Note 7 - Convertible Notes Payable and Convertible Note Payable- Related Party	6 Months Ended
Jun. 30, 2018
Notes
Note 7 - Convertible Notes Payable and Convertible Note Payable- Related Party	7. Convertible Notes Payable and Convertible Note Payable– Related Party In March 2015, OMP entered into a convertible note agreement of $200,000 with John Muchnicki (“Muchnicki”). The note was unsecured, and subsequently amended, upon mutual agreement between Muchnicki and the Company, to become due on demand and non-interest bearing. The notes conversion terms are as follows: (i) outstanding principal of $60,000 is convertible into OMP’s shares representing 5% of OMP (ii) outstanding principal of $140,000 is convertible into OMP’s shares representing 10% of OMP. In March 2018, Mr. Muchnicki was appointed as the Company’s CFO. In March 2016, the OMP entered into a convertible note agreement in the principal amount of $20,000 with a non-related. The amount is unsecured, bears interest at 15% per annum, and was due on March 3, 2018. The principal amount and accrued interest would be automatically converted into OMP’s common shares at a rate of 50% of the market price of the OMP’s common shares upon the completion of an initial public offering (“IPO”) of OMP’s common shares or other common qualified financing prior to March 3, 2018. OMP did not have an IPO or qualified financing event prior to March 3, 2018 and the note continues to accrue interest at 15% per annum. In August 2016, OMP entered into a convertible note agreement in the principal amount of $10,000 with a non-related. The amount is unsecured, bears interest at 30% per annum, and is due on August 12, 2018. The principal amount and accrued interest shall be automatically converted into OMP’s common shares at a rate of 50% of the market price of OMP’s common shares upon the completion of an IPO or other qualified financing. On February 27, 2018, the Company entered into a convertible note agreement with a non-related for proceeds of $153,000. The promissory note is unsecured, bears interest at 14% per annum, and is due on May 27, 2019. The note is convertible into common shares of the Company at 55% of the average of the two lowest trading prices in the 15 days preceding the notice of conversion. On May 6, 2018, the Company issued a convertible note agreement to a non-related for proceeds of $100,000. The loan bears no interest and is due on December 31, 2018. The note is convertible at a 25% discount to the average trading price for the last 20 days prior to the date of conversion. On May 11, 2018, the Company entered into a convertible promissory note agreement with a third party for proceeds of $100,000. The amount is unsecured, non-interest bearing and due on December 31, 2018. The note is convertible at a 25% discount to the average trading price for the last 20 days prior to the date of conversion. The embedded conversion feature for the notes issued on February 27, 2018, May 6, 2018, and May 11, 2018 qualifies for derivative accounting under ASC 815-15, Derivatives and Hedging. The fair value of the derivative liability resulted in a full discount of the $353,000 principal. The carrying value of the convertible debenture will be accreted over the term of the convertible debenture up to the face value of $353,000. As of June 30, 2018, the carrying value of the convertible debenture was $53,163 and the unamortized discount on the convertible debenture was $299,837. On June 12, 2018, the Company issued a convertible loan agreement to a non-related for $100,000. The loan bears no interest, is due on December 31, 2018, and is convertible into common shares at $0.08 per share. The Company recorded debt discount of $75,000 for a beneficial conversion feature.

Note 7 - Convertible Notes Payable and Convertible Note Payable- Related Party

6 Months Ended

Jun. 30, 2018

Note 7 - Convertible Notes Payable and Convertible Note Payable- Related Party

7. Convertible Notes Payable and Convertible Note Payable– Related Party

In March 2015, OMP entered into a convertible note agreement of $200,000 with John Muchnicki (“Muchnicki”). The note was unsecured, and subsequently amended, upon mutual agreement between Muchnicki and the Company, to become due on demand and non-interest bearing. The notes conversion terms are as follows: (i) outstanding principal of $60,000 is convertible into OMP’s shares representing 5% of OMP (ii) outstanding principal of $140,000 is convertible into OMP’s shares representing 10% of OMP. In March 2018, Mr. Muchnicki was appointed as the Company’s CFO.

In March 2016, the OMP entered into a convertible note agreement in the principal amount of $20,000 with a non-related. The amount is unsecured, bears interest at 15% per annum, and was due on March 3, 2018. The principal amount and accrued interest would be automatically converted into OMP’s common shares at a rate of 50% of the market price of the OMP’s common shares upon the completion of an initial public offering (“IPO”) of OMP’s common shares or other common qualified financing prior to March 3, 2018. OMP did not have an IPO or qualified financing event prior to March 3, 2018 and the note continues to accrue interest at 15% per annum.

In August 2016, OMP entered into a convertible note agreement in the principal amount of $10,000 with a non-related. The amount is unsecured, bears interest at 30% per annum, and is due on August 12, 2018. The principal amount and accrued interest shall be automatically converted into OMP’s common shares at a rate of 50% of the market price of OMP’s common shares upon the completion of an IPO or other qualified financing.

On February 27, 2018, the Company entered into a convertible note agreement with a non-related for proceeds of $153,000. The promissory note is unsecured, bears interest at 14% per annum, and is due on May 27, 2019. The note is convertible into common shares of the Company at 55% of the average of the two lowest trading prices in the 15 days preceding the notice of conversion.

On May 6, 2018, the Company issued a convertible note agreement to a non-related for proceeds of $100,000. The loan bears no interest and is due on December 31, 2018. The note is convertible at a 25% discount to the average trading price for the last 20 days prior to the date of conversion.

On May 11, 2018, the Company entered into a convertible promissory note agreement with a third party for proceeds of $100,000. The amount is unsecured, non-interest bearing and due on December 31, 2018. The note is convertible at a 25% discount to the average trading price for the last 20 days prior to the date of conversion.

The embedded conversion feature for the notes issued on February 27, 2018, May 6, 2018, and May 11, 2018 qualifies for derivative accounting under ASC 815-15, Derivatives and Hedging. The fair value of the derivative liability resulted in a full discount of the $353,000 principal. The carrying value of the convertible debenture will be accreted over the term of the convertible debenture up to the face value of $353,000. As of June 30, 2018, the carrying value of the convertible debenture was $53,163 and the unamortized discount on the convertible debenture was $299,837.

On June 12, 2018, the Company issued a convertible loan agreement to a non-related for $100,000. The loan bears no interest, is due on December 31, 2018, and is convertible into common shares at $0.08 per share. The Company recorded debt discount of $75,000 for a beneficial conversion feature.

ONELIFE TECHNOLOGIES CORP 10-Q