Annual report pursuant to Section 13 and 15(d)

NOTE 5: DEBT

v3.10.0.1
NOTE 5: DEBT
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]

NOTE 5: DEBT


Convertible Debt


During August 2018, the Company borrowed an aggregate of $160,000, net of an original issue discount of $10,000, under a convertible note payable. The Company recognized $3,644 in amortization of related debt discount. The convertible note payable bears interest at 10% per annum, matures on August 20, 2019 and is convertible after 180 days, or February 16, 2019, at a 65% discount of the quoted market price of the Company’s common stock. This note was repaid in full in February 2019.


Nonconvertible Debt


During October 2018, the Company borrowed $345,000, net of original debt discount of $45,000 under a note payable. The note payable bears interest at 7% per annum, is due January 8, 2019 and was unsecured. As of December 31, 2018, the balance on the note payable was $345,000 and the Company recognized $36,196 in amortization of the debt discount, leaving a balance of $8,804 as of December 31, 2018.


Outstanding notes payable and convertible notes payable to third parties consisted of the following as of December 31, 2018 and 2017:


   

December 31,

 

Name

 

2018

   

2017

 

Nonconvertible Debt:

               

Notes payable, no interest, unsecured, past due

  $ 35,000     $ 35,000  

Notes payable, no interest, unsecured, past due

    378,185       378,185  

Note payable, interest at 7% per annum, unsecured, due January 18, 2019

    345,000       -  

Convertible note payable, convertible beginning February 16, 2019 at a 65% discount to market, interest at 10%, unsecured, due August 20, 2019

    160,000       -  

    Total current debt

    918,185       413,185  

Less: Unamortized discount

    (15,160

)

    -  

    Net, current debt

  $ 903,025     $ 413,185