Convertible Notes Payable | Note 8 – Convertible Notes Payable Related party convertible notes payable consist of the following at September 30, 2023 and September 30, 2022, respectively: Schedule of Related Party Convertible Notes Payable September 30, September 30, 2023 2022 On February 10, 2020, the Company completed the sale to an accredited investor of a 9% Secured Convertible Promissory Note in the principal amount of $ 350,000 August 10, 2022 9 0.15 0.03 50,000 400,000 50,000 1,666,667 0.03 February 11, 2024 4,550,000 43,788 As a result of the shares issued upon the extension agreement, the lender now holds more the 5% of the total outstanding common shares, and is therefore considered a related party $ 350,000 $ 350,000 Total related party convertible notes payable 350,000 350,000 Less: unamortized debt discounts (10,748 ) (39,728 ) Total convertible debt 339,252 310,272 Less: current maturities (339,252 ) - Related party convertible notes payable $ - $ 310,272 Convertible notes payable consist of the following at September 30, 2023 and 2022, respectively: Schedule of Convertible Notes Payable September 30, September 30, 2023 2022 On February 11, 2020, the Company completed the sale to an accredited investor of a 9% Secured Convertible Promissory Note in the principal amount of $ 50,000 August 11, 2022 9 0.15 0.03 10,000 60,000 10,000 333,334 0.03 February 11, 2024 650,000 6,989 $ 50,000 $ 50,000 On February 11, 2020, the Company completed the sale to an accredited investor of a 9% Secured Subordinated Convertible Promissory Note in the principal amount of $ 150,000 August 11, 2022 9 0.15 0.03 50,000 200,000 50,000 1,666,667 0.03 February 11, 2024 1,950,000 20,968 150,000 150,000 On September 23, 2019, the Company received proceeds of $ 200,000 8 August 10, 2022 0.11 August 10, 2022 0.03 90,000 3,000,000 0.03 355,469 98,188 February 11, 2024 4,621,105 32,166 355,469 355,469 On November 8, 2018, the Company received proceeds of $ 350,000 8 August 10, 2022 0.14 August 10, 2022 0.03 February 11, 2024 4,550,000 31,671 350,000 350,000 On October 1, 2022, the Company entered into a senior secured convertible note that carries an 8 February 11, 2024 362,765 0.01 4,715,945 30,102 362,765 362,765 On November 5, 2018, the Company received proceeds of $ 150,000 8 August 10, 2022 0.14 August 10, 2022 0.03 150,000 150,000 Total convertible notes payable 1,418,234 1,418,234 Less: unamortized debt discounts (32,302 ) (45,039 ) Total convertible debt 1,385,932 1,373,195 Less: current maturities (1,385,932 ) (1,198,469 ) Convertible notes payable $ - $ 174,726 In addition, the Company recognized and measured the embedded beneficial conversion feature present in the convertible notes by allocating a portion of the proceeds equal to the intrinsic value of the feature to additional paid-in-capital. The intrinsic value of the feature was calculated on the commitment date using the effective conversion price of the convertible notes. This intrinsic value is limited to the portion of the proceeds allocated to the convertible debt. The aforementioned accounting treatment resulted in a total debt discount equal to $ 93,938 135,655 85,166 43,050 All of the convertible notes limit the maximum number of shares that can be owned by each note holder as a result of the conversions to common stock to 4.99 The Company recorded interest expense pursuant to the stated interest rates on the convertible notes in the amount of $ 148,812 113,976 The Company recognized interest expense for the years ended September 30, 2023 and 2022, respectively, as follows: Schedule of Interest Expense September 30, September 30, Interest on notes payable $ 79,800 $ 45,444 Amortization of beneficial conversion features 135,655 85,166 Interest on convertible notes 148,812 113,976 Total interest expense $ 364,267 $ 244,586 |