DarkPulse Inc (DPLS)

[tutankhamuns]

BVTK had an eerily similar arrangement in their Q too...

On June 20, 2018, the Company issued a convertible promissory note, with a face value of $184,000, maturing on June 20, 2019, (the “Maturity Date”) and stated interest of 12% to a third-party investor. The note is convertible at any time following the funding of the note into a variable number of the Company's common stock, based on a conversion ratio of 60% of the average of the three lowest trading prices quoted for the 20 days prior to conversion. The note also requires daily ACH payments of $350. During the six months ended June 30, 2018, principal payments of $2,100 were made. The note was funded on June 20, 2018, when the Company received proceeds of $150,000, after OID of $24,000, and disbursements for the lender’s transaction costs, fees and expenses of $10,000, which were recorded as discounts against the debt to be amortized into interest expense through maturity. The embedded conversion feature included in the note resulted in an initial debt discount of $160,000, an initial derivative expense of $42,071 and an initial derivative liability of $202,071. For the six months ended June 30, 2018, amortization of the debt discounts of $5,389 was charged to interest expense. As of June 30, 2018, the note balance is $181,900 with a carrying value as of June 30, 2018, of a debit balance of $6,711, net of unamortized discounts of $188,611.

LINK: https://www.otcmarkets.com/filing/html?id=12918404&guid=QHmEUFZIIMLTr3h

Hmmm...