Notes Payable | 4. Notes Payable Convertible Notes Payable The Company periodically issues convertible notes with similar characteristics. As described in the table below, during the nine-months ended September 30, 2022, there were 12 such notes outstanding. Notes had fixed conversion prices after the application of certain “most favored nation clauses” (“MFNs”) in such notes that ranged from $ 0.0015 0.01 0.0015 0.0015 20 10 0.01 October 22, 2022 0.0015 0.01 0.01 0.01 0.0015 0.0015 10 10 8 100 115 The table below summarizes the convertible notes outstanding during the nine- months ended and as of September 30, 2022. There were several partial repayments made by conversion during the nine-months ended September 30, 2022: Schedule of Convertible Notes Outstanding Inception Date Maturity date Original Principal Amount Interest rate Original aggregate DIC, OID, Wts, CS and BCF Cumulative amortization of DIC, OID, Wts, CS and BCF Accrued coupon interest Repayment Balance sheet July 28, 2020 June 30, 2022 1 $ 53,000 8.00 % $ (13,000 ) $ 13,000 $ 8,675 $ (16,247 ) $ 45,428 February 17, 2021 June 17, 2022 1 112,000 10.00 % (112,000 ) 112,000 11,089 (80,000 ) 43,089 April 1, 2021 July 31, 2022 1 112,500 10.00 % (112,500 ) 112,500 16,890 - 129,390 May 3, 2021 July 31, 2022 1 150,000 10.00 % (150,000 ) 150,000 - (150,000 ) - May 10, 2021 August 10, 2022 1 150,000 10.00 % (150,000 ) 150,000 17,953 (13,213 ) 154,740 June 30, 2021 June 29, 2022 1 115,000 10.00 % (115,000 ) 115,000 14,430 - 129,430 August 31, 2021 August 31, 2022 115,000 10.00 % (109,675 ) 109,675 12,445 - 127,445 October 7, 2021 October 7, 2022 115,000 10.00 % (96,705 ) 94,850 11,280 - 124,425 December 23, 2021 June 21, 2022 1 87,000 10.00 % (36,301 ) 36,301 5,745 25,621 118,366 April 14, 2022 April 14, 2023 27,778 10.00 % (15,936 ) 7,379 1,286 - 20,507 August 22, 2022 May 31, 2023 66,667 10.00 % (6,667 ) 712 713 - 61,425 August 22, 2022 May 31, 2023 22,222 10.00 % (2,222 ) 237 237 - 20,474 August 22, 2022 May 31, 2023 16,667 10.00 % (1,667 ) 178 178 - 15,356 Total $ 1,142,834 $ (921,673 ) $ 901,832 $ 100,921 $ (233,839 ) $ 990,075 In addition to what appears in the table above, there is outstanding accrued interest of $ 2,747 As a result of the MFN triggering events that occurred on September 7, 2021, August 31, 2021, April 14, 2022 and August 22, 2022 an additional 114,380,476 0.0015 0.01 164,069,735 0.0015 0.01 0.02 0.01 0.0015 the number of warrants associated with certain convertible notes from less than 100% warrant coverage to 100% coverage. On December 31, 2018 and January 2, 2019, the Company issued convertible notes to a single investor totaling $ 35,000 15,459 19,000 15.00 December 30, 2023 Other convertible notes were also sold to investors in 2014 and 2015 (“Original Convertible Notes), which aggregated a total of $ 579,500 10 September 15, 2016 The remaining outstanding Original Convertible Notes (including those for which default notices have been received) consist of the following at September 30, 2022 and December 31, 2021: Schedule of Convertible Notes Payable September 30, December 31, September 30, December 31, Principal amount of notes payable $ 75,000 $ 75,000 Accrued interest payable 95,068 80,961 Foreign currency transaction adjustment Total note payable $ 170,068 $ 155,961 As of September 30, 2022, principal and accrued interest on the Original Convertible Note that is subject to a default notice accrues annual interest at 12 10 61,160 36,160 57,084 32,085 As of September 30, 2022 all of the outstanding Original Convertible Notes, inclusive of accrued interest, were convertible into an aggregate of 1,481 114 Note Payable to SY Corporation Co., Ltd. On June 25, 2012, the Company borrowed 465,000,000 400,000 12 June 25, 2013 The promissory note is secured by collateral that represents a lien on certain patents owned by the Company, dating back to January, August and September 2007, including composition of matter patents for certain of the Company’s high impact ampakine compounds and the low impact ampakine compounds CX2007 and CX2076, and other related compounds that the Company is no longer developing and where patent rights date back to January, August and September 2007. The security interest does not extend to the Company’s patents for its ampakine compounds CX1739 and CX1942 or certain related method of use patents. The note payable to SY Corporation consists of the following at September 30, 2022 and December 31, 2021: Schedule of Convertible Notes Payable September 30, December 31, September 30, December 31, Principal amount of note payable $ 399,774 $ 399,774 Accrued interest payable 495,238 459,358 Foreign currency transaction adjustment (172,364 ) (22,028 ) Total note payable $ 722,648 $ 837,104 Interest expense with respect to this promissory note was $ 12,092 35,881 Notes Payable to Officers and Former Officers For the three-months and nine-months ended September 30, 2022, $ 3,412 10,123 12,289 3,096 9,193 46,717 In addition, Dr. Lippa periodically makes advances to the Company which are re-payable upon demand, do not accrue interest and are included in the total of notes payable to Officers. As of September 30, 2022, such advances totaled $ 217,945 For the three-months and nine-months ended September 30, 2022 $ 5,172 15,349 18,657 4,702 13,954 58,965 Other Short-Term Notes Payable Other short-term notes payable at September 30, 2022 and December 31, 2021 consisted of premium financing agreements with respect to various insurance policies. At September 30, 2022, a premium financing agreement was payable in the initial amount of $ 85,457 21,364 11 9,971 4,214 35,345 15,185 |