CONVERTIBLE DEBT
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
CONVERTIBLE DEBT

NOTE 7 – CONVERTIBLE DEBT

 

As of December 31, 2021, the Company had the following:

 

Unsecured convertible debt, due 01/19/17, 8% interest, default interest at 18%, converts at a 54% discount to market price based on the lowest trading prices in the last 20 days trading price   6,750 
      
Unsecured convertible debt, due 03/17/22, 10% interest, default interest at 16%, converts at $0.05/share. Original note value $340,000   150,000 
      
1 unsecured convertible debt were issued during the third quarter 2021, due 03/31/23, 6% interest, converts at $0.05/share.   15,000 
      
SUBTOTAL   171,750 
Less: Discount   — 
TOTAL  $171,750 

 

Below represent the Black-Scholes Option Pricing Model calculations for the above convertible note payables:

 

Payee  Number of options valued   Value of Convertible Option 
Unsecured Convertible debt #1   421,432   $8,026 
Unsecured Convertible debt #2   5,010,000   $68,443 
Unsecured Convertible debt #3   507,917   $16,058 

 

As of December 31, 2021, the Company has an outstanding total of $92,527 in accrued interest for the above convertible notes.

 

The convertible promissory notes #1 is in default but management has not been able to make contact with this party, due to them living out of the country. We have calculated the derivative liability as if it is in default (but the note’s default interest rate stays the same at 8%) and will still accrue appropriate interest until the note is fully satisfied or converted into the Company’s common stock.

 

The Company has determined that the conversion feature embedded in the notes referred to above that contain a potential variable conversion amount constitutes a derivative which has been bifurcated from the note and recorded as a derivative liability, with a corresponding discount recorded to the associated debt.