The Company experienced a net loss of $4,980,496 for the nine months ended September 30, 2019. At September 30, 2019, the Company had a working capital deficit of $5,604,732, and an accumulated deficit of $11,352,625. These factors raise substantial doubt about the Company’s ability to continue as a going concern and to operate in the normal course of business. https://www.otcmarkets.com/filing/html?id=13741990&guid=BMpaUnLBMuT6M3h
This stock is NOT going 1000x higher. They'll probably BLOW OUT the share structure & REVERSE SPLIT the shareholders into NOTHINGNESS !
Lenders NEEDED the stock to get past a penny so they could start SELLING THEIR SHARES. Plain & simple! STOP THE PUMP, ...here comes the DUMP!
And TERMS of convertible debts are getting WORSE, not better. Why?
NOTE 12– CONVERTIBLE NOTES PAYABLE
On March 2, 2018, the Company completed the closing of a private placement financing transaction (the “Transaction”) when a third-party investor purchased a convertible note (the “Convertible Note”). The Convertible Note carries a 10% annual interest rate and is in the principal amount of $50,000. Principal and interest was due and payable March 2, 2019, and the Note is convertible into shares of the Company’s common stock at any time after one hundred eighty (180) days, at a conversion price (the “Conversion Price”) equal to seventy-five percent (75%) of the average closing price of the Company’s common stock for the ten (10) days immediately preceding the conversion, representing a twenty-five percent (25%) discount. The embedded conversion feature included in the note resulted in an initial debt discount of $13,399, and an initial derivative liability of $13,399. For the nine months ended September 30, 2019, amortization of the debt discount of $2,233 was charged to interest expense. During the nine months ended September 30, 2019, the investor converted $50,000 of principal and $2,514 of interest into 2,236,291 shares of common stock. As of September 30, 2019, and December 31, 2018, the note balance was $-0- and $50,000, respectively, with a carrying value of $47,767 at December 31, 2018, net of unamortized discounts of $2,333.
On March 27, 2018, the Company completed the closing of a private placement financing transaction (the “Transaction”) when a third-party investor purchased a convertible note (the “Convertible Note”). The Convertible Note carries a 10% annual interest rate and is in the principal amount of $25,000. Principal and interest were due and payable March 27, 2019, and the Note is convertible into shares of the Company’s common stock at any time after one hundred eighty (180) days, at a conversion price (the “Conversion Price”) equal to seventy-five percent (75%) of the average closing price of the Company’s common stock for the ten (10) days immediately preceding the conversion, representing a twenty-five percent (25%) discount. The embedded conversion feature included in the note resulted in an initial debt discount of $6,736, and an initial derivative liability of $6,736. For the nine months ended September 30, 2019, amortization of the debt discount of $1,628 was charged to interest expense. On April 29, 2019 the Note was sold to a third- party investor (see below). As of September 30 2019, and December 31, 2018, the note balance is $-0- and $25,000, respectively, with a carrying value of $23,372, net of unamortized discount of $1,628 as of December 31, 2018.
On May 11, 2018, the Company issued a convertible promissory note (the “Note”), with a face value of $100,000, maturing on May 11, 2019, and stated interest of 10% to a third-party investor. The note is convertible at any time after the funding of the note into a variable number of the Company's common stock, based on a conversion ratio of 62% of the lowest trading price for the 20 days prior to conversion. The note was funded on May 16, 2018, when the Company received proceeds of $75,825, after disbursements to vendors and for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $95,000, an initial derivative expense of $60,635 and an initial derivative liability of $155,635. For the nine months ended September 30, 2019, amortization of the debt discount of $17,020 was charged to interest expense. The Company also recorded a debt issue discount of $5,000 and amortized $895 to interest expense for the nine months ended September 30, 2019. During the nine months ended September 30, 2019, the investor converted $50,000 of principal and $3,564 of interest into 5,539,273 shares of common stock. As of September 30, 2019, and December 31, 2018, the note balance is $-0- and $50,000, respectively, with a December 31, 2018, carrying value of $32,085, net of unamortized discounts of $17,915.
18
On May 23, 2018, the Company issued a convertible promissory note (the “Note”), with a face value of $60,000, with a maturity date of February 22, 2019, and stated interest of 12% to a third-party investor. The note is convertible at any time after the funding of the note into a variable number of the Company's common stock, based on a conversion ratio of 65% of the lowest trading price for the 20 days prior to conversion. The note was funded on May 30, 2018, when the Company received proceeds of $57,000, after the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $57,000, an initial derivative expense of $48,033 and an initial derivative liability of $105,033. For the nine months ended September 30, 2019, amortization of the debt discount of $11,292 was charged to interest expense. The Company also recorded a debt issue discounts of $4,500 and amortized $1,377 to interest expense for the nine months ended September 30, 2019. During the nine months ended September 30, 2019, the investor converted $51,275 of principal and $9,838 of interest into 7,909,037 shares of common stock. As of September 30, 2019, and December 31, 2018, the note balance was $-0- and $51,275, respectively, with a carrying value of $39,389, net of unamortized discounts of $11,886 at December 31, 2018.
On October 23, 2018, an investor funded the $50,000 remaining of a convertible promissory note (the “Note”) issued on June 26, 2018, with an original face value of $92,000, maturing on September 26, 2019, and stated interest of 10% to a third-party investor. The note is convertible at any time after ninety (90) days of the funding of the note into a variable number of the Company's common stock, based on a conversion ratio of 65% of the lowest trading price for the 20 days prior to conversion. On October 23, 2018, the Company recorded a note balance of $50,000 when the Company received proceeds of $50,000. The embedded conversion feature included in the funding of October 23, 2018, resulted in an initial debt discount of $50,000, an initial derivative expense of $45,291 and an initial derivative liability of $95,291. For the nine months ended September 30, 2019, amortization of the debt discount of $37,986 was charged to interest expense. During the nine months ended September 30, 2019, the investor converted $50,000 of principal and $2,397 of interest into 2,495,107 shares of common stock. As of September 30, 2019, and December 31, 2018, the note balance is $-0- and $50,000, respectively, with a carrying value of $12,014, net of unamortized discounts of $37,986, at December 31, 2018.
On November 2, 2018, the Company issued a convertible redeemable note with a face value of $280,500 and a back-end convertible redeemable note for $280,500 (the “Notes”), maturing on November 2, 2019, and a stated interest of 8% to a third-party investor. The notes are convertible at any time after funding of the note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The first note was funded on November 2, 2018, when the Company received proceeds of $255,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the first note resulted in an initial debt discount of $250,000, an initial derivative expense of $148,544 and an initial derivative liability of $398,544. For the nine months ended September 30, 2019, amortization of the debt discount of $208,333 was charged to interest expense. The Company also recorded debt issue discounts of $55,500 and amortized $46,320 to interest expense for the nine months ended September 30, 2019. During the nine months ended September 30, 2019, the investor converted $280,500 of principal and $14,001 of interest into 23,705,749 shares of common stock. As of September 30, 2019, and December 31, 2018, the first note balance is $-0- and $280,500, respectively, with a December 31, 2018, carrying value of $46,750, net of unamortized discounts of $233,750. On December 26, 2018, the investor partially funded $187,000 of the back-end note, when the Company received proceeds of $166,667, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the partial funding of the back-end note resulted in an initial debt discount of $166,667, an initial derivative expense of $100,081 and an initial derivative liability of $266,748. For the nine months ended September 30, 2019, amortization of the debt discount of $146,704 was charged to interest expense. The Company also recorded debt issue discounts of $37,000 and amortized $30,398 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, and December 31, 2018, the partial back-end note balance is $187,000, with carrying values of $163,633 and $2,926, respectively, net of unamortized discounts of $23,367 and $184,074, respectively. On January 29, 2019, the investor funded $93,500, of and completing the back-end note, when the Company received proceeds of $75,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the partial funding of the back-end note resulted in an initial debt discount of $75,000, an initial derivative expense of $63,924 and an initial derivative liability of $138,924. For the nine months ended September 30, 2019, amortization of the debt discount of $65,884 was charged to interest expense. The Company also recorded debt issue discounts of $18,500 and amortized $14,486 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the second partial back-end note balance is $93,500, with carrying values of $80,371, net of unamortized discounts of $13,129.
19
On December 4, 2018, the Company issued a convertible redeemable note (the “Note”) with a face value of $158,333 maturing on December 4, 2019, and a stated interest of 8% to a third-party investor. The note is convertible at any time after funding of the note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The note was funded on December 4, 2018, when the Company received proceeds of $137,250, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $137,500, an initial derivative expense of $87,293 and an initial derivative liability of $224,793. For the nine months ended September 30, 2019, amortization of the debt discount of $103,125 was charged to interest expense. The Company also recorded debt issue discounts of $35,083 and amortized $26,313 to interest expense for the nine months ended September 30, 2019. During the nine months ended September 30, 2019, the investor converted $125,000 of principal and $7,550 of interest into 16,267,528 shares of common stock. As of September 30, 2019, and December 31, 2018, the note balance is $33,333 and $158,333, respectively, with carrying values of $4,450 and $13,194, respectively, net of unamortized discounts of $28,883 and $145,139, respectively.
On December 4, 2018, the Company issued to a third-party investor a convertible redeemable note (the “Note”) with a face value of $230,000 and two back-end convertible redeemable notes for $115,000 each. The notes mature on December 4, 2019, have a stated interest of 8% and each note is convertible at any time following the funding of such note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The initial note was funded on December 4, 2018, when the Company received proceeds of $210,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $210,000, an initial derivative expense of $108,922 and an initial derivative liability of $318,292. For the nine months ended September 30, 2019, amortization of the debt discount of $192,500 was charged to interest expense. The Company also recorded debt issue discounts of $41,800 and amortized $38,498 to interest expense for the nine months ended September 30, 2019. During the nine months ended September 30, 2019, the investor converted $230,000 of principal and $9,500 of interest into 23,862,502 shares of common stock. As of September 30, 2019, and December 31, 2018, the initial note balance is $-0- and $230,000, respectively, with a December 31, 218, carrying value of $19,167, net of unamortized discounts of $210,833. On February 12, 2019, the investor funded the first back-end note, when the Company received proceeds of $94,100, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the first back-end note resulted in an initial debt discount of $94,100, an initial derivative expense of $64,364 and an initial derivative liability of $158,464. For the nine months ended September 30, 2019, amortization of the debt discount of $58,813 was charged to interest expense. The Company also recorded debt issue discounts of $20,900 and amortized $13,063 to interest expense for the nine months ended September30, 2019. During the nine months ended September 30, 2019, the investor converted $40,000 of principal and $2,560 of interest into 6,019,802 shares of common stock As of September 30, 2019, the first back-end note balance is $75,000, with a carrying value of $31,875 net of unamortized discounts of $43,125. On March 1, 2019, the investor funded the second back-end note, when the Company received proceeds of $98,175, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the funding of the second back-end note resulted in an initial debt discount of $98,175, an initial derivative expense of $62,254 and an initial derivative liability of $160,429. For the nine months ended September 30, 2019, amortization of the debt discount of $57,596 was charged to interest expense. The Company also recorded debt issue discounts of $16,825 and amortized $9,949 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the second back-end note balance is $115,000, with carrying values of $67,444, net of unamortized discounts of $47,556.
On December 24, 2018, the Company issued to a third-party investor a convertible redeemable note (the “Note”) with a face value of $195,000 and two back-end convertible redeemable notes for $97,500 each. The notes mature on December 24, 2019, have a stated interest of 8% and each note is convertible at any time following the funding of such note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The initial note was funded on December 26, 2018, when the Company received proceeds of $177,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $177,000, an initial derivative expense of $92,464 and an initial derivative liability of $269,464. For the nine months ended September 30, 2019, amortization of the debt discount of $132,750 was charged to interest expense. The Company also recorded debt issue discounts of $35,000 and amortized $26,250 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, and December 31, 2018, the initial note balance is $195,000, with carrying values of $144,931 and $2,600, respectively, net of unamortized discounts of $50,069 and $192,400, respectively.
20
On January 22, 2019, the Company issued to a third-party investor a convertible redeemable note (the “Note”) with a face value of $245,000 and two back-end convertible redeemable notes for $122,500 each. The notes mature on January 22, 2020, have a stated interest of 8% and each note is convertible at any time following the funding of such note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The initial note was funded on January 22, 2019, when the Company received proceeds of $200,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $200,000, an initial derivative expense of $134,208 and an initial derivative liability of $334,208. For the nine months ended September 30, 2019, amortization of the debt discount of $13,500 was charged to interest expense. The Company also recorded debt issue discounts of $45,000 and amortized $30,938 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the initial note balance is $245,000, with a carrying value of $168,438, net of unamortized discounts of $76,562. On July 18, 2019, the investor funded the first back-end note, when the Company received proceeds of $100,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the funding of the first back-end note resulted in an initial debt discount of $100,000, an initial derivative expense of $19,852 and an initial derivative liability of $19,852. For the nine months ended September 30, 2019, amortization of the debt discount of $20,776 was charged to interest expense. The Company also recorded debt issue discounts of $22,500 and amortized $4,680 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the first back-end note balance is $122,500, with a carrying value of $25,457, net of unamortized discounts of $97,043.
On February 22, 2019, the Company issued to a third-party investor a convertible redeemable note (the “Note”) with a face value of $116,667. The note matures on February 22, 2020, has a stated interest of 8% and is convertible at any time following the funding of such note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The note was funded on February 22, 2019, when the Company received proceeds of $90,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $90,000, an initial derivative expense of $36,138 and an initial derivative liability of $126,138. For the nine months ended September 30, 2019, amortization of the debt discount of $54,375 was charged to interest expense. The Company also recorded debt issue discounts of $24,467, and amortized $14,458 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the note balance is $116,667, with a carrying value of $71,032, net of unamortized discounts of $45,635.
On March 8, 2019, the Company issued to a third-party investor a convertible redeemable note (the “Note”) with a face value of $133,333. The note matures on March 8, 2020, has a stated interest of 8% and is convertible at any time following the funding of such note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The note was funded on March 8, 2019, when the Company received proceeds of $106,200, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $106,200, an initial derivative expense of $82,538 and an initial derivative liability of $188,738. For the nine months ended September 30, 2019, amortization of the debt discount of $59,574 was charged to interest expense. The Company also recorded debt issue discounts of $29,333, and amortized $16,928 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the note balance is $133,333, with a carrying value of $74,303, net of unamortized discounts of $59,030.
On March 20, 2019, the Company issued to a third-party investor a convertible redeemable note (the “Note”) with a face value of $89,085 and a back-end convertible redeemable note for $89,085. The notes mature on March 20, 2020, has a stated interest of 8% and is convertible at any time following the funding of such note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The initial note was funded on March 20, 2019, when the Company received proceeds of $75,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $75,000, an initial derivative expense of $48,913 and an initial derivative liability of $123,913. For the nine months ended September 30, 2019, amortization of the debt discount of $39,454 was charged to interest expense. The Company also recorded debt issue discounts of $14,085, and amortized $7,404 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the initial note balance is $89,075, with a carrying value of $46,859, net of unamortized discounts of $42,226. On August 20, 2019, the investor funded the first back-end note, when the Company received proceeds of $75,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the funding of the first back-end note resulted in an initial debt discount of $75,000, an initial derivative expense of $84,293 and an initial derivative liability of $9,293. For the nine months ended September 30, 2019, amortization of the debt discount of $8,103 was charged to interest expense. The Company also recorded debt issue discounts of $14,085 and amortized $1,523 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the first back-end note balance is $89,085, with a carrying value of $9,626, net of unamortized discounts of $79,459.
21
Also, on March 20, 2019, the Company issued to a third-party investor a convertible redeemable note (the “Note”) with a face value of $89,085 and a back-end convertible redeemable note for $89,085. The notes mature on March 20, 2020, has a stated interest of 8% and is convertible at any time following the funding of such note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The initial note was funded on March 20, 2019, when the Company received proceeds of $75,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $75,000, an initial derivative expense of $48,913 and an initial derivative liability of $123,913. For the nine months ended September 30, 2019, amortization of the debt discount of $39,454 was charged to interest expense. The Company also recorded debt issue discounts of $14,085, and amortized $7,404 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the initial note balance is $89,075, with carrying values of $46,859, net of unamortized discounts of $42,226. On September 5, 2019, the investor funded the first back-end note, when the Company received proceeds of $75,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the funding of the first back-end note resulted in an initial debt discount derivative liability of $74,664. For the nine months ended September 30, 2019, amortization of the debt discount of $6,205 was charged to interest expense. The Company also recorded debt issue discounts of $14,085 and amortized $1,171 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the first back-end note balance is $89,085, with a carrying value of $7,713, net of unamortized discounts of $81,372.
On April 12, 2019, the Company issued to a third-party investor a convertible redeemable note (the “Note”) with a face value of $208,000. The note matures on April 12, 2020, has a stated interest of 8% and is convertible at any time following the funding of such note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The note was funded on April 12, 2019, when the Company received proceeds of $175,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $175,000, an initial derivative expense of $104,450 and an initial derivative liability of $279,450. For the nine months ended September 30, 2019, amortization of the debt discount of $79,989 was charged to interest expense. The Company also recorded a debt issue discount of $33,000, and amortized $15,098 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the note balance is $208,000, with a carrying value of $95,087, net of unamortized discounts of $12,913.
Also, on April 12, 2019, the Company issued to a third-party investor a convertible redeemable note (the “Note”) with a face value of $208,000. The note matures on April 12, 2020, has a stated interest of 8% and is convertible at any time following the funding of such note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The note was funded on April 12, 2019, when the Company received proceeds of $175,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $175,000, an initial derivative expense of $104,450 and an initial derivative liability of $279,450. . For the nine months ended September 30, 2019, amortization of the debt discount of $79,989 was charged to interest expense. The Company also recorded a debt issue discount of $33,000, and amortized $15,098 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the note balance is $208,000, with a carrying value of $95,087, net of unamortized discounts of $12,913.
On May 15, 2019, the Company issued to a third-party investor a convertible redeemable note (the “Note”) with a face value of $208,000. The note matures on May 15, 2020, has a stated interest of 8% and is convertible at any time following the funding of such note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The note was funded on May 15, 2019, when the Company received proceeds of $175,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $175,000, an initial derivative expense of $104,082 and an initial derivative liability of $279,082. For the nine months ended September 30, 2019, amortization of the debt discount of $65,446 was charged to interest expense. The Company also recorded a debt issue discount of $33,000, and amortized $12,353 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the note balance is $208,000, with a carrying value of $77,799, net of unamortized discounts of $130,201.
22
Also, on May 15, 2019, the Company issued to a third-party investor a convertible redeemable note (the “Note”) with a face value of $167,352. The note matures on May 15, 2020, has a stated interest of 8% and is convertible at any time following the funding of such note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The note was funded on May 15, 2019, when the Company received proceeds of $140,250, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $140,250, an initial derivative expense of $85,329 and an initial derivative liability of $225,579. For the nine months ended September 30, 2019, amortization of the debt discount of $52,450 was charged to interest expense. The Company also recorded a debt issue discount of $27,102, and amortized $10,145 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the note balance is $167,352, with a carrying value of $62,596, net of unamortized discounts of $104,756.
On June 13, 2019, the Company issued to a third-party investor a convertible redeemable note (the “Note”) with a face value of $119,000. The note matures on June 13, 2020, has a stated interest of 8% and is convertible at any time following the funding of such note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The note was funded on June 13, 2019, when the Company received proceeds of $100,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $100,000, an initial derivative expense of $49,779 and an initial derivative liability of $149,779. For the nine months ended September 30, 2019, amortization of the debt discount of $29,087 was charged to interest expense. The Company also recorded a debt issue discount of $19,000, and amortized $5,532 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the note balance is $119,000, with a carrying value of $34,619, net of unamortized discounts of $84,381.
Also, on June 13, 2019, the Company issued to a third-party investor a convertible redeemable note (the “Note”) with a face value of $119,000. The note matures on June 13, 2020, has a stated interest of 8% and convertible at any time following the funding of such note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The note was funded on June 13, 2019, when the Company received proceeds of $100,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $100,000, an initial derivative expense of $49,779 and an initial derivative liability of $149,779. For the nine months ended September 30, 2019, amortization of the debt discount of $29,087 was charged to interest expense. The Company also recorded a debt issue discount of $19,000, and amortized $5,532 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the note balance is $119,000, with a carrying value of $34,619, net of unamortized discounts of $84,381.
On July 1, 2019, the Company issued to a third-party investor a convertible redeemable note (the “Note”) with a face value of $183,975. The note matures on July 1, 2020, has a stated interest of 8% and is convertible at any time following the funding of such note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The note was funded on July 1, 2019, when the Company received proceeds of $150,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $150,000, an initial derivative expense of $65,783 and an initial derivative liability of $215,783. For the nine months ended September 30, 2019, amortization of the debt discount of $37.398 was charged to interest expense. The Company also recorded debt issue discounts of $33,975, and amortized $8,478 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the note balance is $183,975, with a carrying value of $45,875, net of unamortized discounts of $138,100.
On August 9, 2019, the Company issued to a third-party investor a convertible redeemable note (the “Note”) with a face value of $122,650. The note matures on August 9, 2020, has a stated interest of 8% and is convertible at any time following the funding of such note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The note was funded on August 9, 2019, when the Company received proceeds of $100,000, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $100,000, an initial derivative expense of $18,522 and an initial derivative liability of $118,522. For the nine months ended September 30, 2019, amortization of the debt discount of $13,879 was charged to interest expense. The Company also recorded debt issue discounts of $22,650, and amortized $3,146 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the note balance is $122,650, with a carrying value of $17,025, net of unamortized discounts of $105,625.
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On September 12, 2019, the Company issued to a third-party investor a convertible redeemable note (the “Note”) with a face value of $160,000. The note matures on September 12, 2020, has a stated interest of 8% and is convertible at any time following the funding of such note into a variable number of the Company's common stock, based on a conversion ratio of 70% of the lowest closing bid price for the 15 days prior to conversion. The note was funded on September 12, 2019, when the Company received proceeds of $130,050, after disbursements for the lender’s transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount of $130,050, an initial derivative expense of $25,433 and an initial derivative liability of $155,483. For the nine months ended September 30, 2019, amortization of the debt discount of $6,485 was charged to interest expense. The Company also recorded debt issue discounts of $29,950, and amortized $1,495 to interest expense for the nine months ended September 30, 2019. As of September 30, 2019, the note balance is $160,000, with a carrying value of $7,979, net of unamortized discounts of $152,021.
