SHARE WARRANTS

Face Value 5,000,000.00

Quoted price w/ warrants 103%
PV of Principal 0.52
PV of Interest 3.43
Quoted price w/out warrants 0%
Intest rate (nominal) 12%
Issued bonds 1,000
Issued share warrants 30
Par value 25
Per share 50

**Note: Insert "0" at Quoted Price w/out Warrants if it is ISSUED WITHOUT WARRANTS

CONVERSION PRIVILEGE
@PV
Face value 4,000,000.00
Share premium - conversion privilege 700,000
Premium (Discount) on BP - 500,000
# of bonds -
# of conversion shares -
# of shares #DIV/0!
Par value -

@QUOTED PRICE
Face value 4,000,000
Quoted price 95%
Premium (Discount) on BP - 500,000
Retitrement Price 4,200,000
WARRANTS
PV of Principal 2,600,000.00 Cash
PV of Interest 2,058,000.00 Share warrants outstanding
Total PV of bonds payable 4,658,000.00

Issue price 5,150,000.00

Market Price without share warrants 4,658,000.00
Equity component 492,000.00

Face value of bonds 5,000,000.00

Market Price without share warrants 4,658,000.00
Premium (Discount) on bonds payable 342,000.00

Bonds payable 5,000,000.00

Premium (Discount) on bonds payable 342,000.00
Carrying amount 4,658,000.00

ION PRIVILEGE
Bonds payable 4,000,000.00
Premium on bonds payable - 500,000.00
Share premium-conversion privilege 700,000.00
TOTAL CONSIDERATION 4,200,000.00
Par value of shares #DIV/0!
Share premium-issuance #DIV/0!

Payment (issue price) of bonds payable 4,200,000.00

Fair value of bonds without conversion privilege 3,800,000.00
Equity component 400,000.00

Bonds payable 4,000,000.00

Premium on bonds payable - 500,000.00
Carrying amount 3,500,000.00
Payment APPLICABLE TO BONDS PAYABLE 3,800,000.00
Gain (Loss) on extinguishment - 300,000.00

Total Payment 4,200,000.00

Payment to Liability (Liability Component) 3,800,000.00
Payment to Equity (Equity Component) 400,000.00
 7,500,000
Share warrants outstanding 492,000
Share capital 3,750,000
Share premium 4,242,000

1.14
Non-interest-bearing note payable - property
Cash price 350,000
Face amount 500,000
Downpayment 100,000
Equal installments 4

Table of Amortization
Year Note payable Fraction Amortization
2021 400,000 2/5 - 60,000
2022 300,000 3/10 - 45,000
2023 200,000 1/5 - 30,000 **Note: Negative Value indicates Discount
2024 100,000 1/10 - 15,000

1,000,000 (150,000)

NO Cash Price
Annual installment 200,000
Face amount of note 1,000,000
PV of ordinary annuity 3.7908
Nominal interest 10%
Effective rate 10%

Table of amortization
Date Payment Interest Principal Present value
Jan. 1, 2021 758,160
Dec. 31, 2021 200,000 75,816 124,184 633,976
Dec. 31, 2022 200,000 63,398 136,602 497,374
Dec. 31, 2023 200,000 49,737 150,263 347,111
Dec. 31, 2024 200,000 34,711 165,289 181,822
Dec. 31, 2025 200,000 18,182 181,818 4
Non-interest-bearing note payable - lumped sum
Equipment 1,000,000
Face amount of note 900,000
PV of 1 0.7513
Downpayment 100,000
Effective rate 10%

Table of amortization
Date Interest Expense Amortization Present value
Jan. 1, 2021 - 223,830 676,170
Dec. 31, 2021 67,617 156,213 743,787
Dec. 31, 2022 74,379 81,834 818,166
Dec. 31, 2023 81,817 18 899,982
Dec. 31, 2024
Dec. 31, 2025

Note Solely for Cash - Discounted

Notes Payable 5,000,000 Over 9 Months Interest
Cash Proceeds 4,750,000 0
Interest Rate 12% 27,777.78 50,000.00
Life of Notes 9 27,777.78 50,000.00
Discount -250,000.00 27,777.78 50,000.00
Months Accrued 2 27,777.78 50,000.00
Accrued Interest 8,333.33 27,777.78 50,000.00
27,777.78 50,000.00
27,777.78 50,000.00
27,777.78 50,000.00
27,777.78 50,000.00
250,000.00 450,000.00
 Journal Entries -2021

Equipment 350,000 ### ###

Discount on note payable 150,000 ### ###
Cash 100,000 ### ###
Note payable 400,000 ### ###
### ###
Note payable 100,000 ### ###
Cash 100,000 ### ###
### ###
Interest expense - 60,000 ### ###
Discount on note payable - 60,000 ### ###
cates Discount ### ###
### ###
### ###
### ###
### ###
### ###
### ###
 10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%

Jan 1
Jan 30
Feb 28
Mar 31
Apr 30
May 30
Jun 30
Jul 31
Aug 30
Sep 31
Oct 31
Nov 31
Dec 31
Jan 1
Fair value of shares issued
Bonds payable 5,000,000
Accrued interest payable 600,000
Par value of share capital 2,000,000
Fair value of equity instrument 4,500,000
Fair value of bonds payable 4,700,000

Fair value of shares issued 4,500,000

Par value of shares issued 2,000,000
Share premium 2,500,000

Bonds payable 5,000,000

Accrued interest payable 600,000
Carrying amount 5,600,000
Fair value of shares issued 4,500,000
Gain on extinguishment of debt 1,100,000

Fair value of bonds payable

Fair value of bonds payable 4,700,000
Par value of shares issued 2,000,000
Share premium 2,700,000

Bonds payable 5,000,000

Accrued interest payable 600,000
Carrying amount 5,600,000
Fair value of bonds payable 4,700,000
Gain on extinguishment of debt 900,000

Carrying amount of bonds payable

Carrying amount of bonds payable 5,600,000
Par value of shares issued 2,000,000
Share premium 3,600,000

Note: No gain or loss shall be recognized when carrying amount of notes payable is used.

Face value - old note 8,000,000

Accrued interest payable 800,000
Face value - new note 6,000,000
Original Rate 10%
Nominal Rate 12%
Annual interest payment 720,000
Effective Rate 9%
PV of pricipal - old 0.68
PV of interest - old 3.17
PV of pricipal - new 0.71
PV of interest - new 3.24
Fees paid 0

Substantial Modification 1

Date Interest Payment Interest expense

Jan 1, 2021
Dec 31, 2021 720,000 593,352
Dec 31, 2022 720,000 581,954
Dec 31, 2023 720,000 569,530
Dec 31, 2024 720,000 555,987

NO Substantial modification
PV of Notes Payable 6,362,400.00
Carrying amount - New Note 6,000,000.00
Premium (Discount) on Notes Payable 362,400.00

Date Interest Payment Interest expense

Jan 1, 2021
Dec 31, 2021 720,000 636,240
Dec 31, 2022 720,000 627,864
Dec 31, 2023 720,000 618,650
Dec 31, 2024 720,000 608,515
amount of notes payable is used.

Substantial modification Fair value of new not

PV of principal 4,080,000 PV of principal
PV of interest 2,282,400 PV of interest
PV of Notes Payable 6,362,400 PV of Notes Payable
Face value
Note payable - old 8,000,000 Premium (Discount) on Notes Payable
Accrued interest payable 800,000
Carrying amount - old note 8,800,000 Note payable - old
PV of note - new 6,362,400 Accrued interest payable
Gain on modification 2,437,600 Carrying amount - old note
Less: Fees paid 0 PV of note - new
Net gain on modification 2,437,600 Gain on extinguishment
Less: Fees paid
Net gain on extinguishment

Premium or Discount on Amortization Carrying amount

6,592,800
126,648 6,466,152
138,046 6,328,106
150,470 6,177,635
164,013 6,013,622

Premium or Discount on Amortization Carrying amount

6,362,400
83,760 6,278,640
92,136 6,186,504
101,350 6,085,154
111,485 5,973,670
alue of new note payable
4,260,000.00 9% ###
2,332,800.00 9% ###
6,592,800.00 9% ###
6,000,000.00 9% ###
on Notes Payable 592,800.00 9% ###
9% ###
8,000,000.00 9% ###
800,000.00 9% ###
8,800,000.00 9% ###
6,592,800.00 9% ###
2,207,200.00 9% ###
- 9% ###
2,207,200.00 9% ###
9% ###
9% ###
9% ###
9% ###
9% ###
9% ###
9% ###
9% ###
9% ###
9% ###
9% ###