| Convertible Notes Payable | Note 7. Convertible Notes Payable Convertible notes payable consists
of the following as of April 30, 2019 and January 31, 2019:
April
30, 2019 January
31, 2019
Convertible
note, dated July 31, 2015, bearing interest at 10% per annum, matured on July 31, 2017 and convertible into shares of common
stock at $0.01 per share, in default 72,640 72,640
Convertible
note, dated October 31, 2015, bearing interest at 10% per annum, matured on October 31, 2018 and convertible into shares of
common stock at $0.50 per share, in default 156,976 156,976
Convertible
note, dated January 31, 2016, bearing interest at 10% per annum, matured on January 31, 2019 and convertible into shares of
common stock at a 60% discount to the market price, in default 82,735 82,735
Convertible
note, dated March 14, 2016, bearing interest at 8% per annum, matured on March 14, 2017, and convertible into shares of common
stock at a4 5% discount to the market price, in default 1,217 1,217
Convertible
note, dated May 26, 2016, bearing interest at 8% per annum, matured on May 26, 2017, and convertible into shares of common
stock at a 45% discount to the market price, in default 67,986 67,986
Convertible
note, dated February 6, 2018, bearing interest at 8% per annum, maturing November 6, 2018, and convertible into shares of
common stock at a 45% discount to the lowest trading price in the 20 days prior to conversion with a floor on the conversion
price of $0.00005, in default 33,344 78,000
Convertible
note, dated February 6, 2018, bearing interest at 8% per annum, maturing November 6, 2018, and convertible into shares of
common stock at a 45% discount to the lowest trading price in the 20 days prior to conversion with a floor on the conversion
price of $0.00005, in default 136,000 136,000
Convertible
note, dated November 1, 2018, bearing interest at 8% per annum, maturing August 15, 2019, and convertible into shares of common
stock at a 39% discount to the lowest trading price in the 15 days prior to conversion with a floor on the conversion price
of $0.00005 103,000 103,000
Convertible
note, dated December 31, 2018, bearing interest at 8% per annum, maturing October 15, 2019, and convertible into shares of
common stock at a 39% discount to the lowest trading price in the 15 days prior to the conversion with a floor on the conversion
price of $0.00005 38,000 38,000
Total convertible notes payable $ 691,898 $ 736,554
Less: discount on current convertible notes
payable (121,009 ) (147,302 )
Less: convertible notes payable, in default (550,900 ) (527,568 )
Current convertible notes payable, net of discount $ 19,989 $ 61,684 Issuance of Convertible
Promissory Notes During the year ended January
31, 2019, we issued Convertible Promissory Notes. The Convertible Promissory Notes bear interest and are payable at maturity along
with accrued interest. The Convertible Promissory Notes and unpaid accrued interest are convertible into common stock at the option
of the holder.
Date
Issued Maturity
Date Interest
Rate Conversion
Rate Amount
of Note
February 6, 2018 November 6, 2018 8% 45%
discount $ 150,000
October 10, 2018 July 17, 2019 8% 39%
discount 55,000
October 23, 2018 October 23, 2019 8% 45%
discount 150,000
November 1, 2018 August 15, 2019 8% 39%
discount 103,000
December 31, 2018 October 15, 2019 8% 39%
discount 38,000
Total 2019 $ 496,000 We evaluated the terms of the
new notes in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity’s Own Stock Convertible Promissory Notes
Issued for Cash On February 6, 2018, we issued
a convertible promissory note to a third party for cash. The note (the “front-end note”) was in the amount of $150,000,
and it matures on November 6, 2018. The note bears interest at 8% per year and is convertible into shares of our common stock
at a 45% discount to our lowest trading price over the preceding 20 days with a floor on the conversion price of $0.00005. We evaluated the terms of the note
in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity’s Own Stock Conversions to Common Stock During the three months ended April
30, 2019, the holders of our convertible promissory notes converted $48,798 of principal and accrued interest into 6,401,340 shares
of our common stock. During three months ended April 30, 2018, the holders of our convertible promissory notes converted $18,904
of principal and accrued interest into 343,709 shares of our common stock. See Note 8 for a detail of the
conversions. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement which provided
for conversion. |
