Quarterly report pursuant to Section 13 or 15(d)

NOTES PAYABLE

v3.10.0.1
NOTES PAYABLE
3 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]
8.
NOTES PAYABLE
 
Demand Notes payable
 
The Company had outstanding notes payable (“Notes”) of $Nil at June 30, 2018 ($51,479
 March 31, 2018) which was acquired when the Company bought IMT on April 21, 2016. The Notes and interest were repaid during the quarter.
 
Balance, March 31, 2018
  $ 51,479  
Accrued interest     1,496  
Repayment
    52,975  
Balance, June 30, 2018
  $
-
 
 
Interest expense incurred on the Notes totaled $1,496 for the three month period ended June 30, 2018 (June 30, 2017
 $2,341), which was included in accrued liabilities until it was paid off.
 
Convertible Loans Payable
 
During the quarter, the Company received loans totaling $2,965,971,
 (which is inclusive of $31,673 that was capitalized interest)
which carry an interest rate of 1% per month of which $2,291,930 came from related parties. The loans and interest are convertible as of July 20, 2018 at a 10% discount to the 30 day weighted VWAP of the Company’s stock price. 
(Note 15)
 
In the event the Company consummates a firm commitment or underwritten offering of its common stock by March 27, 2019, and the price per share thereof (the “
Offering Price
”) is less than the original conversion price on July 20, 2018, then in such event the Company shall issue to all convertible loan holder at June 30, 2018, at no further cost, additional shares of common stock equal to the number of conversion shares the shareholders that they would have received upon conversion if the conversion price equaled the Offering Price, less the number of shares of conversion shares actually issued on July 20, 2018.
 
The schedules below reflect the fair value and anti-dlution features of the convertible loans, which resulted in accretion expense of $134,251 and a fair value adjustment of $44,087 being expensed for the three months ended June 30, 2018 (June 30, 2017 - $Nil and $Nil).
 
   
At issuance
                   
         
Conversion feature fair value
         
At June 30, 2018
 
   
Principal
   
Beneficial conversion
   
Anti-dilution
   
Fair value of debt
   
Accretion expense
   
Interest
   
Ending balance
 
Convertible promissory note
 
$
2,965,971
   
$
368,936
   
$
1,042,632
   
$
1,554,403
   
$
134,251
   
$
3,533
   
$
1,692,187
 
 
Conversion feature fair value
 
Beneficial conversion
   
Anti-dilution
   
Total
 
At Issuance   $ 368,936     $ 1,042,632     $ 1,411,568  
Fair value adjustment     60,304       (16,217 )     44,087  
Ending balance at June 30, 2018   $ 429,240     $ 1,026,415     $ 1,455,655