So here is the most bizarre thing that I still can not fathom. I have been reading these reports from nano's since broadband became legit. That is a lot of years. There are no usury laws in Nevada...and the past two financials prior to this one stated that the amount paid was stated to be interest and fees. So here you go:
On October 18, 2017, the Company borrowed $150,000 from an unrelated third party. The Company paid $15,250 of fees associated with the loan, which was recorded as discount and to be amortized over the term of the debt and was fully amortized as of December 31, 2018. The loan bears interest at a rate of 10% (default interest 24%) and has a maturity date of July 16, 2018. The Holder has the option to convert the outstanding principal and accrued interest into common stock of the Company. The conversion price is the lesser of (1) lowest trading price during the previous 25 days prior to the note agreement or (2) 50% lowest trading price during the 25 days prior to conversion. Covenants: The Borrower shall not, without the Holder’s consent, sell, lease or dispose of any significant portion of its assets outside the ordinary course of business. During the year ended December 31, 2018 the Company paid $150,000 to extend the maturity date until May 11, 2019 The note was discounted for a derivative (see note 8 for details) and the discount of $134,750 is being amortized over the life of the note using the effective interest method which was fully amortized as of December 31, 2018
I brought this up before. I fully expected this note to be amended to USD75k...and paid off with another USD75k(150% of principal). I do not think that an explanation is needed here. If this note does convert....I am contacting the Company or interested parties(which I never do) and read them a humiliating riot act. Not as some bull crap concerned investor...just that it would be one the funniest and dumbest things I have ever seen. It would be along the lines of..."How's that juice?...tastes good eh?"..ha!
I am also sick and tired of errors in these type of copy and paste reports...which are still there.
