Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2021
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]

NOTE 4: RELATED PARTY TRANSACTIONS


Wages and bonus payable to related parties


Accruals for salary and bonuses to officers and directors are included in accrued liabilities in the balance sheets and totaled $3,897,229 and $3,726,943 as of March 31, 2021 and December 31, 2020, respectively. As part of the separation agreement with Mr. Ponce de Leon, the Company agreed to pay him all his accrued salary within two years but agreed to pay him $200,000 by November 2015 out of revenues earned. As the Company did not earn revenue in 2015 and as at March 31, 2020 has still not earned revenue, the obligation to Mr. Ponce de Leon of $1,717,395 is currently in default and the amount includes $455,174 in accrued interest. It is the Company’s intention to pay Mr. Ponce de Leon immediately upon receiving revenue.


Convertible Debt


As of March 31, 2021 and December 31, 2020, the Company had outstanding short-term convertible notes payable of $9,552,192 and $9,437,192, net of unamortized discounts of $289,569 and $486,867, respectively and outstanding long-term convertible notes payable of $322,543 and $418,943, net of unamortized discounts of $65,768 and $86,167, respectively. The convertible notes are secured by assets and the common stock of the Company, bear interest at 12% per annum, are convertible into shares of the Company’s common stock at $0.06 per share and are due three years from the dates of issuance. Amortization expense related to debt discounts on convertible debt for the three months ended March 31, 2021 and 2020 was $217,697 and $394,809, respectively.


Nonconvertible Debt


During February 2021, the Company borrowed a total of $150,000 in two notes payable to an entity controlled and owned by a significant shareholder of the Company. The notes are unsecured, due on demand and accrued interest at 12% per annum. As of March 31, 2021, the balance on the notes was $150,000 and the Company incurred $2,106 in accrued but unpaid interest expense.


As of March 31, 2021 and December 31, 2020, the Company had outstanding notes payable of $705,000 and $705,000, respectively, to an individual that is a significant shareholder.


As of March 31, 2021 and December 31, 2020, the Company had outstanding advances payable to an officer of the Company of $83,150 and $83,150, respectively. The advances payable are unsecured, bear no interest and are due on demand.