Quarterly report pursuant to Section 13 or 15(d)

Related Party Convertible Note Payable (Tables)

v3.19.3
Related Party Convertible Note Payable (Tables)
9 Months Ended
Sep. 30, 2019
Related Party Transactions [Abstract]  
Schedule of Related Party Convertible Note Payable

Related party convertible note payable consisted of the following as of:

 

    September 30, 2019     December 31, 2018  
    (Unaudited)        
             
Convertible note 2019-02. On July 19, 2019, the Company issued a convertible note payable in the amount $815,217, with an original issue discount of $65,217 in exchange for $750,000. This note accrues interest at 8% per annum and matures on June 30, 2020. This note and accrued interest may convert into shares of common stock at the conversion price then in effect (initially $0.12 per share, subject to adjustment) any time at the holder’s option or automatically upon a qualified financing of at least $5 million at the lower of the conversion price then in effect or a 25% discount to the offering price. The conversion price is subject to adjustment upon the issuance of the Company’s common stock or securities convertible into common stock at a price per share less than the then prevailing conversion price, other than specified exempt issuances; accordingly, on November 8, 2019, the conversion price was adjusted to $0.07 per share. This note was also issued with a detachable warrant to purchase 1,500,000 shares of stock at $0.12 per share, which shall be adjusted in accordance with any adjustment to the conversion price of this note; accordingly, on November 8, 2019, the exercise price was adjusted to $0.07 per share. The valuation of the conversion feature and detachable warrants resulted in the recognition of an additional $286,050 discount on this note. This note requires monthly interest payments.   $ 815,217     $ -  
                 
Total notes payable     815,217       -  
                 
Less original issue discounts     (65,217 )     -  
                 
Related party convertible note payable, net     750,000       -  
                 
Less conversion rights and warrant discounts     (286,050 )     -  
                 
Plus amortization of discounts     73,898              -  
                 
Total convertible notes payable, net   $ 537,848     $ -  

Schedule of Related Party Future Maturities of Convertible Notes Payable

Future maturities of notes payable are as follows as of September 30:

 

2020   $ 815,217  
    $ 815,217