v3.26.1
CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE
 6 Months Ended
Jun. 30, 2026
Convertible Notes Payable And Notes Payable  
CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE

NOTE 5 – CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE

 

Upon inception, the Company evaluates each financial instrument to determine whether it meets the definition of “conventional convertible” debt under ASC 470.

 

Convertible Notes Payable

 

The following tables reflect the convertible notes payable at June 30, 2026 and December 31, 2025:

 

   Issue Date  Maturity
Date		  June 30,
2026		   December 31,
2025		   Rate  Conversion
Price		 
         Principal
Balance		   Principal
Balance		        
Convertible notes payable                        
Notes payable, Face Value  06/04/26  09/04/26  $60,000   $-   6.00%  $0.0020 
                         
Balance convertible notes payable        $60,000   $-         
                         
   Issue Date  Maturity
Date		  June 30,
2026		   December 31,
2025		   Rate  Conversion
Price		 
         Principal
Balance		   Principal
Balance		        
Convertible notes payable - in default                    
Notes payable, Face Value   08/28/09   11/01/09   $ 4,300     $ 4,300     10.00%   $ 0.0150  
Notes payable, Face Value   11/20/12   05/20/13     50,000       50,000     6.00%     0.0050  
Notes payable, Face Value   01/19/13   07/30/13     5,000       5,000     6.00%     0.0040  
Notes payable, Face Value   02/11/13   08/11/13     9,000       9,000     6.00%     0.0060  
Notes payable, Face Value   09/25/13   03/25/14     10,000       10,000     6.00%     0.0125  
Notes payable, Face Value   10/04/13   04/04/14     50,000       50,000     6.00%     0.0125  
Notes payable, Face Value   05/15/14   11/15/14     40,000       40,000     6.00%     0.0070  
Notes payable, Face Value   09/18/15   03/18/16     25,000       25,000     6.00%     0.0020  
Notes payable, Face Value   07/19/16   07/19/17     4,000       4,000     6.00%     0.0015  
Notes payable, Face Value   02/06/18   11/07/18     6,000       6,000     6.00%     0.0006  
Notes payable, Face Value   03/06/18   09/06/18     6,000       6,000     6.00%     0.0006  
Notes payable, Face Value   01/03/19   07/03/19     1,000       1,000     6.00%     0.0010  
Notes payable, Face Value   09/04/19   03/04/20     25,000       25,000     6.00%     0.0030  
Notes payable, Face Value   03/18/24   03/18/25     -       50,000     6.00%     0.0020  
Notes payable, Face Value    03/28/24   03/28/25     -       100,000     6.00%     0.0020  
Notes payable, Face Value   06/24/25   07/24/25     15,000       15,000     6.00%     0.0020  
Notes payable, Face Value   07/02/25   10/02/25     75,000       75,000     6.00%     0.0016  
                                     
Balance convertible notes payable - in default   $ 325,300     $ 475,300              
   Issue Date  Maturity
Date		  June 30,
2026		   December 31,
2025		   Rate  Conversion
Price		 
         Principal
Balance		   Principal
Balance		        
Convertible notes payable - related parties, in default               
Notes payable, Face Value   01/09/09   01/09/10   $ 10,000     $ 10,000     10.00%   $ 0.0150  
Notes payable, Face Value   01/25/10   01/25/11     6,000       6,000     6.00%     0.0050  
Notes payable, Face Value   01/18/12   07/18/12     50,000       50,000     8.00%     0.0040  
Notes payable, Face Value   01/19/13   07/30/13     15,000       15,000     6.00%     0.0040  
Notes payable, Face Value   07/26/13   01/26/14     10,000       10,000     6.00%     0.0100  
Notes payable, Face Value   01/17/14   07/17/14     31,500       31,500     6.00%     0.0060  
Notes payable, Face Value   05/27/14   11/27/14     7,000       7,000     6.00%     0.0070  
Notes payable, Face Value   07/21/14   01/25/15     17,000       17,000     6.00%     0.0080  
Notes payable, Face Value   10/16/14   04/16/15     21,000       21,000     6.00%     0.0045  
Notes payable, Face Value   07/14/15   01/14/16     9,000       9,000     6.00%     0.0030  
Notes payable, Face Value    01/12/16   07/12/16     5,000       5,000     6.00%     0.0020  
Notes payable, Face Value   05/10/16   11/10/16     5,000       5,000     6.00%     0.0005  
Notes payable, Face Value   05/10/16   11/10/16     5,000       5,000     6.00%     0.0005  
Notes payable, Face Value    05/20/16   11/20/16     5,000       5,000     6.00%     0.0005  
Notes payable, Face Value   07/12/16   01/12/17     2,400       2,400     6.00%     0.0006  
Notes payable, Face Value    01/26/17   03/12/17     -       5,000     6.00%     0.0005  
Notes payable, Face Value    02/14/17   08/14/17     25,000       25,000     6.00%     0.0008  
Notes payable, Face Value   08/16/17   09/16/17     3,000       3,000     6.00%     0.0008  
Notes payable, Face Value   01/09/18   01/09/19     12,000       12,000     6.00%     0.0006  
Notes payable, Face Value   03/14/18   05/14/18     25,000       25,000     6.00%     0.0007  
Notes payable, Face Value   04/04/18   06/04/18     3,000       3,000     6.00%     0.0007  
Notes payable, Face Value    04/11/18   06/11/18     25,000       25,000     6.00%     0.0007  
Notes payable, Face Value    05/08/18   07/08/18     25,000       25,000     6.00%     0.0007  
Notes payable, Face Value    05/30/18   08/30/18     25,000       25,000     6.00%     0.0007  
Notes payable, Face Value   06/12/18   09/12/18     3,000       3,000     6.00%     0.0007  
Notes payable, Face Value   06/20/18   09/12/18     500       500     6.00%     0.0007  
Notes payable, Face Value   08/27/18   02/27/19     2,000       2,000     6.00%     0.0007  
Notes payable, Face Value   10/02/18   04/02/19     1,000       1,000     6.00%     0.0008  
Notes payable, Face Value   10/23/18   04/23/19     4,200       4,200     6.00%     0.0007  
Notes payable, Face Value   11/07/18   05/07/19     2,000       2,000     6.00%     0.0008  
Notes payable, Face Value   11/14/18   05/14/19     8,000       8,000     6.00%     0.0008  
Notes payable, Face Value   01/08/19   07/08/19     7,000       7,000     6.00%     0.0008  
Notes payable, Face Value   04/25/19   10/23/19     20,000       20,000     6.00%     0.0040  
Notes payable, Face Value   06/07/19   12/07/19     5,100       5,100     6.00%     0.0030  
Notes payable, Face Value   09/17/19   04/17/20     12,000       12,000     6.00%     0.0030  
Notes payable, Face Value    11/12/19   05/12/20     25,000       25,000     6.00%     0.0025  
Notes payable, Face Value   11/26/19   05/26/20     25,200       25,200     6.00%     0.0030  
Notes payable, Face Value    12/03/19   06/03/20     15,000       15,000     6.00%     0.0030  
Notes payable, Face Value    01/07/20   06/20/20     51,000       51,000     6.00%     0.0030  
Notes payable, Face Value    08/06/20   02/06/21     25,200       25,200     6.00%     0.0035  
Notes payable, Face Value   08/06/20   02/06/21     35,000       35,000     6.00%     0.0035  
Notes payable, Face Value   08/14/20   02/14/21     50,400       50,400     6.00%     0.0035  
Notes payable, Face Value   10/13/21   04/13/22     3,000       3,000     2.00%     0.0020  
Notes payable, Face Value   11/10/21   05/10/22     3,000       3,000     6.00%     0.0020  
Notes payable, Face Value    07/06/22   01/06/23     20,000       20,000     6.00%     0.0015  
Notes payable, Face Value   07/29/22   01/28/23     10,000       10,000     6.00%     0.0020  
Notes payable, Face Value   08/04/22   02/04/23     10,000       10,000     6.00%     0.0020  
Notes payable, Face Value   07/24/23   09/24/23     5,000       5,000     1.00%     0.00175  
Notes payable, Face Value   12/11/24   06/11/25     15,000       15,000     6.00%     0.0020  
Balance convertible notes payable - related parties, in default   $ 699,500     $ 704,500              
                         
Balance all convertible notes payable, in default  $1,084,800   $1,179,800         

Notes Payable

 

The following tables reflect the notes payable at June 30, 2026 and December 31, 2025:

 

   Issue Date  Maturity
Date		  June 30,
2026		   December 31,
2025		   Rate
         Principal
Balance		   Principal
Balance		    
Notes payable                   
Notes payable, Face Value  12/02/25  02/23/26  $-    50,000   12.00%
Total         -    50,000    
 Less unamortized discounts         -    (4,783)   
Balance notes payable        $-   $45,217    
                    
   Issue Date  Maturity
Date		  June 30,
2026		   December 31,
2025		   Rate
         Principal
Balance		   Principal
Balance		    
Notes payable - in default                   
Notes payable, Face Value  04/27/11  04/27/12  $5,000   $5,000   6.00%
Notes payable, Face Value  12/14/17  12/14/18   2,000    2,000   6.00%
Notes payable, Face Value  11/29/17  11/29/19   -    105,000   2.06%
Notes payable, Face Value  11/10/23  05/10/25   500,000    500,000   6.00%
Notes payable, Face Value  02/28/24  05/10/25   350,000    350,000   6.00%
Notes payable, Face Value  04/01/24  04/01/25   150,000    150,000   6.00%
Balance notes payable – default        $1,007,000   $1,112,000    
                    
   Issue Date  Maturity
Date		  June 30,
2026		   December 31,
2025		   Rate
         Principal
Balance		   Principal
Balance		    
Notes payable - related parties, in default                   
Notes payable, Face Value  02/24/10  02/24/11  $7,500   $7,500   6.00%
Notes payable, Face Value  10/06/15  11/15/15   10,000    10,000   6.00%
Notes payable, Face Value  02/08/18  04/09/18   1,000    1,000   6.00%
Balance notes payable - related parties, in default       $18,500   $18,500    
                    
Balance all notes payable, in default        $1,025,500   $1,175,717    

 

Terms of Related Party Convertible Notes Payable and Related Party Notes Payable

 

The Company’s related party convertible notes payable and related party notes payable may contain terms that are not indicative of the terms that would not normally be agreeable to non related third parties.

New Convertible Notes Payable Issued During the Six Month Periods Ended June 30, 2026 and 2025

 

During the six month period ended June 30, 2026 the Company entered into the following convertible notes payable agreements:

 

In June of 2026, the Company entered into a convertible promissory note agreement in the amount of $60,000 with an individual. This note pays interest at a rate of 6% per annum and the principal and accrued interest is due on or before September 4, 2026. The note is secured by one of the Company’s vessels and is convertible at the lender’s option into shares of the Company’s common stock at $0.002 per share.

 

During the six month period ended June 30, 2025 the Company entered into the following convertible notes payable agreements:

 

In June of 2025, the Company entered into a convertible promissory note agreement in the amount of $15,000 with an individual. This note pays interest at a rate of 6% per annum and the principal and accrued interest is due on or before July 24, 2025. The note is unsecured and is convertible at the lender’s option into shares of the Company’s common stock at $0.002 per share.

 

Repayments of Notes Payable

 

The Company did not repay any of its notes payable during the six month periods ended June 30, 2026 or 2025.

 

Note Settlement

 

A lender agreed to cancel the principal balance of $105,000 for a convertible promissory note dated November 19, 2017. The Company recognized a gain on extinguishment of the debt.

 

Note Conversions

 

Period Ended June 30, 2026

 

The Company issued 13,681,348 shares of restricted common stock to a related party to settle $5,000 of the principal balance of a convertible promissory note dated January 6, 2017 and $8,994 of the accrued interest owed on seventeen convertible notes payable. The balance of the convertible note was $0 at June 30, 2026.

 

The Company issued 111,490,411 shares of restricted common stock to settle $111,490 of the principal and accrued interest owed on a convertible note payable dated March 28, 2024. The Company recorded a loss on extinguishment of debt of $234,245 on the conversion. The balance of the convertible note was $0 at June 30, 2026.

 

The Company issued 55,827,397 shares of restricted common stock to settle $55,827 of the principal and accrued interest owed on a convertible note payable dated March 18, 2024. The balance of the convertible note was $0 at June 30, 2026.

 

Period Ended June 30, 2025

 

The Company issued 5,352,521 shares of restricted common stock with a total share value of $13,041 to a related party to settle $13,041 of the accrued interest owed on sixteen convertible notes payable.

 

Shareholder Loan

 

At June 30, 2026 and December 31, 2025, the Company had the following loans outstanding to its CEO in the total amount of $5,000 as follows:

 

-A loan with no due date with a $1,500 remaining balance and an interest rate of 2% and a conversion rate of $0.0005; and

 

-A loan due on September 9, 2022 with a remaining balance of $3,500, and an interest rate of 1%.

 

Collateralized Promissory Notes

 

Two convertible notes outstanding with related parties, dated January 9, 2009 and January 18, 2012 are collateralized by Company assets.

Convertible Notes Payable and Notes Payable, in Default

 

The Company does not have additional sources of debt financing to refinance its convertible notes payable and notes payable that are currently in default. If the Company is unable to obtain additional capital, such lenders may file suit, including suit to foreclose on the assets held as collateral for the obligations arising under the secured notes. If any of the lenders file suit to foreclose on the assets held as collateral, then the Company may be forced to significantly scale back or cease its operations, which would more than likely result in a complete loss of all capital that has been invested in or borrowed by the Company. The fact that the Company is in default of several promissory notes held by various lenders makes investing in the Company or providing any loans to the Company extremely risky with a very high potential for a complete loss of capital. The Company’s convertible notes payable and notes payable in default represent a very significant risk to the viability of the Company.