| Schedule of convertible notes payable |
Convertible
notes payable consists of the following:
| |
|
September
30,
2020 |
|
|
December
31,
2019 |
|
| September
2019 Notes, issued September 29, 2019, with a maturity date of September 29, 2020, with an interest rate of 15%. |
|
$ |
75,020 |
|
|
$ |
70,020 |
|
| January and February
2018 Notes, issued January 3, 2018 and February 16, 2018, respectively, with a maturity date of March 31, 2020, as amended,
with an interest rate of 10%. |
|
|
294,000 |
|
|
|
294,000 |
|
| November 2017 Notes,
issued November 10, 2017, with a maturity date of March 31, 2020, as amended, bearing 15% interest, and secured by substantially
all of the Company’s assets and guarantees of payment by the Company’s CEO, and Australian Sapphire
Corporation (“ASC”), a shareholder of the Company which is wholly-owned by the Company’s CEO. |
|
|
287,502 |
|
|
|
287,502 |
|
| November 2016 Notes,
issued November 10, 2016, with a maturity date of March 31, 2020, as amended, bearing 15% interest, and secured by substantially
all of the Company’s assets and guarantees of payment by the Company’s CEO, and ASC. |
|
|
287,502 |
|
|
|
287,502 |
|
| December
2015 Notes, issued December 23, 2015, with a maturity date of March 31, 2020, as amended, bearing 15% interest, and secured
by substantially all of the Company’s assets and guarantees of payment by the Company’s CEO, and ASC. |
|
|
852,500 |
|
|
|
862,500 |
|
| Total convertible notes
payable |
|
|
1,796,524 |
|
|
|
1,801,524 |
|
| Debt
discount |
|
|
— |
|
|
|
— |
|
| Convertible
notes payable, net of unamortized debt discount |
|
$ |
1,796,524 |
|
|
$ |
1,801,524 |
|
|
| Schedule of convertible debt |
The
following represents a summary of the convertible debt terms at September 30, 2020:
| |
|
|
Amount
of
Notes |
|
|
Debt
Discount |
|
|
Maturity
Dates thru |
|
Conversion
Price |
|
| September
2019 Notes |
|
|
$ |
75,020 |
|
|
$ |
— |
|
|
9/29/2020 |
|
$ |
0.0025 |
|
| January and February
2018 Notes |
|
|
|
294,000 |
|
|
|
— |
|
|
3/31/2020 |
|
$ |
0.0025 |
|
| November 2017 Notes |
|
|
|
287,502 |
|
|
|
— |
|
|
3/31/2020 |
|
$ |
0.0025 |
|
| November 2016 Notes |
|
|
|
287,502 |
|
|
|
— |
|
|
3/31/2020 |
|
$ |
0.0025 |
|
| December
2015 Notes |
|
|
|
852,500 |
|
|
|
— |
|
|
3/31/2020 |
|
$ |
0.0025 |
|
| Total |
|
|
$ |
1,796,524 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
| Schedule of fair value and relative fair value |
The debt discount is accreted to
interest expense over the term of the note.
| |
|
January
3, 2018 |
|
|
February
16, 2018 |
|
| |
|
Fair
value |
|
|
Relative
fair value |
|
|
Fair
value |
|
|
Relative
fair value |
|
| Warrant |
|
$ |
95,324 |
|
|
$ |
19,784 |
|
|
$ |
65,292 |
|
|
$ |
16,955 |
|
| Common sock |
|
$ |
70,833 |
|
|
$ |
14,701 |
|
|
$ |
54,167 |
|
|
$ |
14,066 |
|
| Redeemable shares |
|
$ |
255,000 |
|
|
$ |
52,923 |
|
|
$ |
195,000 |
|
|
$ |
50,637 |
|
| Remaining
note value |
|
$ |
110,300 |
|
|
$ |
22,892 |
|
|
$ |
110,300 |
|
|
$ |
28,642 |
|
| Total |
|
$ |
531,457 |
|
|
$ |
110,300 |
|
|
$ |
424,759 |
|
|
$ |
110,300 |
|
| Additional
discount (interest) |
|
$ |
— |
|
|
$ |
13,808 |
|
|
$ |
— |
|
|
$ |
8,058 |
|
|