Notes Payable |
8. |
Notes
Payable |
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Notes
Payable consist of the following at September 30, 2018, |
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On
November 6, 2017, the Company entered into a convertible promissory note and a security purchase agreement dated November
6, 2017, in the amount of $48,647. The lender was Eagle Equities, LLC. The notes have a maturity of November 6, 2018 and interest
rate of 8% per annum and are convertible at a price of 50% of the lowest trading price on the primary trading market on which
the Company’s Common Stock is then listed for the twenty (20) trading days immediately prior to conversion. The note
may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy
the note with cash. The Company also determined there was a beneficial conversion feature ( BCF ) as a result of the intrinsic
value between the effective exercise price and the market price. The BCF is included in additional paid in capital. As of
September 30, 2018, the BCF was $4,931. |
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On
November 6, 2017, the Company entered into a convertible promissory note and a security purchase agreement dated November
6, 2017, in the amount of $45,551. The lender was Eagle Equities, LLC. The notes have a maturity of November 6, 2018 and interest
rate of 8% per annum and are convertible at a price of 50% of the lowest trading price on the primary trading market on which
the Company’s Common Stock is then listed for the twenty (20) trading days immediately prior to conversion. The note
may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy
the note with cash. The Company also determined there was a beneficial conversion feature ( BCF ) as a result of the intrinsic
value between the effective exercise price and the market price. The BCF is included in additional paid in capital. As of
September 30, 2018, the BCF was $4,617. |
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On
November 15, 2017, the Company entered into a convertible promissory note a security purchase agreement dated November 15,
2017, in the amount of $75,000. The lender was Eagle Equities, LLC. The notes have a maturity of November 15, 2018 and interest
rate of 8% per annum and are convertible at a price of 50% of the lowest trading price on the primary trading market on which
the Company’s Common Stock is then listed for the twenty (20) trading days immediately prior to conversion. The note
may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy
the note with cash. The Company also determined there was a beneficial conversion feature ( BCF ) as a result of the intrinsic
value between the effective exercise price and the market price. The BCF is included in additional paid in capital. As of
September 30, 2018, the BCF was $9,452. |
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On
December 27, 2017, the Company entered into a convertible promissory note and a security purchase agreement dated December
27, 2017, in the amount of $60,000. The lender was Eagle Equities, LLC. The notes have a maturity of December 27, 2018 and
interest rate of 8% per annum and are convertible at a price of 50% of the lowest trading price on the primary trading market
on which the Company’s Common Stock is then listed for the twenty (20) trading days immediately prior to conversion.
The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component
to satisfy the note with cash. The Company also determined there was a beneficial conversion feature ( BCF ) as a result of
the intrinsic value between the effective exercise price and the market price. The BCF is included in additional paid in capital.
As of September 30, 2018, the BCF was $14,708. |
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On January 10, 2018, the Company entered into a convertible promissory note and a security purchase agreement dated January 10, 2018, in the amount of $110,000. The lender was Eagle Equities, LLC. The notes had a maturity of January 10, 2019 and interest rate of 8% per annum and was convertible at a price of 50% of the lowest trading price on the primary trading market on which the Company’s Common Stock was then listed for the twenty (20) trading days immediately prior to conversion.
This note has been successfully retired
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On
January 31, 2018, the Company received funding in conjunction with a convertible promissory note and a security purchase
agreement dated September 8, 2017, in the amount of $210,000. The lender was Eagle Equities, LLC. The notes have a
maturity of September 8, 2018 and interest rate of 8% per annum and are convertible at a price of 50% of the lowest
trading price on the primary trading market on which the Company’s Common Stock is then listed for the twenty (20)
trading days immediately prior to conversion. The note may be prepaid, but carries a penalty in association with the
remittance amount, as there is an accretion component to satisfy the note with cash. Although this note is beyond the
maturity date, the Company has a strong relationship with its investor, Eagle Equities. As such, Eagle has confirmed that
there will be no penalties as a result of the note going beyond the initial term. The Company also determined there was a
beneficial conversion feature ( BCF ) as a result of the intrinsic value between the effective exercise price and the
market price. The BCF is included in additional paid in capital. As of September 30, 2018, the BCF was $0. |
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On
March 2, 2018, the Company received funding in conjunction with a convertible promissory note and a security purchase agreement
dated November 15, 2017, in the amount of $75,000. The lender was Eagle Equities, LLC. The notes have a maturity of November
15, 2018 and interest rate of 8% per annum and are convertible at a price of 50% of the lowest trading price on the primary
trading market on which the Company’s Common Stock is then listed for the twenty (20) trading days immediately prior
to conversion. The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion
component to satisfy the note with cash. The Company also determined there was a beneficial conversion feature ( BCF ) as
a result of the intrinsic value between the effective exercise price and the market price. The BCF is included in additional
paid in capital. As of September 30, 2018, the BCF was $13,372. |
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On
March 2, 2018, the Company received funding in conjunction with a convertible promissory note and a security purchase agreement
dated December 27, 2017, in the amount of $60,000. The lender was Eagle Equities, LLC. The notes have a maturity of December
27, 2018 and interest rate of 8% per annum and are convertible at a price of 50% of the lowest trading price on the primary
trading market on which the Company’s Common Stock is then listed for the twenty (20) trading days immediately prior
to conversion. The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion
component to satisfy the note with cash. The Company also determined there was a beneficial conversion feature ( BCF ) as
a result of the intrinsic value between the effective exercise price and the market price. The BCF is included in additional
paid in capital. As of September 30, 2018, the BCF was $17,600. |
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On
March 2, 2018, the Company received funding in conjunction with a convertible promissory note and a security purchase agreement
dated March 2, 2018, in the amount of $115,000. The lender was Eagle Equities, LLC. The notes have a maturity of March 2,
2019 and interest rate of 8% per annum and are convertible at a price of 70% of the lowest closing bid on the primary trading
market on which the Company’s Common Stock is then listed for the ten (10) trading days immediately prior to conversion.
The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component
to satisfy the note with cash. The Company also determined there was a beneficial conversion feature ( BCF ) as a result of
the intrinsic value between the effective exercise price and the market price. The BCF is included in additional paid in capital.
As of September 30, 2018, the BCF was $48,205. |
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On
April 10, 2018, the Company entered into a convertible promissory note and a security purchase agreement dated April 10, 2018,
in the amount of $62,500. The lender was Eagle Equities, LLC. The notes have a maturity of April 10, 2019 and interest rate
of 8% per annum and are convertible at a price of 60% of the lowest closing bid price on the primary trading market on which
the Company’s Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion. The note
may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy
the note with cash. The Company also determined there was a beneficial conversion feature ( BCF ) as a result of the intrinsic
value between the effective exercise price and the market price. The BCF is included in additional paid in capital. As of
September 30, 2018, the BCF was $32,877. |
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On
April 30, 2018, the Company entered into a convertible promissory note and a security purchase agreement dated April 30, 2018,
in the amount of $225,000. The lender was Eagle Equities, LLC. The notes have a maturity of April 30, 2019 and interest rate
of 8% per annum and are convertible at a price of 60% of the lowest closing bid price on the primary trading market on which
the Company’s Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion. The note
may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy
the note with cash. The Company also determined there was a beneficial conversion feature ( BCF ) as a result of the intrinsic
value between the effective exercise price and the market price. The BCF is included in additional paid in capital. As of
September 30, 2018, the BCF was $130,685. |
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On
June 5, 2018, the Company received cash in conjunction with a convertible promissory note and Securities Purchase Agreement
dated June 5, 2018. The note was in the amount of in the amount of $210,000. The lender was Eagle Equities, LLC.
The notes have a maturity of June 6, 2019 and interest rate of 8% per annum and are convertible at a price of 50% of the lowest
trading price on the primary trading market on which the Company’s Common Stock is then listed for the twenty (20) trading
days immediately prior to conversion. The note may be prepaid, but carries a penalty in association with the remittance amount,
as there is an accretion component to satisfy the note with cash. The Company also determined there was a beneficial conversion
feature ( BCF ) as a result of the intrinsic value between the effective exercise price and the market price. The BCF is included
in additional paid in capital. As of September 30, 2018, the BCF was $141,939. |
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On
June 18, 2018, the Company received cash in conjunction with a convertible promissory
note and Securities Purchase Agreement dated October 18, 2017. The note was in the amount
of in the amount of $52,500. The lender was Eagle Equities, LLC. The notes have a maturity
of October 18, 2018 and interest rate of 8% per annum and are convertible at a price
of 50% of the lowest trading price on the primary trading market on which the Company’s
Common Stock is then listed for the twenty (20) trading days immediately prior to conversion.
The note may be prepaid, but carries a penalty in association with the remittance amount,
as there is an accretion component to satisfy the note with cash. The Company also determined
there was a beneficial conversion feature ( BCF ) as a result of the intrinsic value
between the effective exercise price and the market price. The BCF is included in additional
paid in capital. As of September 30, 2018, the BCF was $7,746.
On
June 18, 2018, the Company entered into a convertible promissory note and a security purchase agreement dated June 18,
2018, in the amount of $52,000. The lender was Eagle Equities, LLC. The notes have a maturity of June 18, 2019 and interest
rate of 8% per annum and are convertible at a price of 60% of the lowest closing bid price on the primary trading market
on which the Company’s Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion.
The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component
to satisfy the note with cash. The Company also determined there was a beneficial conversion feature ( BCF ) as a result
of the intrinsic value between the effective exercise price and the market price. The BCF is included in additional paid
in capital. As of September 30, 2018, the BCF was $37,184.
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On
July 12, 2018, the Company entered into a convertible promissory note and a security purchase agreement dated July 12, 2018,
in the amount of $207,000. The lender was Eagle Equities, LLC. The notes have a maturity of July 12, 2019 and interest rate
of 8% per annum and are convertible at a price of 60% of the lowest trading price on the primary trading market on which the
Company’s Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion. The note may
be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy
the note with cash. The Company also determined there was a beneficial conversion feature ( BCF ) as a result of the intrinsic
value between the effective exercise price and the market price. The BCF is included in additional paid in capital. As of
September 30, 2018, the BCF was $155,959. |
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On
August 2, 2018, the Company entered into a convertible promissory note and a security purchase agreement dated August 2, 2018,
in the amount of $107,005. The lender was Eagle Equities, LLC. The notes have a maturity of August 2, 2019 and interest rate of
8% per annum and are convertible at a price of 60% of the lowest trading price on the primary trading market on which the Company’s
Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion. The note may be prepaid, but carries
a penalty in association with the remittance amount, as there is an accretion component to satisfy the note with cash. The Company
also determined there was a beneficial conversion feature ( BCF ) as a result of the intrinsic value between the effective exercise
price and the market price. The BCF is included in additional paid in capital. As of September 30, 2018, the BCF was $89,708. |
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On
September 7, 2018, the Company entered into a convertible promissory note and a security purchase agreement dated September
7, 2018, in the amount of $78,000. The lender was Eagle Equities, LLC. The notes have a maturity of September 7, 2019 and
interest rate of 8% per annum and are convertible at a price of 65% of the lowest trading price on the primary trading market
on which the Company’s Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion.
The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component
to satisfy the note with cash. The Company also determined there was a beneficial conversion feature ( BCF ) as a result of
the intrinsic value between the effective exercise price and the market price. The BCF is included in additional paid in capital.
As of September 30, 2018, the BCF was $72,871. |
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Below
is a reconciliation of the convertible notes payable as presented on the Company’s balance sheet as of September 30,
2018: |
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Convertible notes payable issued as of June 30, 2018 |
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$ |
633,870 |
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Convertible notes payable issued as of September 30, 2018 |
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392,005 |
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Unamortized amortization of debt and beneficial conversion feature |
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160,300 |
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Notes paid |
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(102,076 |
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Notes converted into shares of common stock |
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(130,000 |
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Balance at September 30, 2018 |
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$ |
954,099 |
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