Quarterly report pursuant to Section 13 or 15(d)

NOTES PAYABLE

v3.10.0.1
NOTES PAYABLE
6 Months Ended
Sep. 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 September 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 
fiscal quarter ended June 30, 2018.
 
Balance, March 31, 2018
 
$
51,479
 
Accrued interest
 
 
1,496
 
Repayment
 
 
(52,975
)
Balance, September 30, 2018
 
$
-
 
 
Interest expense incurred on the Notes totaled $1,496 for the three and six month periods ended September 30, 2018 (September 30, 2017 – $5,251 and $9,898), which was included in accrued liabilities until it was paid off.
 
Convertible Loans Payable
 
During the six month period ended September 30, 2018, the Company received loans totaling $4,708,306 (which is inclusive of $31,673 that was capitalized interest) which carry an interest rate of 1% per month and of which $2,297,928 came from related parties. The loans and interest thereon were converted as of July 20, 2018 at a 10% discount to the 30 day volume weighted 
average price (“VWAP”) of the Company’s stock price.
 
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 tables below reflect the fair value and anti-dilution features of the convertible loans, which resulted in accretion expense
for the three and six months ended September 30, 2018 of $1,970,167 and $2,104,418
, respectively, 
and a fair value adjustment of $382,010 and $337,923
, respectively, 
being expensed for the three and six month 
periods
 ended September 30, 2018 (September 30, 2017 - $74,073 accretion for both periods and $Nil and $Nil fair value adjustment).
 
 
 
At issuance
 
 
At July 20, 2018
 
 
 
 
 
 
Conversion feature fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal
 
 
Beneficial

conversion
 
 
Anti-dilution
 
 
Fair value

of debt
 
 
Accretion

expense
 
 
Interest
 
 
Loan

converted
 
Convertible promissory note
 
$
4,708,306
 
 
$
406,744
 
 
$
1,697,674
 
 
$
2,603,888
 
 
$
2,104,418
 
 
$
24,547
 
 
$
4,732,853
 
 
Conversion feature fair value
 
Beneficial conversion
 
 
Anti-dilution
 
 
Total
 
At Issuance
 
$
406,744
 
 
$
1,697,674
 
 
$
2,104,418
 
Fair value adjustment
 
$
(406,744
)
 
$
68,821
 
 
$
(337,923
)
Balance allocated to equity on conversion
 
$
-
 
 
$
(1,766,495
)
 
$
(1,766,495
)
Ending balance at September 30, 2018
 
$
-
 
 
$
-
 
 
$
-