Convertible Notes and Accrued Interest Payable | Note 9 Convertible Notes and Accrued Interest Payable A summary of the convertible notes and accrued interest payable is as follow: Face Value Conversion Interest Due Date Accrued Carrying Sept 30 Dec 31 $ 10,000 $ 0.005 - - $ - $ 10,000 $ 10,000 $ 10,000 $ 85,000 $ 0.010 - - - 68,100 68,100 85,000 (a) $ 50,000 $ 0.010 10 % 12/21/2020 1,250 50,000 51,250 - (b) $ 5,000 $ 0.010 10 % 12/26/2020 133 5,000 5,133 - (c) $ 7,500 $ 0.010 10 % 6/22/2021 268 7,500 7,768 - (c) $ 20,000 $ 0.040 - - - 20,000 20,000 20,000 $ 68,490 $ 0.050 - - - 68,490 68,490 48,490 (d) $ 25,000 $ 0.050 12 % - 18,934 25,000 43,934 41,690 (e) $ 25,000 $ 0.050 8 % - 31,297 25,000 56,297 54,797 (e) $ 22,388 $ 0.050 5 % - 15,112 22,388 37,500 37,789 (e) $ 110,000 $ 0.050 10 % Various 1,143 11,133 12,276 - (f) $ 68,137 $ 312,611 $ 380,748 $ 297,766 All notes are unsecured and, except where specifically noted, are due on demand. Except for notes denoted below under (e), all accrued interest occurred in the nine months ended September 30, 2020. As at April 2, 2020, all the convertible notes payable have been amended to include that no such conversion shall result in the Holder holding in excess of 9.99% of the total issued and outstanding common stock of the Company at any time. The effect that conversion would have on earnings per share has not been disclosed due to the anti-dilutive effect (a) On July 23, 2020, $16,900 was converted into 1,690,000 common shares. (b) The notes are convertible into common stock at the discretion of the Holder at the lesser of $0.01 or 50% of the lowest closing bid price for the Company’s stock during the 20 days immediately preceding the date of delivery by Holder to the Company of the Conversion Notice. (c) The notes are convertible into common stock at the discretion of the Holder at 50% of the lowest closing bid price for the Company’s common stock during the 30 trading days immediately preceding the date of delivery by Holder to the Company of the Conversion Notice. (d) Included in this debt is $490 due to the former CEO. (e) On April 2, 2020, these notes terms were changed from non-convertible to convertible at $0.05 debt to 1 common share. During the nine-month ended September 30, 2020, interest accrued on this debt was $4,564 (2019 - $4,594). For comparative purposes, these amounts previously shown as debt payable as at December 31, 2020, have been reclassified as convertible debt. (f) Prior to July 17, 2020, the Company’s stock was very lightly traded, such that at the time convertible debt was issued, the instrument was not readily converted into cash. Accordingly, no portion of the instrument was allocated to equity. However, from that date forward, the Company had significant shares traded, such that any convertible debt subsequently issued could be converted into cash, and a portion or all of the proceeds could be allocated to equity. Based on the intrinsic value of the beneficial conversion feature, as per FASB topic ASC 470-20 Debt with Conversion and other Options, Allocated to equity Due date Amortized as Accrued Total $ 20,000 09/30/2021 $ 835 $ 66 $ 901 $ 30,000 03/21/2021 5,066 469 5,535 $ 60,000 08/31/2021 5,232 608 5,840 $ 110,000 $ 11,133 $ 1,143 $ 12,276 | Note 4 Demand Notes and Accrued Interest Payable The Company has three notes payable. Each note is unsecured and payable on demand. December 31, December 31, Note payable bearing interest at 8% $ 25,000 $ 25,000 Accrued interest there on 29,797 27,797 54,797 52,797 December 31, December 31, Note payable bearing interest at 5% (Debt is Canadian $30,000) 23,077 22,059 Accrued interest there on 14,712 12,960 37,789 35,019 December 31, December 31, Note payable bearing interest at 12% 25,000 25,000 Accrued interest there on 16,690 13,682 41,690 38,682 Total debt and interest payable $ 134,276 $ 126,498 Interest accrued on the note bearing 8% interest was $2,000 for the twelve months ended December 31, 2019 (2018 - $2,000). Interest accrued on the note bearing 5% interest was $1,141 for the twelve months ended December 31, 2019 (2018 - $1,143). Interest accrued on the note bearing 12% interest was $3,000 for the twelve months ended December 31, 2019 (2018 - $2,992). |