Item 2. Unregistered Sales of Equity Securities
ITEM
2. Unregistered Sales of Equity Securities and Use of Proceeds.
None.
27
ITEM
3. DEFAULTS UPON SENIOR SECURITIES
The
$500,000 secured short-term note issued on February 1, 2019, was past due as of September 30, 2022. 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. Unpaid interest is approximately $30,000 as of the date of this report.
The
$100,000 secured short-term note issued on July 2, 2019, was past due as of September 30, 2022. We are continuing to accrue interest
at the stated rate of 12% per annum, which is a total of approximately $36,000 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 in on-going discussions with our lenders regarding the terms and
conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending
or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the
company in order to resolve the matters in the best interest of all parties.
The
$150,000 secured short-term note issued on July 18, 2019, was past due as of September 30, 2022. 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. Unpaid interest is approximately $10,000
as of the date of this report.
The
$300,000 secured short-term note issued on October 17, 2019, was past due as of September 30, 2022. We are continuing to accrue interest
at the stated rate of 15% per annum, which is a total of approximately $133,000 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 in on-going discussions with our lenders regarding the terms and
conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending
or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the
company in order to resolve the matters in the best interest of all parties.
The
$450,000 secured short-term note issued on December 14, 2019, was past due as of September 30, 2022. We are continuing to accrue interest
at the stated rate of 15% per annum, which is a total of approximately $188,300 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 in on-going discussions with our lenders regarding the terms and
conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending
or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the
company in order to resolve the matters in the best interest of all parties.
The
$100,000 secured short-term note issued on March 16, 2020, was past due as of September 30, 2022. We are continuing to accrue interest
at the stated rate of 14% per annum, which is a total of approximately $36,000 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 in on-going discussions with our lenders regarding the terms and
conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending
or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the
company in order to resolve the matters in the best interest of all parties.
The
$50,000 secured short-term note issued on March 17, 2020, was past due as of September 30, 2022. We are continuing to accrue interest
at the stated rate of 14% per annum, which is a total of approximately $17,800 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 in on-going discussions with our lenders regarding the terms and
conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending
or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the
company in order to resolve the matters in the best interest of all parties.
28
The
$220,000 secured short-term note issued on July 8, 2020, was past due as of September 30, 2022. We are continuing to accrue interest
at the stated rate of 15% per annum, which is a total of approximately $73,600 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 in on-going discussions with our lenders regarding the terms and
conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending
or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the
company in order to resolve the matters in the best interest of all parties.
The
$120,000 secured short-term note issued on August 18, 2020, was past due as of September 30, 2022. We are continuing to accrue interest
at the stated rate of 15% per annum, which is a total of approximately $38,000 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 in on-going discussions with our lenders regarding the terms and
conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending
or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the
company in order to resolve the matters in the best interest of all parties.
The
$280,000 secured short-term note issued on September 3, 2020, was past due as of September 30, 2022. We are continuing to accrue interest
at the stated rate of 15% per annum, which is a total of approximately $87,100 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 in on-going discussions with our lenders regarding the terms and
conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending
or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the
company in order to resolve the matters in the best interest of all parties.
ITEM
4. MINE SAFETY DISCLOSURES
Not
Applicable.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.