Item 2. Unregistered Sales of Equity Securities
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES
AND USE OF PROCEEDS
On
June 2, 2021, the Company issued 1,006,250 shares of the Company’s common stock previously recorded as to be issued as of December
31, 2020.
On
June 6, 2021, the Company awarded an aggregate of 2,175,431 fully-vested shares of common stock, having a fair value of $166,855, for
services rendered.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
The Company does not have enough authorized and
unissued shares of common stock to convert all of the convertible promissory notes into shares of common stock. As a result of this authorized
shares shortfall, all of the convertible notes payable, including those where the maturity date has not yet been reached, are in default.
Accordingly, (i) interest has been accrued at the default interest rate, if applicable, and (ii) the embedded conversion option has been
accounted for, at fair value, as a derivative liability The Company has recorded the full value of the principal, default penalties, and
interest as current liabilities, as fully described in “Note 9 - Convertible Notes Payable” in the Company’s notes to
the condensed consolidated financial statements included in Part I, Item I of this Quarterly Report on Form 10-Q. The amount of principal
in default pursuant to the convertible notes is $3,063,970 as of June 30, 2021.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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