Blue Line Protection Group Inc (BLPG)

[OMOLIVES]

Mainly that they are running over 50% margin. That is very high. I am still at a loss with regards to this:

On March 21, 2018, the Company borrowed $45,000 from an unrelated third party. The Company paid $4,500 of fees associated with the loan, and had amortized $3,514 of the costs as of December 31, 2018. The note bears an interest rate: 12% (default interest lesser of 15% or maximum permitted by law) and matures on March 21, 2019. The conversion Feature Convertible immediately after the issuance, the Holder has the option to convert the outstanding principal and accrued interest into common stock of the Company. The Conversion price is 55% of the lowest trading price during the 25 Trading Day periods prior to the 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. The note was discounted for a derivative (see note 8 for details) and the discount of $40,500 is being amortized over the life of the note using the effective interest method resulting in $20,915 of interest expense for the year ended December 31, 2018. During the nine months ended September 30, 2019 $20,915 of principle and interest were converted into 48,260,250 shares of common stock resulting in a loss of $27,962. During the nine months ended September 30, 2019 the Company recorded amortization expense of $9,863. At September 30, 2019 there was a balance remaining on the loan of $26,006.

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. During the nine months ended September 30, the Company paid an $75,000 of extension fees. 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. During the nine months ended September 30, 2019 the holder converted $36,238 of accrued interest into 181,886,566 shares of common stock resulting in a loss of $54,425. As of September 30, 2019 the balance outstanding on the loan is $150,000.

There were no subsequent events and no borrowing except for this ... On September 3, 2019, the Company borrowed $21,000 from Hypur Inc.,


Also..they are essentially at a point where they can do without funding...except for expansion(do not take that literally)... They had only a rough $59k operating loss for the quarter. This is all due to shifting the focus....and decreasing payroll to Service- Guards .