380k note converting Nov. 30
November 30, 2013
November 30, 2017
10%
$0.01
374,458
394,458
oops
*
The indicated notes were is in default as of May 31, 2017 and bear default interest of between 18% and 25% per annum.
(1)
The note is convertible beginning six months after the date of issuance.
During the three months ended May 31, 2017, we incurred original issue discounts of $91,000 and derivative discount of $414,250 on convertible notes issued during that period. These amounts are included in discounts on convertible notes payable and are being amortized to interest expense over the life of the notes. During the three months ended May 31, 2017 and 2016, we recognized interest expense related to the amortization of debt discounts of $128,686 and $89,292, respectively.
During the three months ended May 31, 2017, we issued convertible promissory notes of $610,250 and received cash proceeds of $519,250. See “Convertible Notes Issued” below.
During the three months ended May 31, 2017, we prepaid principal on a convertible note payable of $31,230 and incurred a prepayment penalty of $40,429. During the same period, we repaid a convertible note payable of $50,000.
All of the notes above are unsecured. As of May 31, 2017, we had accrued interest payable of $549,755.
while I used one as an example...
but also those pesky derivatives/liabilities
The Company evaluated the terms of the notes in accordance with ASC Topic No. 815 – 40, Derivatives and Hedging - Contracts in Entity’s Own Stock and determined that the underlying common stock is indexed to the Company’s common stock. We determined that the conversion features met the definition of a liability and therefore bifurcated the conversion feature and accounted for it as a separate derivative liability. During the three months ended May 31, 2017, we amortized discount on convertible notes payable of $128,686 to interest expense.
Note 8. Derivative Liabilities
During the three months ended May 31, 2017, we released $732,931 of our derivative liability to equity due to conversions of principal and interest on the associated notes.
On May 31, 2017, we revalued the fair value all of our derivative instruments and determined that we had total derivative liabilities of $15,966,384. During the three months ended May 31, 2017, we recognized loss on derivative of $3,346,270.
The Company estimated the fair value of the derivative liabilities using the Black-Scholes option pricing model using the following key assumptions during the year ended May 31, 2017:
in reagards as to why 380k note
On June 16, 2017, the holder of the convertible note payable dated November 30, 2013, sold principal on the note in the amount of $15,000 to a third party. The Company agreed to amend the terms of the note that was sold to be non-interest bearing and payable on June 16, 2018. The conversion price was changed to $0.001 per share. The Company did not receive any proceeds from this transaction.
On July 8, 2017, we issued a convertible note payable for $200,000 which bears interest at 8% per annum and is due July 6, 2018. The note is convertible into common stock of the Company at a 40% discount to the lowest trading price in during the 20 trading days prior to conversion.
but I am a rookie...
I didn't use RAD's financials, that was OMVS's
omvs
notice how those derivatives/liabilities convert to equity and conversions, adding more to the OS...
wow
AI
