Leafbuyer Technologies Inc. (LBUY)

[tchalla]

sorry. dilution here:

During the year ended June 30, 2019, the Company entered into several promissory notes with various investors of the Company with a face value of $960,000 in exchange for a total of $900,000 cash payments (“the Notes”). The Notes have a beneficial conversion feature valued at $839,378, which is recorded as a discount. The total discount on the Notes will be amortized over the life of the Notes and recorded as interest expense. The notes have an interest rate of 7% and have an eighteen-month term with no payment required for the initial six months; after six months, the Company will repay the investors interest and principle in twelve equal installments. The principle and interest of the note is convertible into the Company’s common stock at a purchase price of $0.75 per common share at any time after the Original Issue Date. If the Company defaults on the Notes, the interest is increased to 15% and at the investors’ option, the principle and interest can be converted into the Company common stock at a 20% discount to the then current market price. As of March 31, 2020, $533,000 of the Notes have been fully extinguished as $402,000 of debt repayment and the issuance of common stock valued at $131,000.

The remaining principal of $390,125 is due August 2020.

The unamortized discounts to the note as of March 31, 2020 are $196,277.



During the quarter ended March 31, 2020, the Company entered into a promissory note with a face value of $600,000 in exchange for a total of $565,000 cash payments. The total discount the Note will be amortized over the life of the Note and recorded as interest expense. The note has an interest rate of 8% and matures on December 1, 2020.



During the quarter ended March 31, 2020 the Company entered into a promissory note with a face value of $50,000. The note has an interest rate of 8% and matures on January 1, 2021.