CONVERTIBLE NOTES PAYABLE | NOTE 11 – CONVERTIBLE NOTES PAYABLE Convertible notes payable at June 30, 2021 and December 31, 2020 consists of the following: SCHEDULE OF CONVERTIBLE NOTES PAYABLE June 30, December 31, 2021 2020 Dated September 15, 2017 $ 187,590 $ 318,492 Dated April 25, 2018 40,123 40,123 Dated September 21, 2018 56,714 56,714 Dated October 18, 2018 60,000 60,000 Dated November 28, 2018 33 33 Dated November 28, 2018 10,383 21,700 Dated November 29, 2018 25,000 25,000 Dated December 13, 2018 105,000 105,000 Dated January 15, 2019 115,000 115,000 Dated February 7, 2019 - 111,276 Dated February 19, 2019 - 64,500 Dated February 19, 2019 55,125 55,125 Dated March 13, 2019 55,125 55,125 Dated May 14, 2019 26,500 26,500 Dated May 17, 2019 27,825 27,825 Dated August 1, 2019 56,194 56,194 Dated August 7, 2019 55,125 55,125 Dated October 3, 2019 5,350 5,350 Dated October 25, 2019 6,825 6,825 Dated March 19, 2020 33,600 - Dated March 25, 2020 33,600 - Dated April 21, 2021 28,875 - Dated April 30, 2021 33,000 - Dated May 4, 2021 28,875 - Dated May 12, 2021 55,125 - Dated May 17, 2021 44,000 - Dated May 28, 2021 55,125 - Dated June 9, 2021 55,125 - Dated June 24, 2021 27,000 - Dated June 25, 2021 55,125 - Total convertible notes payable 1,337,863 1,273,107 Less: Unamortized debt discount (201,970 ) (4,460 ) Total convertible notes 1,135,893 1,268,647 Less: current portion of convertible notes 1,135,893 1,268,647 Long-term convertible notes $ (0 ) $ (0 ) On April 21, 2021 the Company entered into a promissory note agreement with Adar Alef, LLC (“Adar”) for loans totaling $28,875 $25,000 $3,875 The note is convertible after 181 days at a (i) $0.0075 ceiling or (ii) 60% of the lowest trading price over the past twenty trading days prior to the conversion date. On May 4, 2021 the Company entered into a promissory note agreement with Adar Alef, LLC (“Adar”) for loans totaling $28,875 $25,000 $3,875 The note is convertible after 181 days at a (i) $0.0075 ceiling or (ii) 60% of the lowest trading price over the past twenty trading days prior to the conversion date. On May 12, 2021 the Company entered into a promissory note agreement with Adar Alef, LLC (“Adar”) for loans totaling $55,125 $50,000 $5,125 The note is convertible after 181 days at a (i) $0.0075 ceiling or (ii) 60% of the lowest trading price over the past twenty trading days prior to the conversion date. On May 28, 2021 the Company entered into a promissory note agreement with Adar Alef, LLC (“Adar”) for loans totaling $55,125 $50,000 $5,125 The note is convertible after 181 days at a (i) $0.0075 ceiling or (ii) 60% of the lowest trading price over the past twenty trading days prior to the conversion date. On June 9, 2021 the Company entered into a promissory note agreement with Adar Alef, LLC (“Adar”) for loans totaling $55,125 $50,000 $5,125 The note is convertible after 181 days at a (i) $0.0075 ceiling or (ii) 60% of the lowest trading price over the past twenty trading days prior to the conversion date. On June 25, 2021 the Company entered into a promissory note agreement with Adar Alef, LLC (“Adar”) for loans totaling $55,125 $50,000 $5,125 The note is convertible after 181 days at a (i) $0.0075 ceiling or (ii) 60% of the lowest trading price over the past twenty trading days prior to the conversion date. During the second quarter 2021, beginning on April 30, 2021 and ending June 24, 2021 the Company received a series additional loans from SBI Investments under the original convertible note agreement dated November 14, 2017 totaling $104,500 in exchange for $95,000 in cash. The note is convertible after 181 days at a (i) $0.0075 ceiling or (ii) 60% of the lowest trading price over the past twenty trading days prior to the conversion date. During the three months ended June 30, 2021 and 2020, the Company recognized interest expense of $1,681,479 $100,788 $201,970 During the three months and six months ended June 30, 2021, the Company converted principal and unpaid accrued interest and penalties totaling $598,095 $672,948 4,419,451,103 5,223,250,935 The Company has thirty-seven (37) outstanding convertible notes as of June 30, 2021 with a total outstanding principal of $1,133,863 . The 2019 notes mature from January 2020 to May 2020. The 2020 notes mature in September 2020. The 2021 notes mature in May 2022. These notes carry an interest rate ranging between 8 % and 12 % per annum. The notes carry an original issue discounts ranging between 10 % to 25 % of the face value of each note. As a subsequent event, during the third quarter of 2021, SBI Investments converted $ 40,000 751,506,833 As a subsequent event, during the third quarter of 2021, Adar Alef converted $60,350 $22,820 1,386,173,500 As a subsequent event, on July 9, 2021, the Company received $50,000 $55,125 $3,600 The note is convertible after 181 days at a (i) $0.0075 ceiling or (ii) 60% of the lowest trading price over the past twenty trading days prior to the conversion date. As a subsequent event, on July 12, 2021, the Company received $50,000 $55,125 $3,600 The note is convertible after 181 days at a (i) $0.0075 ceiling or (ii) 60% of the lowest trading price over the past twenty trading days prior to the conversion date. As a subsequent event, on August 2, 2020, the Company received $60,000 from Adar Alef, LLC (“Adar”) from a $66,150 convertible promissory note agreement including fees and legal expenses of $6,150 . The note is convertible after 181 days at a (i) $0.0075 ceiling or (ii) 60% of the lowest trading price over the past twenty trading days prior to the conversion date . The notes may be converted into shares of the Company’s common stock at any time on or after the occurrence of an event of default. The conversion prices of the notes include the conversion price shall be the 60 For some notes, the Company agreed to pay a one-time interest charge of 9 All terms of the notes, including but not limited to interest rate, prepayment terms, conversion discount or look-back period will be adjusted downward if the Company offers more favorable terms to another party, while this note is in effect. The notes may be redeemed by the Company at rates ranging from 105% to 130% depending on the redemption date provided that no redemption is allowed after the 180 th The following table is a rollforward of activity, by each noteholder, for the six months ended June 30, 2021: SUMMARY OF OUTSTANDING NOTES PAYABLE, CHANGE IN DERIVATIVE LIABILITY AND DEBT DISCOUNT Loan Holder Principal Amount Date Maturity OID & Financing Costs Balance at Additions Payments Conversion Balance at Additions Payments Conversion Balance at Additions Payments Conversion Balance at Additions Payments Conversion Balance at 1 SBI Investment $ 200,000 9/27/2017 3/15/2018 200,000 75,000 (25,000 ) (93,150 ) 156,850 - - (6,697 ) 150,153 - - $ (19,160.78 ) 130,992 - - $ (130,902 ) 90 1 SBI Investment $ 187,500 11/14/2017 5/14/2018 187,500 - - - 187,500 - - - 187,500 - - 187,500 - - - 187,500 2 LG Capital Funding, LLC $ 185,292 12/8/2017 6/8/2018 17,646 92,646 92,646 - (133,032 ) 52,260 - - (52,260 ) 0 - - 0 - - - 0 3 Cerberus Finance Group Ltd $ 185,292 12/12/2017 6/8/2018 17,646 92,646 92,646 (25,000 ) (53,183 ) 107,109 - (99,684 ) (7,425 ) - - - - - - - - 4 Eagle Equities LLC $ 50,000 3/15/2018 3/15/2019 2,500 - 50,000 - (50,000 ) - - - - - - - - - - - - 5 Adar Capital LLC $ 50,000 3/15/2018 3/15/2019 2,500 - 50,000 - (50,000 ) - - - - - - - - - - - - 6 Bellridge Capital LP $ 60,000 5/17/2018 5/17/2019 10,000 - 60,000 - (44,000 ) 16,000 - - (16,000 ) - - - - - - - - 7 Auctus $ 100,000 4/27/2018 4/25/2019 10,000 - 100,000 - (59,877 ) 40,123 - - - 40,123 - - 40,123 - - - 40,123 8 Bellridge Capital LP $ 60,000 9/17/2018 3/15/2019 10,000 - 60,000 - - 60,000 - - (3,286 ) 56,714 - - 56,714 - - - 56,714 9 Eagles Equity $ 50,000 9/21/2018 3/15/2019 2,500 - 50,000 - (50,000 ) - - - - - - - - - - - - 10 Adar Bay $ 50,000 10/4/2018 10/4/2018 2,500 - 50,000 - (50,000 ) - - - - - - - - - - - - 11 Bellridge Capital LP $ 60,000 10/18/2018 10/18/2019 10,000 - 60,000 - - 60,000 - - - 60,000 - - 60,000 - - - 60,000 12 Adar Alef Omnibus $ 64,500 11/28/2018 11/29/2019 4,125 - 64,500 - - 64,500 - - (39,057 ) 25,443 - - $ (25,410.13 ) 33 - - - 33 13 Adar Alef Debt Purchase $ 25,000 11/28/2018 11/29/2019 - 25,000 - (25,000 ) - - - - - - - - - - - - 14 LG Capital Omnibus $ 64,500 11/28/2018 11/29/2019 4,125 - 64,500 - - 64,500 - - (6,630 ) 57,870 - - $ (36,170.00 ) 21,700 - - $ (11,317 ) 10,383 15 LG Capital Debt Purchase $ 25,000 11/29/2018 11/29/2018 - 25,000 - - 25,000 - - - 25,000 - - 25,000 - - - 25,000 16 LG Capital Omnibus $ 105,000 12/13/2018 12/14/2019 5,000 - 105,000 - - 105,000 - - - 105,000 - - 105,000 - - - 105,000 17 LG Capital Omnibus $ 115,000 1/15/2019 1/15/2020 5,750 - - - - - 115,000 - - 115,000 - - 115,000 - - - 115,000 18 Adar Alef Omnibus $ 132,720 2/7/2019 2/7/2020 6,000 - - - - - 132,720 - - 132,720 - - $ (21,444.27 ) 111,276 - - $ (111,276 ) (0 ) 19 Adar Alef Debt Note $ 108,055 2/7/2019 2/7/2019 8,371 - - - - - 108,055 - (108,056 ) - - - - - - - - 20 Adar Alef Omnibus $ 64,500 2/19/2019 2/19/2020 4,125 - - - - - 64,500 - - 64,500 - - 64,500 - - $ (64,500 ) - 21 LG Capital Omnibus $ 55,125 2/19/2019 2/19/2020 2,500 - - - - - 55,125 - - 55,125 - - 55,125 - - - 55,125 22 LG Capital Omnibus $ 55,125 3/13/2019 3/13/2020 2,500 - - - - - 55,125 - - 55,125 - - 55,125 - - - 55,125 23 Adar Alef Omnibus #2 Back End $ 26,500 5/14/2019 2/20/2020 1,500 - - - - - 26,500 - - 26,500 - - 26,500 - - - 26,500 24 LG Capital Omnibus #5 $ 27,825 5/17/2019 5/15/2020 2,825 - - - - - 27,825 - - 27,825 - - 27,825 - - - 27,825 25 Adar Alef Omnibus #2 BE 3rd Tranche $ 53,500 8/1/2019 2/7/2020 50,000 - - - - - 56,194 - - 56,194 - - 56,194 - - - 56,194 26 LG Capital Omnibus #7 $ 55,125 8/6/2019 2/7/2020 50,000 - - - - - 55,125 - - 55,125 - - 55,125 - - - 55,125 27 Adar Alef Omnibus #2 BE 4th Tranche $ 5,350 10/3/2019 2/7/2020 5,000 - - - - - 5,350 - - 5,350 - - 5,350 - - - 5,350 28 LG Capital Omnibus #8 $ 6,825 10/25/2019 10/26/2020 5,000 - - - - - 6,825 - - 6,825 - - 6,825 - - - 6,825 29 Adar Alef Omnibus # 5th Tranche $ 33,600 3/19/2020 9/19/2020 3,600 - - - - - - - - - $ 33,600 33,600 - - - 33,600 30 LG Capital Funding, LLC $ 33,600 3/25/2020 9/20/2020 3,600 - - - - - - - - - $ 33,600 33,600 - - - 33,600 31 Adar Alef Omnibus 6th Tranche $ 28,875 4/21/21 4/21/22 3,875 - - - - - - - - - - - - - - - 28,875 32 SBI Investment $ 33,000 4/30/21 5/1/22 3,000 - - - - - - - - - - - - - - - 33,000 33 Adar Alef Omnibus 7th Tranche $ 28,875 5/4/21 5/4/22 3,875 - - - - - - - - - - - - - - - 28,875 34 Adar Alef Omnibus 8th Tranche $ 55,125 5/12/21 5/13/22 5,125 - - - - - - - - - - - - - - - 55,125 35 SBI Investment $ 44,000 5/17/21 5/17/22 4,000 - - - - - - - - - - - - - - - 44,000 36 Adar Alef Omnibus 9th Tranche $ 55,125 5/28/21 5/28/22 5,125 - - - - - - - - - - - - - - - 55,125 37 Adar Alef Omnibus 10th Tranche $ 55,125 6/9/21 6/10/22 5,125 - - - - - - - - - - - - - - - 55,125 38 SBI Investment $ 27,500 6/24/21 6/25/22 2,500 - - - - - - - - - - - - - - - 27,500 39 Adar Alef Omnibus 11th Tranche $ 55,125 6/25/21 6/26/22 5,125 - - - - - - - - - - - - - - - 55,125 Convertible note total 251,771 572,792 1,024,292 (50,000 ) (608,242 ) 938,842 708,344 (99,684 ) (239,411 ) 1,308,092 67,200 (102,185 ) 1,273,107 - - (317,995 ) 1,337,862 As of December 31, 2019, several notes were past maturity, in default and due on demand. As such, the Company accelerated the amortization of the remaining unamortized original issue and debt discounts. As of June 30, 2021 the notes remained in default and due on demand. The Company calculated a default reserve which represents the additional amount the Company would have to pay to all note holders in the event of the default. SBI Investments have notified the company of default during the 2 nd $1,732,106 $2,278,648 In December 2020 and continuing, as a further series of subsequent events, the Company’s 12 Retail subsidiary has received short term funding from a private investor ranging between $30,000 $50,000 On March 18, 2021 the Company received $30,000 $33,600 $3,600 The note is convertible after 181 days at a (i) $0.0075 ceiling or (ii) 60% of the lowest trading price over the past twenty trading days prior to the conversion date. On March 25, 2021 the Company received $30,000 $33,600 $3,600 The note is convertible after 181 days at a (i) $0.0075 ceiling or (ii) 60% of the lowest trading price over the past twenty trading days prior to the conversion date. On April 30, 2021, the Company received $30,000 $40,000 $25,000 Between April 21, 2021 and June 24 2021, the Company received $250,000 $278,250 On May 6, 2021, the Company received $30,000 $50,000 In May 2021, advisory board member, Richard Berman invested $50,000 $100,000 As a subsequent event, on July 9, 2021 the Company received $50,000 $55,125 $3,600 The note is convertible after 181 days at a (i) $0.0075 ceiling or (ii) 60% of the lowest trading price over the past twenty trading days prior to the conversion date. As a subsequent event, on July 12, 2021, the Company received $50,000 $55,125 $3,600 The note is convertible after 181 days at a (i) $0.0075 ceiling or (ii) 60% of the lowest trading price over the past twenty trading days prior to the conversion date. As a subsequent event, on August 2, 2021, the Company received $60,000 from Adar Alef, LLC (“Adar”) from a $66,150 convertible promissory note agreement including fees and legal expenses of $ 6,150 . The note is convertible after 181 days at a (i) $0.0075 ceiling or (ii) 60% of the lowest trading price over the past twenty trading days prior to the conversion date. |