LMAO Read The 10Q that just posted; It's worse than ever.
2.4 MILLION $ Convertible note due now. They will convert into shares because there's literally no cash on hand. No wonder the penny scamming CEO Bob Silzer increased authorized shares by tens of millions
You can find it on Note 9
(a) On April 17, 2020, the Company received a loan in the principal amount of $30,187 (CAD$40,000) under the Canada Emergency Business Account program. The loan is non-interest bearing and eligible for CAD$10,000 forgiveness if repaid by December 31, 2022. If not repaid by December 31, 2022, the loan bears interest at 5% per annum and is due on December 31, 2025. During the three and six months ended June 30, 2023, the Company recorded $504 and $1,003 in interest expense.
(b) On April 21, 2020, the Company received a loan in the principal amount of $30,187 (CAD$40,000) under the Canada Emergency Business Account program. The loan is non-interest bearing and eligible for CAD$10,000 forgiveness if repaid by December 31, 2022. If not repaid by December 31, 2022, the loan bears interest at 5% per annum and is due on December 31, 2025. During the three and six months ended June 30, 2023, the Company recorded $504 and $1,003 in interest expense.
(c) On June 5, 2020, the Company received a loan in the principal amount of $150,000. The loan bears interest at 3.75% per annum and is due on June 5, 2050. The loan is secured by all tangible and intangible assets of Company. Fixed payments of $731 are due monthly and begin 12 months from the date of the loan. The payments are applied against any accrued interest before principal amounts are repaid.
(d) On December 1, 2022, the Company received a loan in the principal amount of $1,000,000. The loan bears interest at 10% per annum and is due on December 1, 2025. If not repaid by December 31, 2025, the loan bears interest at 18% per annum.
(e) On September 13, 2021, the Company entered into a securities purchase agreement with a non-related party. Pursuant to the agreement, the Company received cash proceeds of $2,000,000 on September 13, 2021 in exchange for the issuance of an unsecured convertible promissory note in the principal amount of $2,400,000, which was inclusive of a $400,000 original issue discount and bears interest at 9% per annum to the holder and matures June 20, 2022. If the convertible note is not paid in full before December 12, 2021, an additional $100,000 of guaranteed interest will be added to the note. An additional $100,000 of guaranteed interest will be added to the note on the 12th day of each succeeding month during which any portion of the convertible note remains unpaid. Any principal or interest on the convertible note that was not paid when due or during any period of default bears interest at 24% per annum.
In the event of a default, the note is convertible at the price that is equal to a 40% discount to the lowest trading price of the Company’s common shares during the 30 day trading period prior to the conversion date.
During the three and six months ended June 30, 2023, the Company recorded $445,600 and $889,600 in interest expense including $300,000 and $600,000 of additional interest, respectively. As at June 30, 2023, the carrying value of the convertible promissory note was $2,400,000 (December 31, 2022 - $2,400,000).
As the note is now in default, it has become convertible. See Note 10.
(f) On February 17, 2022, the Company entered into a Waiver of Conditions (the “Waiver”) to the Share Purchase Agreement (the “SPA”) dated December 13, 2021. The Company has received five payments in the amount of $250,000 on February 28, 2022, $250,000 on March 31, 2022, $90,000 on July 29, 2022, $250,000 on August 29, 2022, $125,000 on September 15, 2022, $125,000 on October 18, 2022, and $285,000 on October 21, 2022, for 1,375 preferred series F shares in total. Under the Waiver, the Company agrees to repay these amounts, on an ongoing basis, by remitting 20% of all gross sales back to the subscriber until such time that the 500 shares of the Series F Preferred Stock issued pursuant to this Waiver agreement are redeemed in full. As these preferred F series shares subscribed for under the Waiver are mandatorily redeemable, the total amounts of $1,375,000 were recorded as liabilities, as per ASC 480-10. Under the original terms of the SPA, redemption of preferred F series shares requires a 15% premium payment on the face value. As such, a total Redemption Premium of $75,000 will be paid on the redemption as part of the 20% gross sales remittance, and will be amortized as the repayments are made.
During the six months ended June 30, 2023, the Company made required payments in the amount of $26,307, which was applied against the loan payable.
(g) On May 26, 2023, the Company entered into a loan agreement with a non-related party for an amount of up to $327,390. The loan is non-interest bearing; however, the creditor will share 50/50 in the net profit from specified sales. The loan was provided to the Company for specific trade payables required to generate the sales for which the creditor will share in the net profit. As at June 30, 2023, the Company had borrowed $159,985 on the loan. As at June 30, 2023, no sales had been made related to the split profit agreement. There is no maturity rate on the loan.
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