Convertible Notes Payable | Note 5. Convertible Notes Payable On January 21, 2021, the Company entered into a Securities Purchase Agreement with Power Up Lending Group Ltd (“Power Up January 2021 Note”). Pursuant to the terms of the Power Up January 2021 Note, the lender agreed to purchase from the Company, for a purchase price of $ 75,000 10% 86,350 March 5, 2022 The Power Up January 2021 Note is convertible into shares of the Company’s common stock at any time at a conversion price (the “Conversion Price”), which shall equal the Variable Conversion Price. The “Variable Conversion Price” shall mean 60% multiplied by the Market Price, which is the lowest Trading Price for the common stock during the twenty ( 20 On March 5, 2021, the Company entered into a Securities Purchase Agreement with Power Up Lending Group Ltd (“Power Up March 2021 Note”). Pursuant to the terms of the Power Up March 2021 Note, the lender agreed to purchase from the Company, for a purchase price of $ 75,000 10% 86,350 March 5, 2022 The Power Up March 2021 Note is convertible into shares of the Company’s common stock at any time at a conversion price (the “Conversion Price”), which shall equal the Variable Conversion Price. The “Variable Conversion Price” shall mean 60% multiplied by the Market Price, which is the lowest Trading Price for the common stock during the twenty ( 20 On May 4, 2021, the Company entered into a Securities Purchase Agreement with Power Up Lending Group Ltd (“Power Up May 2021 Note”). Pursuant to the terms of the Power Up 2021 Note, the lender agreed to purchase from the Company, for a purchase price of $ 150,000 10% 169,125 May 4, 2022 The Power Up May 2021 Note is convertible into shares of the Company’s common stock at any time at a conversion price (the “Conversion Price”), which shall equal the Variable Conversion Price. The “Variable Conversion Price” shall mean 60% multiplied by the Market Price, which is the lowest Trading Price for the common stock during the twenty ( 20 During the three and six months ended June 30, 2021, the Company recorded amortization of debt discount and original issue discount of $ 364,877 and $ 582,631 , respectively, for all convertible debentures. During the three and six months ended June 30, 2020, the Company recorded amortization of debt discount and original discount of $ 201,028 and $ 403,267 , respectively, for all convertible debentures. This amount is included in interest expense in our consolidated statements of operations. The following is a summary of the activity of the convertible notes payable and convertible debenture for the six months ended June 30, 2021: Summary of Activity of Convertible Notes Payable and Convertible Debenture Convertible Debenture Balance as of December 31, 2020 $ 1,661,520 Issuance of convertible debenture - principal amount 341,825 Issuance of convertible debenture - debt discount and original issue discount (341,825 ) Amortization of debt discount and original issue discount 582,631 Conversion to common stock, net of discount (346,874 ) Balance as of June 30, 2021 $ 1,897,277 The following comprises the balance of the convertible debenture outstanding at June 30, 2021 and December 31, 2020: Schedule of Balance Convertible Debenture Outstanding June 30, December 31, 2021 2020 Principal amount outstanding $ 2,304,602 $ 2,458,024 Less: Unamortized original issue discount (55,271 ) (94,857 ) Less: Unamortized debt discount (352,053 ) (701,647 ) Convertible note payable, net of debt discount $ 1,897,277 $ 1,661,520 At December 31, 2020, convertible notes payable includes a balance of $ 615,134 85,000 180,447 434,687 | Note 5. Convertible Notes Payable Convertible Note In February 2019, the holder of a 2018 Note in the original principal amount of $ 35,000 19,000 4,255 26,398,734 0.0015 Convertible Debenture Pride On June 4, 2019 (the “Closing Date”), we entered into and closed a Securities Purchase Agreement (the “SPA”) with Pride (or the “Purchaser” or “Pride”) pursuant to which for a purchase price of $ 500,000 550,000 10% 15 6,250,000 Subject to earlier conversion or redemption, the Debenture is due on June 4, 2020 At any time after June 4, 2019, the Debenture is convertible, in whole or in part, into shares of common stock (the “Conversion Shares”) at the option of the holder, at any time and from time to time (subject to a 4.99% beneficial ownership limitation). If, on the Maturity Date, the outstanding principal balance of the Debenture is $50,000 or less, the Debenture, including all accrued and unpaid interest then due thereon, is automatically convertible into common stock. Subject to adjustment, the per share conversion price for the Debenture on any conversion date is the lesser of (i) $0.1069 or (ii) 85% of the lowest single trading date volume weighted average price for our Common stock during the 5 trading days prior to the conversion date. On August 27, 2019, the Company entered into Amendment No. 1 to the Securities Purchase Agreement (the “First Amendment”) with Pride. Pursuant to the terms of the Amendment, Pride agreed to purchase an additional $ 220,000 10% 200,000 550,000 770,000 On October 14, 2019 the Company entered into Amendment No. 2 to the Securities Purchase Agreement (the “Second Amendment”) with Pride. Pursuant to the terms of Amendment. Pride agreed to purchase an additional $ 330,000 10% 300,000 770,000 1,100,000 Pursuant to the terms of the Second Amendment, the shares of common stock underlying the additional $330,000 in principal amount of 10% Original Issue Discount Senior Convertible Debenture (the “Additional Underlying Shares”) are not subject to the registration rights agreement entered into between the parties on June 4, 2019, but the Company has granted certain demand registration rights to Pride in connection with the Additional Underlying Shares. From July to August 2019, Pride converted $ 21,910 427,500 18,925 Cavalry On February 12, 2020, the Company entered into a Securities Purchase Agreement with Cavalry Fund I LP (the “Calvary Note”). Pursuant to the terms of the Calvary Note, the lender agreed to purchase from the Company, for a purchase price of $ 100,000 10% 115,500 November 11, 2020 The Calvary Note is convertible into shares of the Company’s common stock at any time at a conversion price (the “Conversion Price”) equal to the lower of: (i) the lowest closing price of the common stock during the preceding twenty ( 20 20 100 15% 0.015 Effective July 14, 2020, the Company and Calvary Fund I LP entered into an amendment to the Calvary Note to extend the maturity date of the note from November 11, 2020 to December 31, 2020, prohibit any conversions of the note prior to October 31, 2020, and extend the prepayment option from August 9, 2020 to December 31, 2020. Power Up On March 10, 2020, the Company entered into a Securities Purchase Agreement with Power Up Lending Group Ltd (“Power Up Note”). Pursuant to the terms of the Power Up Note, the lender agreed to purchase from the Company, for a purchase price of $ 75,000 10% 85,800 March 10, 2021 The Power Up Note is convertible into shares of the Company’s common stock at any time at a conversion price (the “Conversion Price”), which shall equal the Variable Conversion Price. The “Variable Conversion Price” shall mean 60% multiplied by the Market Price, which is the lowest Trading Price for the common stock during the twenty ( 20 On May 26, 2020, the Company entered into a Securities Purchase Agreement with Power Up Lending Group Ltd (“Power Up May Note”). Pursuant to the terms of the Power Up May Note, the lender agreed to purchase from the Company, for a purchase price of $ 75,000 10% 85,800 May 26, 2021 The Power Up May Note is convertible into shares of the Company’s common stock at any time at a conversion price (the “Conversion Price”), which shall equal the Variable Conversion Price. The “Variable Conversion Price” shall mean 60% multiplied by the Market Price, which is the lowest Trading Price for the common stock during the twenty ( 20 On September 29, 2020, the Company entered into a Securities Purchase Agreement with Power Up (“Power Up September Note”). Pursuant to the terms of the Power Up September Note, the lender agreed to purchase from the Company, for a purchase price of $ 80,000 10% 91,300 September 29, 2021 The Power Up September Note is convertible into shares of the Company’s common stock at any time at a conversion price (the “Conversion Price”), which shall equal the Variable Conversion Price. The “Variable Conversion Price” shall mean 60% multiplied by the Market Price, which is the lowest Trading Price for the common stock during the twenty ( 20 As of December 31, 2020, Power Up fully converted the March and May notes, consisting of $ 150,000 49,110,485 Auctus On August 11, 2020, the Company entered into a Securities Purchase Agreement (the “SPA”) with Auctus Fund, LLC (“Auctus”). Pursuant to the terms of the SPA, the Purchaser agreed to purchase from the Company, for a purchase price of $ 132,000 150,000 August 11, 2021 12% The Variable Conversion Price shall mean 100% multiplied by the Market Price (representing a discount rate of 0%). Market Price means the average of the previous 5 days volume weighted average price. In connection with the Note, the Company issued two common stock purchase warrants to purchase up to an aggregate of 15,000,000 7,500,000 45,068 On October 8, 2020, the Company entered into a Securities Purchase Agreement (the “Auctus October Note”) with Auctus Fund, Pursuant to the terms of the Auctus October Note, Auctus agreed to purchase from the Company, for a purchase price of $ 300,000 300,000 100,000,000 0.015 200,00,000 1,237,906 The Auctus October Note accrues interest at a rate of 12% JSJ On September 28, 2020, the Company entered into a convertible promissory note (“JSJ Note”) with JSJ Investments, Inc., pursuant to which JSJ purchased from the Company, at a purchase price of $ 100,000 108,000 The JSJ Note accrues interest at a rate of 10% September 28, 2021 18% The JSJ Note is convertible into shares of the Company’s common stock at any time after 180 days from the issuance date. The conversion price is 60% 20 EMA On March 11, 2020, the Company entered into a Securities Purchase Agreement (the “EMA Note”) with EMA Financial, LLC. Pursuant to the terms of the EMA Note, EMA agreed to purchase from the Company, for a purchase price of $ 75,000 85,000 The EMA Note accrues interest at a rate of 10% November 5, 2020 The EMA Note is convertible into shares of the Company’s common stock. The conversion price shall be the lower of: (i) the lowest closing price of the common stock during the preceding 20 60% 20 100 0.015 Effective as of September 29, 2020, the Company and EMA entered into an Amendment to the Note (the “EMA Amendment”), pursuant to which EMA and the Company agreed to amend the issuance date of the EMA Note from March 11, 2020 to September 29, 2020 and to extend the maturity date of the EMA Note from November 5, 2020 to September 29, 2021. As of December 31, 2020, the EMA Note was in default and the parity value of the EMA Note was determined to be $ 615,134 530,134 In connection with the EMA Note, in October 2020 the Company issued a warrant to purchase 28,333,333 0.015 99,935 During the years ended December 31, 2020 and 2019, the Company, recorded amortization of debt discount and original discount of $ 862,209 368,257 The following is a summary of the activity of the convertible notes payable and convertible debenture for the year ended December 31, 2020 and 2019: Summary of Activity of Convertible Notes Payable and Convertible Debenture Note Debenture Total Balance as of December 31, 2018 $ 34,065 $ - $ 34,065 Issuance of convertible debenture - principal amount - 1,100,000 1,100,000 Issuance of convertible debenture - debt discount and original issue discount - (1,100,000 ) (1,100,000 ) Amortization of debt discount and original issue discount - 368,257 368,257 Conversion to common stock, net of discount (34,065 ) (4,487 ) (38,552 ) Balance as of December 31, 2019 - 363,769 363,769 Issuance of convertible debenture - principal amount - 1,021,400 1,021,400 Issuance of convertible debenture - debt discount and original issue discount - (1,021,400 ) (1,021,400 ) Amortization of debt discount and original issue discount - 862,209 862,209 Default penalty - 530,134 530,134 Conversion to common stock, net of discount - (94,593 ) (94,593 ) Balance as of December 31, 20120 $ - $ 1,661,520 $ 1,661,520 The following comprises the balance of the convertible debenture outstanding at December 31, 2020: Schedule of Balance Convertible Debenture Outstanding * Principal amount outstanding $ 2,458,024 Less: Unamortized original issue discount (94,857 ) Less: Unamortized debt discount (701,647 ) Convertible note payable, net of debt discount $ 1,661,520 |