Convertible Note Payable | 6. Convertible Note Payable Five convertible notes payable are unsecured, bearing interest at 8% per annum, due on demand, and convertible into shares at the lenders’ option at a conversion price of $0.005 per share. Interest has not been paid and is classified with accrued liabilities for financial statement purposes. There was no value assigned to the conversion feature of these notes as the shares that would have been issued on conversion would not have been readily convertible into cash. The principal and interest owing as at November 30, 2019 is as follows: November 30, 2019 August 31, 2019 Date of Issue Principal Interest Principal Interest May 17, 2013 $ 10,000 $ 5,234 $ 10,000 $ 5,034 September 11, 2015 10,000 3,377 10,000 3,178 November 12, 2015 5,000 1,621 5,000 1,521 November 13, 2015 5,000 1,620 5,000 1,520 April 11, 2016 500 145 500 136 $ 30,500 $ 11,997 $ 30,500 $ 11,389 Two convertible notes payable bear interest at 8% per annum, are due on demand, and convertible at a conversion price of $0.5625 per share at the lender’s option. The interest is classified as accrued liabilities for financial statement purposes. One note for $20,000 was issued for which no value was assigned to the conversion feature as the shares that would have been issued on conversion would not have been readily convertible into cash. November 30, 2019 August 31, 2019 Date of Issue Principal Interest Principal Interest July 11, 2016 $ 20,000 $ 5,422 $ 20,000 $ 5,024 The other note for $20,000 was issued on October 31, 2016, when the market price per share was $1.48. The conversion feature was valued at $20,000. $400 was accreted and charged to interest during the three months ended November 30, 2019 ($400 for the three months ended November 30, 2018). At November 30, 2019, the unamortized discount was $15,068 (August 31, 2019 - $15,467). November 30, 2019 August 31, 2019 Principal Interest Principal Interest Proceeds on issue $ 20,000 - $ 20,000 - Value assigned to conversion feature 20,000 - 20,000 - Value of convertible note payable at issuance - - - - Accretion charges $ 4,932 - $ 4,533 - Interest - $ 4,932 - $ 4,533 Balance, convertible note payable, end of period $ 4,932 $ 4,932 $ 4,533 $ 4,533 One convertible note payable bears interest at 10% per annum, is due on demand and convertible at a conversion price of $0.10 per share at the lender’s option. The interest is classified as accrued liabilities for financial statement purposes. There was no beneficial conversion feature at the time of issuance and, accordingly, no value has been assigned to the conversion feature. November 30, 2019 August 31, 2019 Date of Issue Principal Interest Principal Interest April 17, 2017 $ 20,000 $ 5,244 $ 20,000 $ 4,745 One convertible note payable bear interest at 8% per annum, is due on demand and convertible at a conversion price of $0.02 per share at the lender’s option. There was no beneficial conversion feature at the time of issuance and, accordingly, no value has been assigned to the conversion feature. November 30, 2019 August 31, 2019 Date of Issue Principal Interest Principal Interest April 04, 2018 $ 25,000 $ 3,312 $ 25,000 $ 2,813 One convertible note payable bear interest at 8% per annum, is due on demand and convertible at a conversion price of $0.035 per share at the lender’s option. There was no beneficial conversion feature at the time of issuance and, accordingly, no value has been assigned to the conversion feature. November 30, 2019 August 31, 2019 Date of Issue Principal Interest Principal Interest July 29, 2019 $ 3,500 $ 107 $ 3,500 $ 37 One convertible note payable bear interest at 8% per annum, is due on demand and convertible at a conversion price of $0.024 per share at the lender’s option. There was no beneficial conversion feature at the time of issuance, and accordingly, no value has been assigned to the conversion feature. November 30, 2019 Date of Issue Principal Interest November 26, 2019 $ 25,000 $ 27 A summary of the value assigned to the convertible debt and accrued interest thereon is as follows: November 30, 2019 August 31, 2019 Conversion price of notes into shares Convertible Interest Convertible Interest $ 0.005 $ 30,500 $ 11,997 $ 30,500 $ 11,389 $ 0.5625 24,932 10,354 24,533 9,556 $ 0.10 20,000 5,244 20,000 4,745 $ 0.02 25,000 3,312 25,000 2,813 $ 0.035 3,500 107 3,500 37 $ 0.024 25,000 27 $ 128,932 $ 31,041 $ 103,533 $ 28,540 |