Quarterly report pursuant to Section 13 or 15(d)

5. CONVERTIBLE NOTES PAYABLE, NET

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5. CONVERTIBLE NOTES PAYABLE, NET
9 Months Ended
Dec. 31, 2020
Convertible Notes Payable [Abstract]  
CONVERTIBLE NOTES PAYABLE, NET

5. CONVERTIBLE NOTES PAYABLE, NET

 

In July 2019, all of our previously outstanding convertible notes, in the aggregate amount of $992,591, were paid in full.

 

For the nine months ended December 31, 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.

 

During the nine months ended December 31, 2019, prior to paying off the notes, 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.