Notes bear interest at the rate of 10% per year, compounded annually, and are due on January 4, 2027 (the “Maturity Date”). The Notes will be converted into common stock of the Company automatically upon the Maturity Date at the lower of (a) $0.10 per share, or (b) 90% of the Market Price, which shall be the average closing price of the Company’s common stock on the ten trading days immediately preceding the date of conversion. However, if the United States Army has issued a contract for the supply of sustainable power and water from the Company-designed and built OTEC system prior to the Maturity Date, within five business days the Notes will automatically be converted.
Notes aggregating approximately $6.9 million are in default at June 30, 2026. |