Quarterly report pursuant to Section 13 or 15(d)

NOTES PAYABLE (Tables)

v3.10.0.1
NOTES PAYABLE (Tables)
6 Months Ended
Jun. 30, 2018
Notes Payable  
Schedule of short-term and long-term liabilities

The Company’s short-term and long-term liabilities consists of the following:

 

   

June 30,

2018

   

December 31,

2017

 
Notes payable            
Notes payable - various   $ 170,669     $ 171,006  
Total notes payable     170,669       171,006  
                 
Short-term debt –related parties                
Demand notes – various related parties     208,583       218,042  
Demand note – K4 Enterprises     1,082,652       730,031  
Total short-term debt –related parties     1,291,235       948,073  
                 
Notes payable – related party                
Notes payable – Mike Kemery     1,500,000       1,500,000  
                 
Beginning debt discount     256,284       -  
Additions to debt discount     -       300,000  
Accretion of interest expense     (50,040 )     (43,716 )
Ending debt discount     206,244       256,284  
                 
Total notes payable – related party, net debt discount     1,293,756       1,243,716  
                 
Convertible debentures                
Convertible debentures – various     1,476,532       1,007,482  
                 
Beginning debt discount     675,273       -  
Additions to debt discount     378,146       1,388,605  
Accretion of interest expense     (176,641 )     (713,332 )
Ending debt discount     876,778       675,273  
                 
Total convertible debentures, net debt discount     599,754       332,209  
                 
Convertible debentures – related parties                
Convertible debentures – various related parties     610,000       335,000  
                 
Beginning debt discount     245,406       -  
Additions to debt discount     248,593       356,522  
Accretion of interest expense     (81,071 )     (111,116 )
Ending debt discount     412,928       245,406  
                 
Total convertible debentures – related party, net debt discount   $ 197,072     $ 89,593  
Schedule of convertible debt

The notes issued under the private placements are convertible into shares of common stock of the Company based upon the table below:

 

            Automatic Conversion Upon Maturity
Principal amount of debt   Number of convertible debentures  

Holder

Optional Conversion

 

Conversion price

for automatic conversion

  Floor Conversion Price
$400,000   1 *   $0.35   $0.35   None
$490,000   9 **  

90% of closing bid price 20 consecutive

days prior to conversion

  80% of 20 consecutive days prior to conversion   None
$475,000   3  

90% of closing bid price 20 consecutive

days prior to conversion

  90% of the closing bid price 20 consecutive days prior to conversion and the floor conversion price   See schedule below ***
$1,611,532   18  

90% of the closing bid price 20 consecutive

days prior to conversion

  90% of the closing bid price 20 consecutive days prior to conversion and the floor conversion price   $0.60

_________

* This debt converted into shares of common stock during the year ended December 31, 2017.

** All notes have been converted into shares of common stock during the three months ended March 31, 2018.

*** The floor conversion price for the $475,000 of convertible debt is as follows:

 

Conversion Date (by calendar quarter)   Floor Conversion Price  
2017 Q2   $ 0.60  
2017 Q3   $ 0.70  
2017 Q4   $ 0.85  
2018 Q1   $ 1.00  
Each Subsequent Quarter  

Increase $0.10

per Quarter