Yes.
Currently the O/S is attractive. However, when it all is said and done the O/S will be well over 1.5 billion shares. With that said and no new notes upon this writing, it really is still an attractive share structure.
Notes and warrants
On June 15, 2023 the Company issued a total of $203,500 in Convertible Notes with a 1-year maturity. The
Notes may convert into common shares at a variable conversion price equal to 50% of the common share market price.
The Convertible Notes are accompanied by 7-year Warrants that may be exercised into 185,000,000 common shares.
The Company’s subsidiary, Tekumo LLC, has outstanding promissory notes with a principal of $261,242 and
accrued interest of $280,042 as of September 30, 2023. The notes were originally issued with a principal of $390,788
of which $139,546 has been repaid.
On June 15, 2023 the Company issued a total of $203,500 in Convertible Notes with a 1-year maturity and an
interest rate of 10% per annum. The Notes may convert into common shares at a variable conversion price equal to 50%
of the common share market price. The Convertible Notes are accompanied by 7-year Warrants that may be exercised
into 185,000,000 common shares. Due to the fact that the Company may not be able to net share settle these obligations,
the Company has recognized the conversion option on the convertible notes and the warrants as derivative liabilities and
recognized a debt discount at inception in the amount of $64,841 which includes an original issue discount of $18,500.
The Company received net proceeds of $185,000 in the issuance of these convertible notes.
The discounts on the Convertible Notes are being amortized over the life of the convertible notes. The
derivative liability that was recorded at the inception of the Convertible Notes is being marked-to-market each reporting
period and the changes in the fair value of the derivative liability are reflected in other income (expense).
In the nine months ended September 30, 2023 and 2022, the Company recorded amortization of discounts on
the convertible notes of $324,947 and $105,712, respectively. As of September 30, 2023, the Company has $1,576,534
in Convertible Notes outstanding, net of discounts.
The Company recognized interest expense on the convertible notes of $532,849 (inclusive of $487,159
associated with the 3(a)(1) Settlement – see below) and $9,439 for the nine months ended September 30, 2023 and 2022,
respectively.
Under the terms of the 3(a)(10) Settlement, $1,868,114 of these Convertible Notes may convert into
unrestricted shares of common stock at a price equal of the lowest trading price during the thirty (30) trading day period
prior to any conversion, subject to a 9.99% limitation on beneficial ownership of Trillium at the time of such conversion.
A Remittance Amount of 66.67% of the Net Proceeds from the sale of the Settlement shares shall reduce the balance of
the Notes outstanding. As of September 30, 2023, the Company has issued 18,034,000 common shares with a Settlement
value of $27,666.
Warrant Activities
The following is a summary of the Company’s warrant activity:
Warrant
Weighted
Average
Exercise
Price
Balance – January 1, 2023 – outstanding 265,000,000 0.0055
Granted 185,000,000 0.001
Exercised - -
Forfeited/Cancelled - ) -
Balance – September 30, 2023 – outstanding 450,000,000 0.00365
Balance – September 30, 2023 – exercisable 450,000,000 $ 0.00365
During the quarter ended September 30, 2023, no warrants were issued.
The outstanding warrants had a fair value market value at grant of $255,542 using an option-pricing model and the above
assumptions based on the allocated fair market value of each class of stock.
As of September 30, 2023 the fair market value of all warrants is $100,607 and the weighted average term of the warrants
is 6.23 years
The Company had the following common stock equivalents as of September 30, 2023 and 2022:
September 30
2023 2022
Series A Preferred Stock 3,403,354,389 2,553,708,397
Series B Preferred Stock 400,394,634 300,436,282
Common Stock 200,197,317 150,218,141
Convertible notes 416,568,083 159,779,672
Warrants 450,000,000 265,000,000
Totals 4,668,582,356 3,429,142,492
Have a good day
varok
