6. CONVERTIBLE PROMISSORY NOTE, RELATED PARTY

July 2022 Note, related party

On July 28, 2022, the Company issued a 12% unsecured promissory note (the “July 2022 Note”) for the principal sum of $12,500 plus accrued interest. All amounts outstanding under the July 2022 Note were payable on the earlier of: (a) October 31, 2022, or (b) the receipt by the Company of debt or equity financing of $3.0 million. The holder has agreed to various extensions on the loan, the most recent being on June 15, 2024, extending the due date until October 31, 2024. The holder has the right, until the date of payment in full of all amounts outstanding, to convert unpaid principal and interest and any other amounts into fully paid shares of common stock of the Company at conversion price of $0.15. The initial recognition of derivative liability of $12,500 was recorded as debt discount and amortized over the term of the loan. The balance in debt discount as on September 30, 2024, was $0. As of September 30, 2024, the principal balance outstanding was $12,500 and accrued interest was $3,260.

May 2024 Note, related party

On May 31, 2024, the Company issued an interest free unsecured promissory note (the “May 31, 2024, Note”) for the principal sum of $9,000 to John A. Cassarini, our Chairman. The note has no fixed term and is repayable to the Company upon receipt of debt or equity financing of at least $1.0 million. The note convertible at any time into shares of common stock of the Company at a conversion price of $0.11 per share. As of September 30, 2024, the principal balance outstanding was $9,000 and accrued interest was $0.