BrewBilt Manufacturing Inc (BBRW)

[RicherPn]

Can someone explain this please.During the nine months ending September 30, 2020, the Company received proceeds from new convertible notes of $698,540, and reclassified accounts payable of $44,000 into convertible notes payable. The Company recorded no payments on their convertible notes, default penalties of $194,920, and conversions of $1,184,909 of convertible note principal. The Company recorded loan fees on new convertible notes of $87,460, which increased the debt discounts recorded on the convertible notes during the nine months ending September 30, 2020. All of the Company’s convertible notes have a conversion rate that is variable, and therefore, the Company has accounted for their conversion features as derivative instruments (see Note 10). The Company also recorded amortization of $473,587 on their convertible note debt discounts and loan fees. As of September 30, 2020, the convertible notes payable are convertible into 384,712,480 Convert to stock split shares of the Company’s common stock.



During the nine months ended September 30, 2020, the Company recorded interest expense of $155,252 on its convertible notes payable. During the nine months ended September 30, 2020, the Company recorded conversions of $341,092 of convertible note interest and $39,275 in conversion fees. As of September 30, 2020, the accrued interest balance was $54,868.