Quarterly report pursuant to Section 13 or 15(d)

5. CONVERTIBLE NOTES PAYABLE, NET

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5. CONVERTIBLE NOTES PAYABLE, NET
3 Months Ended
Jun. 30, 2020
Convertible Notes Payable [Abstract]  
CONVERTIBLE NOTES PAYABLE, NET

5. CONVERTIBLE NOTES PAYABLE, NET

 

We paid off our convertible notes in full in July 2019.

 

During the three months ended June 30, 2019, we recorded interest expense of $23,759 related to the contractual interest rates of our convertible notes and interest expense of $30,287 related to the amortization of the note discount for a total interest expense of $54,046 related to our convertible notes in the three month period ended June 30, 2019.

 

During the three months ended June 30, 2019, we reduced the conversion price on the convertible notes from $45.00 per share to $10.20 per share. The modification of the convertible notes was evaluated under ASC 470-50-40 and the instruments were determined to be substantially different, and the transaction qualified for extinguishment accounting. Under the extinguishment accounting we recorded a loss on debt extinguishment of $447,011.