Convertible Notes and Interest Payable | 5. Convertible notes and interest payable All convertible notes payable are unsecured and due on demand. Except as noted below, no amount was allocated to the conversion feature as, at the time of issue, there was no beneficial conversion feature or the note could not readily be converted into cash. A summary of convertible notes and interest outstanding is as follows: Face Value Conversion Rate Interest rate Accrued Interest Carrying Value May 31 2021 Total Aug 31 2020 Total $ 20,000 $ 0.100 10 % $ 8,247 $ 20,000 $ 28,247 $ 26,751 $ 20,000 $ 0.5625 8 % 7,825 20,000 27,825 26,627 $ 20,000 $ 0.5625 8 % 7,334 7,332 14,666 12,270 (a) $ 3,500 $ 0.035 8 % 527 3,500 4,027 3,817 $ 25,000 $ 0.020 8 % 6,314 25,000 31,314 29,819 $ 25,000 $ 0.024 8 % 3,030 25,000 28,030 26,534 $ 30,500 $ 0.005 8 % 15,661 30,500 46,161 44,336 $ 25,000 $ 0.020 - - 25,000 25,000 25,000 $ 47,500 $ 0.017 - - 47,500 47,500 17,500 $ 55,000 $ 0.017 - - 55,000 55,000 - (b) $ 271,500 $ 48,938 $ 258,832 $ 307,770 $ 212,654 (a) This 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. $1,600 was accreted and charged to interest during the year ended August 31, 2020 ($1,600 for the year ended August 31, 2019). At May 31, 2021, the unamortized discount was $12,668 (August 31, 2020 - $13,867). May 31, 2021 August 31, 2020 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 $ 7,332 - $ 6,133 - Interest - $ 7,334 - $ 6,137 Balance, convertible note payable, end of period $ 7,332 $ 7,334 $ 6,133 $ 6,137 b) Based on the intrinsic value of the beneficial conversion feature, as per FASB topic ASC 470-20 Debt with Conversion and other Options, Loan Date of Amortized Amount Loan as interest $ 10,000 Jan 20 2021 $ 6,176 $ 15,000 Mar 12 2021 $ 15,000 $ 5,000 Apr 14 2021 $ 5,000 $ 25,000 May 13 2021 $ 25,000 $ 55,000 $ 51,176 |