| CONVERTIBLE NOTES PAYABLE AND ADVISORY FEE LIABILITIES | NOTE
9 - CONVERTIBLE NOTES PAYABLE AND ADVISORY FEE LIABILITIES Senior
Secured Credit Facility Note On
September 13, 2016, the Company entered into a senior secured credit facility note with an investment fund for the acquisition
of Howco. The Company can borrow up to $6,500,000, subject to lender approval, with an initial convertible promissory note at
closing of $3,500,000 (the "Note"). The Note bears interest at a rate of 18% per annum, required monthly payments
of $52,500, which is interest only, starting on October 13, 2016 through February 13, 2017, and monthly payments, including interest
and principal, of $298,341 starting on March 13, 2017 through maturity on March 13, 2018. In the event of default the Note balance
will bear interest at 25% per annum. In connection with this Agreement, the Company was obligated to pay additional advisory fees
of $850,000 payable in the form of cash or common stock in accordance with the terms of the Agreement. The Company was also required
to reserve 7,000 shares of common stock related to this transaction. The reserved shares will be released upon the satisfaction
of the loan. As
of March 31, 2020 and September 30, 2019, the Company had issued 539, shares of common stock in satisfaction of the $850,000 advisory
fee in accordance with the terms of the agreement, such shares being issued in September 2016. The proceeds from the sale of the
539, shares were to be applied to the $850,000 advisory fee due. Based upon the value of the shares, at the time the lender sells
the shares, the Company may be required to redeem unsold shares for the difference between the $850,000 and the lender's
sales proceeds. Accordingly, the $850,000 was reflected as a current liability through December 31, 2017. In January 2018, in
connection with a settlement agreement (see below), the accrued advisory fee was reclassified to the principal balance of the
replacement Convertible Note. Through the date of the settlement agreement and through September 30, 2019 and March 31, 2020,
the lender had not reported any proceeds from the sale of these shares (see below). Prior to the settlement agreement in January
2018, notwithstanding anything contained in the Agreement to the contrary, in the event the Lender has not realized net proceeds
from the sale of Advisory Fee Shares equal to at least the Advisory Fee by the earlier to occur of: (A) September 13, 2017; (B)
the occurrence of an Event of Default; or (C) the Maturity Date, then at any time thereafter, the Lender shall have the right,
upon written notice to the Borrower, to require that the Borrower redeem all Advisory Fee Shares then in Lender's possession
for cash equal to the Advisory Fee, less any cash proceeds received by the Lender from any previous sales of Advisory Fee Shares,
if any within five (5) Business Days from the date the Lender delivers such redemption notice to the Borrower. The
Note is only convertible upon default or mutual agreement by both parties at a conversion rate of 85% of the lowest of the daily
volume weighted average price of the Company's common stock during the 5 business days immediately prior to the conversion
date. At any time and from time to time while this Note is outstanding, but only upon: (i) the occurrence of an Event of Default
under any of the Loan Documents; or (ii) mutual agreement between the Company and the Holder, this Note may be, at the sole option
of the Holder, convertible into shares of the Company's common stock, in accordance with the terms and conditions of the
Note Upon liquidation by the Holder of Conversion Shares issued pursuant to a conversion notice, provided that the Holder realizes
a net amount from such liquidation equal to less than the conversion amount specified in the relevant conversion notice , the
Company shall issue to the Holder additional shares of the Company's common stock equal to: (i) the Conversion Amount specified
in the relevant conversion notice; minus divided by
Once
a default occurs, the Note and the $850,000 advisory fee payable will be accounted for as stock settled debt at its fixed monetary
value. On March 13, 2017 the Company defaulted on the monthly principal and interest payment of $298,341. Due to this default,
as of June 30, 2017, the Company has accounted for the embedded conversion option as stock settled debt and recorded a debt premium
of $617,647 with a charge to interest expense, and the interest rate increased to 25% (default rate). On
March 28, 2017, the Company entered into an additional agreement with the above senior secured credit facility lender to receive
a range of advisory services for a total of $1,200,000 with no definitive terms or length of service which was expensed in fiscal
2017 and had been recorded as an accrued liability – advisory fees through December 31, 2017. In connection with the settlement
agreement discussed below, in January 2018, the advisory services fees payable were reclassified to the principal balance of the
replacement Convertible Note. On
January 3, 2018, the Company entered into a settlement agreement (the "Settlement Agreement") and replacement note agreements
with the investment fund related to a senior secured credit facility note dated September 13, 2016. On the effective date of the
Settlement Agreement, all amounts owed to the investment fund aggregated $5,788,642 and consisted of a convertible promissory
note of $3,500,000, accrued interest payable of $238,642, and accrued advisory fees payable of $2,050,000. On the effective date
of the Settlement Agreement, the amount due of $5,788,642 was split and apportioned into two separate replacement notes ("Replacement
Note A" and Note B"). Replacement Note A had a principal amount of $1,000,000 and Replacement Note B had a principal balance of
$4,788,642, both of which remained secured by the original security , pledge and guarantee agreements; and other applicable loan
documents, and bear interest at 18% per annum. The default was not waived by this settlement agreement. The Company originally
recorded a premium on stock settled debt of $617,647 on the $3,500,000, and subsequent to the settlement agreement recorded an
additional premium on stock settled debt of $403,878 on the additional $2,288,642 for accrued interest and advisory fees payable
that were capitalized as note principal. The interest rate was amended to 12% effective June 12, 2018. The
Credit Agreement was amended such that the maturity date was extended to January 13, 2019 (the "Extended Maturity Date")
for replacement Note B, while the Note A maturity date remained at March 13, 2018 but was due as of March 2017 due to the principal
and interest payment default discussed above. Notwithstanding anything contained in this Agreement to the contrary, all obligations
owing by the Company and all other Credit Parties under the Credit Agreement, First Replacement Note B, and all other Loan Documents
shall be paid in full by the Extended Maturity Date as follows: $52,500 per month from January 13, 2018 to December 13, 2018 and
the remaining principal and accrued interest on January 13, 2019. Interest payments made since the amendment have totaled $323,440
and are therefore not in accord with that amendment. However, TCA has received payments under the 3(a)(10) settlement (below)
totaling $308,100 during the year ended September 30, 2018, and another $270,320, during the year ended September 30, 2019. The
principal balance was $4,788,642 at September 30, 2018. On
October 30, 2018, TCA the Company's senior lender amended its credit facility which had been restructured in January 2018
when fees for advisory and other matters along with accrued but unpaid interest were capitalized and separated into two notes,
Note A having $1,000,000 principal and Note B having $4,788,642 both having the same maturity terms, interest rates and conversion
rights. Under the current amendment total amounts outstanding under the notes along with accrued interest of $537,643 has been
capitalized with the principal amount due of $6,018,192, $5,326,285 for Note B and $691,907 for Note A. The restated note has
the same conversion price discount and therefore continues to be stock settled debt under ASC 480, an additional $94,878 was charged
to interest with a credit to debt premium. The restated note accrues interest on the principal balance at 12% per annum, includes
amortization to the new maturity date of December 15, 2020. The amortization payments credited toward the principal amount and
accrued interest vary and include payments made under the 3(a)(10) settlement agreement with a third party related to Note A.
Economically the total principal and accrued interest outstanding remain unchanged as reported in the consolidated balance sheet.
All other terms including conversion rights and a make-whole provision in the case of a conversion shortfall remain the same as
stated in the footnotes above. On
September 6, 2019, the Company received a default notice on its payment obligations under the senior secured credit facility agreement
from TCA. The Company has proposed a number of solutions including refinancing the debt with other parties. The default was declared
due to non-payment of monthly scheduled amortization (principal and interest). TCA holds security interests in all assets of the
Company including its subsidiary Howco. At
March 31, 2020 the principal of the Note B portion was $5,326,285, accrued interest was $779,672 and the Note A principal subject
to the 3(a)(10) court order was $421,587. During the six months ended March 31, 2020, the Company has not paid interest or principal
and Livingston Asset Management (under the 3(a)(10) settlement) has not made any payments to TCA. On
November 15, 2017, the Company executed a Liability Purchase Term Sheet with Livingston Asset Management ("Livingston")
under which Livingston agreed to purchase up to $10,000,000 that the Company owes to its creditors through direct purchase of
the debts from the Company's creditors in return for a convertible note issued by the Company in the principal amount of
$50,000 bearing interest of 10% per year to cover certain legal fees and other expenses of Livingston. The note matures in six
months and is convertible into shares of our common stock at a 30% reduction off the lowest closing bid price for 20 trading days
prior to the date of conversion. Livingston has the right to retain 30% of any negotiated reduction off the face amount of the
liability the Company owes to such creditors. The Company has accounted for the convertible promissory note as stock settled debt
under ASC 480 and recorded a debt premium of $21,428 with a charge to interest expense. The note and accrued interest were fully
converted as of September 30, 2018 for 18,163, common shares. Debt premium of $21,428 was charged to additional paid in capital. On
January 30, 2018 pursuant to the Liability Purchase Term Sheet, the TCA Replacement Note A in the principal amount of $1,000,000
was purchased by Livingston Asset Management LLC ("Livingston") from the original lender. Principal of Replacement
Note A is due to Livingston with all then accrued but unpaid interest due to the original lender. In accordance with the terms
of the Settlement Agreement, the Court was advised of Company's intention to rely upon the exception to registration set
forth in Section 3(a)(l0) of the Securities Act to support the issuance of its common shares and the Court held a fairness hearing
regarding the issuance on March 12, 2018. Following entry of an Order by the Court which occurred on March 12, 2018, in settlement
of the claims, the Company shall issue and deliver to Livingston shares of its common stock (the "Settlement Shares")
in one or more tranches as necessary, and subject to adjustment and ownership limitations as set forth in the Settlement Agreement,
sufficient to generate proceeds such that the aggregate Remittance Amount equals the Claim Amount. The Company will issue free
trading shares of its common stock under section 3(a)(10) of the Securities Act to Livingston in the amount of such judgment in
a series of tranches so that Livingston will not own more than 9.99% of our outstanding shares per tranche. The parties reasonably
estimate that the fair market value of the Settlement Shares to be received by Livingston is equal to approximately $1,666,667
which is based on a discount of 40%. In
the six months ended March 31, 2020, there were no 3(a)(10) issuances. As of March 31, 2020, there have been seventeen issuances
under section 3(a)(10) of the Securities Act totaling 1,374,885 shares; 1,273,261, in 2019, and 101,624, in 2018, which have been
recorded at par value with an equal charge to additional paid-in capital. On November 17, 2019, 194,520 of the shares issued under
the 3(a)(10) were cancelled at the request of Livingston. The value originally recorded as a liability remains in the convertible
note balance, until these shares have been sold and reported to the Company by the lender as part of the Make-Whole provision
at which time the proceeds value of such shares are reclassified to additional paid-in capital. During the year ended September
30, 2019, proceeds of $270,320 were remitted to TCA by Livingston and applied to reduce the liability with corresponding credits
to additional paid in capital. $180,618 of debt premium was credited to additional paid in capital in conjunction with the payments
to TCA. At March 31, 2020 the balance of $421,587 along with related debt premium of $281,054 are included in convertible notes
payable on the balance sheet. On March 7, 2018 the Company entered
into a placement agent and advisory agreement with Scottsdale Capital Advisors in connection with the Livingston liability purchase
term sheet executed on November 15, 2017. The placement agent services fee amounted to $15,000 payable to Scottsdale Capital Advisors
in the form of a convertible note. The note matures six months from the date of issuance and shall accrue interest at the rate
of 10% per annum. The $15,000 note is convertible into shares of the Company's common stock at a discount of 30% of the
low closing bid price for the twenty trading days prior to the conversion and is not subject to any registration rights. The Company
has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $6,429 with
a charge to interest expense. The note has not been converted and the principal balance is $15,000, at both March 31, 2020 and
September 30, 2019, with $3,541, and $2,789, of accrued interest, respectively. As the note has matured it is technically in default.
Under the terms of the note no default interest or penalties accrue. Other
Convertible Debt On
November 9, 2017, the Company received a first tranche payment of $75,500 under the terms of a Securities Purchase Agreement dated
October 25, 2017, with Crown Bridge Partners, LLC ("Crown Bridge") under which the Company issued to Crown Bridge
a convertible note in the principal amount of $105,000 and a five-year warrant to purchase 100, shares of the Company's
common stock at an exercise price of $350, as a commitment fee which is equal to the product of one-third of the face value of
each tranche divided by $350. Under the terms of the note Crown Bridge was to receive "right of first refusal" for
any subsequent loans or notes to fund the Company. The Company violated this covenant when funding was received from other sources
without offering Crown Bridge the opportunity to participate. On December 20, 2017 the Company cured this covenant violation by
issuing 200, additional warrants have the same exercise price and terms of the original warrants. The warrants have full ratchet
price protection and cashless exercise rights. The
convertible note (the "Note") issued to Crown Bridge in the principal amount of $105,000, has an original issue discount
of $10,500 and issue costs of $19,000 both of which are recorded as debt discount along with the warrant relative fair value of
$12,507 for the original 100, warrants and $31,529 for the penalty warrants to be amortized over the twelve month term of this
tranche, bears interest of 10% (12% default rate) per annum, and has a maturity date of 12 months from the date of each tranche
of payments under the Note with future tranches being at the discretion of Crown Bridge. The conversion rate for any conversion
of unpaid principal and interest under the Notes is at a 35% discount to the lowest market price of the shares of the Company's
common stock within a 20 day trading period prior to the date of conversion to which an additional 10% discount will be added
if the conversion price of the Company's common stock is less than $50, per share and no shares of the Company's common
stock can be issued to the extent Crown Bridge would own more than 4.99% of the outstanding shares of the Company's common
stock and the conversion shares contain piggy-back registration rights. The Note is subject to customary default provisions including
an event of default if the bid price of the Company's common stock is less than its par value of $.0001 per share. The Company
is entitled to prepay the Note between 30 days after its issuance until 180 days from its issuance at amounts that increase from
112% of the prepayment amount to 137% of the prepayment amount depending on the length of time when prepayments are made. The
Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $56,538
with a charge to interest expense. As of September 30, 2018 the note holder fully converted principal and accrued interest into
common shares. The debt premium on stock settled debt was fully recognized as additional paid in capital. On
March 1, 2019, the Company received a second tranche advance under the Crown Bridge Partners, LLC, master note dated October 25,
2017, for principal amount of $35,000, including covered fees and original issue discount totaling $5,000. Under the conversion
terms of the above note, the holder is entitled to a 35% discount plus an additional 10% discount based on the conversion rights
of certain other note holders. Therefore a discount of 45% is assumed for any conversions of this note tranche. The Company has
accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $28,636 with
a charge to interest expense. The original issue discount and fees charged were treated as debt discount and will be amortized
to financing expenses over the term of the note. Following a conversion on October 29, 2019, for 155,000, shares of common stock
the principal balance and debt premium balances were reduced by $5,700, and $6,840, respectively and the unamortized debt discount
was $0, at March 31, 2020, principal was $29,300, and accrued interest was $4,401. On August 29, 2018 the Company entered
into an agreement with a legal firm to provide securities related and other legal services. Under the agreement the Company will
issue convertible notes with varying principal amounts for services. The first note was issued on August 29, 2018, for $6,000,
interest of 12%, and a maturity date of February 28, 2018. The conversion feature allows for conversion into common shares at
the lesser of: a) 70% of the share price on the date of the note; or b) 50% of the lowest bid price during the 30 trading days
preceding the date of the notice of conversion. In connection with the issuance of this Note, the Company determined that the
terms of the Note contain a conversion formula that caused variations in the conversion price resulting in the treatment of the
conversion option as a bifurcated derivative to be accounted for at fair value. Accordingly, under the provisions of FASB ASC
Topic No. 815-40, "Derivatives and Hedging – Contracts in an Entity's Own Stock", the embedded conversion
option contained in the convertible instruments were accounted for as derivative liabilities at the date of issuance and shall
be adjusted to fair value through earnings at each reporting date. The fair values of the embedded conversion option derivatives
were determined using the Binomial valuation model. $10,435 was recognized as derivative liability with $6,000 charged to debt
discount and $4,035 charged to derivative expense on issuance. The debt discount of $6,000 will be amortized to interest expense
to the maturity date of the note. At March 31, 2019 the derivative fair value was determined to have decreased to $8,881. As the
note reached its maturity date no further fair value adjustments will be recorded. For the nine months ended June 30, 2019, the
$5,000, balance of the debt discount was charged to interest expense and debt discount balances was $0. The following notes have
been issued to the law firm, each having six month term to maturity and 12% annual interest but a change in the conversion terms
such that a fixed discount of 50% of the lowest bid price in the 30 trading days immediately preceding the notice of conversion.
The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded debt premiums equal
to the face value of the notes with a charge to interest expense. The note principal amount was charged to professional fees during
the month the note was issued. All notes issued prior to September 30, 2019, have reached their maturity and therefore are in
technical default have a default interest rate of 18%. September
4, 2018, $10,000 – Sold and assigned to Trillium Partners LP; September
18, 2018, $6000– Sold and assigned to Trillium Partners LP, as of March 31, 2020, $ 697 of principal has been converted
leaving a balance of $5,303; October
18, 2018, $6,000 – Sold and assigned to Trillium Partners LP; November
18, 2018, $6,000 – Sold and assigned to Trillium Partners LP; December
18, 2018, $6,000 – Sold and assigned to Trillium Partners LP; January
18, 2019, $6,000; February
18, 2019, $6,000; March
18, 2019, $6,000; April
18, 2019, $6,000; May
18, 2019, $6,000; June
18, 2019, $6,000; July
18, 2019, $6,000; August
18, 2019, $6,000; September
18, 2019, $6,000; October
18, 2019, $6,000; November
18, 2019, $6,000; December
18, 2019, $6,000; January
18, 2020, $6,000; and March
18, 2020, $6,000. With
the exception of the note issued on September 18, 2018 (as described above) none of the other notes issued for legal services
have been converted and the total accrued interest due is $12,598 at March 31, 2020, of which $4,818 is owed to Trillium Partners
LP and $7,780, is owed to the attorney. On November 13, 2018, the Company issued
a convertible promissory note for $90,000 to a vendor in settlement of approximately $161,700 of past due amounts due for services.
The note bears interest at 5%, matures on June 30, 2019 and is convertible into the Company's common stock at 50% of the
lowest closing bid price during the 20 trading days immediately preceding the notice of conversion. The note matured on June 30,
2019, there is no default penalty associated with the note. The Company has accounted for the convertible promissory note as stock
settled debt under ASC 480 and recorded debt premium $90,000 with a charge to interest expense for the notes. The unconverted
principal, premium and accrued interest were $90,000, $90,000, and $9,503 as of March 31, 2020. On
March 4, 2019, the Company issued a convertible promissory note to Redstart Holdings Corporation in the amount of $78,000. The
note bears interest at 10%, matures on December 31, 2019, includes legal fees of $3,000 and is convertible at 35% discount to
the average of the lowest two prices observed in the 15 days prior to the issuance of a conversion notice. The Company has accounted
for the convertible promissory note as stock settled debt under ASC 480 and recorded debt premium $42,000 with a charge to interest
expense for the notes. The fees charged were treated as debt discount and will be amortized to financing expenses over the term
of the note. During the three months ended December 31, 2019, Redstart converted principal totaling $15,000, into 214,286, shares
of common stock. On December 31, 2019, the Company received a default notice and demand for payment of the amounts due under this
convertible note. The Company recognized the default penalty of $31,500, as additional principal along with the calculated put
premium of $22,810, with charges to interest expense. During the three months ended March 31, 2020, Redstart converted principal
of $1,600, into 158,416, shares of common stock. The principal, premium and accrued interest balances were $92,900, $56,071, and
$9,014, and debt discount was fully amortized, at March 31, 2020. On
July 12, 2019, the Company issued a convertible promissory note to Trillium Partners LP for cash in the amount of $10,000. The
note bears interest at 10%, matures on January 11, 2020, and is convertible into the Company's common stock at 50% of the
lowest closing bid price on the 20 trading days immediately preceding the notice of conversion. The Company has accounted for
the convertible promissory note as stock settled debt under ASC 480 and recorded debt premium $10,000 with a charge to interest
expense for the notes. The note balance and premium were $10,000 and accrued interest was $830, at March 31, 2020. (refer to amendments
below) Note
Amendments, Assignments and Restatements Livingston
Asset Management LLC – Fee Notes On
June 1, 2018 the Company entered into a consulting and services arrangement with Livingston Asset Management. The arrangement
provided for financial management services including accounting and related periodic reporting among other advisory services.
Under the agreement the Company issued to Livingston Asset Management convertible fee notes having principal of $12,500, interest
of 10% per annum, maturity of six or seven months. The notes were convertible into common shares at a discount of 50% to the lowest
bid price in the 30 trading days immediately preceding the notice of conversion. The Company accounted for the convertible promissory
note as stock settled debt under ASC 480 and recorded a debt premium of $12,500 with a charge to interest expense for each note.
The note principal was charged to professional fees for each corresponding service month. The consulting and services arrangement
with Livingston Asset Management was amended on July 1, 2019. The amendment increased the monthly fee to be $20,000, with $17,000,
as monthly convertible note and $3,000, of cash due on the first of each month. On
November 1, 2019, Livingston Asset Management LLC, amended the terms of the monthly fee notes issued between December 1, 2018
through September 30, 2019, totaling $136,375, in principal such that the notes are no longer convertible into common stock. The
principal balance of $136,375 was reclassified to notes and loans payable and the related put premiums totaling $136,375 were
recognized as gains on debt extinguishment on the date of the amendment. (Refer to Note 16) The
$85,375 of principal from the Livingston Asset Management LLC notes issued December 1, 2018 through June 1, 2019, along with $8,475
of accrued interest were sold and assigned to Alpha Capital Anstalt, on February 20, 2020. The assigned notes became convertible
as of the date of the assignment by virtue of an agreement between the Company and the new note holder. The terms of the notes
provide for conversion of principal and accrued interest at a 50% discount to the lowest closing bid price over the 20 days prior
to conversion. The notes have been accounted for as stock settled debt under ASC 480, and put premium of $93,850 has been recognized
with a charge to interest expense. Trillium
Partners LP – Convertible Note On
July 12, 2019, the Company issued a convertible promissory note to Trillium Partners LP for cash in the amount of $10,000. The
note bears interest at 10%, matures on January 11, 2020, and was convertible into the Company's common stock at 50% of the lowest
closing bid price on the 20 trading days immediately preceding the notice of conversion. The Company accounted for the convertible
promissory note as stock settled debt under ASC 480 and recorded debt premium $10,000 with a charge to interest expense for the
notes. On
November 1, 2019, Trillium Partners LP, amended the terms of the notes issued July 12, 2019, such that the note is no longer convertible
into common stock. The principal balance of $10,000 was reclassified to notes and loans payable and the related put premium totaling
$10,000 was recognized as gains on debt extinguishment on the date of the amendment. The
note issued to Trillium Partners LP, on July 12, 2019 was sold and assigned to Alpha Capital Anstalt on February 20, 2020. The
assigned note became convertible as of the date of the assignment by virtue of an agreement between the Company and the new note
holder. The terms of the note provide for conversion of principal and accrued interest at a 50% discount to the lowest closing
bid price over the 20 days prior to conversion. The note matured on January 11, 2020 and therefore the default interest rate is
24%. The note has been accounted for as stock settled debt under ASC 480, and put premium of $10,395 was recognized with a charge
to interest expense. The
senior secured credit facility note balance and convertible debt balances consisted of the following at March 31, 2020 and September
30, 2019:
March 31, September 30,
Principal $ 6,203,639 $ 6,207,266
Premiums 1,617,849 1,623,445
Unamortized discounts - (2,981 )
$ 7,821,488 $ 7,827,730 For
the six months ended March 31, 2020 and 2019, amortization of debt discount on the above convertible notes amounted to $2,981
and $5,717, respectively. | NOTE 10 - CONVERTIBLE NOTES PAYABLE
AND ADVISORY FEE LIABILITIES Senior Secured Credit Facility Note On September 13, 2016, the Company entered
into a senior secured credit facility note with an investment fund for the acquisition of Howco. The Company can borrow up to $6,500,000,
subject to lender approval, with an initial convertible promissory note at closing of $3,500,000 (the "Note"). The
Note bears interest at a rate of 18% per annum, required monthly payments of $52,500, which is interest only, starting on October
13, 2016 through February 13, 2017, and monthly payments, including interest and principal, of $298,341 starting on March 13, 2017
through maturity on March 13, 2018. In the event of default the Note balance will bear interest at 25% per annum. In connection
with this Agreement, the Company was obligated to pay additional advisory fees of $850,000 payable in the form of cash or common
stock in accordance with the terms of the Agreement. The Company was also required to reserve 7,000 shares of common stock related
to this transaction. The reserved shares will be released upon the satisfaction of the loan. As of September 30, 2019, and 2018, the
Company had issued 539 shares of common stock in satisfaction of the $850,000 advisory fee in accordance with the terms of the
agreement, such shares being issued in September 2016. The proceeds from the sale of the 539 shares were to be applied to the $850,000
advisory fee due. Based upon the value of the shares, at the time the lender sells the shares, the Company may be required to redeem
unsold shares for the difference between the $850,000 and the lender's sales proceeds. Accordingly, the $850,000 was reflected
as a current liability through December 31, 2017. In January 2018, in connection with a settlement agreement (see below), the accrued
advisory fee was reclassified to the principal balance of the replacement Convertible Note. Through the date of the settlement
agreement and through September 30, 2018 and 2019, the lender had not reported any proceeds from the sale of these shares (see
below). Prior to the settlement agreement in January 2018, notwithstanding anything contained in the Agreement to the contrary,
in the event the Lender has not realized net proceeds from the sale of Advisory Fee Shares equal to at least the Advisory Fee by
the earlier to occur of: (A) September 13, 2017; (B) the occurrence of an Event of Default; or (C) the Maturity Date, then at any
time thereafter, the Lender shall have the right, upon written notice to the Borrower, to require that the Borrower redeem all
Advisory Fee Shares then in Lender's possession for cash equal to the Advisory Fee, less any cash proceeds received by the
Lender from any previous sales of Advisory Fee Shares, if any within five (5) Business Days from the date the Lender delivers such
redemption notice to the Borrower. The Note is only convertible upon default
or mutual agreement by both parties at a conversion rate of 85% of the lowest of the daily volume weighted average price of the
Company's common stock during the 5 business days immediately prior to the conversion date. At any time and from time to
time while this Note is outstanding, but only upon: (i) the occurrence of an Event of Default under any of the Loan Documents;
or (ii) mutual agreement between the Company and the Holder, this Note may be, at the sole option of the Holder, convertible into
shares of the Company's common stock, in accordance with the terms and conditions of the Note Upon liquidation by the Holder
of Conversion Shares issued pursuant to a conversion notice, provided that the Holder realizes a net amount from such liquidation
equal to less than the conversion amount specified in the relevant conversion notice , the Company shall issue to the Holder additional
shares of the Company's common stock equal to: (i) the Conversion Amount specified in the relevant conversion notice; minus divided by Once a default occurs, the Note and the
$850,000 advisory fee payable will be accounted for as stock settled debt at its fixed monetary value. On March 13, 2017 the Company
defaulted on the monthly principal and interest payment of $298,341. Due to this default, as of June 30, 2017, the Company has
accounted for the embedded conversion option as stock settled debt and recorded a debt premium of $617,647 with a charge to interest
expense, and the interest rate increased to 25% (default rate). On March 28, 2017, the Company entered
into an additional agreement with the above senior secured credit facility lender to receive a range of advisory services for a
total of $1,200,000 with no definitive terms or length of service which was expensed in fiscal 2017 and had been recorded as an
accrued liability – advisory fees through December 31, 2017. In connection with the settlement agreement discussed below,
in January 2018, the advisory services fees payable were reclassified to the principal balance of the replacement Convertible Note. On January 3, 2018, the Company entered
into a settlement agreement (the "Settlement Agreement") and replacement note agreements with the investment fund related to a
senior secured credit facility note dated September 13, 2016. On the effective date of the Settlement Agreement, all amounts owed
to the investment fund aggregated $5,788,642 and consisted of a convertible promissory note of $3,500,000, accrued interest payable
of $238,642, and accrued advisory fees payable of $2,050,000. On the effective date of the Settlement Agreement, the amount due
of $5,788,642 was split and apportioned into two separate replacement notes ("Replacement Note A" and Note B"). Replacement Note
A had a principal amount of $1,000,000 and Replacement Note B had a principal balance of $4,788,642, both of which remained secured
by the original security , pledge and guarantee agreements; and other applicable loan documents, and bear interest at 18% per
annum. The default was not waived by this settlement agreement. The Company originally recorded a premium on stock settled debt
of $617,647 on the $3,500,000, and subsequent to the settlement agreement recorded an additional premium on stock settled debt
of $403,878 on the additional $2,288,642 for accrued interest and advisory fees payable that were capitalized as note principal.
The interest rate was amended to 12% effective June 12, 2018. The Credit Agreement was amended such that
the maturity date was extended to January 13, 2019 (the "Extended Maturity Date") for replacement Note B, while the
Note A maturity date remained at March 13, 2018 but was due as of March 2017 due to the principal and interest payment default
discussed above. Notwithstanding anything contained in this Agreement to the contrary, all obligations owing by the Company and
all other Credit Parties under the Credit Agreement, First Replacement Note B, and all other Loan Documents shall be paid in full
by the Extended Maturity Date as follows: $52,500 per month from January 13, 2018 to December 13, 2018 and the remaining principal
and accrued interest on January 13, 2019. Interest payments made since the amendment have totaled $323,440 and are therefore not
in accord with that amendment. However, TCA has received payments under the 3(a)(10) settlement (below) totaling $308,100 during
the year ended September 30, 2018, and another $270,320, during the year ended September 30, 2019. The principal balance was $4,788,642
at September 30, 2018. On October 30, 2018, TCA the Company's
senior lender amended its credit facility which had been restructured in January 2018 when fees for advisory and other matters
along with accrued but unpaid interest were capitalized and separated into two notes, Note A having $1,000,000 principal and Note
B having $4,788,642 both having the same maturity terms, interest rates and conversion rights. Under the current amendment total
amounts outstanding under the notes along with accrued interest of $537,643 has been capitalized with the principal amount due
of $6,018,192, $5,326,285 for Note B and $691,907 for Note A. The restated note has the same conversion price discount and therefore
continues to be stock settled debt under ASC 480, an additional $94,878 was charged to interest with a credit to debt premium.
The restated note accrues interest on the principal balance at 12% per annum, includes amortization to the new maturity of December
15, 2020. The amortization payments credited toward the principal amount and accrued interest vary and include payments made under
the 3(a)(10) settlement agreement with a third party related to Note A. Economically the total principal and accrued interest outstanding
remain unchanged as reported in the consolidated balance sheet. All other terms including conversion rights and a make-whole provision
in the case of a conversion shortfall remain the same as stated in the footnotes above. At September 30, 2019 the principal of
the Note B portion was $5,326,285, accrued interest was $460,095 and the Note A principal subject to the 3(a)(10) court order was
$421,587. During the year ended September 30, 2019, the Company paid $155,000, in interest and Livingston Asset Management (under
the 3(a)(10) settlement) paid $270,320 to TCA. On September 6, 2019, the Company received
a default notice on its payment obligations under the senior secured credit facility agreement from TCA. The Company has proposed
a number of solutions including refinancing the debt with other parties. The default was declared due to non-payment of monthly
scheduled amortization (principal and interest). TCA holds security interests in all assets of the Company including its subsidiary
Howco. On November 15, 2017, the Company executed
a Liability Purchase Term Sheet with Livingston Asset Management ("Livingston") under which Livingston agreed to purchase
up to $10,000,000 that the Company owes to its creditors through direct purchase of the debts from the Company's creditors
in return for a convertible note issued by the Company in the principal amount of $50,000 bearing interest of 10% per year to cover
certain legal fees and other expenses of Livingston. The note matures in six months and is convertible into shares of our common
stock at a 30% reduction off the lowest closing bid price for 20 trading days prior to the date of conversion. Livingston has the
right to retain 30% of any negotiated reduction off the face amount of the liability the Company owes to such creditors. The Company
has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $21,428 with
a charge to interest expense. The note and accrued interest were fully converted as of September 30, 2018 for 18,163 common shares.
Debt premium of $21,428 was charged to additional paid in capital. On January 30, 2018 pursuant to the Liability
Purchase Term Sheet, the TCA Replacement Note A in the principal amount of $1,000,000 was purchased by Livingston Asset Management
LLC ("Livingston") from the original lender. Principal of Replacement Note A is due to Livingston with all then accrued
but unpaid interest due to the original lender. In accordance with the terms of the Settlement Agreement, the Court was advised
of Company's intention to rely upon the exception to registration set forth in Section 3(a)(l0) of the Securities Act to
support the issuance of its common shares and the Court held a fairness hearing regarding the issuance on March 12, 2018. Following
entry of an Order by the Court which occurred on March 12, 2018, in settlement of the claims, the Company shall issue and deliver
to Livingston shares of its common stock (the "Settlement Shares") in one or more tranches as necessary, and subject
to adjustment and ownership limitations as set forth in the Settlement Agreement, sufficient to generate proceeds such that the
aggregate Remittance Amount equals the Claim Amount. The Company will issue free trading shares of its common stock under section
3(a)(10) of the Securities Act to Livingston in the amount of such judgment in a series of tranches so that Livingston will not
own more than 9.99% of our outstanding shares per tranche. The parties reasonably estimate that the fair market value of the Settlement
Shares to be received by Livingston is equal to approximately $1,666,667 which is based on a discount of 40%. As of September 30, 2019, there have been
seventeen issuances under section 3(a)(10) of the Securities Act totaling 1,374,885 shares; 1,273,261 in 2019, and 101,624 in 2018,
which have been recorded at par value with an equal charge to additional paid-in capital. The value originally recorded as a liability
remains in the convertible note balance, until these shares have been sold and reported to the Company by the lender as part of
the Make-Whole provision at which time the proceeds value of such shares are reclassified to additional paid-in capital. During
the year ended September 30, 2019, proceeds of $270,320 were remitted to TCA by Livingston and applied to reduce the liability
with corresponding credits to additional paid in capital. $180,618 of debt premium was credited to additional paid in capital in
conjunction with the payments to TCA. At September 30, 2019 the balance of $421,587 along with related debt premium of $281,054
are included in convertible notes payable on the balance sheet. On March 7, 2018 the Company entered into
a placement agent and advisory agreement with Scottsdale Capital Advisors in connection with the Livingston liability purchase
term sheet executed on November 15, 2017. The placement agent services fee amounted to $15,000 payable to Scottsdale Capital Advisors
in the form of a convertible note. The note matures six months from the date of issuance and shall accrue interest at the rate
of 10% per annum. The $15,000 note is convertible into shares of the Company's common stock at a discount of 30% of the low closing
bid price for the twenty trading days prior to the conversion and is not subject to any registration rights. The Company has accounted
for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $6,429 with a charge to
interest expense. The note has not been converted and the principal balance is $15,000, at both September 30, 2018 and 2019, with
$2,789, and $1,281, of accrued interest at September 30, 2019 and 2018, respectively. Other Convertible Debt In July 2017, the FASB issued Accounting
Standards Update No. 2017-11 Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and
Hedging (Topic 815) ("ASU 2017-11"), which changes the classification analysis of certain equity-linked financial instruments
(or embedded features) with down round features. When determining whether certain financial instruments should be classified as
liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument
is indexed to an entity's own stock. ASU 2017-11 also clarifies existing disclosure requirements for equity-classified instruments.
As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for
as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified
financial instruments, ASU 2017-11 requires entities that present earnings per share (EPS) in accordance with ASC Topic 260 to
recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of
income available to common shareholders in basic EPS. For the Company, ASU 2017-11 is effective for fiscal years, and interim periods
within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period.
The Company adopted this standard on October 1, 2017. On October 5, 2017, the Company entered
into a Securities Purchase Agreement with Power Up Lending Group Ltd. ("Power Up") under which the Company received
$78,500, net of $21,500 in fees and expenses to be recorded as a debt discount and amortized to interest expense over the Note
term, in return for issuing a convertible promissory note (the "Note") in the principal amount of $100,000. Power Up
received a right of first refusal for the first nine months from the date of the Note to provide any debt or equity financing less
than $150,000. The Note bears interest at 10% per annum and has a maturity date of July 15, 2018. The Note may be prepaid at a
premium ranging from 112% to 137% depending on the length of time following the date of the Note. The Note is convertible after
180 days into shares of the Company's common stock at a discount of 35% of the average of the two lowest closing bid prices
of Drone USA's common stock 15 days prior to the date of conversion and the maximum number of shares issued to Power Up may
not exceed 4.99% of the issued and outstanding shares of the Company's common stock. The Note is subject to customary default
provisions, including a cross default provision. The Company's CEO entered into a confession of judgment in the principal
amount of the Note. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded
a debt premium of $53,846 with a charge to interest expense. The note and all accrued interest were fully converted into common
shares as of June 19, 2018. The note holder's legal counsel has returned the note marked as paid. The debt premium was recognized
as $53,846 as additional paid in capital. On November 9, 2017, the Company
received a first tranche payment of $75,500 under the terms of a Securities Purchase Agreement dated October 25, 2017, with
Crown Bridge Partners, LLC ("Crown Bridge") under which the Company issued to Crown Bridge a convertible note in
the principal amount of $105,000 and a five-year warrant to purchase 100 shares of the Company's common stock at an
exercise price of $350 as a commitment fee which is equal to the product of one-third of the face value of each tranche
divided by $350. Under the terms of the note Crown Bridge was to receive "right of first refusal" for any
subsequent loans or notes to fund the Company. The Company violated this covenant when funding was received from other
sources without offering Crown Bridge the opportunity to participate. On December 20, 2017 the Company cured this covenant
violation by issuing 200 additional warrants have the same exercise price and terms of the original warrants. The warrants
have full ratchet price protection and cashless exercise rights. The convertible note (the "Note") issued
to Crown Bridge in the principal amount of $105,000, has an original issue discount of $10,500 and issue costs of $19,000 both
of which are recorded as debt discount along with the warrant relative fair value of $12,507 for the original 100 warrants and
$31,529 for the penalty warrants to be amortized over the twelve month term of this tranche, bears interest of 10% (12% default
rate) per annum, and has a maturity date of 12 months from the date of each tranche of payments under the Note with future tranches
being at the discretion of Crown Bridge. The conversion rate for any conversion of unpaid principal and interest under the Notes
is at a 35% discount to the lowest market price of the shares of the Company's common stock within a 20 day trading period prior
to the date of conversion to which an additional 10% discount will be added if the conversion price of the Company's common stock
is less than $50 per share and no shares of the Company's common stock can be issued to the extent Crown Bridge would own more
than 4.99% of the outstanding shares of the Company's common stock and the conversion shares contain piggy-back registration rights.
The Note is subject to customary default provisions including an event of default if the bid price of the Company's common stock
is less than its par value of $.0001 per share. The Company is entitled to prepay the Note between 30 days after its issuance
until 180 days from its issuance at amounts that increase from 112% of the prepayment amount to 137% of the prepayment amount
depending on the length of time when prepayments are made. The Company has accounted for the convertible promissory note as stock
settled debt under ASC 480 and recorded a debt premium of $56,538 with a charge to interest expense. As of September 30, 2018
the note holder fully converted principal and accrued interest into common shares. The debt premium on stock settled debt was
fully recognized as additional paid in capital. On November 28, 2017, the Company received
a payment of $84,000, net of issue costs of $23,500 which was recorded as a debt discount and is being amortized to interest expense
over the Note term, under the terms of a Securities Purchase Agreement dated November 20, 2017, with Labrys Fund, LP ("Labrys")
under which Drone USA issued to Labrys (i) a convertible note (the "Note") in the principal amount of $107,500 that
bears interest of 10% (24% default rate) per annum and (ii) 336 shares of the Company's common stock as a commitment fee
which were to be returned to the Company in the event that it pays all unpaid principal and interest under the Note within 180
days of November 20, 2017. Pursuant to ASC 260, as of December 31, 2017, the 336 contingent shares issued under the Financial Consulting
Agreement are not considered outstanding and are not included in basic net loss per share or as potentially dilutive shares in
calculating the diluted EPS. The Note has a maturity date of August 28, 2018 and a conversion rate for any unpaid principal and
interest at a 35% discount to the market price which is defined as the average of the two lowest trading prices (defined as the
lower of the trading price or closing bid price) for the Company's common stock during the fifteen (15) trading day period
ending on the latest complete trading day prior to the date of conversion. The conversion rate is further reduced if the Company
enters into any section 3(a)(9) or 3(a)(10) transactions under the Securities Act of 1933, as amended, if the terms of those transactions
offer greater discounts on conversion prices or a longer look back period for determining the conversion rate and under certain
other enumerated events, including if the conversion price is less than $10.00 per share or if the Company loses the "bid"
price for its common stock ($0.10 on the "ask" with zero market makers on the "bid" per Level 2 and/or
a market such as OTC Pink). In addition, if the Company issues any shares of its common stock at less than the conversion price
Labrys is entitled to full ratchet anti-dilution in such event. No shares of the Company's common stock can be issued to
the extent Labrys would own more than 4.99% of the outstanding shares of the Company's common stock unless Labrys agrees
to increase the ownership to 9.99%. The Company is required at all times to have authorized and reserved six times the number of
shares that is actually issuable upon full conversion of the Note (based on the conversion price of the Note in effect from time
to time). Initially, the Company must instruct its transfer agent to reserve 6,198 shares of its common stock. The Note is subject
to customary default provisions and also includes a cross-default provision as well as default being triggered if the Company loses
the "bid" price for its common stock ($0.10 on the "ask" with zero market makers on the "bid"
per Level 2 and/or a market such as OTC Pink) and a $15,000 penalty if not paid by the maturity date. The Company is entitled to
prepay the Note between the issue date until 180 days from its issuance but not thereafter. In November 2017, the Company
accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a debt premium of $57,885 with a
charge to interest expense. On February 7, 2018 the Company amended the terms to the Note whereby Labrys waiving certain existing
events of default on the Note and in return will no longer be required, under any circumstances, to return the commitment shares
back to the Company's treasury. The Company was under default for failing to maintain a market capitalization of at least
$5,000,000 on any trading day. The 336 commitment shares were considered issued in February 2018 which was recorded as interest
and financing costs at the then market close price of $89.98 per share for a value of $30,234. The note holder (Labrys) converted principal
of $73,233 and accrued interest of $7,841 during the year ended September 30, 2018. The Company recognized $15,000 of default
charges (technical defaults under note terms) as an addition to the principal amount with a corresponding charge to debt discount.
Additionally, the Company increased debt premium by $8,077 with a charge to interest expense in conjunction with the principal
increase. The principal and accrued interest balance of $49,267 was assigned (under the original terms and conditions) to GHS
Investments LLC ("GHS") on July 13, 2018 and all principal and interest was converted into common stock by GHS during the year
ended September 30, 2018. On December 7, 2017, the Company received
a payment of $79,000, net of an original issue discount of $5,800 and issue costs of $20,200 fees which was recorded as a debt
discount which is being amortized into interest expense over the Note term, under the terms of a Securities Purchase Agreement
dated November 21, 2017, with EMA Financial, LLC ("EMA Financial") under which the Company issued to EMA Financial
a convertible note (the "Note") in the principal amount of $105,000 that bears interest of 10% (24% default rate) per
annum. The Note has a maturity date of December 7, 2018 and has a conversion rate for any unpaid principal and interest at a conversion
price which is the lower of (i) the closing sales price of the Company's common stock on the trading day immediately preceding
the date of funding and (ii) a 35% discount to (a) the lowest sales price of the shares of the Company's common stock within
a 20 day trading period including and immediately preceding the conversion date or (b) the lowest bid price on the conversion date,
whichever is lower, and the conversion shares contain piggy-back registration rights. The conversion rate is further reduced under
certain events, including if the closing sales price is less than $95.00 in which case the conversion rate is a 50% discount under
the terms set forth above. No shares of the Company's common stock can be issued to the extent EMA Financial would own more
than 4.99% of the outstanding shares of the Company's common stock. The Company also is required at all times to have authorized
and reserved eight times the number of shares that is actually issuable upon full conversion or adjustment of the Note (based on
the conversion price of the Note in effect from time to time) and initially must instruct its transfer agent to reserve 6,802,
shares of common stock in the name of EMA Financial for issuance upon conversion. The Note is subject to customary default provisions
and also includes a cross-default provision as well as default being triggered if the Company loses the "bid" price
for its common stock ($0.10 on the "ask" with zero market makers on the "bid" per Level 2 and/or a market
such as OTC Pink). The Company is entitled to prepay the Note between the issue date until 180 days from its issuance at a premium
of 135% of the unpaid principal and interest if paid within 90 days after the issue date and 150% thereafter. In connection with
the issuance of this Note, the Company determined that the terms of the Note contain a conversion formula that caused variations
in the conversion price resulting in the treatment of the conversion option as a bifurcated derivative to be accounted for at fair
value. Accordingly, under the provisions of FASB ASC Topic No. 815-40, "Derivatives and Hedging – Contracts in an Entity's
Own Stock", the embedded conversion option contained in the convertible instruments were accounted for as derivative liabilities
at the date of issuance and shall be adjusted to fair value through earnings at each reporting date. The fair value of the embedded
conversion option derivatives was determined using the Binomial valuation model. At the end of each period, the Company revalued
the embedded conversion option and warrants derivative liabilities. In connection with this Note, on the initial measurement date
of December 7, 2017, the fair values of the embedded conversion option derivative of $149,028 was recorded as derivative liabilities,
$70,028 was charged to current period operations as initial derivative expense, and $79,000 was recorded as a debt discount and
is being amortized into interest expense over the term of this Note. At each reporting date during the year ended September 30,
2018, the Company revalued the embedded conversion option derivative liability. During the year ended September 30, 2018 the Company
had fully relieved the derivative liability as part of the gain (loss) in debt extinguishment in conjunction with the full conversion
of the note into common stock. A number of terms included in the Securities
Purchase Agreement and Note issued subsequently (see paragraph below) were more favorable than the terms granted to EMA Financial
under its Securities Purchase Agreement and the EMA Note. Accordingly, on December 31, 2017, EMA Financial notified the Company
that pursuant to the EMA Securities Purchase Agreement that the EMA Note was automatically amended by increasing (i) the annual
interest rate to 12% percent and (ii) the Original Issue Discount by $3,650. EMA fully converted all principal, default
charges ($3,650) and accrued interest into common shares during 2018 and surrendered the note. The Company recognized $239,444
of losses on debt extinguishment during July 2018 as a result of the fair market value of the shares issued exceeding the recorded
amount of the derivative liability discussed above. On December 13, 2017, the Company received
a payment of $60,000, net of original issue discount fees of $7,500 and $15,000 of issue costs recorded as debt discounts and amortized
to interest expense over the Note term under the terms of a Securities Purchase Agreement dated December 8, 2017, with Morningview
Financial, LLC ("Morningview Financial") under which the Company issued to Morningview Financial a convertible note
(the "Note") in the principal amount of $82,500 that bears interest of 12% (18% default rate) per annum. The Note has
a maturity date of 12 months and a conversion rate for any unpaid principal and interest and a conversion price which is a 35%
discount to the lowest sales price of the shares of the Company's common stock within a 20-day trading period including and
immediately preceding the conversion date. The conversion rate is further reduced under certain events, including if the closing
sales price is less than $50.00 in which case the conversion rate is a 45% discount under the terms set forth above. No shares
of the Company's common stock can be issued to the extent Morningview Financial would own more than 4.99% of the outstanding
shares of the Company's common stock. The Company also is required at all times to have authorized and reserved eight times
the number of shares that is actually issuable upon full conversion or adjustment of the Note (based on the conversion price of
the Note in effect from time to time). The Note is subject to customary default provisions and also includes a cross-default provision
as well as default being triggered if the Company's Trading Price as that term is defined in the Note is less than $0.10
or if a money judgment, writ or similar process shall be entered or filed against the Company or any of its subsidiaries for more
than $50,000, and shall remain unvacated, unbonded or unstayed for a period of 20 days unless otherwise consented to by the holder
of the Note. Additionally, upon default and default notice by the lender, the amount immediately due shall be increased to 150%
or 200% of the outstanding principal and interest due depending upon the default provisions, plus default interest. The Company
is entitled to prepay the Note between the issue date until 180 days from its issuance at a premium of 135% of the unpaid principal
and interest. The Company has accounted for the convertible promissory note as stock settled debt under ASC 480 and recorded a
debt premium of $44,423 with a |
