Item 2. Unregistered Sales of Equity Securities
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES
AND USE OF PROCEEDS
None.
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 10 - 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/A. The amount
of principal in default pursuant to the convertible notes is $3,063,970 as of September 30, 2021.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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