You know you can just view any filing and search for "notes," right? From the last 10Q:
Note 7. Convertible Notes Payable
The Company’s convertible promissory notes at June 30, 2019 and December 31, 2018 are as follows:
June 30, December 31,
2019 2018
Convertible notes payable, bearing interest at 8%-10% $ 1,226,490 $ 1,284,250
Unamortized debt discount (224,344 ) (440,315 )
Unamortized deferred debt issuance cost (15,739 ) (34,738 )
Total $ 986,407 $ 809,197
Current portion 986,407 809,197
February 2019 Note
On February 20, 2019, the Company issued a convertible note with a face amount of $155,000. The note and related accrued interest are convertible, at the option of the holder, into shares of the Company’s common stock at a conversion price of 60% of the lowest trading price for 15 days prior to conversion. The note bears interest at 8% per year and matures on February 20, 2019. The note contains original issue discount aggregating $12,500 which is being amortized over the life of the note. The Company has also agreed to issue 1,100,000 shares of common stock with a value of $10,000 in connection with the note. The shares have been valued at $10,000. This cost will also be amortized over the life of the note. The Company received cash proceeds of $142,500.
2018 Notes
The company entered into various convertible notes during 2018, aggregating $1,071,490 at June 30, 2019. The notes all mature during 2019. During the six months ended June 30, 2019, four notes that came due during the period were extended to August 15, 2019. Pursuant to the terms of the extensions, we have agreed to issue one million shares of common stock for each month that the notes are outstanding, commencing in April 2019. The shares have not been issued at June 30, 2019. We have accrued $27,300 as interest expense during the three months ended June 30, 2019 for the 9 million shares due for the extensions. The four notes are currently being renegotiated.
During the three months ended June 30, 2019, the Company amortized $158,186 of debt discount and $12,723 of debt issue costs to interest expense. During the six months ended June 30, 2019, the Company amortized $327,885 of debt discount and $26,825 of debt issue costs to interest expense.
During the three months ended June 30, 2018, the Company amortized $68,672 of debt discount and $3,357 of debt issue costs to interest expense. During the six months ended June 30, 2018, the Company amortized $125,756 of debt discount and $5,971 of debt issue costs to interest expense.
During the six months ended June 30, 2019, the Company issued 101,725,726 shares of common stock upon the conversion of $179,080 principal amount of notes and related accrued interest of $12,846. The Company also made a cash payment of $33,680 against principal.
Note 8. Derivative Liabilities
The Company has identified certain embedded derivatives related to its convertible notes. Since the notes are convertible into a variable number of shares or have a price reset feature, the conversion features of those notes are recorded as derivative liabilities. The accounting treatment of derivative financial instruments requires that the Company record fair value of the derivatives as of the inception date and to adjust to fair value as of each subsequent balance sheet date.
February 2019 Note
The company entered into various convertible notes during 2018, aggregating $1,071,490 at June 30, 2019. The notes all mature during 2019. During the six months ended June 30, 2019, four notes that came due during the period were extended to August 15, 2019. Pursuant to the terms of the extensions, we have agreed to issue one million shares of common stock for each month that the notes are outstanding, commencing in April 2019. The shares have not been issued at June 30, 2019. We have accrued $27,300 as interest expense during the three months ended June 30, 2019 for the 9 million shares due for the extensions. The four notes are currently being renegotiated .
The Company has recorded additions to the derivative conversion liabilities related to the conversion feature attributable to interest accrued during the period. These additions totaled $5,244 and $7,844 for the three and six months ended June 30, 2019, respectively, and were charged to interest expense.
During the three and six months ended June 30, 2019, the Company recorded income of $33,870 and expense of $49,137 related to the change in the fair value of the derivative. The fair value of the embedded derivative was $270,498 at June 30, 2019, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 2.01%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company's common stock of 289%; and (4) an expected life of 8 months.
2018 Notes
The Company identified embedded derivatives related to the conversion features of the various 2018 notes. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the Dais derivatives as of the inception date of the note and to adjust the fair value as of each subsequent balance sheet date.
The Company has recorded additions to the derivative conversion liabilities related to the conversion feature attributable to interest accrued during the periods. These additions totaled $18,247 and $40,862 for the three and six months ended June 30, 2019, respectively, and were charged to interest expense.
During the three and six months ended June 30, 2019, the Company recorded income of $175,145 and $330,058 related to the change in the fair value of the derivative. The fair value of the embedded derivative was $615,965 at June 30, 2019, determined using the Black Scholes Model with the following assumptions: (1) risk free interest rate of 2.09% - 2.18%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of the Company's common stock of 282% - 322%; and (4) an expected life of 1 – 5 months.
During the six months ended June 30, 2019, the Company issued 101,725,726 shares of common stock upon the conversion of $179,080 principal amount of notes and related accrued interest of $12,846 and made a cash principal payment of $33,680. As a result of the conversions and payment, derivative liability in the amount of $375,027 was extinguished.
Note 11. Subsequent Event
No material events have occurred after June 30, 2019 that requires recognition or disclosure in the financial statements except as follows:
Subsequent to June 30, 2019, the Company issued 116,848,911 shares of common stock upon the conversion of $48,674 principal amount of notes and related accrued interest of $2,866.
On July 3, 2019, the Company issued a convertible note with a face amount of $100,000. The note and related accrued interest are convertible, at the option of the holder, into shares of the Company’s common stock at the conversion price of 60% of the lowest trading price for 15 days prior to conversion. The note bears interest at 8% per year and matures on July 3, 2020. The Company incurred costs of $5,000 which are being amortized over the life of the note. The Company received cash proceeds of $95,000.
