Item 2. Unregistered Sales of Equity Securities
ITEM
2. Unregistered Sales of Equity Securities and Use of Proceeds.
None.
23
ITEM
3. DEFAULTS UPON SENIOR SECURITIES
The
$500,000 secured short-term note issued on February 1, 2019 was past due as of March 31, 2021. We have accrued 100,000 shares of Company
stock per month, recorded as interest, as penalty shares per agreement with the lender, until paid, through December 31, 2020 in accordance
with a verbal agreement with the lender. No further share accrual is being made. A total of 1,850,000 penalty shares are accrued, and
due on demand, in accordance with this borrowing.
The
$100,000 secured short-term note issued on July 2, 2019 was past due as of March 31, 2021. We are continuing to accrue interest at the
stated rate of 12%, which is a total of approximately $21,000 as of the date of this report, until the loan is paid in full, or an extension
agreement is reached with the lender. We are currently in discussions with the lender regarding these matters, although we have not obtained
a written waiver or entered into an amendment revising these terms.
The
$150,000 secured short-term note issued on July 18, 2019 was past due as of March 31, 2021. We have accrued 15,000 shares of Company
stock per month, which increased to 30,000 shares of common stock per month beginning March 16, 2020, recorded as interest, as penalty
shares per agreement with the lender, until paid, through December 31, 2020 in accordance with a verbal agreement with the lender. A
total of 360,000 penalty shares are accrued and due on demand, in accordance with this borrowing.
The
$450,000 secured short-term note issued on December 14, 2019 was past due as of March 31, 2021. We are continuing to accrue interest
at the stated rate of 15%, which is a total of approximately $87,500 as of the date of this report, until the loan is paid in full, or
an extension agreement is reached with the lender. We are currently in discussions with the lender regarding these matters, although
we have not obtained a written waiver or entered into an amendment revising these terms.
The
$220,000 secured short-term note issued on July 8, 2020 was past due as of March 31, 2021. We are continuing to accrue interest at the
stated rate of 15%, which is a total of approximately $24,100 as of the date of this report, until the loan is paid in full, or an extension
agreement is reached with the lender. We are currently in discussions with the lender regarding these matters, although we have not obtained
a written waiver or entered into an amendment revising these terms.
The
$120,000 secured short-term note issued on August 18, 2020 was past due as of March 31, 2021. We are continuing to accrue interest at
the stated rate of 15%, which is a total of approximately $11,000 as of the date of this report, until the loan is paid in full, or an
extension agreement is reached with the lender. We are currently in discussions with the lender regarding these matters, although we
have not obtained a written waiver or entered into an amendment revising these terms.
The
$280,000 secured short-term note issued on September 3, 2020 was past due as of March 31, 2021. We are continuing to accrue interest
at the stated rate of 15%, which is a total of approximately $24,000 as of the date of this report, until the loan is paid in full, or
an extension agreement is reached with the lender. We are currently in discussions with the lender regarding these matters, although
we have not obtained a written waiver or entered into an amendment revising these terms.
ITEM
4. MINE SAFETY DISCLOSURES
Not
Applicable.
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