Convertible Notes Payable

6 Months Ended

Nov. 30, 2017

6.	Convertible Notes Payable

Convertible notes payable consisted of the following:

	Original Issuance Date	Maturity Date	Current Interest Rate (Per Annum)			Principal Outstanding as at November 30, 2017		Principal Outstanding as at May 31, 2017		Carrying Value as at November 30, 2017			Carrying Value as at May 31, 2017

a)	December 22, 2011	Due 60 days following demand		10	%	$	4,000	$	4,000	$	4,000	⁽ⁱ⁾	$	4,000
b)	December 22, 2011	Due 60 days following demand		10	%		1,177		1,177		1,177	⁽ⁱⁱ⁾		1,177
c)	October 23, 2012	Due 60 days following demand		10	%		1,000		1,000		1,000	⁽ⁱⁱⁱ⁾		1,000
d)	April 12, 2013	Due on demand		16	%		7,000		7,000		7,000	^(iv)		7,000
e)	May 9, 2014	May 9, 2015		8	%		6,825		6,825		6,825	^(v)		6,825
f)	May 19, 2014	May 19, 2015		8	%		30,359		–		30,361	^(vi)		–
g)	August 18, 2014	August 18, 2015		8	%		25,426		–		25,426	^(vi)		–
h)	August 25, 2014	August 25, 2015		8	%		5,100		–		5,100	^(iv)		–
i)	March 16, 2015	March 16, 2016		8	%		1,325		1,325		1,325	^(vi)		1,325
j)	July 19, 2016	April 19, 2017		24	%		–		5,266		–			5,266
k)	August 25, 2016	August 25, 2017		8	%		10,000		10,000		10,000	^(iv)		10,000
l)	October 1, 2016	Due on demand		0	%		73,388		–		73,388	^(iv)		–
m)	November 1, 2016	November 1, 2017		8	%		12,500		–		12,500	^(iv)		–
n)	December 1, 2016	Due on demand		0	%		10,000		–		10,000	^(iv)		–
o)	January 13, 2017	January 13, 2018		8	%		7,500		–		7,500	^(iv)		–
p)	January 17, 2017	January 17, 2018		8	%		5,000		–		5,000	^(iv)		–
q)	January 25, 2017	January 25, 2018		8	%		5,000		–		5,000	^(iv)		–
r)	January 31, 2017	January 31, 2018		8	%		–		50,000		–			12,545
s)	February 10, 2017	November 10, 2017		18	%		10,000		69,500		10,000	^(vii)		18,605
t)	February 21, 2017	February 21, 2018		8	%		5,750		–		5,750	^(iv)		–
u)	March 1, 2017	Due on demand		0	%		15,000		–		15,000	^(iv)		–
v)	March 30, 2017	March 30, 2018		12	%		39,250		52,250		22,703	^(viii)		7,610
w)	May 1, 2017	March 30, 2018		12	%		29,150		29,150		15,318	^(viii)		5,984
x)	May 3, 2017	May 3, 2018		8	%		7,000		–		7,000	^(iv)		–
y)	May 5, 2017	Due on demand		0	%		4,800		4,800		4,800	^(ix)		4,800
z)	May 8, 2017	May 8, 2018		8	%		11,000		–		11,000	^(iv)		–
aa)	June 5, 2017	March 30, 2018		12	%		29,150		–		14,077	^(viii)		–
bb)	July 3, 2017	July 3, 2018		8	%		7,500		–		7,500	^(iv)		–
dd)	July 25, 2017	March 30, 2018		12	%		58,300		–		24,814	^(viii)		–
ee)	July 26, 2017	July 26, 2018		12	%		29,150		–		12,366	^(viii)		–
ff)	August 22, 2017	August 22, 2018		8	%		5,000		–		5,000	^(iv)		–
gg)	August 29, 2017	March 30, 2018		12	%		29,150		–		10,542	^(viii)		–
hh)	August 31, 2017	August 31, 2018		8	%		10,000		–		10,000	^(iv)		–
ii)	September 1, 2017	Due on demand		0	%		30,000		–		30,000	^(iv)		–
jj)	September 12, 2017	March 30, 2018		12	%		29,150		–		9,952	^(viii)		–
kk)	September 22, 2017	September 22, 2018		8	%		15,000		–		15,000	^(iv)		–
ll)	October 17, 2017	March 30, 2018		12	%		29,150		–		8,378	^(viii)		–
mm)	October 31, 2017	October 31, 2018		8	%		5,000		–		5,000	^(iv)		–
nn)	November 1, 2017	March 30, 2018		12	%		29,150		–		7,508	^(viii)		–

						$	633,250	$	242,293	$	457,310		$	86,137


	(i)	The notes are convertible into shares of common stock of the Company’s subsidiary, Eco-logical Concepts, Inc., at $0.01 per share.

	(ii)	The notes are convertible into shares of common stock of the Company’s subsidiary, Eco-logical Concepts, Inc., at $0.01 per share. In addition, as a condition precedent to the right to convert the debt to common stock of the Company, the holder must purchase 3,000,000 shares of common stock of the Company’s subsidiary at $0.01 per share.

	(iii)	The note is convertible into shares of common stock of the Company’s subsidiary, Eco-logical Concepts, Inc., at $0.001 per share

	(iv)	The note is convertible into shares of common stock at a conversion price to be mutually finalized between the Company and the holder within 48 hours of the conversion request.

	(v)	The note is convertible into shares of common stock at a conversion price equal to $0.0174 per share.

	(vi)	The note is convertible into shares of common stock at a conversion price equal to $0.0127 per share.

	(vii)	The Convertible Promissory Note is convertible into shares of common stock at any time at a conversion price equal to 50% of the lowest trading price of the common stock for the twenty-five prior trading days ending on the last complete trading day prior to the conversion date. If at any time while the note is outstanding the lowest trading price of the Company’s common stock is equal to or lower than $30 per share, then an additional 10% discount shall be factored into the conversion price until the note is no longer outstanding. In addition, at any time the trading price of the Company’s common stock is equal to or lower than $10 per share, an additional $10,000 shall be immediately added to the balance of the note. The embedded conversion option qualifies for derivative accounting and bifurcation. See Note 7.

	(viii)	The note is convertible into shares of common stock at any time at a conversion price equal to 50% of the average of the lowest trading prices of the common stock for the twenty days, including the day upon which a notice of conversion is received by the Company, prior to conversion. The embedded conversion option qualifies for derivative accounting and bifurcation. See Note 7.

	(ix)	The note is convertible into shares of common stock at a conversion price equal to $0.225 per share.

At November 30, 2017 and May 31, 2017, the Company owed accrued interest on convertible notes payable of approximately $49,000 and $35,000 respectively. As of November 30, 2017, the Company had approximately $148,000 convertible notes payable was in default.

ECOSCIENCES, INC. 10-Q