NOTES PAYABLE - CONVERTIBLE
|9 Months Ended|
Sep. 30, 2019
|Notes Payable, by Type, Current and Noncurrent [Abstract]|
|NOTES PAYABLE - CONVERTIBLE||
NOTE 6 NOTES PAYABLE CONVERTIBLE
Notes payable convertible totaled $276,024 and $293,524 at September 30, 2019 and December 31, 2018, respectively.
On January 18, 2019, the Company entered into a secured convertible promissory note agreement with an accredited investor in the amount of $20,000. The note has a term of 180 days bearing an interest rate of 15% per annum. At the Companys sole option, the notes may be converted into shares of the Companys common stock. If the note is converted, the investor is entitled to receive five-year warrants. On September 24, 2019, the principal balance of $20,000 plus accrued interest of $1,923 was converted into 438,452 restricted common shares at a conversion rate of $0.05 per share. The investor also received 266,667 five-year warrants with an exercise price of $0.075 per share resulting in a deemed dividend of $66,782.
Interest expense for the Companys convertible notes payable for the three and nine months ended September 30, 2019 was $5,930 and $31,049, respectively, compared to $7,386 and $19,443 to the three and nine months ended September 30, 2018. Accrued interest for the Companys convertible notes payable at September 30, 2019 and December 31, 2018 was $74,054 and $66,558.
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef