4. Convertible Notes Payable (Tables)

9 Months Ended

Sep. 30, 2020

The following table summarizes outstanding convertible notes as of September 30, 2020 and December 31, 2019:

	September 30, 2020			December 31, 2019
Convertible note dated March 29, 2019, maturing September 30, 2019	$	856,549		$	700,000
Convertible note dated September 6, 2019, maturing September 6, 2021		–			153,000
Convertible note dated November 25, 2019, maturing November 25, 2021		–			78,000
Convertible note dated November 25, 2019, maturing November 25, 2020		60,034			150,000
Convertible note dated December 10, 2019, maturing December 10, 2020		50,400			110,000
Convertible note dated February 7, 2020, maturing February 7, 2022		156,000			–
Total		1, 122,983			1,191,000
Debt discount and deferred finance costs on long-term convertible notes		(131,491	)		(5,376	)
Debt discount and deferred finance costs on short-term convertible notes		–			(37,310	)
Current convertible notes payable, net of discount		–			(922,690	)

Total long-term convertible notes payable, net	$	991,492		$	225,624

Fair value of assets and liabilities

The following table presents information about the Company’s liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of September 30, 2020 and December 31, 2019:

Fair value measured at September 30, 2020
	Total carrying value at September 30, 2020		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant Unobservable inputs (Level 3)
Liabilities:
Derivative liabilities	$	696,772	$	–	$	–	$	696,772

Fair value measured at December 31, 2019
	Total carrying value at December 31, 2019		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant Unobservable inputs (Level 3)
Liabilities:
Derivative liabilities	$	470,331	$	–	$	–	$	470,331

Change in fair value of derivative liability

The table below presents the change in the fair value of the derivative liability during the nine months ended September 30, 2020:

Fair value as of December 31, 2019	$	470,331
Fair value on the date of issuance recorded as a debt discount		659,935
Fair value on the date of issuance recorded as a loss on derivative		504,479
Extinguishment of liability due to conversion to equity		(784,115	)
Gain on change in fair value of derivatives		(153,858	)
Fair value as of September 30, 2020	$	696,772

Vitalibis, Inc. 10-Q