NOTES PAYABLE

9 Months Ended

Jun. 30, 2024

NOTE 3 – NOTES PAYABLE

The Company’s indebtedness as of June 30, 2024 and September 30, 2023 were as follows:

Schedule of notes payable
Description	June 30, 2024		September 30, 2023

Convertible notes	$	100,747	$	100,747
Convertible notes – related party, net of discount $8,560		79,949		—
Notes Payable	$	60,000	$	60,000
Notes Payable – Related Parties	$	53,543	$	71,713

Notes Payable and Other Loans

During 2015 and 2016, the Company executed promissory notes payable with six individuals with an aggregate principal balance of $60,000. The notes were due on demand and included interest at 10%. As of June 30, 2024 and September 30, 2023, the total promissory notes payable balance was $113,214 and $108,710 including accrued interest of $53,214 and $48,710, respectively. On January 15, 2019, the holder of a note with a principal balance of $10,000 made demand for payment. To date, the note has not been paid.

During the year ended September 30, 2020, a Company Advisor, loaned the Company $5,781. The loan is a demand note at zero interest.

Convertible Notes Payable

As of June 30, 2024 and September 30, 2023, noteholders representing $70,747 in outstanding principal had not requested the exchange of shares of common stock. As of June 30, 2024 and September 30, 2023, the exchange obligation payable was $187,476 and $179,510 including accrued interest of $116,728 and $108,762, respectively. As of June 30, 2024 and September 30, 2023, the exchange obligation was for 56,639 shares and 54,233 shares of common stock, respectively. The Company has not extended the maturity dates and the notes are in default.

On February 1, 2016, the Company issued convertible secured note payable of $30,000 to an individual. The note was due on January 31, 2017 and included interest at 10%. The note was convertible at discretion of the holder into common shares of the Company at the rate of $0.50 per share. As of June 30, 2024 and September 30, 2023, the total convertible note payable balance was $55,249 and $52,997, including accrued interest of $25,249 and $22,997, respectively. As of June 30, 2024 and September 30, 2023, the exchange obligation was for 110,498 shares and 105,994 shares of common stock, respectively. The Company has not extended the maturity date and the note is in default.

Convertible Notes Payable – Related Party

During the quarter ended December 31, 2023, the Company entered into an agreement to issue convertible notes payable with an accredited investor. Notably, there exists a professional relationship between the Company and the investor, facilitated by a mutual director serving on the boards of both entities. These notes carry an aggregate principal balance of $50,000 and accrue interest at a rate of 10% per annum. Their maturity dates are set for October 2024 and December 2024. Additionally, the notes offer the option for conversion into common shares of the Company at the discretion of the holder, with a conversion rate of $0.10 per share. As of June 30, 2024, the total balance of promissory notes payable stood at $53,198, inclusive of accrued interest totaling $3,198. Moreover, the exchange obligation associated with these notes amounted to 531,980 shares of common stock. In return for providing the loan, the Company authorized and issued 1,000,000 shares of common stock to the lender. The Company recorded an initial debt discount of $18,679 upon the issuance of the notes, with subsequent amortization of debt discount totaling $11,862.

During the quarter ended March 31, 2024, the Company entered into agreements to issue a convertible note payable with a director serving on the board. The notes carry an aggregate principal balance of $27,828 and accrue interest at a rate of 10% per annum. Their maturity dates are set for March 2025. Additionally, the notes offer the option for conversion into common shares of the Company at the discretion of the holder, with a conversion rate of $0.10 per share. As of June 30, 2024, the total balance of promissory notes payable stood at $29,994, inclusive of accrued interest totaling $2,166. Moreover, the exchange obligation associated with these notes amounted to 299,940 shares of common stock. In return for providing the loan, the Company authorized and issued 500,000 shares of common stock to the lender. The Company recorded an initial debt discount of $2,493 upon the issuance of the notes, with subsequent amortization of debt discount totaling $681.

During the quarter ended June 30, 2024, the Company entered into agreements to issue a convertible note payable with a director serving on the board. The notes carry an aggregate principal balance of $10,681 and accrue interest at a rate of 10% per annum. Their maturity dates are set for June 2025. Additionally, the notes offer the option for conversion into common shares of the Company at the discretion of the holder, with a conversion rate of $0.10 per share. As of June 30, 2024, the total balance of promissory notes payable stood at $10,775, inclusive of accrued interest totaling $94. Moreover, the exchange obligation associated with these notes amounted to 107,750 shares of common stock. In return for providing the loan, the Company authorized and issued 350,000 shares of common stock to the lender. The Company recorded an initial debt discount of $1,116 upon the issuance of the notes, with subsequent amortization of debt discount totaling $57.

Related Party Loans

On December 5, 2022, the Company entered into a Promissory Loan Note with Mr. Andrew Liang, in the amount of US$20,000, with a maturity date of December 5, 2023. The loan will accrue interest at the rate of 10% per annum. To date, the note has not been paid.

On February 28, 2023, the Company entered into a Promissory Loan Note with MI Labs Pty Ltd, in the amount of US$50,000 (of which $33,543 was received by the company as of June 30, 2024) with a maturity date of February 28, 2024. The loan will accrue interest at the rate 10% per annum. To date, the note has not been paid.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

Graphene & Solar Technologies Ltd 10-Q