(11) Subsequent Events

From January 1, 2021 through April 11, 2021 the Company received four convertible loans for a total of $957,500. The Company issued 181,000 warrants (five-year life and $3.50 strike price) with three of the loans, and in the fourth loan the Company agreed to issue 5,000 shares of common stock each month over the six-month term as fees paid to the lender. These loans have conversion prices of $2.50, carry interest rates ranging from 10% to 18%, and terms ranging from six to twelve months. In this time, the Company also received $100,000 on the sale of Series AA shares (issuing 40,000 warrants with a five-year term and strike price of $3.50), $85,000 of related party loans, a second Payroll Protection Program (“PPP”) loan sponsored by the United States for $367,037 (1% interest and five-year term), and entered into Merchant Cash lender agreements (collecting $379,704, $110,296 of one merchant cash lender loan was used to settle an existing merchant agreement dated November 5, 2020). One of the Merchant Cash lender loans is personally guaranteed by the Company’s Chief Executive Officer. Under these agreements, the Company pays $4,792 each business day to its Merchant Cash lenders until the lenders have received cumulative payments of $663,460. In this time, the Company’s first PPP loan for $367,039 was forgiven by the United States, and the Company issued 10,000 shares of common stock (valued at $22,800) to a consultant for Investor Relations services, 24,000 stock options to an employee (10 year term and $2.17 per share exercise price) and repaid loans dated May 20, 2019, June 7, 2019 and August 14,2019 for $193,375 and 23,200 shares of common stock (settling principal, interest and fees).

On April 1, 2021, the Company entered into extensions of its Standstill and Forbearance Agreements with lenders who hold convertible notes with a total principal of $1.55 million through April 16, 2021.