Convertible Promissory Notes and Notes Payable | NOTE 8 – Convertible promissory notes and notes payable Following is a summary of convertible promissory notes: July 31, 2020 January 31, 2020 8% convertible note payable issued August 2019, due May 2020 $ - $ 79,886 8% convertible note payable issued October 2019, due August 2020 - 48,347 8% convertible note payable issued January 2020, due November 2020 - 39,635 - 167,868 Less debt discount - (15,364 ) Less current portion of convertible notes - (152,504 ) Long-term convertible notes payable $ - $ - On August 15, 2019, we received net proceeds of $67,000 from the issuance of a convertible note dated August 13, 2019 (the “August 2019 Note”). The note bears interest at 8%, includes OID of $10,000, matures on May 30, 2020, and is convertible after 180 days into shares of the Company’s common stock at a price of 75% of the average of the lowest 5 weighted average market price of the Company’s common stock during the 10 trading days prior to conversion. During the six months ended July 31, 2020, the noteholder converted a total of $79,800 of the note in for 136,375,071 shares of the Company’s common stock, leaving a balance of $0 as of July 31, 2020. On October 25, 2019, we received net proceeds of $40,000 from the issuance of a convertible note dated October 22, 2019 (the “October 2019 Note”). The note bears interest at 8%, includes OID of $7,300, matures on August 15, 2020, and is convertible after 180 days into shares of the Company’s common stock at a price of 75% of the average of the lowest 5 weighted average market price of the Company’s common stock during the 10 trading days prior to conversion. During the six months ended July 31, 2020, the noteholder converted a total of $49,020 of the note in for 107,798,581 shares of the Company’s common stock, leaving a balance of $0 as of July 31, 2020. On January 30, 2020, we received net proceeds of $33,000 from the issuance of a convertible note dated January 27, 2020 (the “January 2020 Note”). The note bears interest at 8%, includes OID of $3,600 and legal fees of $3,000, matures on November 15, 2020, and is convertible after 180 days into shares of the Company’s common stock at a price of 75% of the average of the lowest 5 weighted average market price of the Company’s common stock during the 10 trading days prior to conversion. During the six months ended July 31, 2020, the noteholder converted a total of $41,040 of the note in for 48,857,143 shares of the Company’s common stock, leaving a balance of $0 as of July 31, 2020. During the six months ended July 31, 2020 and 2019, the Company recorded debt discounts of $140,000 and $0, respectively, due to the derivative liabilities, and original issue debt discounts of $0 and $6,000, respectively, due to the convertible notes. The Company recorded amortization of these discounts of $155,364 and $22,322 for the six months ended July 31, 2020 and 2019, respectively. Notes Payable On May 5, 2020, the Company received loan proceeds of $30,387 under the SBA’s Paycheck Protection Program (“PPP”). The PPP loan, dated May 5, 2020, bears interest at 1% and is due in 18 monthly installments of $1,710 beginning December 1, 2020. Under the loan terms, the Company may apply (and plans to apply) for forgiveness of the loan. On June 22, 2020, the Company received loan proceeds of $32,300 (net of $100 loan fee) under the SBA’s Economic Injury Disaster Loan program (“EIDL”). The EIDL loan, dated June 16, 2020, bears interest at 3.75%, has a 30-year term, is secured by substantially all assets of the Company, and is due in monthly installments of $158 beginning June 16, 2021. The balance of these two notes total $62,974, including interest of $187, and is included in long-term debt as of July 31, 2020. On May 5, 2020, the Company received grant proceeds of $3,000 under the EIDL program which is reflected as a credit to salaries and benefits expense for the six months ended July 31, 2020. |