RELATED PARTY TRANSACTIONS
|3 Months Ended|
Mar. 31, 2020
|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 $3,071,280 and $3,090,052 as of March 31, 2020 and December 31, 2019, 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 $1,619,259 is currently in default and the amount includes $417,079 in accrued interest. It is the Company’s intention to pay Mr. Ponce de Leon immediately upon receiving revenue.
During the three months ended March 31, 2020, the Company borrowed $24,900, net of beneficial conversion features of $4,150, under a convertible note payable from a Company with an interest owned by a significant stockholder. The convertible note is secured by assets and the common stock of the Company, bears interest at 12% per annum and is due three years from the dates of issuance. As of March 31, 2020 and December 31, 2019, the Company had outstanding short-term convertible notes payable of $8,494,891 and $6,594,469, net of unamortized discounts of $1,193,385 and $658,922, respectively and outstanding long-term convertible notes payable of $1,409,153 and $2,626,753, net of unamortized discounts of $633,167 and $1,558,289, respectively. The convertible notes payable are convertible at $0.06 per share, which was a discount to the market price on the date of issuance. Amortization expense related to debt discounts on convertible debt for the three months ended March 31, 2020 and 2019 was $394,809 and $289,932, respectively.
As of March 31, 2020 and December 31, 2019, the Company had outstanding notes payable of $675,000 and $675,000, respectively.
As of March 31, 2020 and December 31, 2019, the Company had outstanding advances payable to an officer of the Company of $79,600 and $79,600, 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