Notes Payable | 4. Notes payable Notes payable consist of the following: June 30, 2020 December 31, 2019 Promissory notes issued between November 26, 2014 and December 31, 2015, to raise up to $2,000,000 in debt. Lenders earn interest at a rate of 10% per annum, plus a pro-rata share of two percent of the Company’s gross receipts for sales of IRT-103-LDN in perpetuity. Notes will be repaid in 36 monthly installments of principal and interest commencing no later than October 15, 2015. These notes were in default at June 30, 2020, as the Company was unable to pay installments on their due dates. 286,000 286,000 Promissory notes issued between May 1, 2015 and December 31, 2016 and maturing between June 14, 2015 and December 1, 2017. Lenders on loans aggregating $675,994 earn interest at rates between 2% and 10% per annum. One loan, in the amount of $100,000, interest was payable in a fixed amount not tied to a specific interest rate. However, this note was extinguished and reassigned to a related party in 2019. The Company was unable to repay the remaining notes at maturity and at June 30, 2020 these notes were in default. 625,994 625,994 Promissory notes issued to an officer of the Company effective November 3, 2015 and maturing November 3, 2016 for settlement of accrued payroll, bearing interest at 10% per annum and including a stock conversion feature. The Company was unable to repay the note at maturity and at June 30, 2020 the note was in default. 97,737 97,737 Promissory notes issued between July 1, 2016 and December 31, 2016. Lenders earn interest at 2% per annum. The notes mature on December 31, 2017, and at June 30, 2020 the notes were in default. 206,000 206,000 Promissory notes aggregating $1,350,000 issued in the fourth quarter 2016. The notes accrue interest at 2% per annum and mature between November 1, 2017 and December 31, 2017. As June 30, 2020, the notes were in default. 1,354,000 1,354,000 Promissory notes aggregating $500,000 issued in the first quarter of 2017. The notes accrue interest at 2% per annum and mature between January 12, 2018 and September 30, 2018. At June 30, 2020, the notes were in default. 500,000 500,000 Promissory notes aggregating $300,000 issued in the second quarter of 2017. The notes accrue interest at 2% per annum and mature between April 3, 2018 and May 31, 2018. At June 30, 2020, the notes were in default. 300,000 300,000 Promissory notes aggregating $191,800 issued in the third quarter of 2017. The notes accrue interest at 2% per annum and mature between June 16, 2018 and December 31, 2018. At June 30, 2020, the notes were in default. 191,800 191,800 Promissory note for $425,000 issued in October 2017 with an original issue discount of $70,000. The note is in default, giving the holder an option to convert the note to stock using the lowest value of the Company’s common stock 25 days prior to the conversion. In 2018, the defaults also resulted in certain penalties, as a result of which the principal amount of the note outstanding at June 30, 2020 had increased to $454,032. $49,943 of accrued interest owed on the note has been converted to stock. The Company has accrued a $1,486,204 derivative liability for the remaining conversion right. 454,032 454,032 Promissory notes aggregating $105,500 issued in the fourth quarter of 2017. The notes accrue interest at 2% per annum. At June 30, 2020, the notes were in default. 105,500 105,500 Promissory notes aggregating $47,975 issued in the first quarter of 2018. The notes accrue interest at 2% per annum and mature between May 2018 and January 2019. At June 30, 2020, the notes were in default. 47,975 47,975 Promissory notes aggregating $125,000 issued in the first quarter of 2018. The notes accrue interest between 2% and 12% per annum and mature between April 2018 and June 2018. These notes include warrants between 5,000 and 20,000 shares with an exercise price of $0.5. At June 30, 2020 the notes were in default 125,000 125,000 Promissory notes aggregating $65,000 issued in the second quarter of 2018. The notes accrue interest between 2% per annum and mature between July 2018 and October 2018. These notes include warrants between 1,000 and 5,000 shares with an exercise price of $5. At June 30, 2020 the notes were in default 65,000 65,000 Promissory notes aggregating $208,000 issued in the third quarter of 2018, of which $3,000 is to a related party. The notes accrue interest at 2% per annum and mature between November 2018 and January 2019. These notes include warrants between 600 and 5,000 shares with an exercise price of $5. At June 30, 2020, the notes were in default. 208,000 198,000 Promissory notes aggregating $533,855 issued in the fourth quarter of 2018, of which $210,000 is to a related party. The notes accrue interest from 2% to 3.5% per annum and mature between February 2019 and December 2019. These notes include warrants between 200 and 39,500 shares with an exercise price of $5 to $40. At June 30, 2020, the note was in default. 533,855 533,855 Promissory note for $23,000 issued to a related party in the first quarter of 2019. The note accrues interest at 2% per annum and matures during July 2019. The note includes warrants for 4,600 shares with an exercise price of $5. At June 30, 2020, the note was in default. 23,000 23,000 Promissory note for $231,478 issued in the first quarter of 2019. The note accrues interest at 6% per annum and matured in February 2020. At June 30, 2020, the notes were in default. 231,478 231,478 Promissory notes aggregating $50,000 issued in the second quarter of 2019, of which $40,000 is to a related party. The notes accrue interest at 2% per annum and mature between July and September 2019. These notes include warrants for 10,000 shares with an exercise price of $5. At June 30, 2020, the notes were in default. 50,000 50,000 Promissory note in the amount of $150,000 issued on October 1, 2019 for the settlement of outstanding debt in the same amount. The note accrues interest at 15% per annum, with $1,875 due in monthly interest payments, and matures on April 30, 2021. 150,000 150,000 Promissory notes in the amount of $144,000 issued in the second quarter of 2020. The notes accrue interest at 12% per annum, and mature between March 31, 2021 and June 15, 2021. The Company has accrued a $416,880 derivative liability for the conversion rights attached to the notes. 144,000 - Less: Original issue discount on notes payable and warrants issued with notes. (118,932 ) - Total $ 5,580,439 $ 5,545,371 As of June 30, 2020, the Company had accrued $1,098,246 in unpaid interest and default penalties. During the quarter ended June 30, 2020, no shares were issued by the Company in settlement of promissory notes. As of June 30, 2019, the Company had accrued $959,412 in unpaid interest and default penalties. During the quarter ended June 30, 2019, no shares were issued by the Company in settlement of promissory notes. |