The accompanying notes are an integral part of these consolidated financial statements.
The accompanying notes are an integral part of these consolidated financial statements.
The accompanying notes are an integral part of these consolidated financial statements.
The accompanying notes are an integral part of these consolidated financial statements.
Notes to the Consolidated Financial Statements
NOTE 1. Nature of Operations and Continuance of Business
Appiphany Technologies Holdings Corp. ("The Company") was incorporated in the State of Nevada on February 24, 2010. On May 1, 2010, the Company entered into a share exchange agreement with Appiphany Technologies Corporation ("ATC") to acquire all of the outstanding common shares of ATC in exchange for 1,500,000 common shares of the Company. As the acquisition involved companies under common control, the acquisition was accounted for in accordance with ASC 805-50, Business Combinations – Related Issues, and the consolidated financial statements reflect the accounts of the Company and ATC since inception. On November 18, 2015, ATC was dissolved.
Going Concern
These consolidated financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As at April 30, 2016, the Company has not recognized significant revenue, has a working capital deficit of $475,875, and has an accumulated deficit of $1,791,491. The continuation of the Company as a going concern is dependent upon the continued financial support from its management, and its ability to identify future investment opportunities and obtain the necessary debt or equity financing, and generating profitable operations from the Company's future operations. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
NOTE 2. Summary of Significant Accounting Policies
a)
Basis of Presentation and Principles of Consolidation
The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("US GAAP") and are expressed in U.S. dollars. The consolidated financial statements are comprised of the records of the Company and its wholly owned subsidiary, Appiphany Technologies Corp., a company incorporated in British Columbia, Canada. All intercompany transactions have been eliminated on consolidation. The Company's fiscal year end is April 30.
b)
Use of Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the fair value and estimated useful life of long-lived assets, fair value of convertible debentures, derivative liabilities, stock-based compensation, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
c)
Cash and cash equivalents
The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. As at April 30, 2016 and 2015, the Company had no items representing cash equivalents.
d)
Basic and Diluted Net Loss per Share
The Company computes net loss per share in accordance with ASC 260,
Earnings per Share
. ASC 260 requires presentation of both basic and diluted earnings per share ("EPS") on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive. As of April 30, 2016, the Company had 20,292,620 (2015 – 8,713,784) potentially dilutive common shares outstanding.
e)
Financial Instruments
Pursuant to ASC 820,
Fair Value Measurements and Disclosures
, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:
Level 1
applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.
Level 2
applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.
Level 3
applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.
The Company's financial instruments consist principally of cash, amounts receivable, accounts payable and accrued liabilities, accrued compensation, and amounts due to related parties. Pursuant to ASC 820, the fair value of our cash is determined based on "Level 1" inputs, which consist of quoted prices in active markets for identical assets. The fair value of our derivative liability is determined to be a "Level 2" input. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.
f)
Comprehensive Loss
ASC 220,
Comprehensive Income
, establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at April 30, 2016 and 2015, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.
g)
Revenue Recognition
The Company recognizes revenue from online fraud protection services. Revenue will be recognized only when the price is fixed and determinable, persuasive evidence of an arrangement exists, the service has been provided, and collectability is assured. The Company is not exposed to any credit risks as amounts are prepaid prior to performance of services.
Revenue is recorded on an agency basis in accordance with Accounting Standards Update No. 2014-09,
Revenue from Contracts with Customers.
The Company acts as an agent for the principal on the basis that the Company does not provide direct service to its customers, has no authority to determine the price of the products or services provided, and is not responsible for inventory risk.
h)
Stock-based Compensation
The Company records stock-based compensation in accordance with ASC 718,
Compensation – Stock Compensation
and ASC 505,
Equity Based Payments to Non-Employees,
which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based awards made to employees and directors, including stock options.
ASC 718 requires company to estimate the fair value of share-based awards on the date of grant using an option-pricing model. The Company uses the Black-Scholes option pricing model as its method of determining fair value. This model is affected by the Company's stock price as well as assumptions regarding a number of subjective variables. These subjective variables include, but are not limited to the Company's expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviours. The value of the portion of the award that is ultimately expected to vest is recognized as an expense in the statement of operations over the requisite service period.
All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.
i)
Recent Accounting Pronouncements
The Company has limited operations and is considered to be in the development stage. For the year ended April 30, 2016, the Company has elected to early adopt Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. The adoption of this ASU allows the Company to remove the inception to date information and all references to exploration stage.
The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
NOTE 3. Acquisition of License Agreements
a)
On January 14, 2016, the Company entered into a purchase agreement with a company controlled by the President and Director of the Company. Pursuant to the agreement, the Company agreed to purchase two licenses including the accounts receivable generated by the two licenses, in exchange for 20,000,000 common shares of the Company.
In accordance with ASC 805-50, "
Business Combinations: Related Issues"
, the purchase agreement was deemed an acquisition of assets between entities under common control for accounting purposes as the transaction was non arms-length. The licenses and accounts receivable acquired were recorded at their carrying value of $nil.
b)
On January 18, 2016, the Company entered into a license agreement (the "Agreement") with Comsec Solutions Limited ("Comsec") where the Company acquired the right to market and distribute Watchdog, a market leading web-monitoring tool owned by Comsec, in North and South America. In exchange for the rights, the Company agreed to pay a monthly base fee of up to £4,750, depending on the service provided, and 15% commission fee for all revenues including a minimum revenue base of £140,000 in the first year and £100,000 in subsequent years.
NOTE 4. Related Party Transactions
a)
During the year ended April 31, 2016, the Company incurred $nil (2015 - $27,065) of management fees to the former President and Director of the Company. During the year ended April 30, 2015, the amount owing of $78,835 owing for accrued management fees and financing of day-to-day expenditures incurred on behalf of the Company was forgiven and included in additional paid-in capital.
b)
During the year ended April 30, 2016, the Company issued 10,000,000 (2015 – 375,000) common shares with a fair value of $100,000 (2015 - $97,500) to the President and Director of the Company.
c)
As at April 30, 2016, the Company owed $nil (2014 - $499) of professional fees paid on its behalf by the former Secretary and Treasurer of the Company, which is included in accounts payable and accrued liabilities.
d)
As at April 30, 2016, the Company owed $41,197 (2015 - $19,155) and $21,289 (Cdn$ - $26,715) (2015 - $8,769; Cdn$10,625) to the President and Director of the Company for financing of day-to-day expenditures incurred on behalf of the Company. The amount owing is unsecured, non-interest bearing, and due on demand.
e)
As at April 30, 2016, the Company owed $nil (2015 - $9,000) to the former Secretary and Treasurer of the Company in accrued compensation.
NOTE 5. Convertible Debentures
a)
On December 17, 2013, the Company issued a convertible debenture to a non-related party for proceeds of $32,500. Under the terms of the debenture, the amount is unsecured, bears interest at 8% per annum, and is due on September 19, 2014. Interest on overdue principal after default accrues at an annual rate of 22%. After 180 days or June 15, 2014, the debenture is convertible into common shares of the Company at a conversion price equal to 51% of the lowest two trading prices of the Company's common shares for the past 30 trading days prior to notice of conversion. On September 19, 2014, as the amount of the convertible debenture had not been repaid or converted by maturity, the Company incurred a penalty of 50% of the principal balance owing resulting in the Company recording $16,250 which had been included in interest expense.
Due to this provision, the embedded conversion option qualifies for derivative accounting under ASC 815-15 "Derivatives and Hedging". The fair value of the derivative liability resulted in a full discount to the note payable of $32,500. The carrying value of the convertible note will be accreted over the term of the convertible note up to the face value of $32,500. During the year ended April 30, 2015, the Company issued 595,667 shares of common stock for the conversion of $39,130. As at April 30, 2016, the carrying value of the note was $9,620 (2015 - $9,620).
b)
On May 21, 2014, the Company issued a convertible debenture, to a non-related party, for proceeds of $37,500. Under the terms of the debenture, the amount is unsecured, bears interest at 8% per annum, and is due on February 23, 2015. After 180 days or November 17, 2014, the debenture is convertible into common shares of the Company at a conversion price equal to 51% of the lowest two trading prices of the Company's common shares for the past 30 trading days prior to notice of conversion.
Due to this provision, the embedded conversion option qualifies for derivative accounting under ASC 815-15 "Derivatives and Hedging". The fair value of the derivative liability resulted in a full discount to the note payable of $37,500. The carrying value of the convertible note will be accreted over the term of the convertible note up to the face value of $37,500. During the year ended April 30, 2015, the Company issued 360,000 shares of common stock for the conversion of $2,920. During the year ended April 30, 2016, the Company issued 1,850,000 shares of common stock for the conversion of $8,772 of the note. As at April 30, 2016, the carrying value of the note was $25,808 (2015 - $34,580).
c)
On May 23, 2014, the Company issued a convertible debenture, to a non-related party, for proceeds of $40,000. Under the terms of the debenture, the amount is unsecured, bears interest at 8% per annum, and is due on May 23, 2015. After 180 days or November 19, 2014, the debenture is convertible into common shares of the Company at a conversion price equal to 55% of the lowest trading price of the Company's common shares for the past 15 trading days prior to notice of conversion.
Due to this provision, the embedded conversion option qualifies for derivative accounting under ASC 815-15 "Derivatives and Hedging". The fair value of the derivative liability resulted in a discount to the note payable of $25,215. The carrying value of the convertible note will be accreted over the term of the convertible note up to the face value of $40,000. During the year ended April 30, 2015, the Company issued 127,655 shares of common stock for the conversion of $1,335 of the note and $69 of accrued interest. During the year ended April 30, 2016, the Company issued 91,831 shares of common stock for the conversion of $188 of the note and $19 of accrued interest. As at April 30, 2016, the carrying value of the note was $38,477 (2015 - $31,683).
NOTE 6. Derivative Liability
The Company records the fair value of the of the conversion price of the convertible debentures disclosed in Note 6 in accordance with ASC 815,
Derivatives and Hedging
. The fair value of the derivative was calculated using a Black-Scholes model. The fair value of the derivative liability is revalued on each balance sheet date with corresponding gains and losses recorded in the consolidated statement of operations. During the year ended April 30, 2016, the Company recorded a gain on the change in fair value of derivative liability of $
90,324
(
2015 – loss of $431,203
). As at
April 30, 2016
, the Company recorded a derivative liability of $
140,196
(
2015 - $357,985
).
The following inputs and assumptions were used to value the convertible debentures outstanding during the period ended
April 30, 2016 and 2015
:
|
|
Expected Volatility
|
|
|
Risk-free Interest Rate
|
|
|
Expected Dividend Yield
|
|
|
Expected Life
(in years)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 17, 2013 convertible debenture:
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
June 15, 2014
(date note became convertible)
|
|
|
433
|
%
|
|
|
0.03
|
%
|
|
|
0
|
%
|
|
|
0.26
|
|
As at July 31, 2014 (mark to market)
|
|
|
362
|
%
|
|
|
0.01
|
%
|
|
|
0
|
%
|
|
|
0.14
|
|
As at September 19, 2014 (date of default penalty)
|
|
|
426
|
%
|
|
|
0.04
|
%
|
|
|
0
|
%
|
|
|
0.50
|
|
As at October 30, 2014 (date of conversion)
|
|
|
335
|
%
|
|
|
0.06
|
%
|
|
|
0
|
%
|
|
|
0.39
|
|
As at October 31, 2014 (mark to market)
|
|
|
336
|
%
|
|
|
0.05
|
%
|
|
|
0
|
%
|
|
|
0.38
|
|
As at November 3, 2014 (date of conversion)
|
|
|
348
|
%
|
|
|
0.07
|
%
|
|
|
0
|
%
|
|
|
0.38
|
|
As at November 7, 2014 (date of conversion)
|
|
|
352
|
%
|
|
|
0.05
|
%
|
|
|
0
|
%
|
|
|
0.37
|
|
As at November 10, 2014 (date of conversion)
|
|
|
355
|
%
|
|
|
0.02
|
%
|
|
|
0
|
%
|
|
|
0.36
|
|
As at November 18, 2014 (date of conversion)
|
|
|
370
|
%
|
|
|
0.02
|
%
|
|
|
0
|
%
|
|
|
0.34
|
|
As at January 31, 2015 (mark to market)
|
|
|
528
|
%
|
|
|
0.01
|
%
|
|
|
0
|
%
|
|
|
0.13
|
|
As at March 5, 2015 (date of conversion)
|
|
|
693
|
%
|
|
|
0.25
|
%
|
|
|
0
|
%
|
|
|
1.00
|
|
As at April 16, 2015 (date of conversion)
|
|
|
736
|
%
|
|
|
0.22
|
%
|
|
|
0
|
%
|
|
|
0.88
|
|
As at April 22, 2015 (date of conversion)
|
|
|
742
|
%
|
|
|
0.23
|
%
|
|
|
0
|
%
|
|
|
0.87
|
|
As at April 30, 2015 (mark to market)
|
|
|
747
|
%
|
|
|
0.24
|
%
|
|
|
0
|
%
|
|
|
0.85
|
|
As at April 30, 2016 (mark to market)
|
|
|
366
|
%
|
|
|
0.56
|
%
|
|
|
0
|
%
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 21, 2014 convertible debenture:
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
November 17, 2014
(date note became convertible)
|
|
|
301
|
%
|
|
|
0.03
|
%
|
|
|
0
|
%
|
|
|
0.27
|
|
As at January 9, 2015 (date of conversion)
|
|
|
597
|
%
|
|
|
0.02
|
%
|
|
|
0
|
%
|
|
|
0.12
|
|
As at January 15, 2015 (date of conversion)
|
|
|
577
|
%
|
|
|
0.03
|
%
|
|
|
0
|
%
|
|
|
0.11
|
|
As at January 21, 2015 (date of conversion)
|
|
|
650
|
%
|
|
|
0.01
|
%
|
|
|
0
|
%
|
|
|
0.09
|
|
As at January 22, 2015 (date of conversion)
|
|
|
635
|
%
|
|
|
0.02
|
%
|
|
|
0
|
%
|
|
|
0.09
|
|
As at January 30, 2015 (date of conversion)
|
|
|
496
|
%
|
|
|
0.01
|
%
|
|
|
0
|
%
|
|
|
0.07
|
|
As at January 31, 2015 (mark to market)
|
|
|
528
|
%
|
|
|
0.01
|
%
|
|
|
0
|
%
|
|
|
0.06
|
|
As at April 16, 2015 (date of conversion)
|
|
|
512
|
%
|
|
|
0.22
|
%
|
|
|
0
|
%
|
|
|
0.86
|
|
As at April 30, 2015 (mark to market)
|
|
|
520
|
%
|
|
|
0.24
|
%
|
|
|
0
|
%
|
|
|
0.82
|
|
As at December 7, 2015 (date of conversion)
|
|
|
251
|
%
|
|
|
0.29
|
%
|
|
|
0
|
%
|
|
|
0.21
|
|
As at April 5, 2016 (date of conversion)
|
|
|
371
|
%
|
|
|
0.56
|
%
|
|
|
0
|
%
|
|
|
0.90
|
|
As at April 30, 2016 (mark to market)
|
|
|
312
|
%
|
|
|
0.56
|
%
|
|
|
0
|
%
|
|
|
0.83
|
|
May 23, 2014 convertible debenture:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
November 19, 2014
(date note became convertible)
|
|
|
444
|
%
|
|
|
0.07
|
%
|
|
|
0
|
%
|
|
|
0.51
|
|
As at January 14, 2015 (mark to market)
|
|
|
462
|
%
|
|
|
0.04
|
%
|
|
|
0
|
%
|
|
|
0.35
|
|
As at January 26, 2015 (mark to market)
|
|
|
494
|
%
|
|
|
0.03
|
%
|
|
|
0
|
%
|
|
|
0.32
|
|
As at January 31, 2015 (mark to market)
|
|
|
505
|
%
|
|
|
0.02
|
%
|
|
|
0
|
%
|
|
|
0.31
|
|
As at April 30, 2015 (mark to market)
|
|
|
576
|
%
|
|
|
0.00
|
%
|
|
|
0
|
%
|
|
|
0.06
|
|
As at April 30, 2016 (mark to market)
|
|
|
111
|
%
|
|
|
0.56
|
%
|
|
|
0
|
%
|
|
|
0.06
|
|
A summary of the activity of the derivative liability is shown below:
|
|
$
|
|
|
Balance, April 30, 2014
|
|
|
47,706
|
|
Derivative loss due to new issuances
|
|
|
38,016
|
|
Debt discount
|
|
|
95,215
|
|
Adjustment for conversion
|
|
|
(216,139
|
)
|
Mark to market adjustment at April 30, 2015
|
|
|
393,187
|
|
Balance,
April 30, 2015
|
|
|
357,985
|
|
Adjustment for conversion
|
|
|
(127,465
|
)
|
Mark to market adjustment at April 30, 2016
|
|
|
(90,324
|
)
|
Balance, April 30, 2016
|
|
|
140,196
|
|
NOTE 7. Notes Payable
As at April 30, 2016, the Company owed $4,616 (2015 - $nil) in notes payable to non-related parties. Under the terms of the notes, the amounts are unsecured, bears interest at 6% per annum, and due on July 31, 2016.
NOTE 8. Common Shares
Share Transactions for the Year Ended April 30, 2016
a)
On September 8, 2015, the Company issued 91,831 common shares upon the conversion of $188 of convertible note payable, $19 of accrued interest payable as described in Note 5(c), and derivative liability of $348.
b)
On November 17, 2015, the Company issued 10,000,000 common shares with a fair value of $100,000 to the President and Director of the Company for management services. Fair value was based on the closing market price on the date of issuance.
c)
On December 8, 2015, the Company issued 550,000 common shares upon the conversion of $2,805 of convertible note payable as described in Note 5(b), and derivative liability of $16,083.
d)
On January 14, 2016, the Company issued 20,000,000 common shares to the President and Director of the Company for the acquisition of licenses. Refer to Note 3.
e)
On April 7, 2016, the Company issued 1,300,000 common shares upon the conversion of $5,967 of convertible note payable as described in Note 5(b), and derivative liability of $111,034.
Share Transactions for the Year Ended April 30, 2015
a)
On January 31, 2015, the Company issued 375,000 common shares with a fair value of $97,500 to the President and Director of the Company for management services. Fair value was based on the closing market price on the date of Board approval.
b)
On February 3, 2015, the Company effected a 1-for-200 reverse split of its issued and outstanding common shares, which has been applied on a retroactive basis.
c)
During the year ended April 30, 2015, the Company issued 73,169 common shares upon the conversion of $11,900 of convertible notes payable and $2,185 of accrued interest payable.
d)
During the year ended April 30, 2015, the Company issued 214,035 common shares upon the conversion of $28,500 of convertible notes payable and $760 of accrued interest payable.
e)
During the year ended April 30, 2015, the Company issued 595,667 common shares upon the conversion of $39,130 of convertible notes payable as described in Note 5(a).
f)
During the year ended April 30, 2015, the Company issued 360,000 common shares upon the conversion of $2,920 of convertible notes payable as described in Note 5(b).
g)
During the year ended April 30, 2015, the Company issued 127,655 common shares upon the conversion of $1,335 of convertible notes payable and $69 of accrued interest payable as described in Note 5(c).
NOTE 9. Income Taxes
The Company has $1,039,212 of net operating losses carried forward to offset taxable income in future years which expire commencing in fiscal 2030. The income tax benefit differs from the amount computed by applying the US federal income tax rate of 34% and the Canada federal and provincial tax rate of 26% to net loss before income taxes for the year ended April 30, 2016 and 2015 as a result of the following:
|
|
2016
$
|
|
|
2015
$
|
|
|
|
|
|
|
|
|
Net loss before taxes
|
|
|
(125,638
|
)
|
|
|
(797,865
|
)
|
Statutory rate
|
|
|
34
|
%
|
|
|
34
|
%
|
|
|
|
|
|
|
|
|
|
Computed expected tax recovery
|
|
|
(42,717
|
)
|
|
|
(271,274
|
)
|
Permanent differences and other
|
|
|
2,343
|
|
|
|
178,159
|
|
Change in valuation allowance
|
|
|
40,374
|
|
|
|
93,115
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
|
|
–
|
|
|
|
–
|
|
The significant components of deferred income tax assets and liabilities as at April 30, 2016 and 2015 after applying enacted corporate income tax rates are as follows:
|
|
2016
$
|
|
|
2015
$
|
|
|
|
|
|
|
|
|
Net operating losses carried forward
|
|
|
353,332
|
|
|
|
312,958
|
|
|
|
|
|
|
|
|
|
|
Total gross deferred income tax assets
|
|
|
353,332
|
|
|
|
312,958
|
|
Valuation allowance
|
|
|
(353,332
|
)
|
|
|
(312,958
|
)
|
|
|
|
|
|
|
|
|
|
Net deferred tax asset
|
|
|
–
|
|
|
|
–
|
|
NOTE 10. Subsequent Events
a)
On May 17, 2016, the Company issued a convertible promissory note to an unrelated party for $33,000. Pursuant to the agreement, the note was issued with a 10% original issue discount and as such the purchase price was $30,000. The note is convertible into common stock of the Company at a price equal to 50% of the lowest trading price of the Company's common stock of either (i) the twenty-five prior trading days immediately preceding the issuance of the note or (ii) the twenty-five prior trading days including the day upon which a notice of conversion is received by the Company. The promissory note shall bear interest at 10% per annum and is due on May 17, 2017.
b)
On June 13, 2016, the Company issued 3,217,352 shares of common stock for the conversion of $8,368 of convertible debentures, as noted in Note 5(b).
c)
On June 28, 2016, the Company issued 1,176,470 shares of common stock for the conversion of $3,000 of convertible debentures, as noted in Note 5(a).
d)
On July 27, 2016, the Company issued 1,579,800 shares of common stock for the conversion of $4,000 of convertible debentures and $28 of accrued interest, as noted in Note 5(a).