| Schedule of Debt [Table Text Block] | Debts consist of the following at June 30, 2019 and December 31, 2018:
June 30, 2019
December 31, 2018
Note payable– Related Party (Net of discount of $1,200 and $2,400, $ 13,200 $ 12,000
Notes payable – Unrelated third parties (Net of discount of $1,000 1,387,877 1,469,690
Convertible notes payable – Unrelated third parties (Net of discount of 814,016 751,955
Convertible notes payable, at fair value (Net of discount of $44,694 and $0, respectively) (4) 2,776,488 1,156,341
Ending balances 4,991,581 3,389,986
Less: Long-term portion-Notes payable-Unrelated third parties $ (4,616) $ (51,410)
Less: Long-term portion-Convertible Notes payable-Unrelated third parties (119,879) -
Current portion $ 4,867,086 $ 3,338,576
(1) During 2010 we borrowed $200,000 from one of our directors.
Under the terms of the loan agreement, this loan was expected to be repaid in nine months to a year from the date of the loan along with
interest calculated at 10% for the first month plus 12% after 30 days from funding. We are in default regarding this loan. The loan is
under personal guarantee by Mr. Deitsch. We repaid principal balance in full as of December 31, 2016. At June 30, 2019 and December 31,
2018, we owed this director accrued interest of $150,372 and $141,808. The interest expense for the six-months ended June 30, 2019 and
2018 was $8,564 and $7,611, respectively, and $4,368 and $3,882 for the three-months ended June 30, 2019 and 2018, respectively. In December 2017, we issued a promissory note to a related party
in the amount of $12,000 with original issuance discount of $2,000. The note was amended in December 2018 with original issuance discount
of $2,400 and was due in twelve months from the execution and funding of the note. At June 30, 2019 and December 31, 2018, the principal
balance of the loan is $13,200 and $12,000, net of debt discount of $1,200 and $2,400, respectively. The Note was settled in June 2020.
(2) At June 30, 2019 and December 31, 2018, the balance of $1,387,877 and $1,469,690 net of discount of $1,000 and $17,870, respectively,
consisted of the following loans:
● In August 2016, we issued two Promissory Notes for a total
of $200,000 ($100,000 each) to a company owned by a former director of the Company. The notes carry interest at 12% annually and were
due on the date that was six-months from the execution and funding of the note. Upon default in February 2017, the Notes became convertible
at $0.008 per share. During March 2017, we repaid principal balance of $6,365. During April 2017, the Notes with accrued interest were
restated. The restated principal balance of $201,818 bears interest at 12% annually and was due October 12, 2017. During June 2017, we
repaid principal balance of $8,844. The loan was reclassified to notes payable – unrelated third parties after the director resigned
in March 2018. At June 30, 2019 and December 31, 2018, we owed principal balance of $169,634 and $192,974, and accrued interest of $45,456
and $40,033, respectively. The principal balance of $101,818 and accrued interest of $21,023
were settled on February 15, 2019 for $104,000 with scheduled payments through May 1, 2020 (See Note 11)
● On August 2, 2011 under a settlement agreement with Liquid
Packaging Resources, Inc. (“LPR”), we agreed to pay LPR a total of $350,000 in monthly installments of $50,000 beginning August
15, 2011 and ending on February 15, 2012. This settlement amount was recorded as general and administrative expenses on the date of the
settlement. We did not make the December 2011 or January 2012 payments and on January 26, 2012, we signed the first amendment to the settlement
agreement where we agreed to pay $175,000, which was the balance outstanding at December 31, 2011(this includes a $25,000 penalty for
non-payment). We repaid $25,000 during the three months ended March 31, 2012. We did not make all of the payments under such amendment
and as a result pursuant to the original settlement agreement, LPR had the right to sell 142,858 shares (5,714,326 shares pre reverse
stock split) of our free trading stock held in escrow by their attorney and receive cash settlements for a total amount of $450,000 (the
initial $350,000 plus total default penalties of $100,000). The $100,000 penalty was expensed during 2012. LPR sold the note to Southridge
Partners, LLP (“Southridge”) for consideration of $281,772 in June 2012. In August 2013 the debt of $281,772 reverted back
to LPR.
● At December 31, 2012, we owed University Centre West Ltd.
approximately $55,410 for rent, which was assigned and sold to Southridge is currently outstanding and carries no interest.
● In April 2016, we issued a promissory note to an unrelated
third party in the amount of $10,000 bearing interest at 10% annually. The note was due in one year from the execution and funding of
the note. The note is in default and negotiation of settlement. At June 30, 2019 and December 31, 2018, the accrued interest is $3,242
and $2,739.
● In May 2016, the Company issued a promissory note to an
unrelated third party in the amount of $75,000 bearing monthly interest at a rate of 2%. The note was due in six months from the execution
and funding of the note. During April 2017, we accepted the offer of a settlement to issue 5,000,000 common shares as a repayment of $25,000.
The note is in default and in negotiation of settlement. At June 30, 2019 and December 31, 2018, the outstanding principal balance is
$50,000 and accrued interest is $43,834 and $37,801.
● In June 2016, the Company issued a promissory note to an
unrelated third party in the amount of $50,000 bearing monthly interest at a rate of 2%. The note was due in six months from the execution
and funding of the note. The note is in default and negotiation of settlement. At June 30, 2019 and December 31, 2018, the outstanding
principal balance is $50,000 and accrued interest is $37,033 and $31,000.
● In August 2016, we issued a promissory note to an unrelated
third party in the amount of $150,000 bearing monthly interest at a rate of 2.5%. The note was due in six months from the execution and
funding of the note. During April 2017, the note with accrued interest were restated. The restated principal balance of $180,250 bears
monthly interest at a rate of 2.5% and was due October 20, 2017. During January 2018, the note with accrued interest were restated. The
restated principal balance of $220,506 bears monthly interest at a rate of 2.5% and was due July 12, 2018. In connection with this restated
note, we issued 2,000,000 shares of our restricted common stock. We recorded a debt discount in the amount of $2,765 to reflect the value
of the common stock as a reduction to the carrying amount of the debt and a corresponding increase to common stock and additional paid-in
capital. Amortization for the debt discount for the year ended December 31, 2018 was $2,765. During July 2018, we issued 5,000,000 restricted
shares due to the default on repayment of the promissory note of $220,506 restated in January 2018.The shares were valued at fair value
of $5,500. During December 2018, the note with accrued interest were restated. The restated principal balance of $282,983 bears monthly
interest at a rate of 2.0% and was due June 17, 2019. The note is in default and negotiation of settlement. In connection with this restated
note, we issued 10,000,000 shares of our restricted common stock. We recorded a debt discount in the amount of $3,945 to reflect the value
of the common stock as a reduction to the carrying amount of the debt and a corresponding increase to common stock and additional paid-in
capital. Amortization for the debt discount for the six months ended June 30, 2019 and 2018 was $3,616 and $2,765, respectively. The debt
discount at June 30, 2019 and December 31, 2018 was $0 and $3,616. At June 30, 2019 and December 31, 2018, the principal balance is $282,983,
and the accrued interest is $36,977 and $2,830, respectively.
● On September 26, 2016, we issued a promissory note to an
unrelated third party in the amount of $75,000 bearing interest at 10% annually. The note was due in one year from the execution and funding
of the note. In January 2019, the principal balance of $60,000 and accrued interest of $15,900 was restated in the form of a Convertible
Note (See Note 6(4)). The remaining note of $15,000 was assigned to an unrelated third party and is in negotiation of settlement. At June
30, 2019 and December 31, 2018, the principal balance is $15,000 and $75,000, and the accrued interest is $1,371 and $17,271, respectively.
● In October 2016, we issued a promissory note to an unrelated
third party in the amount of $50,000 bearing monthly interest at a rate of 2%. The note was due in six months from the execution and funding
of the note. The note is in default and in negotiation of settlement. At June 30, 2019 and December 31, 2018, the accrued interest is
$33,333 and $27,300.
● In June 2017, we issued a promissory note to an unrelated
third party in the amount of $12,500 bearing interest at 10% annually. The note was due in one year from the execution and funding of
the note. The note is in default and in negotiation of settlement. At June 30, 2019 and December 31, 2018, the accrued interest is $2,573
and $1,944.
● During July 2017, we received a loan for a total of $200,000
from an unrelated third party. The loan was repaid through scheduled payments through August 2017 along with interest on average 15% annum.
We have recorded loan costs in the amount of $5,500 for the loan origination fees paid at inception date. The debt discount was fully
amortized as of June 30, 2019. At December 31, 2017, the principal balance of the loan was $191,329 and in negotiation of settlement.
During June 2018, the loan was settled for $170,402 with scheduled repayments of approximately $7,000 per month through July 2020. We
recorded a gain on settlement of debt in other income for $20,927 in June 2018. The Company repaid $34,976 during 2018 and $13,848 during
the six months ended June 30, 2019. At June 30, 2019 and December 31, 2018, the principal balance is $121,578 and $135,426.
● In July 2017, we issued a promissory note to an unrelated
third party in the amount of $50,000 with original issue discount of $10,000. The note was due in six months from the execution and funding
of the note. The original issuance discount was fully amortized as of December 31, 2018. The note is in default and in negotiation of
settlement. At June 30, 2019 and December 31, 2018, the principal balance of the note is $50,000.
● In September 2017, we issued a promissory note to an unrelated
third party in the amount of $36,000 with original issue discount of $6,000. During September 2018 and 2019, the Note was amended with
original issuance discount of $6,000 each due in September 2019 and 2020, respectively. The Note was further restated in September 2020.
The restated principal balance was $33,000 with the original issuance discount of $3,000 and is due March 2021. The original issue discount
is amortized over the term of the loan. Amortization for the debt discount for the six months ended June 30, 2019 and 2018 was $5,000
and $1,500, respectively. The debt discount at June 30, 2019 and December 31, 2018 is $2,500 and $6,000. Repayments of $1,500 and $7,000
have been made during 2017 and 2018, respectively. During the six months ended June 30, 2019, repayment of $1,500 has been made. The Note
is under personal guarantee by Mr. Deitsch. At June 30, 2019 and December 31, 2018, the principal balance of the note is $31,000 and $27,500,
net of debt discount of $1,000 and $6,000, respectively. The note is in default and in negotiation of settlement.
● In October 2017, we issued a promissory note to an unrelated
third party in the amount of $50,000 with original issuance discount of $10,000. The note was due in six months from the execution and
funding of the note. In connection with the issuance of this promissory note, we issued 5,000,000 shares of our restricted common stock.
We recorded a debt discount in the amount of $3,200 to reflect the value of the common stock as a reduction to the carrying amount of
the debt and a corresponding increase to common stock and additional paid-in capital. At December 31, 2017, the principal balance
of the note is $60,000. Debt discount and original issuance discount were fully amortized as of December 31, 2018. During April 2018,
we issued a total of 1,000,000 restricted shares to a Note holder due to the default on repayment. The shares were valued at fair value
of $1,700. During April 2018, the Note was restated in the amount of $60,000 including the original issuance discount of $10,000 due October
2018. In connection with this restated note, we issued 5,000,000 shares of our restricted common stock. We recorded a debt discount in
the amount of $8,678 to reflect the value of the common stock as a reduction to the carrying amount of the debt and a corresponding increase
to common stock and additional paid-in capital. The debt discount and original issuance discount have been fully amortized as of
December 31, 2018. During November 2018, the Note was restated in the amount of $60,000 including the original issuance discount of $10,000
due May 2019. In connection with this restated note, we issued 5,000,000 shares of our restricted common stock. We recorded a debt discount
in the amount of $2,381 to reflect the value of the common stock as a reduction to the carrying amount of the debt and a corresponding
increase to common stock and additional paid-in capital. Pursuant to the restatement of the Note, the Company agreed that the original
issuance discount of $10,000 from the April 2018 Note would be paid to the lender upon execution of restated Note in November 2018. The
settlement agreement executed in December 2018 provides that 10,000,000 shares are issued due to the late payment. The shares were valued
at $3,000. During July 2019, payment of original issuance discount of $10,000 was made. The restated Note in November 2018 and prior notes
are all under personal guarantee by Mr. Deitsch. Amortization of debt discount and original issuance discount for the six months ended
June 30, 2019 was $1,587 and $6,667. Amortization for the debt discount and original issuance discount was $3,616 and $4,617, respectively
for the six months ended June 30, 2018. As of June 30, 2019 and December 31, 2018, the amount due is $70,000 and $61,746, net of discount
of $0 and $8,254. During January and July 2020, this Note and the Note of $76,076 amended in August 2018(See Note 6(3)) were combined
and restated and was due January 2021. The Note is in negotiation of restatement.
● In November 2017, we issued a promissory note to an unrelated
third party in the amount of $120,000 with original issuance discount of $20,000. The note was due in six months from the execution and
funding of the note. In connection with the issuance of this promissory note, we issued 10,000,000 shares of our restricted common stock.
We recorded a debt discount in the amount of $5,600 to reflect the value of the common stock as a reduction to the carrying amount of
the debt and a corresponding increase to common stock and additional paid-in capital. The debt discounts were fully amortized as
of December 31, 2018. The loan is in default and in negotiation of settlement. 1,500,000 shares of common stocks were issued due to the
default of repayments with a fair value of $2,250 in 2018. During March 2020, $50,000 of the Note of $120,000 with original issuance discount
of 20,000 originated in November 2017 was settled for 125,000,000 shares. An additional 36,000,000 shares were issued to satisfy the default
provision of the original note and 10,000,000 shares were issued along with the restatement. The total fair value of issued stock was
$119,700. The remaining balance of $70,000 was restated with additional issuance discount of $14,000. The $84,000 due in September 2020
is in default and negotiation of further settlement. At June 30, 2019 and December 31, 2018, the principal balance of the loan is $120,000.
● In November 2017, we issued a promissory note to an unrelated
third party in the amount of $18,000 with original issuance discount of $3,000. The note was due in six months from the execution and
funding of the note. In connection with the issuance of this promissory note, we issued 5,000,000 shares of our restricted common stock.
We recorded a debt discount in the amount of $2,900 to reflect the value of the common stock as a reduction to the carrying amount of
the debt and a corresponding increase to common stock and additional paid-in capital. The debt discounts were fully amortized as
of December 31, 2018. The note is in default and in negotiation of settlement. 7,000,000 shares of common stock were issued due to the
default of repayments with a fair value of $5,600 during 2018. At June 30, 2019 and December 31, 2018, the principal balance of the note
is $18,000 and the accrued interest is $2,000 and $0, respectively.
(3) At June 30, 2019 and December 31, 2018, the balance of $814,016 and $751,955 net of discount of $6,710
and $29,371, respectively, consisted of the following convertible loans:
● On March 19, 2014, we issued two Convertible Debentures
in the amount of up to $500,000 each (total $1,000,000) to two non-related parties. The first tranche of $15,000 each (total $30,000)
of the funds was received during the first quarter of 2014. The notes carry interest at 8% and were due on March 19, 2018. The note holders
have the right to convert the notes into shares of Common Stock at a price of $0.20. During 2018, repayment of $3,000 was made. At December
31, 2018, the principal balance of the note is $27,000 and the accrued interest is $11,412. The two outstanding Notes were settled in
connection with issuance of the convertible note in the amount of up to $1,000,000 in February 2019 (See Note 6(4)), as a result, we recorded
a gain on settlement of debt in other income for $38,412.
● During July 2016, we issued a convertible note to an unrelated
third party in the amount of $50,000 bearing monthly interest at a rate of 2.0% and convertible at $0.05 per share. During January 2017,
the Note was restated with principal amount of $56,567 bearing monthly interest rate of 2.5%. The New Note of $56,567 was due on July
26, 2017 and convertible at $0.05 per share. During February 2018, the Notes with accrued interest of $65,600 was restated. The restated
principal balance of $65,600 bears monthly interest at a rate of 2.5% and was due August 14, 2018. In connection with this restated note,
we issued 1,000,000 shares of our restricted common stock. We recorded a debt discount in the amount of $4,035 to reflect the value of
the common stock as a reduction to the carrying amount of the debt and a corresponding increase to common stock and additional paid-in
capital. The debt discount was fully amortized as of December 31, 2018. During August 2018, the Notes with accrued interest of $10,476
were restated. The restated principal balance of $76,076 bears monthly interest at a rate of 2.5% and is due February 2019. In connection
with this restated note, we issued 5,000,000 shares of our restricted common stock. We recorded a debt discount in the amount of $3,800
to reflect the value of the common stock as a reduction to the carrying amount of the debt and a corresponding increase to common stock
and additional paid-in capital. Amortization of debt discount of $2,850 has been recorded as of December 31, 2018. The remaining
debt discount of $950 was fully amortized during the three months ended March 31, 2019. The note is under personal guarantee by Mr. Deitsch.
At June 30, 2019 and December 31, 2018, the convertible note payable was recorded at $76,076 and $75,126, net of discount of $0 and $950,
respectively. The accrued interest as of June 30, 2019 and December 31, 2018 is $12,150 and $8,177. During January and July 2020, this
Note and the Note of $60,000 amended in November 2018(See Note 6(2)) were combined and restated and was due January 2021. The Note is
in negotiation of restatement.
● In October 2017, we issued a promissory note to an unrelated
third party in the amount of $60,000 with original issuance discount of $10,000. The note was due in six months from the execution and
funding of the note. In connection with the issuance of this promissory note, we issued 5,000,000 shares of our restricted common stock.
We recorded a debt discount in the amount of $3,300 to reflect the value of the common stock as a reduction to the carrying amount of
the debt and a corresponding increase to common stock and additional paid-in capital. The debt discounts were fully amortized as
of June 30, 2019. The loan is in default and in negotiation of settlement. 1,000,000 shares of common stock were issued due to the default
of repayments with a fair value of $1,500 during 2018. At June 30, 2019 and December 31, 2018, the principal balance of the note is $60,000.
● During January through December 2018, we issued convertible
notes payable to the 20 unrelated third parties for a total of $618,250 with original issue discount of $62,950. The notes are due in
six months from the execution and funding of each note. The notes are convertible into shares of Company’s common stock at a conversion
price ranging from $0.0003 to $0.001 per share. The difference between the conversion price and the fair value of the Company’s
common stock on the date of issuance of the convertible notes resulted in a beneficial conversion feature in the amount of $249,113. In
addition, upon the issuance of convertible notes, the Company issued 10,250,000 shares of common stock. The Company has recorded
a debt discount in the amount of $6,542 to reflect the value of the common stock as a reduction to the carrying amount of the convertible
debt and a corresponding increase to common stock and additional paid-in capital. The total discount of $255,655 and original issuance
discount of $62,950 was amortized over the term of the debt. These Notes are in default and in negotiation of settlement. During the first quarter of 2019, we issued convertible notes
payable of $70,000 with original issuance discount of $5,000. The notes were due in six months from the execution and funding of each
note. The notes are convertible into shares of Company’s common stock at a conversion price of $0.0005 per share. In addition, upon
the issuance of convertible notes, the Company granted the total of 110,000,000 warrants at an exercise price of $0.001 per share. The
warrants were valued at $8,147 using the Black-Scholes method and recorded as a debt discount that was amortized over the life of the
notes. The Notes were further restated in December 2019, and August and October 2020. They are in default and in negotiation of settlement.
During the second quarter of 2019, we restated two convertible notes payable with additional original issue discount of $6,400 and issued
6,000,001 shares of common stock with a fair value of $1,800 (See Note 7). The two restated notes were due in August 2019 and are in default.
The total discount of $8,200 was amortized over the term of the notes. Repayment of $10,000 was made in May 2019. Amortization for the six months ended June 30, 2019 and 2018
was $43,058 and $144,062. At June 30, 2019 and December 31, 2018, the principal balance of the notes, net of discount of $6,710 and $28,421
is $677,940 and $589,829.
(4) At June 30, 2019 and December 31, 2018, the balance of $2,821,182 and $1,156,341, respectively, consisted
of the following convertible loans:
● During December 2016, we issued a Convertible Debenture
to an unrelated third party in the amount of $110,000. The note carries interest at 12% and matured on September 8, 2017. Unless previously
converted into shares of restricted common stock, the Note holder has the right to convert the note into shares of Common Stock at a sixty
percent (60%) of the lowest trading prices of our restricted common stock for the twenty-five trading days preceding the conversion date.
During June and July 2017, the Note holder made conversions of a total of 179,800,000 shares of stock satisfying the principal balance
of $63,001 and accrued interest for a fair value of $298,575. At December 31, 2017, the convertible note payable, at fair value, was recorded
at $147,314. During February 2018, the remaining balance of $46,999 with accrued interest of $2,820 was assigned and sold to an unrelated
third party in the form of a Convertible Redeemable Note. As part of the debt sale, the Company entered into a settlement agreement with
the original noteholder for a settlement of a default penalty of the original debt. During February and July, 2018, we issued a total
of 105,157,409 shares of our restricted common stock to the original Note holder with a fair value of $147,220. At December 31, 2018,
the Company owed additional shares to the original noteholder and recorded an accrual of $32,400 to account for the cost of the shares,
and the shares were issued in January 2019 (See Notes 7). The new note of $49,819 carries interest at 8% and was due on
February 13, 2019. We have accrued interest at default interest rate of 24% after the note’s maturity date. The Noteholder has the
right to convert the note into shares of our restricted common stock at sixty percent of the lowest trading price of our restricted common
stock for the twenty-five prior trading days including the conversion date. During September 2018, the Noteholder made a conversions of
52,244,433 shares of our restricted common stock with a fair value of $37,011 in satisfaction of principal balance of $15,000 and accrued
interest in full. At June 30, 2019 and December 31, 2018, the convertible note payable with principal balance of $34,819, at fair value,
was recorded at $90,965 and $62,508.
● During February 2018, we issued a convertible denture in
the amount of $200,000 to an unrelated third party. The note carries interest at 8% and was due in February 2019. We have accrued interest
at default interest rate of 24% after the note’s maturity date. The Note holder has the right to convert the note into shares of
Common Stock at sixty percent of the lowest trading price of our restricted common stock for the twenty-five trading days including the
date of receipt of conversion notice. In connection with the issuance of the convertible note payable, we recorded a day-one derivative
loss of $1,646,242. At June 30, 2019 and December 31, 2018, the convertible note payable with principal balance of $200,000, at fair value,
was recorded at $520,037 and $358,665. The note carries additional $200,000 “Back-end Note” ($100,000 each) with the same
terms as the original note.
● During April 2018, $65,000 of one of the $100,000 Back-end
Note was funded. The note carries interest at 8% and is due in February 2019. We have accrued interest at default interest rate of 24%
after the note’s maturity date. The Note holder has the right to convert the note into shares of Common Stock at sixty percent of
the lowest trading price of our restricted common stock for the twenty-five trading days including the date of receipt of conversion notice.
In connection with the issuance of the convertible note payable, we recorded a day-one derivative loss of $110,700. At June 30, 2019 and
December 31, 2018, the convertible note payable, at fair value, was recorded at $169,012 and $115,165.
● During March 2018, we issued a convertible denture in the
amount of $60,000 to an unrelated third party. The note carries interest at 8% and was due in March 2019. We have accrued interest at
default interest rate of 24% after the note’s maturity date. The Note holder has the right to convert the note into shares of Common
Stock at sixty percent of the lowest trading price of our restricted common stock for the twenty-five trading days including the date
of receipt of conversion notice. In connection with the issuance of the convertible note payable, we recorded a day-one derivative loss
of $48,418. At June 30, 2019 and December 31, 2018, the convertible note payable, at fair value, was recorded at $153,556 and $107,329.
The note carries an additional “Back-end Note” with the same terms as the original note that enables the lender to lend to
us another $60,000.
● During June 2018, the $60,000 Back-end Note was funded.
The note carries interest at 8% and is due in March 2019. We have accrued interest at default interest rate of 24% after the note’s
maturity date. The Note holder has the right to convert the note into shares of Common Stock at sixty percent of the lowest trading price
of our restricted common stock for the twenty-five trading days including the date of receipt of conversion notice. In connection with
the issuance of the convertible note payable, we recorded a day-one derivative loss of $68,067. At June 30, 2019 and December 31, 2018,
the convertible note payable, at fair value, was recorded at $153,556 and $105,334.
● During May 2018, we issued a convertible denture in the
amount of $60,000 to an unrelated third party. The note carries interest at 8% and was due in May 2019. We have accrued interest at default
interest rate of 24% after the note’s maturity date. The Note holder has the right to convert the note into shares of Common Stock
at sixty percent of the lowest trading price of our restricted common stock for the twenty-five trading days including the date of receipt
of conversion notice. In connection with the issuance of the convertible note payable, we recorded a day-one derivative loss of $59,257.
At June 30, 2019 and December 31, 2018, the convertible note payable, at fair value, was recorded at $148,033 and $106,681.
● During August 2018, we issued a convertible denture in the
amount of $31,500 to an unrelated third party. The note carries interest at 8% and was due in August 2019. We have accrued interest at
default interest rate of 24% after the note’s maturity date. The Note holder has the right to convert the note into shares of Common
Stock at sixty percent of the lowest trading price of our restricted common stock for the twenty-five trading days including the date
of receipt of conversion notice. In connection with the issuance of the convertible note payable, we recorded a day-one derivative loss
of $23,794. At June 30, 2019 and December 31, 2018, the convertible note payable, at fair value, was recorded at $75,133 and $55,409. All of the above convertible
notes with principal balance of a total of $511,319 were settled in
● During May 2017, we issued a Convertible Debenture in the
amount of $64,000 to an unrelated third party. The note carries interest at 8% and was due on May 4, 2018. We have accrued interest at
default interest rate of 20% after the note’s maturity date. The Note holder has the right to convert the note into shares of Common
Stock at a sixty percent (60%) of the lowest trading price of our restricted common stock for the twenty trading days preceding the conversion
date. During November 2017, the Note holder made a conversion of our restricted common stocks satisfying the principal balance of $856
and penalty of $6,400 for a fair value of $21,399. At December 31, 2017, the convertible note payable, at fair value, was recorded at
$185,765. During February 2018, the remaining balance of $63,144 with accrued interest and penalty of $12,442 was assigned and sold to
three unrelated third parties. During June 2018, a Note holder made a conversion of 50,670,000 shares of our restricted common stock with
a fair value of $70,938 in satisfaction of the balance of $34,060 plus accrued interest of $8,607. At June 30, 2019 and December 31, 2018,
the remaining principal of $29,381, at fair value, was recorded at $90,948 and $63,315.
● On March 28, 2016, we signed an expansion agreement with
Brewer and Associates Consulting, LLC (“B+A”) to the original consulting agreement dated on October 15, 2015 for consulting
services for twelve months for a monthly fee of $7,000. To relieve our cash obligation of $36,000 per original agreement, we issued three
convertible notes for a total of $120,000 which includes the fees due under the original agreement and the new monthly fees due under
the expansion agreement. The $40,000 and $60,000 of the Notes were paid in full as of December 31, 2016 and December 31, 2017, respectively.
The remaining balance of $20,000 Notes is in default and negotiation of settlement. We have accrued interest at default interest rate
of 20% after the note’s maturity date. The conversion price is equal to 55% of t |
