Convertible Note | Note 3. Convertible Note On July 8, 2017, the Company issued a convertible promissory note for services provided in the principal amount of $50,000 bearing interest at 1% per annum until paid or converted. The conversion price of the note is $0.008 per share. The closing price of the Company’s common stock on July 7, 2017 was $0.008 per share. Interest would be payable upon the maturity date at July 7, 2018. On October 1, 2018, the Company agreed to adjust the interest rate, effective July 1, 2018, on this convertible note from 1% to 8%. On November 19, 2019, WWYD, Inc., the note holder, and the Company agreed to convert the principal amount and the accrued interest of $55,800 into 6,975,000 shares of restricted common stock. The Company recorded neither gain nor loss in connection with this conversion of debt into equity. During the three-month periods ended December 31, 2020 and 2019, the Company recorded $0 and $538, respectively, in interest. As of December 31, 2020 and June 30, 2020, the accrued interest for this convertible note was $0. On October 12, 2018, the Company issued a $75,000 convertible promissory note to Ivo Heiden, the then CEO and the then sole officer and director. The convertible note bears interest at 8% per annum until paid or converted. The conversion price of the note is $0.034 per share, the closing price of the Company’s common stock on the date of issuance. Interest would be payable upon the maturity date at October 12, 2020. On May 1, 2020, the convertible promissory note was extended to April 30, 2022. During the three-month periods ended December 31, 2020 and 2019, the Company expensed interest of $1,496 and $1,496, respectively, related to this note. As of December 31, 2020 and June 30, 2020, the Company had recorded $13,249 and $10,241, respectively, in accrued interest with respect to this convertible note. On May 1, 2020, the Company issued a $90,000 convertible promissory note to Ivo Heiden. The convertible note bears interest at 8% per annum until paid or converted. The conversion price of the note is $0.04 per share, the closing price of the Company’s common stock on the date of issuance. Interest will be payable upon the maturity date at May 1, 2022. During the three-month period ended December 31, 2020, the Company expensed interest of $1,795 related to this note. As of December 31, 2020, and June 30, 2020, the Company had recorded $4,813 and $1,203, respectively, in accrued interest with respect to this convertible note. In accordance with ASC # 815, Accounting for Derivative Instruments and Hedging Activities, the Company evaluated the note holder’s non-detachable conversion right provision and liquidated damages clause, contained in the terms governing the Convertible Note to determine whether the features qualify as an embedded derivative instrument at issuance. Such non-detachable conversion right provision and liquidated damages clause did not need to be accounted as derivative financial instruments. On January 6, 2021, our then sole officer and director Ivo Heiden confirmed and certified the full repayment and cancellation and release of any and all liabilities of us under (i) the $75,000 convertible promissory note dated October 12, 2018 issued to him by us, and (ii) the $ 90,000 convertible promissory note dated May 1, 2020 issued to him by us. |