(11) Subsequent Events

From January 1, 2022 through March 31, 2022 the Company received two convertible loans for $145,487, which each carry a 12% annual interest rate and eight and twelve month terms. One loan is convertible at $2.50 per share other than in an event of default otherwise upon an event of default, the conversion price will be at 75% of the lowest trading price for the common stock over five days before conversion. The other loan is convertible, upon an event of default, at 75% of the lowest trading price for the common stock over five days before conversion. In this period, the Company also borrowed $177,500 from related parties with 10% original issue discount and 12% annual interest rate, and entered into two new Merchant Cash lender agreements (collecting $361,120 and obligating the Company to pay $18,990 each week to the lenders).

In this time the Company also rolled over two loans totaling $475,000 (dated June 30, 2021, and June 28, 2021) into new loans totaling $1,200,000 with terms extended six to eight months. The Company issued 132,000 shares of common stock as origination fees for the new loans. Separately, during this period the Company extended five loans totaling $1,045,000 (dated July 16, 2021, June 30,2021, July 16, 2021, July 16, 2021 and July 16, 2021) for five to six months with new principal of $1,095,250 issuing 147,500 shares of common stock as extension fees.

During this period the Company also issued 140,200 shares to a lender who converted $350,500 of liabilities and debt principal (principally $258,385 in penalties) into common stock, repaid a convertible loan dated September 24, 2020 for $134,805 (comprised of principal and accrued interest) and issued 37,000 shares of common stock and 30,000 warrants to acquire common stock (three year term and $3.50 strike price) to consultants for investor relations services. In this time the Company also repaid $107,000 of debt in cash.