| Schedule of Related Party Convertible Note Payable |
Related party convertible note payable
consisted of the following as of:
| |
|
September 30, 2019 |
|
|
December 31, 2018 |
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| |
|
(Unaudited) |
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|
|
|
| |
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| 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 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
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| Total notes payable |
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|
815,217 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
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| 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 |
|
|
$ |
- |
|
|