| Convertible Notes Payable | NOTE 5 - CONVERTIBLE NOTES PAYABLE During the year ended December 31, 2017, OZOP
issued 19 convertible promissory notes (the “2017 Notes”), in amounts of $10,000 to $50,000. OZOP received proceeds
of $710,000 in the aggregate. The 2017 Notes matured on their one- year anniversary and bear interest at ten percent (10%). The
initial conversion feature allowed the holders to convert the note and any unpaid interest due, into shares of the Company’s
common stock on the 15 th The Company determined that the conversion
feature of the 2017 Notes and the March 2018 Note (together, the “Notes”) did not meet the criteria of an embedded
derivative and therefore the conversion feature was not bi-furcated and accounted for as a derivative because the Company was a
private company, there was no quoted price and no active market for the Company’s common stock. On April 13, 2018, the Company determined the
conversion feature of the Notes represented an embedded derivative since the Notes were convertible into a variable number of shares
upon conversion. Accordingly, on April 13, 2018, the Notes were not considered to be conventional debt under ASC 815 and the embedded
conversion feature was bifurcated from the debt host and accounted for as a derivative liability. Accordingly, the fair value of
the derivative instruments of the Notes that occurred prior to April 13, 2018, were recorded as a liability on April 13, 2018,
with the corresponding amount recorded as a discount to the Note. Such discount was amortized from the date of issuance to the
maturity dates of the Notes. The change in the fair value of the liability for derivative contracts are recorded in other income
or expenses in the reporting period, with the offset to the derivative liability on the balance sheet. The embedded feature included
in the Notes resulted in an initial debt discount of $620,075, interest expense of $14,000 and initial derivative liability of
$634,075. On August 29, 2019, pursuant to a Debt Purchase Agreement, one investor sold the principal balance of $15,000, accrued
and unpaid interest of $2,624 and a repayment balance of $5,250 to third party investor, for a total purchase price of $22,874
(see below). Also, on August 29, 2019, pursuant to a Debt Purchase Agreement, a second investor sold the principal balance of $25,000,
accrued and unpaid interest of $4,248 and a repayment balance of $8,750 to third party investor, for a total purchase price of
$37,998 (see below). As of December 31, 2019, and 2018, the outstanding principal balance of the 2017 Notes was $175,000 and $215,000,
respectively. On April 13, 2018, we issued a convertible
promissory note in the principal amount of $442,175 (the “Note”), pursuant to a Securities Purchase Agreement we entered
into with an investor dated April 1, 2018. The Note bears interest at the rate of 12% per annum and is due and payable on April
13, 2019. The note is convertible at any time following the funding of the note into a variable number of the Company’s common
stock, based on a conversion ratio of 55% of the average of the lowest trading price for the 25 days prior to conversion. The note
was funded on April 13, 2018, when the Company received proceeds of $350,000, after OID of $57,675, and disbursements for the lender’s
transaction costs, fees and expenses of $34,500, of which $25,000 were recorded as discounts against the debt to be amortized into
interest expense through maturity. Periodic payments are due by us on the Note at the rate of $850 per day (the “Repayment
Amount”) via direct withdrawal from our bank account, beginning on April 27, 2018 and to last for a 30-day period. Following
this period, the Repayment Amount increased to $1,100 per day until the Note is satisfied in full. On June 28, 2018, the Note was
amended to increase the Repayment Amount to $1,750 per day. On August 29, 2018, the parties agreed to stop the Repayment Amount,
and on November 20, 2018, the parties agreed to restart the Repayment Amount at $1,000 per day. From time to time the investor
waives any Repayment Amount for a period of time as agreed upon. During the year ended December 31, 2019, principal payments of
$50,000 were made. The embedded conversion feature included in the note resulted in an initial debt discount of $359,500 interest
expense of $150,730 and an initial derivative liability of $510,230. For the year ended December 31, 2019, amortization of the
debt discounts of $53,896 was charged to interest expense. During the year ended December 31, 2019, the investor sold $30,000 of
the note to another investor (see below). The Note is in default and the Company recorded interest expense of $26,188 and added
that amount to the principal amount outstanding. As of December 31, 2019, and December 31, 2018, the outstanding principal balance
of the note was $78,563 and $132,375, respectively, with a carrying value as of December 31, 2019, and 2018, of $78,563 and $78,479,
net of unamortized discounts of $53,896 as of December 31, 2018. In connection with
our obligations under the Note, our executive officers at the time, and the Company entered into a Pledge Agreement (the “Pledge
Agreement”) whereby they pledged as collateral for the Note an aggregate of 19,900 shares of our common stock and we pledged
the shares of our subsidiary OZOP Surgical, Inc. (collectively, the “Collateral”). Upon a default under the terms of
the Note, the investor may, among other things, collect or take possession of the Collateral, proceed with the foreclosure of the
security interest in the Collateral or sell, lease or dispose of the Collateral. On August 29, 2018, we issued a convertible
promissory note in the principal amount of $339,250 (the “Note”), pursuant to a Securities Purchase Agreement we entered
into with the investor. The Note bears interest at the rate of 12% per annum and is due and payable on August 29, 2019. The note
is convertible at any time following the funding of the note into a variable number of the Company’s common stock, based
on a conversion ratio of 55% of the average of the lowest trading price for the 25 days prior to conversion. The note was funded
on August 29, 2018, when the Company received proceeds of $280,000, after OID of $44,250, and disbursements for the lender’s
transaction costs, fees and expenses of $15,000, which were recorded as discounts against the debt to be amortized into interest
expense through maturity. Periodic payments are due by us on the Note at the rate of $1,000 per day (the “Repayment Amount”)
via direct withdrawal from our bank account, beginning on August 30, 2018, until the Note is satisfied in full. From time to time
the investor waives any Repayment Amount for a period of time as agreed upon. During the year ended December 31, 2019, principal
payments of $50,000 were made. The embedded conversion feature included in the note resulted in an initial debt discount of $280,000
interest expense of $112,403 and an initial derivative liability of $392,403. For the year December 31, 2019, amortization of the
debt discounts of $222,397 was charged to interest expense. For the year ended December 31, 2019, the investor converted a total
of $111.509 of the face value and $32,910 of accrued interest into 40,302 shares of common stock. The Note is in default and the
Company recorded interest expense of $87,390 and added that amount to the principal amount outstanding. As of December 31, 2019,
and 2018, the outstanding principal balance of the note was $187,130 and $261,250, respectively, with a carrying value as of December
31, 2019, and 2018, of $187,130 and $38,853, net of unamortized discounts of $222,397 as of December 31, 2018. On August 29, 2018, we issued a convertible
promissory note in the principal amount of $55,000 (the “Note”), pursuant to a Securities Purchase Agreement we entered
into with the investor. The Note bears interest at the rate of 12% per annum and is due and payable on March 1, 2019. The note
is convertible at any time following the funding of the note into a variable number of the Company’s common stock, based
on a conversion ratio of 58% of the average of the lowest trading price for the 20 days prior to conversion. The note was funded
on August 29, 2018, when the Company received proceeds of $50,000, after disbursements for the lender’s transaction costs,
fees and expenses of $5,000, which were recorded as discounts against the debt to be amortized into interest expense through maturity.
The embedded conversion feature included in the note resulted in an initial debt discount of $50,000 interest expense of $5,272
and an initial derivative liability of $55,272. For the year ended December 31, 2019, amortization of the debt discounts of $17,112
was charged to interest expense. For the year ended December 31, 2019, the investor converted a total of $55,000 of the face value
and $5,323 of accrued interest into 7,473 shares of common stock. As of December 31, 2019, and 2018, the outstanding principal
balance of the note was $-0- and $55,000, respectively with a carrying value as of December 31, 2018, of $37,888, net of unamortized
discounts of $17,112 as of December 31, 2018. On October 19, 2018, the Company issued a 12%
convertible promissory note, (the “Note”) in the principal amount of $78,000, pursuant to a Securities Purchase Agreement
we entered into with the investor. The Note matures 12 months after the date of issuance. The Note is convertible into shares of
the Company’s common stock beginning on the date which is 180 days from the issuance date of the Note, at a conversion price
equal to 65% multiplied by the average of the lowest two trading prices during the 15- trading day period ending on the last completed
trading date in the OTC Markets prior to the date of conversion. The note was funded on October 22, 2018, when the Company received
proceeds of $75,000 after disbursements for the lender’s transaction costs, fees and expenses of $3,000, which were recorded
as discounts against the debt to be amortized into interest expense through maturity. The embedded conversion feature included
in the note resulted in an initial debt discount and derivative liability of $57,700. For the year ended December 31, 2019, the
investor converted a total of $26,960 of the face value into 2,327 shares of common stock. For the year ended December 31, 2019,
amortization of the debt discounts of $47,783 was charged to interest expense. On June 7, 2019, pursuant to a Note Assignment Agreement,
the investor sold the remaining principal balance of $51,040, accrued and unpaid interest of $5,546 and a repayment balance of
$20,414 to third party investor, for a total purchase price of $77,000. As of December 31, 2019, and 2018, the outstanding principal
balance to the initial noteholder of the note was $-0- and $78,000, respectively with a carrying value as of December 31, 2018,
of $30,217, net of unamortized discounts of $47,783. On November 15, 2018, the Company issued a
12% convertible promissory note, (the “Note”) in the principal amount of $500,000, pursuant to a Securities Purchase
Agreement we entered into with the investor. The Note matures November 15, 2019. The Note is convertible into shares of the Company’s
common stock beginning on the date which is 180 days from the issuance date of the Note, at a conversion price equal to the lesser
of (1) the lowest trading price during the previous 20 trading day period ending on the last completed trading date prior to the
date of the Note and (2) 65% multiplied by the average of the 3 lowest trading prices of the Company’s common stock during
the 20 day trading period ending on the latest completed trading day of the common stock prior to the date of conversion of the
Note. Pursuant to the Note, the Company agreed to include on its next registration statement filed with the Securities and Exchange
Commission, all shares issuable upon conversion of the Note. Pursuant to the Security Agreement, all of the obligations under the
Note are secured by a first security interest in and to all of the Company’s rights, title and interests in, to and under
all assets and all personal property of the Company. The Security Agreement includes customary representations, warranties and
covenants by the Company. The note was funded on November 19, 2018, when the Company received proceeds of $458,500 after OID of
$37,500, and disbursements for the lender’s transaction costs, fees and expenses of $4,000, which were recorded as discounts
against the debt to be amortized into interest expense through maturity. The embedded conversion feature included in the note resulted
in an initial debt discount and derivative liability of $363,806. For the year ended December 31, 2019, amortization of the debt
discounts of $353,006 was charged to interest expense. For the year ended December 31, 2019, the investor converted a total of
$54,640 of the face value and $61,943 of accrued interest and fees into 73,886 shares of common stock. As of December 31, 2019,
and 2018, the outstanding principal balance of the note was $445,360 and $500,000, respectively, with a carrying value as of December
31, 2019, and 2018, of $445,360 and $146,994, respectively, net of unamortized discounts as of December 31, 2018, of $353,006. On December 5, 2018, the Company issued a 12%
convertible promissory note, (the “Note”) in the principal amount of $63,000, pursuant to a Securities Purchase Agreement
we entered into with the investor. The Note matures 12 months after the date of issuance. The Note is convertible into shares of
the Company’s common stock beginning on the date which is 180 days from the issuance date of the Note, at a conversion price
equal to 65% multiplied by the average of the lowest two trading prices during the 15- trading day period ending on the last completed
trading date in the OTC Markets prior to the date of conversion. The note was funded on December 10, 2018, when the Company received
proceeds of $60,000 after disbursements for the lender’s transaction costs, fees and expenses of $3,000, which were recorded
as discounts against the debt to be amortized into interest expense through maturity. The embedded conversion feature included
in the note resulted in an initial debt discount and derivative liability of $47,170. On June 5, 2019, pursuant to a Note Assignment
Agreement, the investor sold the principal balance of $63,000, accrued and unpaid interest of $3,708 and a repayment balance of
$26,683 to third party investor, for a total purchase price of $93,391 (see below). For the year ended December 31, 2019, amortization
of the debt discounts of $46,330 was charged to interest expense. As of December 31, 2019, and 2018, the outstanding principal
balance to the initial noteholder of the note was $-0- and $63,000, respectively, with a carrying value as of December 31, 2018,
of $16,670, net of unamortized discounts of $46,330. On January 7, 2019, the Company issued an 8%
convertible promissory note, (the “Note”) in the principal amount of $150,000, pursuant to a Securities Purchase Agreement
we entered into with the investor. The Note matures January 7, 2020. The Note is convertible into shares of the Company’s
common stock beginning on the date which is 180 days from the issuance date of the Note, at a conversion price equal to the lesser
of (1) the lowest trading price during the previous 20 trading day period ending on the last completed trading date prior to the
date of the Note and (2) 65% multiplied by the average of the 3 lowest trading prices of the Company’s common stock during
the 20 day trading period ending on the latest completed trading day of the common stock prior to the date of conversion of the
Note. The note was funded on January 9, 2019, when the Company received proceeds of $133,250 after OID of $14,000, and disbursements
for the lender’s transaction costs, fees and expenses of $2,750, which were recorded as discounts against the debt to be
amortized into interest expense through maturity. The embedded conversion feature included in the note resulted in an initial debt
discount and derivative liability of $111,500. For the year ended December 31, 2019, amortization of the debt discounts of $125,834
was charged to interest expense. As of December 31, 2019, the outstanding principal balance of the note was $150,000 with a carrying
value of $147,584, net of unamortized discounts of $2,416. In February 2020, the Note was sold to another third- party investor. On February 5, 2019, the Company issued an
8% convertible promissory note (the “Master Note”) in the aggregate principal amount of up to $165,000 in exchange
for an aggregate purchase price of up to $148,500 with an original issue discount of $16,500 to cover the Investor’s accounting
fees, due diligence fees, monitoring and other transactional costs incurred in connection with the purchase and sale of the Master
Note, which is included in the principal balance of the Note. On February 8, 2019, the Investor funded the first tranche under
the Master Note, with a maturity date of February 8, 2020, and the Company received $49,500 ($47,500 after payment of $2,000 of
the Investor’s legal fees) for this first tranche of $55,000 under the Master Note and on the same date, the Company issued
the Note to the Investor. The Note is convertible into shares of the Company’s common stock, beginning on the date which
is 180 days from the issuance date of the Master Note, at a conversion price equal to the lesser of (1) the lowest trading price
during the previous 20 trading day period ending on the last completed trading date prior to the date of conversion of the Master
Note and (2) 65% multiplied by the average of the 3 lowest trading prices of the Company’s common stock during the 20 day
trading period ending on the latest completed trading day of the common stock prior to the date of conversion of the Master Note.
The embedded conversion feature included in the Master Note resulted in an initial debt discount and derivative liability of $38,502.
For the year ended December 31, 2019, amortization of the debt discounts of $41,506 was charged to interest expense. For the year
ended December 31, 2019, the investor converted a total of $45,360 of the face value and $3,000 of fees into 25,050 shares of common
stock. As of December 31, 2019, the outstanding principal balance of the Master Note was $11,640 with a carrying value as of December
31, 2019, of $7,144, net of unamortized discounts of $4,496. The balance of the Note was converted during 2020. In connection with
the issuance of this Note, the Company issued warrants to acquire 36,666 shares of common stock, for a three-year period with an
exercise price of $1,50 per share. On February 21, 2019, the Company issued a
12% convertible promissory note, (the “Note”) in the principal amount of $53,000, pursuant to a Securities Purchase
Agreement we entered into with an investor. The Note matures 12 months after the date of issuance. The Note is convertible into
shares of the Company’s common stock beginning on the date which is 180 days from the issuance date of the Note, at a conversion
price equal to 61% multiplied by the average of the lowest two trading prices during the 15- trading day period ending on the last
completed trading date in the OTC Markets prior to the date of conversion. The note was funded on February 22, 2019, when the Company
received proceeds of $50,000 after disbursements for the lender’s transaction costs, fees and expenses of $3,000, which were
recorded as discounts against the debt to be amortized into interest expense through maturity. The embedded conversion feature
included in the note resulted in an initial debt discount and derivative liability of $44,331. For the year ended December 31,
2019, amortization of the debt discounts of $47,331 was charged to interest expense. For the year ended December 31, 2019, the
investor converted a total of $53,000 of the face value and $3,180 of accrued interest into 9,180 shares of common stock. As of
December 31, 2019, the outstanding principal balance of the note was $-0-. On March 7, 2019, the Company issued a 12%
convertible promissory note, (the “Note”) in the principal amount of $85,000, pursuant to a Securities Purchase Agreement
we entered into with an investor. The Note matures 12 months after the date of issuance. The Note is convertible into shares of
the Company’s common stock, at a conversion price equal to 58% of the average of the two lowest trading prices of the Company’s
common stock for the previous 20 trading day period ending on the date the notice of conversion of the Note is received by the
Company. The note was funded on March 11, 2019, when the Company received proceeds of $77,900 after OID of $3,000, and disbursements
for the lender’s transaction costs, fees and expenses of $4,100, which were recorded as discounts against the debt to be
amortized into interest expense through maturity. The embedded conversion feature included in the note resulted in an initial debt
discount and derivative liability of $77,394. For the year ended December 31, 2019, amortization of the debt discounts of $68,780
was charged to interest expense. For the year ended December 31, 2019, the investor converted a total of $53,200 of the face value
and $3,896 of accrued interest into 22,886 shares of common stock. As of December 31, 2019, the outstanding principal balance of
the note was $31,800 with a carrying value as of December 31, 2019, of $16,086, net of unamortized discounts of $15,714. On May 3, 2019, the Company issued a 12% convertible
promissory note, (the “Note”) in the principal amount of $58,000, pursuant to a Securities Purchase Agreement we entered
into with an investor. The Note matures 12 months after the date of issuance. The Note is convertible into shares of the Company’s
common stock beginning on the date which is 180 days from the issuance date of the Note, at a conversion price equal to 61% multiplied
by the average of the lowest two trading prices during the 15- trading day period ending on the last completed trading date in
the OTC Markets prior to the date of conversion. The note was funded on May 6, 2019, when the Company received proceeds of $55,000
after disbursements for the lender’s transaction costs, fees and expenses of $3,000, which were recorded as discounts against
the debt to be amortized into interest expense through maturity. The embedded conversion feature included in the note resulted
in an initial debt discount and derivative liability of $46,492. For the year ended December 31, 2019, amortization of the debt
discounts of $49,492 was charged to interest expense. On October 29, 2019, the Company paid $82,822 in full settlement of the Note.
As of December 31, 2019, the outstanding principal balance of the note was $-0-. On May 7, 2019, the Company issued to a third-party
investor a convertible redeemable promissory note (the “Note”) with a face value of $52,500, including an original
issue discount of $2,500. The note matures on February 7, 2020, has a stated interest of 12% and is convertible into a variable
number of the Company’s common stock, based on a conversion ratio of 58% of the average of the two lowest trading prices
for the 20 days prior to conversion. The note was funded on May 8, 2019, when the Company received proceeds of $47,500, after disbursements
for the lender’s transaction costs, fees and expenses of $5,000, which were recorded as discounts against the debt to be
amortized into interest expense through maturity. The embedded conversion feature included in the note resulted in an initial debt
discount and derivative liability of $46,157. For the year ended December 31, 2019, amortization of the debt discounts of $51,157
was charged to interest expense. On November 1, 2019, the Company paid $77,837 in full settlement of the convertible promissory
note dated May 7, 2019. As of December 31, 2019, the outstanding principal balance of the note was $-0-. The Company received the funding of the second
tranche on May 10, 2019, in an amount of $23,500 (the “Second Tranche”) under the $165,000 Master Note issued by the
Company on February 5, 2019, after disbursements for the lender’s transaction costs, fees and expenses of $4,000, which were
recorded as discounts against the debt to be amortized into interest expense through maturity. The Company also issued a warrant
(the “Warrant”) to purchase 18,333 shares of the Company’s common stock at an exercise price of $1.50 for a term
of three (3) years to the Master Noteholder. The embedded conversion feature included in the note resulted in an initial debt discount
and derivative liability of $18,262. For the year ended September 30, 2019, amortization of the debt discounts of $22,262 was charged
to interest expense. On November 1, 2019, the Company paid $41,580 in full settlement of the Second Tranche. As of December 31,
2019, the outstanding principal balance of the Second Tranche was $-0-. On May 29, 2019, the Company issued a 12% convertible
promissory note, (the “Note”) in the principal amount of $80,000, pursuant to a Securities Purchase Agreement we entered
into with an investor. The Note matures 12 months after the date of issuance. The Note is convertible into shares of the Company’s
common stock, at a conversion price equal to 58% of the average of the two lowest trading prices of the Company’s common
stock for the previous 20 trading day period ending on the date the notice of conversion of the Note is received by the Company.
The note was funded on March 29, 2019, when the Company received proceeds of $73,300 after OID of $2,800, and disbursements for
the lender’s transaction costs, fees and expenses of $3,900, which were recorded as discounts against the debt to be amortized
into interest expense through maturity. The embedded conversion feature included in the note resulted in an initial debt discount
and derivative liability of $70,418. For the year ended December 31, 2019, amortization of the debt discounts of $45,097 was charged
to interest expense. As of December 31, 2019, the outstanding principal balance of the note was $80,000 with a carrying value of
$47,979, net of unamortized discounts of $32,021. On June 5, 2019, an investor (the “Purchaser”)
pursuant to an Assignment Agreement, purchased a convertible note issued by the Company on December 5, 2018 (see above). The Purchaser
paid $93,391 to acquire the note. The Note matures 12 months after the date of issuance. The Note is convertible into shares of
the Company’s common stock beginning on the date which is 180 days from the issuance date of the Note, at a conversion price
equal to 65% multiplied by the average of the lowest two trading prices during the 15- trading day period ending on the last completed
trading date in the OTC Markets prior to the date of conversion. The embedded conversion feature pursuant to the Assignment Agreement
resulted in an initial debt discount and derivative liability of $59,909. For the year ended December 31, 2019, amortization of
the debt discounts of $59,909 was charged to interest expense. As of December 31, 2019, the outstanding principal balance of assigned
note was $93,391. On June 7, 2019, an investor (the “Purchaser”)
pursuant to an Assignment Agreement, purchased a convertible note issued by the Company on October 19, 2018 (see above). The Purchaser
paid $77,000 to acquire the note. The Note matures 12 months after the date of issuance. The Note is convertible into shares of
the Company’s common stock beginning on the date which is 180 days from the issuance date of the Note, at a conversion price
equal to 65% multiplied by the average of the lowest two trading prices during the 15- trading day period ending on the last completed
trading date in the OTC Markets prior to the date of conversion. The embedded conversion feature pursuant to the Assignment Agreement
resulted in an initial debt discount and derivative liability of $49,335. For the year ended December 31, 2019, amortization of
the debt discounts of $49,335 was charged to interest expense. As of December 31, 2019, the outstanding principal balance of assigned
note was $77,000. On July 22, 2019, the Company issued a 10%
convertible promissory note, (the “Note”) in the principal amount of $38,900, pursuant to a Securities Purchase Agreement
we entered into with an investor. The Note matures 12 months after the date of issuance. The Note is convertible into shares of
the Company’s common stock, at a conversion price equal to 60% of the lowest closing bid price of the Company’s common
stock for the previous 20 trading day period ending on the date the notice of conversion of the Note is received by the Company.
The note was funded on July 24, 2019, when the Company received proceeds of $30,000 after OID of $3,900, and disbursements for
the lender’s transaction costs, fees and expenses of $5,000, which were recorded as discounts against the debt to be amortized
into interest expense through maturity. The embedded conversion feature included in the note resulted in an initial debt discount
and derivative liability of $31.452. For the year ended December 31, 2019, amortization of the debt discounts of $17,765 was charged
to interest expense. As of December 31, 2019, the outstanding principal balance of the note was $38,900 with a carrying value of
$16,313, net of unamortized discounts of $22,587. On August 2, 2019, the Company issued a 12%
convertible promissory note, (the “Note”) in the principal amount of $157,500, pursuant to a Securities Purchase Agreement
we entered into with an investor. The Note matures 12 months after the date of issuance. The Note is convertible into shares of
the Company’s common stock beginning on the date which is 180 days from the issuance date of the Note, at a conversion price
equal to 60% multiplied by the average of the lowest two trading prices during the 20 trading day period ending on the last completed
trading date in the OTC Markets prior to the date of conversion. The note was funded on August 2, 2019, when the Company received
proceeds of $150,000 after disbursements for the lender’s transaction costs, fees and expenses of $7,500, which were recorded
as discounts against the debt to be amortized into interest expense through maturity. The embedded conversion feature included
in the note resulted in an initial debt discount and derivative liability of $125,982. For the year ended December 31, 2019, amortization
of the debt discounts of $55,638 was charged to interest expense. As of December 31, 2019, the outstanding principal balance of
the note was $157,500 with a carrying value of $79,656, net of unamortized discounts of $77,844. On August 21, 2019, the Company issued a 12%
convertible promissory note, (the “Note”) in the principal amount of $55,125, pursuant to a Securities Purchase Agreement
we entered into with an investor. The Note matures 12 months after the date of issuance. The Note is convertible into shares of
the Company’s common stock beginning on the date which is 180 days from the issuance date of the Note, at a conversion price
equal to 58% multiplied by the average of the lowest two trading prices during the 20- trading day period ending on the last completed
trading date in the OTC Markets prior to the date of conversion. The note was funded on August 21, 2019, when the Company received
proceeds of $50,000 after OID of $2,625, and disbursements for the lender’s transaction costs, fees and expenses of $2,500,
which were recorded as discounts against the debt to be amortized into interest expense through maturity. The embedded conversion
feature included in the note resulted in an initial debt discount and derivative liability of $47,117. For the year ended December
31, 2019, amortization of the debt discounts of $18,763 was charged to interest expense. As of December 31, 2019, the outstanding
principal balance of the note was $55,125 with a carrying value of $21,646, net of unamortized discounts of $33,479. On August 19, 2019, the Company issued an 8%
convertible promissory note, (the “Note”) in the principal amount of $85,000, pursuant to a Securities Purchase Agreement
we entered into with the investor. The Note matures May 19, 2020. The Note is convertible into shares of the Company’s common
stock beginning on the date which is 180 days from the issuance date of the Note, at a conversion price equal to the lesser of
(1) the lowest trading price during the previous 20 trading day period ending on the last completed trading date prior to the date
of the Note and (2) 65% multipli |
