Convertible Notes Payable | Note 6. Convertible Notes Payable Convertible notes payable at September 30, 2021 and December 31, 2020 consist of the following: Schedule of Convertible Notes Payable September 30, 2021 December 31, 2020 Note 1 and accrued interest and premium – Principal shareholder $ 201,774 $ 195,177 Note 2 and accrued interest – Principal shareholder 127,142 126,210 Note 3 and accrued interest – Shareholder - 62,951 Note 4 and accrued interest – Principal shareholder - 97,537 Note 5 and accrued interest – Accredited investors - 56,462 Note 6 and accrued interest – Principal shareholder 93,297 89,347 Note 7 and accrued interest – Accredited investors - 101,781 Note 8 and accrued interest – Accredited investors 26,925 25,055 Note 9 and accrued interest – Shareholder 104,000 - Note 10 and accrued interest, net of discount and issuance costs – Mercer Note 473,733 - Total Convertible notes payable and accrued interest $ 1,026,871 $ 754,520 Note 1 – In October 2009, the Company issued a Convertible Promissory Note with a principal amount of $ 73,500 12 June 30, 2023 0.10 Debt, Modification and Extinguishments 21,299 106,975 100,378 Note 2 – Effective September 1, 2019, the Company issued a Convertible Promissory Note in the principal amount of $ 124,562 1 December 30, 2022 0.25 2,580 1,648 Note 3 – Effective September 12, 2019, the Company issued a Convertible Promissory Note in the principal amount of $ 55,000 12 0.25 55,000 7,951 0.25 251,805 Note 4 – Effective December 27, 2019, the Company issued a Convertible Promissory Note in the principal amount of $ 88,626 10 December 30, 2022 0.55 88,626 11,096 0.55 181,313 0 8,911 Note 5 – Under subscription agreements dated September 25, 2020, the Company issued Convertible Promissory Notes (the “Notes”) to various individuals totaling $ 55,000 10 September 30, 2022 The Company could satisfy the Notes upon maturity or Default, as defined, by the issuance of Common shares at a conversion price equal to the greater of a 20% discount to the 15 day average market price of the Company’s common stock or $0.10. The principal and interest accrued are convertible at any time after six months through the Maturity Date at the option of the holder at a 20% discount to the 15 day average market price of the Company’s share price, but in no event less than $0.10 per share. Upon conversion of any portion of the Notes, the investor will receive warrants to purchase up to 25% of the number of common shares issued as a result of such conversion exercisable for a period of two years at a price per share equal to 150% of the conversion price of the Notes. As of March 31, 2021 one of the note holders had elected to convert outstanding principal of $ 30,000 63,600 0.50 15,900 0.75 As of June 17, 2021 the other note holder had elected to convert outstanding principal of $ 25,000 48,755 0.55 12,189 0.83 As of September 30, 2021 and December 31, 2020, these notes had accumulated $ 0 1,462 Note 6 – Effective September 30, 2020, the Company issued a Convertible Promissory Note in the principal amount of $ 88,016 6 December 31, 2022 1.00 5,281 1,331 Note 7 – Effective October 27, 2020, the Company issued a Convertible Promissory Note in the principal amount of $ 100,000 September 25, 2020 100,000 214,817 0.49 53,704 0.74 0 1,781 Note 8 – Effective December 23, 2020, the Company issued a Convertible Promissory Note in the principal amount of $ 25,000 September 25, 2020 1,925 55 Note 9 – Effective May 7, 2021, the Company issued a Convertible Promissory Note in the principal amount of $ 100,000 10% September 30, 2022 The Company may satisfy the Note upon maturity or Default, as defined, by the issuance of Common shares at a conversion price equal to the greater of a 25% discount to the 15 day average market price of the Company’s common stock or $0.50. The principal and interest accrued are convertible at any time after six months through the maturity date of September 30, 2022 at the option of the holder at a 25% discount to the 15 day average market price of the Company’s share price, but in no event less than $0.50 per share. 4,000 Note 10 – Effective August 10, 2021, the Company entered into a Securities Purchase Agreement with an accredited investor pursuant to which it issued to the investor an Original Issue Discount Secured Convertible Promissory Note (the “Note”) in the principal amount of $ 806,000 930,000 750,000 The principal amount of the Note and all interest accrued thereon is payable on August 10, 2022, and are secured by a lien on substantially all of the Company’s assets. The Note provides for interest at the rate of 5 % per annum, payable at maturity, and is convertible into common stock at a price of $ 0.65 per share. In addition to customary anti-dilution adjustments upon the occurrence of certain corporate events, the Note provides, subject to certain limited exceptions, that if we issue any common stock or common stock equivalents, as defined in the Note, at a per share price lower than the conversion price then in effect, the conversion price will be reduced to the per share price at which such stock or common stock equivalents were sold. The conversion price of the Note had been subject to a potential decrease if the average closing price of the Company’s common stock during any ten consecutive trading days beginning September 16, 2021, and ending on November 15, 2021, was below $ 0.65 0.65 The 930,000 1.25 The Company accounts for the allocation of its issuance costs to its Warrants in accordance with ASC 470-20, Debt with Conversion and Other Options. Under this guidance, if debt or stock is issued with detachable warrants, the proceeds need to be allocated to the two instruments using either the fair value method, the relative fair value method, or the residual value method. The Company used the relative fair value at the time of issuance to allocate the value received between the convertible note and the warrants. The Company estimated the fair value of warrants utilizing the Black-Scholes pricing model, which is dependent upon several assumptions such as the expected term of the Warrants, expected volatility of the Company’s stock price over the expected term, expected risk-free interest rate over the expected term and expected dividend yield rate over the expected term. The Company believes this valuation methodology is appropriate for estimating the fair value of warrants. The value allocated to the relative fair value of the Warrants was recorded as debt issuance costs and additional paid in capital. The principal, net of the original issue discount and debt issuance costs, including the allocated relative fair value of the Warrants, which are being recognized over the life of the note, along with associated interest, is recorded with current liabilities on the Company’s Condensed Consolidated Balance Sheet. As of September 30, 2021, this note had accumulated $ 5,631 of accrued interest, total unamortized debt issuance costs of $ 289,723 48,175 |