CONVERTIBLE NOTES PAYABLE | 8. CONVERTIBLE NOTES PAYABLE Convertible notes payable consisted of the following: Balance Balance Interest Conversion November 30, February 29, Issued Maturity Rate Rate per Share 2020 2020 January 31, 2013 February 28, 2017* X 10% $0.010 (3) $ 119,091 $ 119,091 May 31, 2013 November 30, 2016* X 10% $0.010 (3) 261,595 261,595 August 31, 2014 November 30, 2016* X 10% $0.002 (3) 355,652 355,652 November 30, 2014 November 30, 2016* X 10% $0.002 (3) 103,950 103,950 February 28, 2015 February 28, 2017* X 10% $0.001 (3) 63,357 63,357 May 31, 2015 August 31, 2017* X 10% $1.000 (3) 65,383 65,383 August 31, 2015 August 31, 2017* X 10% $0.300 (3) 91,629 91,629 November 30, 2015 November 30, 2018* X 10% $0.300 (3) 269,791 269,791 February 29, 2016 February 28, 2019* X 10% 60% discount (2) 95,245 95,245 May 31, 2016 May 31, 2019* X 10% $0.003 (3) 35,100 35,100 July 18, 2016 July 18, 2017* 10% $0.003 (3) 3,500 3,500 December 31, 2016 December 31, 2020 8% 35% discount (2) 65,000 65,000 January 15, 2017 January 15, 2021 XXX 8% 35% discount (2) 50,000 50,000 January 15, 2017 January 15, 2021 8% 35% discount (2) 100,000 100,000 January 16, 2017 January 16, 2021 8% 35% discount (2) 150,000 150,000 March 8, 2017 March 8, 2020* 10% 40% discount (2) 100,000 100,000 March 9, 2017 March 9, 2021 XXX 8% 35% discount (2) 50,000 50,000 April 26, 2017 April 26, 2018* 0% $0.001 68 68 May 1, 2017 May 1, 2021 XXX 8% 35% discount (2) 50,000 50,000 May 4, 2017 May 4, 2018* 8% 40% discount (2) — 22,610 May 15, 2017 May 15, 2018* 0% $0.001 1,280 1,280 May 17, 2017 May 17, 2020* XXX 10% 40% discount (1) 85,000 85,000 June 7, 2017 June 7, 2018* 8% 40% discount (2) — 156,764 June 16, 2017 June 16, 2018* 0% $0.001 750 750 July 6, 2017 July 6, 2018 8% 40% discount (2) — 200,000 August 8, 2017 August 8, 2018 8% 40% discount (2) — 125,000 July 28, 2017 July 28, 2018* XX 15% 40% discount (2) 57,495 47,913 August 29, 2017 August 29, 2018* XX 15% 50% discount (2) 9,705 162,250 October 4, 2017 May 4, 2018* 8% 40% discount (2) 44,662 150,000 October 16, 2017 October 16, 2018* XX 15% 50% discount (2) 394,244 328,537 November 22, 2017 November 22, 2018* XX 15% 50% discount (2) 660,330 550,275 December 28, 2017 December 28, 2017 10% 40% discount (2) — 57,008 December 29, 2017 December 29, 2018* XX 15% 50% discount (2) 435,600 363,000 January 9, 2018 January 9, 2019* 8% 40% discount (2)(1) 79,508 79,508 January 30, 2018 January 30, 2019* XX 15% 50% discount (2)(1) 396,000 330,000 February 21, 2018 February 21, 2019* XX 15% 50% discount (2)(1) 279,591 330,000 March 14, 2018 March 14, 2019* 10% 40% discount (2) — 50,000 June 7, 2017 June 9, 2019 8% 40% discount (2) 200,000 200,000 April 9, 2018 April 9, 2019* XX 15% 50% discount (2) 72,600 60,500 March 21, 2017 March 21, 2018 8% 40% discount (2) — 40,000 April 20, 2018 April 20, 2019* 8% 40% discount (2) 97,659 97,659 May 2, 2018 December 2, 2018* 10% 40% discount (2) — 70,682 May 4, 2018 May 4, 2019* 12% 50% discount (2) 123,750 123,750 May 14, 2018 December 14, 2018* 10% 50% discount (2) — 33,542 May 23, 2018 May 23, 2019 10% 50% discount (2) — 110,000 June 6, 2018 June 6, 2019* 15% 50% discount (2) 282,949 282,949 June 19, 2018 March 19, 2019 15% 50% discount (2) — 43,125 July 6, 2017 June 9, 2019 8% 40% discount (2) — 200,000 August 1, 2018 August 1, 2019* XX 15% 50% discount (2) 42,900 35,750 August 23, 2018 August 23, 2019* 8% 45% discount (2) — 70,123 September 13, 2018 June 30, 2019* 12% 45% discount (2) 9,200 9,200 September 17, 2018 March 17, 2019* 10% 50% discount (2) — 4,945 September 20, 2018 September 20, 2019* XX 15% 50% discount (2) 51,942 43,285 September 24, 2018 June 24, 2019* 8% 40% discount (2) 45,663 63,913 August 8, 2017 June 9, 2019 8% 40% discount (2) — 125,000 November 8, 2018 August 15, 2019* 12% 45% discount (2) 79,500 79,500 November 26, 2018 May 26, 2019* 10% 50% discount (2) — 44,799 August 29, 2019 August 29, 2020* 8% 40% discount (2) 28,875 26,250 5,508,564 6,834,228 Less: current portion of convertible notes payable (5,508,564 ) (6,734,227 ) Less: discount on noncurrent convertible notes payable — (30,486 ) Noncurrent convertible notes payable, net of discount $ — $ 69,515 Current portion of convertible notes payable $ 5,508,564 $ 6,734,227 Less: discount on current portion of convertible notes payable (22,488 ) (120,602 ) Current portion of convertible notes payable, net of discount $ 5,486,076 $ 6,613,625 * The indicated notes were in default as of November 30, 2020. Default interest rate 24% X On December 10, 2020 (subsequent to quarter end) the Company settled the above notes indicated totaling $1,460,794 and associated accrued interest of $1,593,544 totaling $3,054,338 in exchange for promissory notes dated December 10, 2020 totaling $3,054,338, maturing December 10, 2023 and bearing interest at 12% per annum and a warrant to purchase 250,000,000 shares at an exercise price of $.002 per share and a three year maturity having a fair value of $550,000. These notes are secured by a general security charging all of RAD’s present and after-acquired property. XX On December 10, 2020 (subsequent to quarter end) the Company settled the above notes indicated totaling $2,683,357 and associated accrued interest of $1,237,811 totaling $3,921,1688 in exchange for a promissory note dated December 10, 2020 of $3,921,1688, maturing December 10, 2023 and bearing interest at 12% per annum and a warrant to purchase 450,000,000 shares at an exercise price of $.002 per share and a three year maturity having a fair value of $990,000. XXX On December 14, 2020 (subsequent to quarter end) the Company settled the above notes indicated totaling $235,000 and associated accrued interest of $75,375 totaling $310,375 in exchange for a promissory note dated December 14, 2020 of $310,375, maturing December 10, 2023 and bearing interest at 12% per annum, a warrant to purchase 25,000,000 shares at an exercise price of $.002 per share and a three year maturity having a fair value of $182,500 and 55 shares of Series F Preferred Shares having a fair value of $1,151,166. (1) The note is convertible beginning six months after the date of issuance. (2) The notes are convertible at a discount (as indicated) to the average market price and are accounted for and evaluated under ASC 480 as discussed in Note 3. (3) The conversion price is not subject to adjustment from forward or reverse stock splits. During the three months ended November 30, 2020 and 2019, the Company incurred original issue discounts of $0 and $1,250 respectively, and debt discounts from derivative liabilities of $0 and $ 25,000, respectively, related to new convertible notes payable. During the three months ended November 30, 2020 and 2019, the Company recognized interest expense related to the amortization of debt discount of $0 and $56,171, respectively. The Company recorded penalty interest of $494,428 and $175,463 during the three months ended November 30, 2020 and November 30, 2019, respectively. During the nine months ended November 30, 2020 and 2019, the Company incurred original issue discounts of $0 and $1,250, respectively and derivative discounts of $0 and $26,250, respectively, related to new convertible notes payable. During the nine months ended November 30, 2020 and 2019, the Company recognized interest expense related to the amortization of debt discount of $23,957 and $739,334, respectively. The Company recorded penalty interest of $939,705 and $207,116 during the nine months ended November 30, 2020 and November 30, 2019, respectively. All the notes above are unsecured. As of November 30, 2020, the Company had total accrued interest payable of $3,486,043 all of which is classified as current. The Company determined that the embedded conversion features in the convertibles notes described below should be accounted for as derivative liabilities as a result of their variable conversion rates. During the nine months ended November 30, 2020, the Company also had the following convertible note activity: ● The company recorded $939,705 in penalties as increases on various notes, with a corresponding charge to interest. ● holders of certain convertible notes payable elected to convert a total of $2,094,934 of principal and $1,083,982 accrued interest, and $20,500 of fees into 1,889,155,010 shares of common stock. No gain or loss was recognized on conversions as these conversions occurred within the terms of the agreement that provided for conversion. |