CONVERTIBLE NOTES PAYABLE | NOTE 5 — CONVERTIBLE NOTES PAYABLE On January 12, 2022, Kanno entered into a Debt Purchases and Assignment Agreement with Mammoth Corporation, whereby Kanno assigned the remaining principal balance of $ 399,046 131,040 72,000,000 36,365 103,900,000 231,641 On January 21, 2022, the Company issued a Convertible Promissory Note to Mammoth Corporation in the amount of $ 550,000 A summary of all the Company’s convertible loans is as follows. Schedule of convertible loans Date Maturity Rate Balance Additions Conversions/ Balance Conv FV Investments 5/27/2016 5/27/2017 12 % $ 16,596 $ - $ - $ 16,596 $ 0.001 FV Investments 3/14/2017 3/14/2018 12 % $ 15,000 $ - $ - $ 15,000 $ 0.001 Christopher Whitcomb 7/7/2016 7/7/2017 18 % $ 2,393 $ - $ - $ 2,393 - (1) Christopher Whitcomb 1/25/2017 1/25/2018 18 % $ 29,050 $ - $ (12,500 ) $ 16,550 - (1) Christopher Whitcomb 5/30/2017 5/30/2018 18 % $ 32,640 $ - $ - $ 32,640 - (1) Kanno Group Holdings ll Ltd 10/1/2019 10/1/2020 n/a $ 42,601 $ - $ - $ 42,601 $ 0.00466 Kanno Group Holdings ll Ltd 1/6/2020 1/6/2021 n/a $ 14,977 $ - $ - $ 14,977 $ 0.00615 Kanno Group Holdings ll Ltd 6/30/2020 6/30/2021 n/a $ 7,732 $ - $ - $ 7,732 $ 0.00615 Kanno Group Holdings ll Ltd 12/31/2020 12/31/2021 n/a $ 9,527 $ - $ - $ 9,527 $ 0.00185 Kanno Group Holdings ll Ltd 3/31/2021 3/31/2022 n/a $ 5,112 $ - $ - $ 5,112 $ 0.00628 Kanno Group Holdings ll Ltd 7/24/2021 7/24/2022 n/a $ 5,406 $ - $ - $ 5,406 $ 0.00603 Kanno Group Holdings ll Ltd 11/1/2021 11/1/2022 n/a $ 2,828 $ - $ - $ 2,828 $ 0.00544 Kanno Group Holdings ll Ltd 12/31/2021 12/31/2022 n/a $ 37,391 $ - $ - $ 37,391 $ 0.00509 Mammoth Corporation 1/12/2022 1/12/2023 n/a $ 268,366 $ - $ (36,365 ) $ 232,001 - (3) Mammoth Corporation 1/21/2022 1/21/2023 $ 115,000 $ - $ - $ 115,000 - (4) Kanno Group Holdings ll Ltd 3/31/2022 3/31/2023 n/a $ 7,606 $ - $ - $ 7,606 $ 0.00222 Kanno Group Holdings ll Ltd 4/25/2022 4/25/2023 n/a $ 50,000 $ - $ - $ 50,000 $ 0.00206 Kanno Group Holdings ll Ltd 7/12/2022 7/12/2023 n/a $ 2,388 $ - $ - $ 2,388 $ 0.00163 Kanno Group Holdings ll Ltd - 11/3/2022 11/3/2023 n/a $ 11,357 $ - $ - $ 11,357 $ 0.00167 Kanno Group Holdings ll Ltd 12/31/2022 12/31/2023 n/a $ 6,407 $ - $ - $ 6,407 $ 0.00096 Kanno Group Holdings ll Ltd 3/31/2023 3/31/2024 n/a $ - $ 13,312 $ - $ 13,312 $ 0.00054 Kanno Group Holdings ll Ltd 6/30/2023 6/30/2024 n/a $ - $ 89,038 $ - $ 89,038 $ 0.00084 Kanno Group Holdings ll Ltd 9/30/2023 9/30/2024 n/a $ - $ 36,230 $ - $ 36,230 $ 0.00042 $ 682,377 $ 138,580 $ (48,865 ) $ 772,092 Kanno Group Holdings ll Ltd – accrued interest n/a n/a n/a $ 338,079 $ 33,080 $ (24,255 ) $ 346,904 (5) Other accrued interest n/a n/a n/a $ 134,349 $ 106,094 Total convertible debt and accrued interest $ 1,154,805 $ 1,225,090 (1) 75% discount to the lowest closing price within the 60 previous trading sessions. (2) Note was assigned to Mammoth Corporation (3) Conversion rate depends on what part of the loan and when the conversion occurs. (4) 50% of market price. (5) During the nine months ended September 30, 2023, Kanno Group Holdings converted $24,255 of accrued interest into 63,000,000 shares of common stock. A summary of the activity of the derivative liability for the notes above and for amounts due under the consulting agreements with Mr. Hughes and Mr. Blum (Note 8) is as follows: Schedule of derivative liabilities at fair value Balance at December 31, 2021 $ 2,215,981 Derivative (gain) due to mark to market adjustment (1,679,582 ) Balance at December 31, 2022 $ 536,399 Decrease to derivative due to conversion (187,083 ) Derivative loss due to mark to market adjustment 259,028 Balance at September 30, 2023 $ 608,344 A summary of quantitative information about significant unobservable inputs (Level 3 inputs) used in measuring the Company’s derivative liability that are categorized within Level 3 of the fair value hierarchy as of September 30, 2023 is as follows: Schedule of defined benefit plan, assumptions Inputs September 30, Initial Stock price $ 0.0008 $ 0.006 0.0115 Conversion price $ 0.0005 0.0007 $ 0.0016 0.0098 Volatility (annual) 128.54 % 163.53 214.94 % Risk-free rate 5.55 % 0.39 1.55 % Dividend rate - - Years to maturity .25 1 The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management. |