CONVERTIBLE NOTES |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONVERTIBLE NOTES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONVERTIBLE NOTES | 5. CONVERTIBLE NOTES
Convertible notes as of June 30, 2026 and December 31, 2025, consist of the following:
For the six months ended June 30, 2026 and 2025, the interest expense on convertible notes was $48,912 and $18,660, respectively. As of June 30, 2026 and December 31, 2025, the accrued interest was $238,609 and $215,973, respectively.
The Company recognized amortization expense related to the debt discount of $153,247 and $0 for the six months ended June 30, 2026 and 2025, respectively, which is included in interest expense in the statements of operation.
Conversion
During the six months ended June 30, 2026, the note holders converted principal of $14,950 and accrued interest of $26,276 into 19,586,449 shares of the Company's common stock. As a result, the Company extinguished the related debt obligations and derecognized derivative liabilities of $66,793 and recorded gain on settlement of debt of $15,574. Convertible Notes – Issued during the year ended December 31, 2025
During the year ended December 31, 2025, the Company issued a total principal amount of $295,000 in convertible notes for cash proceeds of $255,000. The terms of these convertible notes are summarized as follows:
In addition, the Company issued a total of 2,062,500 warrants in connection with certain convertible notes. The warrants will expire 3 years after issuance date, and the exercise price of $0.08. The Company determined that the warrants had a fixed monetary value with a variable number of shares at inception and categorized the warrants as a liability, which is derivative liability on the balance sheet.
Convertible Notes – Issued during the year ended December 31, 2024
On November 5, 2024, the Company issued convertible note of $150,000 for consulting service. The convertible note has a term of 6 months, at an interest rate of 6% per annum. The outstanding principal amount of convertible note and unpaid interest are convertible at the option of the holder at 6 months after the issue date. The conversion price is an average of the closing price during the previous 15-trading days.
Convertible Notes – Issued during the year ended December 31, 2018
During the year ended December 31, 2018, the Company issued a total principal amount of $426,000 in convertible notes for cash proceeds of $426,000. The convertible notes were also provided with a total of 713 common shares valued at $22,210. The terms of these convertible notes are summarized as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||