|9 Months Ended|
Sep. 30, 2022
NOTE 9 - NOTES PAYABLE
As of September 30, 2022 and December 31, 2021, the Company had an advance from a third party. The advance bears no interest and is due on demand. The balance outstanding as of September 30, 2022 and December 31, 2021 is $21,480.
On September 9, 2021, the Company issued an unsecured promissory note payable to one third party for $200,000 with principal and interest due June 8, 2022, with a stated interest rate of 25% per annum. The balance outstanding as of September 30, 2022 and December 31, 2021 is $200,000. The interest expense during the three and nine months ended September 30, 2022 was $12,603 and $37,397, respectively. The interest expense during the three and nine months ended September 30, 2021 was $3,014 and $3,014, respectively. If the Company fails to make any payment due under the terms of the promissory note, the Company shall issue a warrant to the third party to which the number of common shares that the third party has the right to purchase equals 48,309 common shares. The warrant shall have a term of 3 years with an exercise price of $4.14 and shall be equitably adjusted to offset the effect of any stock splits and similar events. During the nine months ended September 30, 2022, the Company issued the warrant that entitles the third party to purchase 48,309 common shares due to the loan default. The fair value of the warrant on June 8, 2022 was $86,821, which the Company recognized as interest expense.
The entire disclosure for other liabilities.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef