16. LOANS PAYABLE
|12 Months Ended|
Dec. 31, 2020
|16. LOANS PAYABLE||
Current loans payables as at December 31, 2020 and 2019 are as follow:
Non-current loans payable as at December 31, 2020 and 2019 are as follow:
All short-term and long term loans are unsecured and do not have any covenants.
Interest expenses from loans payable for the year ended December 31, 2020 was $17,534.
The Platinum vapes notes payable may be converted at the option of the holder into common shares of the Company after twelve months from issuance at a conversion price of USD $0.57, as adjusted pursuant to the terms of the notes. Obligations under the Platinum vapes notes payable shall be secured by all assets and ownership interests of the Company. Beginning on the date four months following issuance, in the event that the closing price of the common shares of the Company quoted on OTCQX exceeds one hundred fifty percent (150%) of the conversion price for at least ten consecutive trading days, then the Company has the right to force the conversion of the notes into common shares of the Company. During the year ended December 31, 2020, the Company recorded fair value loss of $1,064,650 and foreign exchange gain of $578,990.
The fair value of Platinum Vapes note payable was estimated using a binomial lattice methodology based on a Cox-Ross-Rubenstein approach. Key inputs and assumptions used for the valuations as of December 31, 2020 were as follows.
Total debt repayments are as follows:
The entire disclosure for long-term debt.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef