Convertible Notes Payable | Note 11 – Convertible NOTES PAYABLE The Company has entered into convertible notes payable that convert to common stock of the Company at variable conversion prices. As further discussed in Note 13 – Derivative Liability The following table summarizes all convertible notes outstanding as of June 30, 2020: Holder Issue Date Due Date Principal Unamortized Carrying Value Accrued Interest Noteholder #1 04/24/18 04/24/19 500,000 - 500,000 - Noteholder #2 07/01/19 09/30/19 675,930 - 675,930 61,154 Noteholder #3 08/01/18 01/01/19 396,000 - 396,000 100,253 Noteholder #3 10/02/18 01/01/19 264,000 - 264,000 53,846 Noteholder #5 09/17/18 09/17/19 - - - 10,260 Noteholder #6 11/15/18 11/15/19 - - - 15,564 Noteholder #6 02/04/19 02/04/20 230,000 - 230,000 26,938 Noteholder #6 08/08/19 08/08/20 33,092 (1,282 ) 31,810 2,372 Noteholder #6 11/04/19 11/04/20 33,516 (11,630 ) 21,886 1,756 Noteholder #6 12/23/19 12/23/20 137,375 (66,060 ) 71,315 5,721 Noteholder #6 01/21/20 02/21/21 52,500 (2,500 ) 50,000 2,532 Noteholder #6 02/04/20 02/04/20 265,637 - 265,637 14,774 Noteholder #7 12/27/18 12/27/19 20,000 - 20,000 3,695 Noteholder #7 02/05/19 02/05/20 131,250 - 131,250 14,613 Noteholder #7 02/11/19 02/11/20 131,250 - 131,250 14,325 Noteholder #7 03/15/19 03/15/20 70,913 - 70,913 7,352 Noteholder #7 08/08/19 08/08/20 33,092 (1,282 ) 31,810 2,372 Noteholder #7 11/04/19 11/04/20 33,516 (11,630 ) 21,886 1,756 Noteholder #7 01/03/20 01/03/21 137,375 137,375 5,480 Noteholder #7 01/21/20 02/22/21 52,500 (2,500 ) 50,000 2,532 Noteholder #7 02/04/20 02/04/20 265,637 - 265,637 14,774 Noteholder #10 03/15/19 03/15/20 70,913 - 70,913 7,352 Noteholder #11 08/30/19 05/30/20 110,000 110,000 7,353 Noteholder #11 04/30/20 04/03/21 66,000 (41,900 ) 24,100 1,591 Noteholder #12 01/15/20 04/14/21 100,000 0 100,000 1,372 Noteholder #13 01/24/20 01/23/21 50,000 50,000 - $ 3,860,496 $ (138,784 ) $ 3,721,712 $ 379,737 The following table summarizes all convertible notes outstanding as of September 30, 2019: Holder Issue Date Due Date Principal Unamortized Carrying Value Accrued Interest Noteholder #1 04/24/18 04/24/19 500,000 - 500,000 - Noteholder #2 07/01/19 09/30/19 825,930 - 825,930 18,983 Noteholder #3 08/01/18 01/01/19 396,000 - 396,000 76,471 Noteholder #3 10/02/18 01/01/19 264,000 - 264,000 40,634 Noteholder #4 09/06/18 09/06/19 145,000 - 145,000 15,575 Noteholder #5 09/17/18 09/17/19 82,500 - 82,500 8,586 Noteholder #6 11/15/18 11/15/19 222,600 (28,054 ) 194,546 15,564 Noteholder #6 01/14/19 01/14/20 131,250 (46,027 ) 85,223 7,364 Noteholder #6 02/04/19 02/04/20 265,000 (92,205 ) 172,795 13,824 Noteholder #6 03/15/19 03/15/20 70,913 - 70,913 3,093 Noteholder #6 08/08/19 08/08/20 33,092 (10,291 ) 22,801 384 Noteholder #7 12/27/18 12/27/19 105,000 (25,603 ) 79,397 18,204 Noteholder #7 02/05/19 02/05/20 131,250 (48,185 ) 83,065 6,616 Noteholder #7 03/15/19 03/15/20 70,913 - 70,913 3,093 Noteholder #7 08/08/19 08/08/20 33,092 (10,291 ) 22,801 384 Noteholder #8 02/08/19 02/08/20 783,724 (208,357 ) 575,367 89,627 Noteholder #9 03/15/19 03/15/20 70,913 - 70,913 3,093 Noteholder #10 03/15/19 03/15/20 70,913 - 70,913 3,093 Noteholder #11 08/29/19 05/29/20 100,000 (150,146 ) (50,146 ) 964 Noteholder #11 08/30/19 05/30/20 110,000 (97,555 ) 12,445 747 $ 4,412,090 $ (716,714 ) $ 3,695,376 $ 326,145 Noteholder #1 On April 24, 2018, the Company entered into a convertible note payable totaling $500,000 in exchange for 100% of the assets of Leaf Detective LLC. The note bears no interest, matures on April 24, 2019, and automatically converted to common stock at $1.25 per share on the maturity date. In the event the average lowest trading price of the Company’s common stock during the five days prior to maturity is less than $1.25 per share, the Company will pay the noteholder the difference between $1.25 and the average lowest trading price during the preceding five days per share converted in cash. On or about April 30, 2020, Michele Malaret and Gordon Griswold filed, filed a breach of contract in the original principal amount of $500,000, with the Superior Court of California, County of Humboldt. The Company currently recognizes the full liability on its balance sheet. There is no interest due associated with the note. Noteholder #2 On July 2, 2018, the Company sold and issued a convertible promissory note to an unrelated party for the principal amount of $220,000 of which $20,000 was an original issue discount resulting in cash proceeds to the Company of $200,000 pursuant to the terms of a securities purchase agreement. The note, together with accrued interest at the annual rate of 8%, was due on October 1, 2018. The principal amount of the note and any accrued interest thereon are convertible at the option of the holder into common shares of the Company at any time at a conversion price of $0.60 per share. This note was replaced on July 1, 2019. On September 13, 2018, the Company entered into an exchange agreement with an unrelated party for the principal amount $585,000, of which the loan payable to Palliatech, dated August 1, 2017, outstanding and principal of $549,652 would be assumed by the new note holder, with the difference of $35,348 to be treated as an original issue discount. The new convertible note payable carries an interest rate of 0% per annum is convertible into common stock of the Company at the option of the noteholder immediately at 80% of the lowest volume-weighted average price of the Company’s common stock in the preceding 20 trading days. This note was replaced on July 1, 2019. On July 1, 2019, the two previous notes were replaced for the aggregate principal amount of $825,890. This included a default penalty of $150,000 for non-payment of the prior two notes. The note, together with accrued interest at the annual rate of 8%, is due on September 30, 2019. The note is convertible into common stock of the Company at the option of the noteholder at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $675,930 of principal and $61,154 of accrued interest on June 30, 2020. Noteholder #3 On August 1, 2018, the Company sold and issued a convertible promissory note to an unrelated party for the principal amount of $330,000 of which $30,000 was an original issue discount resulting in cash proceeds to the Company of $300,000 pursuant to the terms of a securities purchase agreement. The note, together with accrued interest at the annual rate of 8%, was due on October 1, 2018. The principal amount of the note and any accrued interest thereon are convertible at the option of the holder into common shares of the Company at any time the lower of a conversion price of $0.50 per share or at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. On September 30, 2019, a fee for payment default of $66,000 was added to the principal. There was $396,000 of principal and $100,253 of accrued interest due on June 30, 2020. On October 2, 2018, the Company sold and issued a convertible promissory note to an unrelated party for the principal amount of $220,000 of which $20,000 was an original issue discount resulting in cash proceeds to the Company of $200,000 pursuant to the terms of a securities purchase agreement. The note, together with accrued interest at the annual rate of 8%, is due on January 1, 2019. The principal amount of the note and any accrued interest thereon are convertible at the option of the holder into common shares of the Company at any time at a conversion price of $0.50 per share or a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. On September 30, 2019, a fee for payment default of $44,000 was added to the principal. There was $264,000 of principal and $53,846 of accrued interest on June 30, 2020. Noteholder #4 On September 6, 2018, the Company sold and issued a convertible promissory note to an unrelated party for the principal amount of $125,000 of which $15,000 was an original issue discount resulting in cash proceeds to the Company of $110,000 pursuant to the terms of a securities purchase agreement. The note, together with accrued interest at the annual rate of 10%, was due on September 6, 2019. The principal amount of the note and any accrued interest thereon are convertible at the option of the holder into common shares of the Company at any time at the lower of a conversion price of $0.50 per share or at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. On July 5, 2019, a fee for payment default of $20,000 was added to the principal. There was no note principal or accrued interest due on June 30, 2020. Noteholder #5 On September 6, 2018, the Company sold and issued a convertible promissory note to an unrelated party for the principal amount of $62,500 of which $6,250 was an original issue discount resulting in cash proceeds to the Company of $56,250 pursuant to the terms of a securities purchase agreement. The note, together with accrued interest at the annual rate of 10%, is due on September 6, 2019. The principal amount of the note and any accrued interest thereon are convertible at the option of the holder into common shares of the Company at any time at the lower of a conversion price of $0.50 per share or at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. On July 5, 2019, a fee for payment default of $20,000 was added to the principal. There was $0 of principal and $10,260 of accrued interest due on June 30, 2020. Noteholder #6 On November 15, 2018, the Company sold and issued a convertible promissory note to an unrelated party for the principal amount of $222,600 of which $12,600 was an original issue discount resulting in cash proceeds to the Company of $210,000 pursuant to the terms of a securities purchase agreement. The note, together with accrued interest at the annual rate of 8%, is due on November 15, 2019. The principal amount of the note and any accrued interest thereon are convertible at the option of the holder into common shares of the Company at any time at the lower of a conversion price of $0.50 per share or at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $0 of principal and $15,564 of accrued interest due on June 30, 2020. On February 4, 2019, the Company entered into a convertible note payable with an unrelated party for $265,000 of which $15,000 was an original issue discount and $10,000 in third party fees resulting in net cash proceeds to the Company of $240,000. The convertible note payable carries interest at a rate of 8% per annum, is due on February 4, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $230,000 of principal and $26,938 accrued interest due on June 30, 2020. On August 8, 2019, the Company entered into a convertible note agreement with an unrelated party for $33,092 of which $1,576 in third party fees resulting in net cash proceeds to the Company of $31,516. The convertible note payable carries interest at a rate of 8% per annum, is due on August 8, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $33,092 of principal and $2,372 of accrued interest due on June 30, 2020. On November 4, 2019, the Company entered into a convertible note agreement with an unrelated party for $33,516 of which $2,000 in third party fees resulting in net cash proceeds to the Company of $31,516. The convertible note payable carries interest at a rate of 8% per annum, is due on November 4, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $33,092 of principal and $1,756 of accrued interest due on June 30, 2020. On December 23, 2019, the Company entered into a convertible note agreement with an unrelated party for $137,375 of which $16,375 in third party fees resulting in net cash proceeds to the Company of $121,000. The convertible note payable carries interest at a rate of 8% per annum, is due on December 23, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $137,375 of principal and $5,721 of accrued interest due on June 30, 2020. On January 21, 2020, the Company entered into a convertible note agreement with an unrelated party for $52,500 of which $2,500 in third party fees resulting in net cash proceeds to the Company of $50,000. The convertible note payable carries interest at a rate of 8% per annum, is due on January 21, 2021, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $52,500 of principal and $2,532 of accrued interest due on June 30, 2020. On February 4, 2020, the Company entered into an exchange agreement with an unrelated party for $265,637, of which the loan payable to Noteholder 8, dated February 8, 2019, outstanding and principal would be assumed by the new note holder. The new convertible note payable carries an interest rate of 8% per annum is due on February 8, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $265,637 of principal and $14,774 of accrued interest due on June 30, 2020. Noteholder #7 On December 27, 2018, the Company sold and issued a Convertible Promissory to an unrelated party for the principal amount of $105,000 pursuant to the terms of a Securities Purchase Agreement of even date therewith. The Note, together with accrued interest at the annual rate of 8%, is due on December 27, 2019, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $20,000 of principal and $3,695 of accrued interest due on June 30, 2020. On February 5, 2019, the Company entered into a convertible note payable with an unrelated party for $131,250 of which included $6,250 in third party fees resulting in net cash proceeds to the Company of $125,000. The convertible note payable carries interest at a rate of 8% per annum, is due on February 5, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $131,250 of principal and $14,613 of accrued interest due on June 30, 2020. On February 11, 2019, the Company entered into a convertible note payable with an unrelated party for $131,250 of which included $6,250 in third party fees resulting in net cash proceeds to the Company of $125,000. The convertible note payable carries interest at a rate of 8% per annum, is due on January 14, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $131,250 of principal and $14,325 of accrued interest due on June 30, 2020. On March 15, 2019, the Company entered into an exchange agreement with an unrelated party for $70,913, of which the loan payable to Noteholder 2, dated July 2, 2018, outstanding and principal would be assumed by the new note holder. The new convertible note payable carries an interest rate of 8% per annum is due on March 15, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $70,913 of principal and $7,352 of accrued interest due on June 30, 2020. On August 8, 2019, the Company entered into a convertible note agreement with an unrelated party for $33,092 of which $1,576 in third party fees resulting in net cash proceeds to the Company of $31,516. The convertible note payable carries interest at a rate of 8% per annum, is due on August 8, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $33,092 of principal and $2,372 of accrued interest due on June 30, 2020. On November 4, 2019, the Company entered into a convertible note agreement with an unrelated party for $33,516 of which $2,000 in third party fees resulting in net cash proceeds to the Company of $31,516. The convertible note payable carries interest at a rate of 8% per annum, is due on November 4, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $33,092 of principal and $1,756 of accrued interest due on June 30, 2020. On January 3, 2020, the Company entered into a convertible note agreement with an unrelated party for $137,375 of which $16,375 in third party fees resulting in net cash proceeds to the Company of $121,000. The convertible note payable carries interest at a rate of 8% per annum, is due on December 23, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $137,375 of principal and $5,480 of accrued interest due on June 30, 2020. On January 21, 2020, the Company entered into a convertible note agreement with an unrelated party for $52,500 of which $2,500 in third party fees resulting in net cash proceeds to the Company of $50,000. The convertible note payable carries interest at a rate of 8% per annum, is due on January 21, 2021, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $52,500 of principal and $2,532 of accrued interest due on June 30, 2020. On February 4, 2020, the Company entered into an exchange agreement with an unrelated party for $265,637, of which the loan payable to Noteholder 8, dated February 8, 2019, outstanding and principal would be assumed by the new note holder. The new convertible note payable carries an interest rate of 8% per annum is due on February 8, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $265,637 of principal and $14,774 of accrued interest due on June 30, 2020. Noteholder #8 On February 8, 2019, the Company entered into an exchange agreement with an unrelated party for $580,537, of which the loan payable to Palliatech, dated September 1, 2017, outstanding and principal would be assumed by the new note holder. The new convertible note payable carries an interest rate of 10% per annum, with one-year interest guaranteed, is due on February 8, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 30% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. A principal non-pay default was applied in the amount of $203,188. This remaining balance of this note was purchased by Noteholder 6 & 7, on February 4, 2020. There was no note principal or accrued interest due on June 30, 2020. Noteholder #9 On March 15, 2019, the Company entered into an exchange agreement with an unrelated party for $70,913, of which the loan payable to Noteholder 2, dated July 2, 2018, outstanding and principal would be assumed by the new note holder. The new convertible note payable carries an interest rate of 8% per annum is due on March 15, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was no note principal or accrued interest due on June 30, 2020. Noteholder #10 On March 15, 2019, the Company entered into an exchange agreement with an unrelated party for $70,913, of which the loan payable to Noteholder 2, dated July 2, 2018, outstanding and principal would be assumed by the new note holder. The new convertible note payable carries an interest rate of 8% per annum is due on March 15, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $70,913 of principal and $7,352 of accrued interest due on June 30, 2020. Noteholder #11 On August 30, 2019, the Company entered into a convertible note payable with an unrelated party for $110,000 which included $10,000 original issue discount resulting in net cash proceeds to the Company of $100,000. The convertible note payable carries interest at a rate of 8% per annum, is due on May 30, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $110,000 of principal and $7,353 of accrued interest due on June 30, 2020. On August 29, 2019, the Company entered into an exchange agreement with an unrelated party for $170,000, of which the loan payable to Henry Grimmett, dated October 16, 2016, outstanding and principal would be assumed by the new note holder. The new convertible note payable carries an interest rate of 8% per annum, is due on May 29, 2020, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $100,000 principal and $0 of accrued interest due on June 30, 2020. On April 3, 2020, the Company entered into a convertible note payable with an unrelated party for $66,000 which included $6,000 original issue discount resulting in net cash proceeds to the Company of $60,000. The convertible note payable carries interest at a rate of 10% per annum, is due on April 3, 2021, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 35% discount from the lowest trading price of the Company’s common stock in the preceding 15 trading days. There was $66,000 of principal and $1,591 of accrued interest due on June 30, 2020. Noteholder #12 On January 15, 2020, the Company entered into a convertible note payable with an unrelated party for $100,000. The convertible note payable carries interest at a rate of 0% per annum, is due on January 23, 2021, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 20% discount from the lowest trading price of the Company’s common stock in the preceding 5 trading days. There was $100,000 of principal and $1,372 of accrued interest due on June 30, 2020. Noteholder #13 On January 24, 2020, the Company entered into a convertible note payable with an unrelated party for $50,000. The convertible note payable carries interest at a rate of 0% per annum, is due on January 23, 2021, and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 20% discount from the lowest trading price of the Company’s common stock in the preceding 5 trading days. There was $50,000 of principal and $0 of accrued interest due on June 30, 2020. |