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.
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.
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.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef