Organization and Nature of Operations (note 1)
(The accompanying notes are an integral part of these condensed consolidated financial statements)
4
AMERICAN BATTERY METALS CORPORATION
Condensed Consolidated Statements of Operations
(unaudited)
|
|
For the three
months ended
December 31,
2019
$
|
For the three
months ended
December 31,
2018
$
|
|
|
|
|
Revenues
|
|
-
|
-
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
Exploration costs
|
|
11,311
|
19,620
|
General and administrative
|
|
1,071,820
|
1,142,596
|
|
|
|
|
Net loss before other income (expense)
|
|
(1,083,131)
|
(1,162,216)
|
|
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
Interest expense
|
|
(1,119,583)
|
(277,690)
|
Change in fair value of derivative liability
|
|
(876,960)
|
(708,155)
|
Gain (loss) on settlement of debt
|
|
127,863
|
(421,745)
|
Other income
|
|
3,746
|
-
|
|
|
|
|
Total other income (expense)
|
|
(1,864,934)
|
(1,407,590)
|
|
|
|
|
Net loss
|
|
(2,948,065)
|
(2,569,806)
|
Net loss per share, basic and diluted
|
|
(0.02)
|
(0.03)
|
Weighted average shares outstanding
|
|
136,260,772
|
92,475,310
|
|
|
|
|
(The accompanying notes are an integral part of these condensed consolidated financial statements)
5
AMERICAN BATTERY METALS CORPORATION
Condensed Consolidated Statement of Stockholders’ Deficit
(unaudited)
|
Series A Preferred Shares
|
Common Shares
|
|
|
|
|
|
Number
|
Amount
$
|
Number
|
Amount
$
|
Additional
Paid-In Capital
$
|
Share
Subscriptions
$
|
Deficit
$
|
Total
$
|
|
|
|
|
|
|
|
|
|
Balance, September 30, 2019
|
-
|
-
|
132,678,133
|
132,678
|
44,970,398
|
-
|
(49,890,538)
|
(4,787,462)
|
|
|
|
|
|
|
|
|
|
Preferred shares issued
|
300,000
|
300
|
-
|
-
|
(300)
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
Shares issued for services
|
-
|
-
|
5,560,000
|
5,560
|
227,960
|
-
|
-
|
233,520
|
|
|
|
|
|
|
|
|
|
Shares issued for conversion of notes payable and accrued interest
|
-
|
-
|
29,554,757
|
29,555
|
1,143,889
|
-
|
-
|
1,173,444
|
|
|
|
|
|
|
|
|
|
Shares issued for warrant exercise
|
-
|
-
|
2,996,985
|
2,997
|
(2,997)
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
Fair value of share purchase warrants
|
-
|
-
|
-
|
-
|
94,786
|
-
|
-
|
94,786
|
|
|
|
|
|
|
|
|
|
Share subscriptions received
|
-
|
-
|
-
|
-
|
-
|
275,000
|
-
|
275,000
|
|
|
|
|
|
|
|
|
|
Net loss for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,948,065)
|
(2,948,065)
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2019
|
300,000
|
300
|
170,789,875
|
170,790
|
46,433,736
|
275,000
|
(52,838,603)
|
(5,958,777)
|
|
Common Shares
|
|
|
|
|
Number
|
Amount
$
|
Additional
Paid-In Capital
$
|
Deficit
$
|
Total
$
|
|
|
|
|
|
|
Balance, September 30, 2018
|
93,331,449
|
93,331
|
34,739,491
|
(37,265,334)
|
(2,432,512)
|
|
|
|
|
|
|
Shares issued for services
|
3,200,000
|
3,200
|
485,800
|
-
|
489,000
|
|
|
|
|
|
|
Shares issued for joint venture
|
250,000
|
250
|
35,000
|
-
|
35,250
|
|
|
|
|
|
|
Shares issued for conversion of notes payable
|
5,753,660
|
5,754
|
867,078
|
-
|
872,832
|
|
|
|
|
|
|
Net loss for the period
|
-
|
-
|
-
|
(2,569,806)
|
(2,569,806)
|
|
|
|
|
|
|
Balance, December 31, 2018
|
102,535,109
|
102,535
|
36,127,369
|
(39,835,140)
|
(3,605,236)
|
(The accompanying notes are an integral part of these condensed consolidated financial statements)
6
AMERICAN BATTERY METALS CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
For the three
months ended
December 31,
2019
$
|
For the three
months ended
December 31,
2018
$
|
|
|
|
Operating Activities
|
|
|
|
|
|
Net loss
|
(2,948,065)
|
(2,569,806)
|
|
|
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
Accretion expense
|
921,879
|
254,952
|
Change in fair value of derivative liability
|
876,960
|
708,155
|
Discount on convertible notes payable
|
62,216
|
-
|
Fair value of share purchase warrants issued
|
94,786
|
-
|
Loss (gain) on settlement of debt
|
(127,863)
|
421,745
|
Shares issued for services
|
233,520
|
489,000
|
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Prepaid expenses
|
-
|
105,000
|
Accounts payable and accrued liabilities
|
158,406
|
21,942
|
Due to related parties
|
(64,397)
|
50,210
|
|
|
|
Net Cash Used In Operating Activities
|
(792,558)
|
(518,802)
|
|
|
|
Financing Activities
|
|
|
|
|
|
Proceeds from issuance of convertible notes payable
|
529,750
|
628,750
|
Proceeds from share subscriptions received
|
275,000
|
-
|
Repayment on notes payable
|
-
|
(180,000)
|
|
|
|
Net Cash Provided By Financing Activities
|
804,750
|
448,750
|
|
|
|
Change in Cash
|
12,192
|
(70,052)
|
|
|
|
Cash – Beginning of Period
|
7,371
|
122,769
|
|
|
|
Cash – End of Period
|
19,563
|
52,717
|
|
|
|
Non-cash investing and financing activities:
|
|
|
|
|
|
Original issue discount on convertible debentures
|
37,800
|
26,750
|
Preferred shares issued to officers and directors
|
300
|
-
|
Shares issued on the exercise of cashless warrants
|
2,997
|
-
|
Shares issued for joint venture agreement
|
-
|
35,250
|
Shares issued for conversion of debt
|
1,173,444
|
872,832
|
|
|
|
(The accompanying notes are an integral part of these condensed consolidated financial statements)
7
AMERICAN BATTERY METALS CORPORATION
Notes to the Condensed Consolidated Financial Statements
For the period ended December 31, 2019
(unaudited)
1. Organization and Nature of Operations
American Battery Metals Corporation (“the Company”) was incorporated under the laws of the state of Nevada on October 6, 2011 for the purpose of acquiring and developing mineral properties. The Company has a wholly-owned subsidiary called Oroplata Exploraciones E Ingenieria SRL, which was incorporated in the Dominican Republic on January 10, 2012.On July 26, 2016, the Company incorporated LithiumOre Corporation (formerly Lithortech Resources Inc.), a Nevada company, as a wholly-owned subsidiary. On July 5, 2019, the Company incorporated ABMC AG, LLC, a Nevada company as a wholly-owned subsidiary. The Company currently holds mineral rights in the Dominican Republic and in the Western Nevada Basin of Nye County in the state of Nevada.
Going Concern
These unaudited condensed consolidated financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As at December 31, 2019, the Company has not earned revenue, has a working capital deficit of $5,989,208, and an accumulated deficit of $52,838,603. The continuation of the Company as a going concern is dependent upon the continued financial support from its management, and its ability to identify future investment opportunities and obtain the necessary debt or equity financing, and generating profitable operations from the Company’s future operations. If the Company is able to obtain financing, there is no certainty that terms will be favorable to the Company. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These unaudited consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
2. Summary of Significant Accounting Policies
(a)Basis of Presentation
The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) and are expressed in U.S. dollars. The Company’s fiscal year end is September 30.
(b)Principles of Consolidation
These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States and are expressed in U.S. dollars. These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Oroplata Exploraciones E Ingenieria SRL and LithiumOre Corporation (formerly Lithortech Resources Inc) and ABMC AG, LLC. All inter-company accounts and transactions have been eliminated on consolidation.
3. Convertible Notes Payable
(a)On January 2, 2019, the Company issued a convertible note payable for $55,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum, and is due on June 18, 2019. The note is also convertible into common shares of the Company at 65% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. During the period ended December 31, 2019, the Company issued 2,982,920 common shares to settle the remaining principal balance and accrued interest on the note payable. As at December 31, 2019, the carrying value of the note payable is $nil (September 30, 2019 - $32,538), the unamortized discount on the note is $nil (September 30, 2019 - $5,087), accrued interest of $nil (September 30, 2018 - $4,015) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $nil (September 30, 2019 - $57,213).
(b)On January 3, 2019, the Company issued a convertible note payable for $54,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum, and is due on January 3, 2020. The note is also convertible into common shares of the Company at 66% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. On November 1, 2019, the Company issued 815,396 common shares to settle the remaining principal balance and accrued interest as well as a $13,647 default penalty. As at December 31, 2019, the carrying value of the note payable is $nil (September 30, 2019 - $6,234), accrued interest of $nil (September 30, 2019 - $1,388) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $nil (September 30, 2019 - $6,168).
8
AMERICAN BATTERY METALS CORPORATION
Notes to the Condensed Consolidated Financial Statements
For the period ended December 31, 2019
(unaudited)
3. Convertible Notes Payable (continued)
(c)On January 9, 2019, the Company issued a convertible note payable for $220,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum, and is due on January 9, 2020. The note is also convertible into common shares of the Company at 66% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. On October 10, 2019, the Company issued 2,036,114 common shares for the settlement of the remaining principal balance and accrued interest. As at December 31, 2019, the carrying value of the note payable is $nil (September 30, 2019 - $33,549), the unamortized discount on the note is $nil (September 30, 2018 - $21,451), accrued interest of $nil (September 30, 2019 - $4,088) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $nil (September 30, 2018 - $48,047).
(d)On January 9, 2019, the Company issued a convertible note payable for $220,000 which is unsecured, bears interest at 10% per annum, and is due on January 9, 2020. The note is also convertible into common shares of the Company at 66% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. During the period ended December 31, 2019, the Company issued 3,597,204 common shares to settle the remaining principal balance and accrued interest on the note payable. As at December 31, 2019, the carrying value of the note payable is $nil (September 30, 2019 - $55,054), the unamortized discount on the note is $nil (September 30, 2018 - $44,946), accrued interest of $nil (September 30, 2019 - $7,211) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $nil (September 30, 2018 - $98,753).
(e)On March 18, 2019, the Company issued a convertible note payable for $270,000 which is unsecured, bears interest at 10% per annum and is due on March 18, 2020. The note is also convertible into common shares of the Company at 68% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. During the period ended December 31, 2019, the Company issued 5,010,899 common shares for the settlement of $105,000 of note payable and $7,431 of accrued interest. As at December 31, 2019, the carrying value of the note payable is $102,084 (September 30, 2019 - $33,264), the unamortized discount on the note is $62,916 (September 30, 2018 - $236,736), accrued interest of $12,929 (September 30, 2019 - $14,475) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $177,812 (September 30, 2019 - $240,091).
(f)On March 18, 2019, the Company issued a convertible note payable for $270,000 which is unsecured, bears interest at 10% per annum and is due on March 18, 2020. The note is also convertible into common shares of the Company at 68% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. During the period ended December 31, 2019, the Company issued 4,066,144 common shares for the settlement of $80,000 of notes payable and $5,677 of accrued interest. As at December 31, 2019, the carrying value of the note payable is $87,047 (September 30, 2019 - $33,264), the unamortized discount on the note is $102,953 (September 30, 2019 - $236,736), accrued interest of $15,001 (September 30, 2018 - $14,475) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $200,663 (September 30, 2019 - $240,091).
(g)On April 8, 2019, the Company issued a convertible note payable for $38,500 which is unsecured, bears interest at 10% per annum which increases to 24% per annum if the note is in default, and is due on January 8, 2020. The note is also convertible into common shares of the Company at 68% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. During the period ended December 31, 2019, the Company issued 1,568,017 common shares for the settlement of the principal balance and accrued interest. As at December 31, 2019, the carrying value of the note payable is $nil (September 30, 2019 - $5,208), the unamortized discount on the note is $nil (September 30, 2018 - $33,292), accrued interest of $nil (September 30, 2019 - $1,839) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $nil (September 30, 2019 - $31,405).
(h)On April 8, 2019, the Company issued a convertible note payable for $38,500 which is unsecured, bears interest at 10% per annum which increases to 24% per annum if the note is in default, and is due on January 8, 2020. The note is also convertible into common shares of the Company at 68% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. During the period ended December 31, 2019, the Company issued 1,562,033 common shares for the settlement of the principal balance and accrued interest. As at December 31, 2019, the carrying value of the note payable is $nil (September 30, 2019 - $5,208), the unamortized discount on the note is $nil (September 30, 2019 - $33,292), accrued interest of $nil (September 30, 2019 - $1,839) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $nil (September 30, 2018 - $31,405).
9
AMERICAN BATTERY METALS CORPORATION
Notes to the Condensed Consolidated Financial Statements
For the period ended December 31, 2019
(unaudited)
3. Convertible Notes Payable (continued)
(i)On May 1, 2019, the Company issued a convertible note payable for $325,000 which is unsecured, bears interest at 10% per annum and is due on May 1, 2020. The note is also convertible into common shares of the Company at 68% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. On December 24, 2019, the Company issued 1,561,157 common shares for the settlement of $25,000 of note payable and $1,646 of accrued interest. As at December 31, 2019, the carrying value of the note payable is $68,590 (September 30, 2019 - $22,805), the unamortized discount on the note is $231,410 (September 30, 2019 - $302,195), accrued interest of $19,972 (September 30, 2019 - $13,451) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $319,752 (September 30, 2019 - $284,348).
(j)On May 1, 2019, the Company issued a convertible note payable for $325,000 which is unsecured, bears interest at 10% per annum and is due on May 1, 2020. The note is also convertible into common shares of the Company at 68% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. As at December 31, 2019, the carrying value of the note payable is $70,983 (September 30, 2019 - $22,805), the unamortized discount on the note is $254,017 (September 30, 2019 - $302,195), accrued interest of $21,576 (September 30, 2019 - $13,451) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $346,576 (September 30, 2019 - $284,348).
(k)On May 29, 2019, the Company issued a convertible note payable for $325,000 which is unsecured, bears interest at 10% per annum and is due on May 29, 2020. The note is also convertible into common shares of the Company at 68% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. As at December 31, 2019, the carrying value of the note payable is $59,522 (September 30, 2019 - $16,726), the unamortized discount on the note is $265,478 (September 30, 2018 - $308,274), accrued interest of $19,049 (September 30, 2019 - $10,924) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $329,482 (September 30, 2019 - $289,004).
(l)On June 3, 2019, the Company issued a convertible note payable for $55,000 which is unsecured, bears interest at 12% per annum which increases to 22% per annum if the note is in default, and is due on March 30, 2020. The note is also convertible into common shares of the Company at 61% of the lowest trading price of the Company’s common share for the ten trading days prior to the date of conversion. During the period ended December 31, 2019, the Company issued 2,903,221 common shares for the settlement of the principal balance and accrued interest. As at December 31, 2019, the carrying value of the note payable is $nil (September 30, 2019 - $3,488), the unamortized discount on the note is $nil (September 30, 2019 - $51,512), accrued interest of $nil (September 30, 2019 - $2,145) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $nil (September 30, 2019 - $56,840).
(m)On June 11, 2019, the Company issued a convertible note payable for $105,000 which is unsecured, bears interest at 10% per annum and is due on June 11, 2020. The note is also convertible into common shares of the Company at 68% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. As at December 31, 2019, the carrying value of the note payable is $53,152 (September 30, 2019 - $35,868), the unamortized discount on the note is $51,848 (September 30, 2019 - $69,142), accrued interest of $5,804 (September 30, 2019 - $3,179) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $106,725 (September 30, 2019 - $93,716).
(n)On June 12, 2019, the Company issued a convertible note payable for $55,000 which is unsecured, bears interest at 12% per annum which increases to 22% per annum if the note is in default, and is due on March 12, 2020. The note is also convertible into common shares of the Company at 68% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. During the period ended December 31, 2019, the Company issued 1,464,799 common shares for the settlement of $21,000 of notes payable and $3,006 of accrued interest. As at December 31, 2019, the carrying value of the note payable is $13,466 (September 30, 2019 - $3,075), the unamortized discount on the note is $41,534 (September 30, 2019 - $51,925), accrued interest of $589 (September 30, 2019 - $1,980) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $35,005 (September 30, 2019 - $46.520).
10
AMERICAN BATTERY METALS CORPORATION
Notes to the Condensed Consolidated Financial Statements
For the period ended December 31, 2019
(unaudited)
3. Convertible Notes Payable (continued)
(o)On June 12, 2019, the Company issued a convertible note payable for $55,000 which is unsecured, bears interest at 12% per annum which increases to 22% per annum if the note is in default, and is due on March 12, 2020. The note is also convertible into common shares of the Company at 68% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. During the period ended December 31, 2019, the Company issued 1,986,853 common shares for the settlement of $33,500 of notes payable. As at December 31, 2019, the carrying value of the note payable is $7,901 (September 30, 2018 - $3,075), the unamortized discount on the note is $13,599 (September 30, 2018 - $51,925), accrued interest of $3,509 (September 30, 2019 - $1,980) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $25,310 (September 30, 2019 - $46,520).
(p)On June 13, 2019, the Company issued a convertible note payable for $75,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum which increases to 15% per annum if the note is in default, and is due on June 17, 2020. The note is also convertible into common shares of the Company at 65% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. As at December 31, 2019, the carrying value of the note payable is $9,853 (September 30, 2019 - $2,862), the unamortized discount on the note is $65,147 (September 30, 2018 - $72,138), accrued interest of $4,104 (September 30, 2019 - $2,229) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $98,455 (September 30, 2019 - $71,671).
(q)On June 21, 2019, the Company issued a convertible note payable for $270,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum and is due on June 17, 2020. The note is also convertible into common shares of the Company at 68% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. As at December 31, 2019, the carrying value of the note payable is $98,663 (September 30, 2019 - $56,011), the unamortized discount on the note is $171,337 (September 30, 2018 - $213,989), accrued interest of $14,250 (September 30, 2019 - $7,425) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $332,843 (September 30, 2019 - $239,317).
(r)On June 27, 2019, the Company issued a convertible note payable for $98,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum and is due on June 27, 2020. The note is also convertible into common shares of the Company at 66% of the lowest trading price of the Company’s common share for the twenty trading days prior to the date of conversion. As at December 31, 2019, the carrying value of the note payable is $10,374 (September 30, 2018 - $2.692), the unamortized discount on the note is $87,626 (September 30, 2019 - $95,308), accrued interest of $4,982 (September 30, 2018 - $2,532) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $125,922 (September 30, 2019 - $91,469).
(s)On June 27, 2019, the Company issued a convertible note payable for $58,000. Under the terms of the note, the amount owing is unsecured, bears interest at 12% per annum and is due on June 27, 2020. The note is also convertible into common shares of the Company at 61% of the lowest trading price of the Company’s common shares for the ten trading days prior to the date of conversion. As at December 31, 2019, the carrying value of the note payable is $9,072 (September 30, 2018 - $1,798), the unamortized discount on the note is $48,928 (September 30, 2019 - $56,202), accrued interest of $3,538 (September 30, 2019 - $1,798) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $65,614 (September 30, 2019 - $59,759).
(t)On July 9, 2019, the Company issued a convertible note payable for $160,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum and is due on July 9, 2020. The note is also convertible into common shares of the Company at 60% of the lowest closing bid price of the Company’s common shares for the fifteen trading days prior to the date of conversion. As at December 31, 2019, the carrying value of the note payable is $14,422 (September 30, 2019 - $3,600), the unamortized discount on the note is $145,578 (September 30, 2018 - $156,400), accrued interest of $7,600 (September 30, 2019 - $3,600) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $200,497 (September 30, 2019 - $169,527).
11
AMERICAN BATTERY METALS CORPORATION
Notes to the Condensed Consolidated Financial Statements
For the period ended December 31, 2019
(unaudited)
3. Convertible Notes Payable (continued)
(u)On July 11, 2019, the Company issued a convertible note payable for $50,000. Under the terms of the note, the amount owing is unsecured, bears interest at 12% per annum and is due on July 11, 2020. The note is also convertible into common shares of the Company at 60% of the lowest trading price of the Company’s common shares for the twenty trading days prior to the date of conversion. As at December 31, 2019, the carrying value of the note payable is $5,040 (September 30, 2019 - $1,317), the unamortized discount on the note is $44,960 (September 30, 2019 - $48,863), accrued interest of $2,817 (September 30, 2019 - $1,317) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $63,227 (September 30, 2019 - $54,669).
(v)On July 29, 2019, the Company issued a convertible note payable for $53,000. Under the terms of the note, the amount owing is unsecured, bears interest at 12% per annum and is due on June 15, 2020. The note is also convertible into common shares of the Company at 61% of the lowest trading price of the Company’s common shares for the ten trading days prior to the date of conversion. As at December 31, 2019, the carrying value of the note payable is $5,097 (September 30, 2018 - $1,078), the unamortized discount on the note is $47,903 (September 30, 2019 - $51,922), accrued interest of $2,668 (September 30, 2019 - $1,078) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $64,904 (September 30, 2019 - $55,136).
(w)On August 1, 2019, the Company issued a convertible note payable for $175,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum and is due on August 1, 2020. The note is also convertible into common shares of the Company at 68% of the lowest closing bid price of the Company’s common shares for the twenty prior trading days prior to the date of conversion. As at December 31, 2019, the carrying value of the note payable is $57,052 (September 30, 2019 - $34,136), the unamortized discount on the note is $117,948 (September 30, 2019 - $140,864), accrued interest of $7,243 (September 30, 2019 - $2,868) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $179,811 (September 30, 2019 - $158,571).
(x)On August 8, 2019, the Company issued a convertible note payable for $105,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum and is due on August 8, 2020. The note is also convertible into common shares of the Company at 60% of the lowest trading price of the Company’s common shares for the prior fifteen trading days including the date of conversion. As at December 31, 2019, the carrying value of the note payable is $6,777 (September 30, 2019 - $1,517), the unamortized discount on the note is $98,233 (September 30, 2019 - $103,483), accrued interest of $4,142 (September 30, 2019 - $1,517) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $129,979 (September 30, 2019 - $113,820).
(y)On August 12, 2019, the Company issued a convertible note payable for $105,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum and is due on August 12, 2020. The note is also convertible into common shares of the Company at 60% of the lowest trading price of the Company’s common shares for the prior fifteen trading days including the date of conversion. As at December 31, 2019, the carrying value of the note payable is $6,453 (September 30, 2019 - $1,400), the unamortized discount on the note is $98,547 (September 30, 2019 - $103,600), accrued interest of $4,025 (September 30, 2019 - $1,400) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $130,041 (September 30, 2018 - $113,725).
(z)On August 28, 2019, the Company issued a convertible note payable for $35,200. Under the terms of the note, the amount owing is unsecured, bears interest at 12% per annum and is due on May 28, 2020. The note is also convertible into common shares of the Company at 62% of the lower of the lowest trading price of the Company’s common stock in the twenty trading days prior to the date of conversion and the lowest trading price of the Company’s common stock in the twenty days prior to the date of issuance. As at December 31, 2019, the carrying value of the note payable is $2,600 (September 30, 2019 - $375), the unamortized discount on the note is $32,600 (September 30, 2019 - $34,825), accrued interest of $1,431 (September 30, 2019 - $375) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $40,573 (September 30, 2018 - $35,083).
12
AMERICAN BATTERY METALS CORPORATION
Notes to the Condensed Consolidated Financial Statements
For the period ended December 31, 2019
(unaudited)
3. Convertible Notes Payable (continued)
(aa)On August 28, 2019, the Company issued a convertible note payable for $35,200. Under the terms of the note, the amount owing is unsecured, bears interest at 12% per annum and is due on May 28, 2020. The note is also convertible into common shares of the Company at 68% of the lower of the lowest trading price of the Company’s common stock in the twenty trading days prior to the date of conversion and the lowest trading price of the Company’s common stock in the twenty days prior to the date of issuance. As at December 31, 2019, the carrying value of the note payable is $11,820 (September 30, 2019 - $5,869), the unamortized discount on the note is $23,380 (September 30, 2019 - $29,331), accrued interest of $1,431 (September 30, 2019 - $375) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $35,034 (September 30, 2019 - $30,617).
(bb)On August 28, 2019, the Company issued a convertible note payable for $110,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum and is due on August 28, 2020. The note is also convertible into common shares of the Company at 60% of the lowest trading price of the Company’s common stock in the twenty trading days prior to the date of conversion. As at December 31, 2019, the carrying value of the note payable is $5,355 (September 30, 2019 - $978), the unamortized discount on the note is $104,645 (September 30, 2019 - $109,022), accrued interest of $3,728 (September 30, 2019 - $978) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $136,853 (September 30, 2019 - $121,624).
(cc)On September 13, 2019, the Company issued a convertible note payable for $175,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum and is due on September 13, 2020, of which the proceeds were not received until October 2019. The note is also convertible into common shares of the Company at the lower of the closing common stock price and 68% of the lowest trading price in the prior twenty trading days including the date of conversion. As at December 31, 2019, the carrying value of the note payable is $5,250 (September 30, 2019 - $nil), the unamortized discount on the note is $169,750 (September 30, 2019 - $nil), accrued interest of $4,292 (September 30, 2019 - $nil) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $214,595 (September 30, 2019 - $nil).
(dd)On September 17, 2019, the Company issued a convertible note payable for $150,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum and is due on January 17, 2021. The note is also convertible into common shares of the Company at the lower of the closing common stock price and 68% of the lowest trading price in the prior twenty trading days on which at least 100 common shares of the Company were traded including the date of conversion. As at December 31, 2019, the carrying value of the note payable is $4,819 (September 30, 2019 - $92), the unamortized discount on the note is $145,181 (September 30, 2019 - $54,908), accrued interest of $4,292 (September 30, 2019 - $542) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $161,627 (September 30, 2019 - $152,239).
(ee)On September 22, 2019, the Company issued the second tranche of the convertible note payable dated June 13, 2019 for $55,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum and is due on September 24, 2020. The note is also convertible into common shares of the Company at the lower of the closing common stock price and 65% of the lowest trading price in the prior twenty trading days prior to the date of conversion. As at December 31, 2019, the carrying value of the note payable is $1,633 (September 30, 2018 - $96), the unamortized discount on the note is $53,367 (September 30, 2018 - $54,908), accrued interest of $1,467 (September 30, 2019 - $96) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $71,384 (September 30, 2019 - $59,287).
(ff)On September 24, 2019, the Company issued a convertible note payable for $48,000. Under the terms of the note, the amount owing is unsecured, bears interest at 12% per annum and is due on September 24, 2020. The note is also convertible into common shares of the Company at the lower of the closing common stock price and 61% of the lowest trading price in the prior twenty trading days prior to the date of conversion. As at December 31, 2019, the carrying value of the note payable is $1,702 (September 30, 2019 - $96), the unamortized discount on the note is $46,298 (September 30, 2019 - $47,904), accrued interest of $1,536 (September 30, 2019 - $96) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $61,748 (September 30, 2019 - $56,217).
13
(gg)On October 15, 2019, the Company issued a convertible note payable for $52,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum and is due on October 15, 2020. The note is also convertible into common shares of the Company at the lower of the closing common stock price and 66% of the lowest trading price in the prior twenty trading days including the date of conversion. As at December 31, 2019, the carrying value of the note payable is $1,098 (September 30, 2019 - $nil), the unamortized discount on the note is $50,902 (September 30, 2019 - $nil), accrued interest of $1,098 (September 30, 2019 - $nil) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $65,662 (September 30, 2019 - $nil).
(hh)On October 15, 2019, the Company issued a convertible note payable for $29,150. Under the terms of the note, the amount owing is unsecured, bears interest at 12% per annum and is due on October 15, 2020. The note is also convertible into common shares of the Company at 61% of the lower of the lowest trading price in the twenty days prior to the issuance date or 61% of the lowest trading price in the prior twenty trading days including the date of conversion. As at December 31, 2019, the carrying value of the note payable is $738 (September 30, 2019 - $nil), the unamortized discount on the note is $28,412 (September 30, 2019 - $nil), accrued interest of $738 (September 30, 2019 - $nil) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $40,904 (September 30, 2019 - $nil).
(ii)On October 15, 2019, the Company issued a convertible note payable for $29,150. Under the terms of the note, the amount owing is unsecured, bears interest at 12% per annum and is due on October 15, 2020. The note is also convertible into common shares of the Company at 61% of the lower of the lowest trading price in the twenty days prior to the issuance date or 61% of the lowest trading price in the prior twenty trading days including the date of conversion. As at December 31, 2019, the carrying value of the note payable is $738 (September 30, 2019 - $nil), the unamortized discount on the note is $28,412 (September 30, 2019 - $nil), accrued interest of $738 (September 30, 2019 - $nil) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $40,904 (September 30, 2019 - $nil).
(jj)On October 31, 2019, the Company issued a convertible note payable for $43,000. Under the terms of the note, the amount owing is unsecured, bears interest at 12% per annum and is due on October 31, 2020. The note is also convertible into common shares of the Company at 61% of the lower of the lowest trading price in the ten days prior to the date of conversion. As at December 31, 2019, the carrying value of the note payable is $860 (September 30, 2019 - $nil), the unamortized discount on the note is $42,140 (September 30, 2019 - $nil), accrued interest of $860 (September 30, 2019 - $nil) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $60,302 (September 30, 2019 - $nil).
(kk)On November 1, 2019, the Company issued a convertible note payable for $20,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum and is due on November 1, 2020. The note is also convertible into common shares of the Company at 65% of the lower of the lowest trading price or lowest closing bid of the Company’s common stock in the twenty trading days prior to notice of conversion. As at December 31, 2019, the carrying value of the note payable is $333 (September 30, 2019 - $nil), the unamortized discount on the note is $19,667 (September 30, 2019 - $nil), accrued interest of $333 (September 30, 2019 - $nil) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $25,780 (September 30, 2019 - $nil).
(ll)On November 4, 2019, the Company issued a convertible note payable for $113,000. Under the terms of the note, the amount owing is unsecured, bears interest at 10% per annum and is due on November 4, 2020. The note is also convertible into common shares of the Company at 60% of the lowest trading price of the Company’s common stock in the fifteen trading days prior to notice of conversion. As at December 31, 2019, the carrying value of the note payable is $1,789 (September 30, 2019 - $nil), the unamortized discount on the note is $111,211 (September 30, 2019 - $nil), accrued interest of $1,789 (September 30, 2019 - $nil) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $161,195 (September 30, 2019 - $nil).
(mm)On December 4, 2019, the Company issued a convertible note payable for $46,200. Under the terms of the note, the amount owing is unsecured, bears interest at 12% per annum and is due on December 4, 2020. The note is also convertible into common shares of the Company at 61% of the lower of the lowest trading price or lowest closing bid of the Company’s common stock in the twenty trading days prior to notice of conversion. As at December 31, 2019, the carrying value of the note payable is $416 (September 30, 2019 - $nil), the unamortized discount on the note is $45,784 (September 30, 2019 - $nil), accrued interest of $416 (September 30, 2019 - $nil) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $65,220 (September 30, 2019 - $nil).
14
AMERICAN BATTERY METALS CORPORATION
Notes to the Condensed Consolidated Financial Statements
For the period ended December 31, 2019
(unaudited)
3. Convertible Notes Payable (continued)
(nn)On December 9, 2019, the Company issued a convertible note payable for $47,300. Under the terms of the note, the amount owing is unsecured, bears interest at 12% per annum and is due on December 9, 2020. The note is also convertible into common shares of the Company at 61% of the lower of the lowest trading price or lowest closing bid of the Company’s common stock in the twenty trading days prior to notice of conversion. As at December 31, 2019, the carrying value of the note payable is $347 (September 30, 2019 - $nil), the unamortized discount on the note is $46,953 (September 30, 2019 - $nil), accrued interest of $347 (September 30, 2019 - $nil) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $66,725 (September 30, 2019 - $nil).
(oo)On December 23, 2019, the Company issued a convertible note payable for $43,000. Under the terms of the note, the amount owing is unsecured, bears interest at 12% per annum and is due on December 23, 2020. The note is also convertible into common shares of the Company at 61% of the lower of the lowest trading price of the Company’s common stock in the ten trading days prior to notice of conversion. As at December 31, 2019, the carrying value of the note payable is $115 (September 30, 2019 - $nil), the unamortized discount on the note is $42,885 (September 30, 2019 - $nil), accrued interest of $115 (September 30, 2019 - $nil) has been recorded in accounts payable and accrued liabilities, and had a derivative liability of $59,740 (September 30, 2019 - $nil).
4. Related Party Transactions
(a)As of December 31, 2019, the Company owes $120,146 (September 30, 2019 - $120,146) to the former Chief Executive Officer and Director of the Company for advances to the Company to fund day-to-day operations. The amounts owing are unsecured, non-interest bearing, and due on demand.
(b)As of December 31, 2019, the Company owes $85,500 (September 30, 2019 - $85,500) to the former Chief Executive Officer and Director of the Company for advances to the Company to fund day-to-day operations and accrued management fees. The amounts owing are unsecured, non-interest bearing, and due on demand.
(c)As of December 31, 2019, the Company owes $157,500 (September 30, 2019 - $221,898) to the Chief Executive Officer of the Company for accrued management fees. The amounts owing are unsecured, non-interest bearing, and due on demand.
(d)As of December 31, 2019, the Company owes $30,726 (September 30, 2019 – $30,726) to directors of the Company for accrued management fees. The amounts owing are unsecured, non-interest bearing, and due on demand.
5. Investment in Joint Venture
On October 8, 2018, the Company entered into a joint venture agreement with CINC Industries Inc. (“CINC”), a Nevada company, for a period of five years whereby the joint venture will propagate the sale of a new process for extraction of lithium salt from salt brine solutions using CINC’s existing and future processing equipment. As part of the joint venture, each of CINC and the Company holds a 50% interest in the joint venture.
CINC is responsible for completing testing on the pilot project, providing training to the Company for use of its processing equipment, manufacturing up to 20 test units, and support and product development, as well as shared costs on other personnel utilized in the joint venture company. The Company is responsible for the initial funding for all equipment and associated expenses, the cost of the lease space, and marketing and sales of the joint venture agreement.
The joint venture is committed to acquiring a minimum amount of processing equipment, goods, accessories, and/or materials totalling: (i) $1,000,000 by October 8, 2020; (ii) $3,000,000 by October 8, 2021; (iii) $6,000,000 by October 8, 2022; and (v) $10,000,000 by October 8, 2023.In the event that the joint venture fails to meet the minimum amounts above, the Company will lose the exclusive right to market, promote and sell the processing equipment provided by CINC. As part of the joint venture agreement, the Company issued 250,000 common shares to CINC.
15
AMERICAN BATTERY METALS CORPORATION
Notes to the Condensed Consolidated Financial Statements
For the period ended December 31, 2019
(unaudited)
6. Derivative Liabilities
The Company records the fair value of the conversion price of the convertible debentures as disclosed in Note 4 in accordance with ASC 815, Derivatives and Hedging. The fair value of the derivatives was calculated using a multi-nominal lattice model. The fair value of the derivative liabilities is revalued on each balance sheet date with corresponding gains and losses recorded in the consolidated statement of operations. For the period ended December 31, 2019, the Company recorded a loss on the change in the fair value of derivative liability of $876,960 (December 31, 2018 - $708,155). As at December 31, 2019, the Company recorded a derivative liability of $4,240,914 (September 30, 2019 - $3,437,200).
The following inputs and assumptions were used to value the derivative liabilities outstanding as at December 31, 2019 and September 30, 2019:
|
December 31,
2019
|
September 30,
2019
|
Expected volatility
|
111-200%
|
75-151%
|
Risk free rate
|
1.60%
|
1.75%
|
Expected life (in years)
|
0.2-1.0
|
0.2-1.0
|
A summary of the activity of the derivative liability is shown below:
|
|
$
|
|
|
|
Balance, September 30, 2019
|
|
3,437,200
|
Derivative additions associated with convertible notes
|
|
742,753
|
Adjustment for conversion
|
|
(646,588)
|
Mark-to-market adjustment at December 31, 2019
|
|
707,549
|
|
|
|
Balance, December 31, 2019
|
|
4,240,914
|
7. Common Shares
The Company’s authorized common stock consists of 1,200,000,000 shares of common stock, with par value of $0.001, and authorized Series A preferred stock of 500,000 shares of preferred stock, with par value of $0.001.
On October 1, 2019, the Company issued 300,000 Series A preferred stock to officers and directors of the Company for no consideration. The preferred stock has no conversion rights, not entitled to receive dividends, carries voting rights of 1,000 votes per share of preferred stock, and is redeemable at the option of the Company at par value of $0.001 per share.
On October 3, 2019, the Company issued 917,777 common shares with a fair value of $49,560 for the conversion of $30,000 of notes payable, $2,225 of accrued interest, and $23,675 of derivative liability resulting in a gain on settlement of debt of $6,340.
On October 8, 2019, the Company issued 577,496 common shares with a fair value of $31,185 for the conversion of $15,000 of notes payable, $500 of fees, and $17,800 of derivative liability resulting in a gain on settlement of debt of $2,115.
On October 10, 2019, the Company issued 2,036,114 common shares with a fair value of $97,733 for the conversion of $55,000 of notes payable, $4,129 of accrued interest, and $47,710 of derivative liability resulting in a gain on settlement of debt of $9,106.
On October 15, 2019, the Company issued 465,723 common shares with a fair value of $29,341 for the conversion of $12,000 of notes payable, $500 of fees, and $18,440 of derivative liability resulting in a gain on settlement of debt of $1,599.
On October 17, 2019, the Company issued 502,980 common shares with a fair value of $25,149 for the conversion of $13,000 of notes payable, $500 of fees, and $13,747 of derivative liability resulting in a gain on settlement of debt of $2,098.
On October 18, 2019, the Company issued 1,113,981 common shares with a fair value of $54,028 for the conversion of $30,000 of notes payable, $2,350 of accrued interest, and $27,088 of derivative liability resulting in a gain on settlement of debt of $5,410.
16
AMERICAN BATTERY METALS CORPORATION
Notes to the Condensed Consolidated Financial Statements
For the period ended December 31, 2019
(unaudited)
7. Common Shares (continued)
On October 21, 2019, the Company issued 542,526 common shares with a fair value of $29,242 for the conversion of $12,000 of notes payable, $500 of fees, $2,061 of accrued interest, and $16,874 of derivative liability resulting in a gain on settlement of debt of $2,193.
On October 25, 2019, the Company issued 559,768 common shares with a fair value of $27,429 for the conversion of $14,500 of notes payable, $500 of fees, $24 of accrued interest, and $15,781 of derivative liability resulting in a gain on settlement of debt of $3,376.
On October 25, 2019, the Company issued 481,557 common shares with a fair value of $23,596 for the conversion of $10,500 of notes payable, $500 of fees, $1,925 of accrued interest and $13,570 of derivative liability resulting in a gain on settlement of debt of $2,899.
On October 28, 2019, the Company issued 2,996,985 common shares for the exercise of cashless warrants.
On October 30, 2019, the Company issued 744,949 common shares with a fair value of $36,503 for the conversion of $20,000 of notes payable, $1,633 of accrued interest, and $19,841 of derivative liability resulting in a gain on settlement of debt of $4,972.
On October 31, 2019, the Company issued 500,000 common shares with a fair value of $24,500 for the conversion of $9,500 of notes payable, $500 of fees, and $16,152 of derivative liability resulting in a gain on settlement of debt of $1,652.
On November 4, 2019, the Company issued 820,497 common shares with a fair value of $33,640 for the conversion of $20,000 of notes payable, $1,661 of accrued interest and derivative liability of $17,362 resulting in a gain on settlement of debt of $5,383.
On November 8, 2019, the Company issued 815,396 common shares with a fair value of $35,877 for the conversion of $6,234 of notes payable, $1,645 of accrued interest, $13,647 of finance penalties, and $19,231 of derivative liability resulting in a gain on settlement of debt of $4,880.
On November 8, 2019, the Company issued 5,560,000 common shares with a fair value of $233,520 for consulting services including 1,000,000 common shares with a fair value of $42,000 to a director of the Company.
On November 12, 2019, the Company issued 972,587 common shares with a fair value of $39,876 for the conversion of $25,000 of notes payable, $1,653 of accrued interest, and $20,360 of derivative liability resulting in a gain on settlement of debt of $7,137.
On November 20, 2019, the Company issued 994,354 common shares with a fair value of $35,797 for the conversion of $20,000 of notes payable, $1,367 of accrued interest, and $19,506 of derivative liability resulting in a gain on settlement of debt of $5,076.
On November 20, 2019, the Company issued 1,986,954 common shares with a fair value of $71,531 for the conversion of $40,000 of notes payable, $2,696 of accrued interest, and $37,954 of derivative liability resulting in a gain on settlement of debt of $9,119.
On November 21, 2019, the Company issued 850,000 common shares with a fair value of $34,000 for the conversion of $11,825 of notes payable, $500 of fees, and $23,375 of derivative liability resulting in a gain on settlement of debt of $1,700.
On November 29, 2019, the Company issued 996,680 common shares with a fair value of $37,874 for the conversion of $20,000 of notes payable, $1,417 of accrued interest, and $21,476 of derivative liability resulting in a gain on settlement of debt of $5,018.
On December 6, 2019, the Company issued 607,477 common shares with a fair value of $20,958 for the conversion of $13,000 of notes payable and $11,339 of derivative liability resulting in a gain on settlement of debt of $3,381.
On December 9, 2019, the Company issued 746,269 common shares with a fair value of $25,224 for the conversion of $15,000 of notes payable and $14,028 of derivative liability resulting in a gain on settlement of debt of $3,804.
On December 10, 2019, the Company issued 999,524 common shares with a fair value of $32,984 for the conversion of $20,000 of notes payable, $1,478 of accrued interest, and $16,607 of derivative liability resulting in a gain on settlement of debt of $5,101.
17
AMERICAN BATTERY METALS CORPORATION
Notes to the Condensed Consolidated Financial Statements
For the period ended December 31, 2019
(unaudited)
7. Common Shares (continued)
On December 11, 2019, the Company issued 845,771 common shares with a fair value of $25,458 for the conversion of $17,000 of notes payable and $13,874 of derivative liability resulting in a gain on settlement of debt of $5,416.
On December 12, 2019, the Company issued 700,000 common shares with a fair value of $22,820 for the conversion of $9,650 of notes payable, $500 of fees, and $14,396 of derivative liability resulting in a gain on settlement of debt of $1,726.
On December 13, 2019, the Company issued 703,704 common shares with a fair value of $22,167 for the conversion of $10,000 of notes payable, $3,300 of accrued interest, and $12,107 of derivative liability resulting in a gain on settlement of debt of $3,240.
On December 13, 2019, the Company issued 822,281 common shares with a fair value of $25,902 for the conversion of $15,000 of notes payable, $500 of fees, and $12,103 of derivative liability resulting in a gain on settlement of debt of $1,701.
On December 16, 2019, the Company issued 2,079,180 common shares with a fair value of $62,375 for the conversion of $40,000 of notes payable, $2,981 of accrued interest, and $33,668 of derivative liability resulting in a gain on settlement of debt of $14,274.
On December 16, 2019, the Company issued 567,874 common shares with a fair value of $17,036 for the conversion of $7,000 of notes payable, $500 of fees, $2,872 of accrued interest, and $7,416 of derivative liability resulting in a gain on settlement of debt of $752.
On December 17, 2019, the Company issued 1,047,754 common shares with a fair value of $35,624 for the conversion of $20,000 of notes payable, $1,517 of accrued interest, and $16,552 of derivative liability resulting in a gain on settlement of debt of $2,444.
On December 24, 2019, the Company issued 932,920 common shares with a fair value of $38,670 for the conversion of $6,650 of notes payable, $500 of fees, and $29,558 of derivative liability resulting in a loss of settlement of debt of $1,962.
On December 24, 2019, the Company issued 1,561,157 common shares with a fair value of $64,710 for the conversion of $25,000 of notes payable, $1,646 of accrued interest, and $43,120 of derivative liability resulting in a gain on settlement of debt of $5,056.
On December 27, 2019, the Company issued 896,925 common shares with a fair value of $30,047 for the conversion of $14,000 of notes payable, $500 of fees, $133 of accrued interest, and $16,948 of derivative liability resulting in a gain on settlement of debt of $1,535.
On December 30, 2019, the Company issued 1,164,572 common shares with a fair value of $32,608 for the conversion of $18,500 of notes payable, $500 of fees, and $14,929 of derivative liability resulting in a gain on settlement of debt of $1,321.
During the period ended December 31, 2019, the Company received share subscriptions of $275,000 for the future issuance of private placement units at $0.04 per unit, where each unit is comprised of one common share of the Company and 0.8 share purchase warrant where each whole share purchase warrant can be exercised into one common share of the Company at $0.15 per share until October 31, 2024. As at the date of the filing, the private placement units have not been issued.
18
AMERICAN BATTERY METALS CORPORATION
Notes to the Condensed Consolidated Financial Statements
For the period ended December 31, 2019
(unaudited
8. Share Purchase Warrants
|
Number of
warrants
|
Weighted average
exercise price
$
|
Balance, September 30, 2018 and 2019
|
8,925,334
|
0.10
|
|
|
|
Granted
|
2,000,000
|
0.17
|
Exercised
|
(2,996,985)
|
0.10
|
|
|
|
Balance, December 31, 2019
|
7,928,349
|
0.11
|
Additional information regarding share purchase warrants as of December 31, 2019, is as follows:
|
|
Outstanding and exercisable
|
Range of
Exercise Prices
$
|
|
Number of
Warrants
|
|
Remaining
Contractual
Life (years)
|
|
|
|
|
|
0.001
|
|
1,333,334
|
|
2.1
|
0.01
|
|
603.015
|
|
3.7
|
0.1
|
|
3,250,000
|
|
3.5
|
0.15
|
|
1,500,000
|
|
3.8
|
0.17
|
|
500,000
|
|
4.9
|
0.2
|
|
500,000
|
|
4.8
|
0.5
|
|
242,000
|
|
1.6
|
|
|
|
|
|
|
|
7,928,349
|
|
3.5
|
9. Subsequent Events
(a)Between January 1, 2020 and February 11, 2020, the Company issued 87,507,730 common shares for the conversion of outstanding convertible notes payable.
(b)On January 23, 2020, the Company issued 7,236,200 shares for consulting services.
The Company has evaluated events occurring from December 31, 2019 through the date the financial statements were issued and determined that there are no additional events requiring disclosure.
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