QSAM Biosciences, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

CONVERTIBLE PROMISSORY NOTES AND DEBENTURES

CONVERTIBLE PROMISSORY NOTES AND DEBENTURES	12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]
CONVERTIBLE PROMISSORY NOTES AND DEBENTURES	NOTE 5 –CONVERTIBLE PROMISSORY NOTES AND DEBENTURES Convertible Promissory Notes In the fourth quarter of 2021, the Company issued a total of $605,000 in convertible notes payable, the total principal and accrued interest of which was converted into a total of 186,601 shares of common stock as of March 31, 2023. The convertible notes were to mature on December 31, 2023, and included a 6% simple interest rate per annum payable upon maturity. In addition to the notes payable, each holder received a warrant for the purchase of shares of common stock with a purchase price of $24.00, which expired in 2022. In accordance with accounting standards, the warrants were valued using a Black Scholes Model and the relative fair value of the warrant was applied against the convertible note for a debt discount of $72,600. In the fourth quarter of 2022, two note holders converted $132,932 of principal and interest on their notes into 22,155 shares of common stock, at a reduced conversion price approved by the Board of $6.00. In the first quarter of 2023, the remaining holders converted $519,712 of principal and interest on their notes into 148,621 shares of common stock, at a reduced conversion price approved by the Board of $3.50, and the two holders who converted in 2022 received an additional 15,825 shares to “make whole” their prior conversion at a higher price. Due to the inducement to the reduced conversion price, the Company recorded $397,937 of inducement interest expense to other income and expenses. The fair value of the shares issued for the conversion was $594,484 based on the stock price of $4.00 as of March 31, 2023. During the year ended December 31, 2023 and 2022, the Company recorded interest expense related to the amortization of the discount of $36,300 and $36,300, respectively. As of December 31, 2023 and 2022, unamortized debt discount was $0 and $36,300, respectively. Debentures On February 22, 2022, the holder of Original Issue Discount Senior Secured Convertible Debentures (the “Debentures”) issued by the Company in 2014, converted the full remaining balance of $35,000 into 5,469 shares of common stock at $6.40 per share. As of December 31, 2022, the Debentures had been retired in full.

CONVERTIBLE PROMISSORY NOTES AND DEBENTURES

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

CONVERTIBLE PROMISSORY NOTES AND DEBENTURES

NOTE 5 –CONVERTIBLE PROMISSORY NOTES AND DEBENTURES

Convertible Promissory Notes

In the fourth quarter of 2021, the Company issued a total of $605,000 in convertible notes payable, the total principal and accrued interest of which was converted into a total of 186,601 shares of common stock as of March 31, 2023. The convertible notes were to mature on December 31, 2023, and included a 6% simple interest rate per annum payable upon maturity. In addition to the notes payable, each holder received a warrant for the purchase of shares of common stock with a purchase price of $24.00, which expired in 2022. In accordance with accounting standards, the warrants were valued using a Black Scholes Model and the relative fair value of the warrant was applied against the convertible note for a debt discount of $72,600.

In the fourth quarter of 2022, two note holders converted $132,932 of principal and interest on their notes into 22,155 shares of common stock, at a reduced conversion price approved by the Board of $6.00. In the first quarter of 2023, the remaining holders converted $519,712 of principal and interest on their notes into 148,621 shares of common stock, at a reduced conversion price approved by the Board of $3.50, and the two holders who converted in 2022 received an additional 15,825 shares to “make whole” their prior conversion at a higher price. Due to the inducement to the reduced conversion price, the Company recorded $397,937 of inducement interest expense to other income and expenses. The fair value of the shares issued for the conversion was $594,484 based on the stock price of $4.00 as of March 31, 2023.

During the year ended December 31, 2023 and 2022, the Company recorded interest expense related to the amortization of the discount of $36,300 and $36,300, respectively. As of December 31, 2023 and 2022, unamortized debt discount was $0 and $36,300, respectively.

Debentures

On February 22, 2022, the holder of Original Issue Discount Senior Secured Convertible Debentures (the “Debentures”) issued by the Company in 2014, converted the full remaining balance of $35,000 into 5,469 shares of common stock at $6.40 per share. As of December 31, 2022, the Debentures had been retired in full.