| Convertible notes payable |
Convertible
notes payable consists of the following:
| |
|
June
30, |
|
|
December 31, |
|
| |
|
2019 |
|
|
2018 |
|
| January
and February 2018 Notes, issued January 3, 2018 and February 16, 2018, respectively, with a maturity date of March 31, 2019,
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, 2019, as amended, bearing no 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, 2019, as amended, bearing no 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, 2019, as amended, bearing no interest, and secured
by substantially all of the Company’s assets and guarantees of payment by the Company’s CEO, and ASC. |
|
|
862,500 |
|
|
|
862,500 |
|
| Total
convertible notes payable |
|
|
1,731,504 |
|
|
|
1,731,504 |
|
| Debt
discount |
|
|
- |
|
|
|
- |
|
| Convertible
notes payable, net of unamortized debt discount |
|
$ |
1,731,504 |
|
|
$ |
1,731,504 |
|
|
| Summary of convertible debt |
The
following represents a summary of the convertible debt terms at June 30, 2019:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrants |
| |
|
Amount
of
Notes |
|
|
Debt
Discount |
|
|
Maturity
Dates
thru |
|
Conversion
Price |
|
|
Number
of
Warrants |
|
|
Exercise
Price |
|
|
Exercisable
thru |
| January
and February 2018 Notes |
|
$ |
294,000 |
|
|
$ |
- |
|
|
3/31/2019 |
|
$ |
0.08 |
|
|
|
1,960,000 |
|
|
$ |
0.15 |
|
|
2/16/2023 |
| November
2017 Notes |
|
|
287,502 |
|
|
|
- |
|
|
3/31/2019 |
|
$ |
0.08 |
|
|
|
3,593,776 |
|
|
$ |
0.15 |
|
|
11/10/2022 |
| November
2016 Notes |
|
|
287,502 |
|
|
|
- |
|
|
3/31/2019 |
|
$ |
0.08 |
|
|
|
3,593,776 |
|
|
$ |
0.15 |
|
|
11/10/2022 |
| December
2015 Notes |
|
|
862,500 |
|
|
|
- |
|
|
3/31/2019 |
|
$ |
0.08 |
|
|
|
10,781,250 |
|
|
$ |
0.15 |
|
|
11/10/2022 |
| Total |
|
$ |
1,731,504 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
19,928,802 |
|
|
|
|
|
|
|
|
| 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 |
|