Quarterly report pursuant to Section 13 or 15(d)

Convertible Notes Payable

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Convertible Notes Payable
 3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
CONVERTIBLE NOTES PAYABLE

NOTE 8 - CONVERTIBLE NOTES PAYABLE


The below table summarizes the activity of convertible notes payable during the three months ended March 31, 2021:


    Principal Balance December 31,
2020		     Converted
to Equity		     Principal Balance March 31,
2021		  
Dominion   $ 833,334     $ (833,334 )   $ -  
Kingsbrook     101,000       (101,000 )     -  
Alpha Capital     616,111       (300,000 )     316,111  
Convertible bridge notes     365,750       (365,750 )     -  
Total Convertible Notes Payable   $ 1,916,195   $ (1,600,084 )   $ 316,111  

Dominion, Kingsbrook and Alpha Convertible Promissory Notes


During the three months ended March 31, 2021, certain noteholders elected to convert certain convertible notes payable with an aggregate principal balance of $1,234,334 and an aggregate accrued interest balance of $105,850 into an aggregate of 467,123 shares of the Company’s common stock at conversion prices ranging from $2.45-$3.29 per share. The shares issued upon the conversion of the convertible promissory notes had a fair value at issuance of $1,941,125. In connection with the conversion of convertible notes payable, derivative liabilities in the amount of $591,203 related to the bifurcated embedded conversion feature of such notes were extinguished. The Company recorded a loss on extinguishment of convertible notes payable of $9,737 during the three months ended March 31, 2021 as a result of the conversion of debt and the extinguishment of the related derivative liabilities.


Bridge Notes


During the three months ended March 31, 2021, certain noteholders elected to convert bridge notes with an aggregate principal balance of $365,750 and an aggregate accrued interest balance of $66,633 into an aggregate of 158,383 shares of the Company’s common stock at a conversion price of $2.73 per share.


Default on Convertible Notes


On February 3, 2021, there was an event of default in connection with the Alpha Capital convertible note (the “Alpha Capital Note”), which resulted in an increase in the settlement value of the Alpha Capital Note. The additional liability is accounted for as a bifurcated derivative. See Note 6, Derivative Liabilities, and Note 12, Subsequent Events.


Interest on Convertible Notes


During the three months ended March 31, 2021 and 2020, the Company recorded interest expense of $104,676 and $138,031, respectively, related to convertible notes payable, and recorded interest expense - related parties of $3,846 and $13,210, respectively, related to convertible notes payable - related parties.


As of March 31, 2021 and December 31, 2020, accrued interest related to convertible notes payable was $85,087 and $182,181, respectively, and accrued interest expense - related parties related to convertible notes payable - related parties was $90,845 and $124,833, which is included in accrued expenses and accrued expenses - related parties, respectively, on the accompanying condensed consolidated balance sheets.