| Convertible notes payable |
Convertible notes payable consists of the following:
| |
|
September 30,
2019 |
|
|
December 31,
2018 |
|
| September 2019 Notes, issued September 29, 2019, with a maturity date of September 29, 2020, with an interest rate of 15%. |
|
$ |
40,010 |
|
|
$ |
- |
|
| January and February 2018 Notes, issued January 3, 2018 and February 16, 2018, respectively, with a maturity date of March 31, 2019, as amended, with an interest rate of 10%. |
|
|
294,000 |
|
|
|
294,000 |
|
| November 2017 Notes, issued November 10, 2017, with a maturity date of March 31, 2019, as amended, bearing no interest, and secured by substantially all of the Company’s assets and guarantees of payment by the Company's CEO, and Australian Sapphire Corporation (“ASC”), a shareholder of the Company which is wholly-owned by the Company's CEO. |
|
|
287,502 |
|
|
|
287,502 |
|
| November 2016 Notes, issued November 10, 2016, with a maturity date of March 31, 2019, as amended, bearing no interest, and secured by substantially all of the Company’s assets and guarantees of payment by the Company's CEO, and ASC. |
|
|
287,502 |
|
|
|
287,502 |
|
| December 2015 Notes, issued December 23, 2015, with a maturity date of March 31, 2019, as amended, bearing no interest, and secured by substantially all of the Company’s assets and guarantees of payment by the Company's CEO, and ASC. |
|
|
862,500 |
|
|
|
862,500 |
|
| Total convertible notes payable |
|
|
1,771,514 |
|
|
|
1,731,504 |
|
| Debt discount |
|
|
- |
|
|
|
- |
|
| Convertible notes payable, net of unamortized debt discount |
|
$ |
1,771,514 |
|
|
$ |
1,731,504 |
|
|
| Summary of convertible debt |
The following represents a summary of the convertible debt terms at September 30, 2019:
| |
|
Amount of Notes |
|
|
Debt Discount |
|
|
Maturity Dates thru |
|
Conversion Price |
|
|
Number of Warrants |
|
|
Exercise Price |
|
|
Warrants Exercisable thru |
| September 2019 Notes |
|
$ |
40,010 |
|
|
$ |
- |
|
|
9/29/2020 |
|
$ |
0.01 |
|
|
|
- |
|
|
$ |
- |
|
|
- |
| January and February 2018 Notes |
|
|
294,000 |
|
|
|
- |
|
|
3/31/2019 |
|
$ |
0.08 |
|
|
|
1,960,000 |
|
|
$ |
0.15 |
|
|
2/16/2023 |
| November 2017 Notes |
|
|
287,502 |
|
|
|
- |
|
|
3/31/2019 |
|
$ |
0.08 |
|
|
|
3,593,776 |
|
|
$ |
0.15 |
|
|
11/10/2022 |
| November 2016 Notes |
|
|
287,502 |
|
|
|
- |
|
|
3/31/2019 |
|
$ |
0.08 |
|
|
|
3,593,776 |
|
|
$ |
0.15 |
|
|
11/10/2022 |
| December 2015 Notes |
|
|
862,500 |
|
|
|
- |
|
|
3/31/2019 |
|
$ |
0.08 |
|
|
|
10,781,250 |
|
|
$ |
0.15 |
|
|
11/10/2022 |
| Total |
|
$ |
1,771,514 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
19,928,802 |
|
|
|
|
|
|
|
|
| Schedule of fair value and relative fair value |
The debt discount is accreted to interest expense over the term of the note.
| |
|
January 3, 2018 |
|
|
February 16, 2018 |
|
| |
|
Fair value |
|
|
Relative fair value |
|
|
Fair value |
|
|
Relative fair value |
|
| Warrant |
|
$ |
95,324 |
|
|
$ |
19,784 |
|
|
$ |
65,292 |
|
|
$ |
16,955 |
|
| Common sock |
|
$ |
70,833 |
|
|
$ |
14,701 |
|
|
$ |
54,167 |
|
|
$ |
14,066 |
|
| Redeemable shares |
|
$ |
255,000 |
|
|
$ |
52,923 |
|
|
$ |
195,000 |
|
|
$ |
50,637 |
|
| Remaining note value |
|
$ |
110,300 |
|
|
$ |
22,892 |
|
|
$ |
110,300 |
|
|
$ |
28,642 |
|
| Total |
|
$ |
531,457 |
|
|
$ |
110,300 |
|
|
$ |
424,759 |
|
|
$ |
110,300 |
|
| Additional discount (interest) |
|
$ |
-- |
|
|
$ |
13,808 |
|
|
$ |
-- |
|
|
$ |
8,058 |
|
|