Put Premium on Stock Settled Debt	9 Months Ended
Sep. 30, 2024
Put Premium on Stock Settled Debt [Abstract]
PUT PREMIUM ON STOCK SETTLED DEBT	NOTE 7 – PUT PREMIUM ON STOCK SETTLED DEBT At the end of the quarter ended June 30, 2022, the Company decided to adopt ASC 480 - “Distinguishing Liabilities from Equity.” When they enter into convertible notes, some of which contain, predominantly, fixed rate conversion features (See Note 7 for conversion terms), whereby the outstanding principal and accrued interest may be converted by the holder, into common shares at a fixed discount to the market price of the common stock at the time of conversion. This results in a fair value of the convertible note being equal to a fixed monetary amount. The Company records the convertible note liability at its fixed monetary amount by measuring and recording a put premium on the consolidated balance sheets, as applicable, on the note date with a charge to interest expense. The put premiums are expensed on issuance of the debt with the liability released to additional paid in capital on conversion of the principal. In previous years, the Company had recorded such items as derivative liabilities (See Note 8). Thus, there was a charge to put premium on stock settled debt and a decrease to derivative liability for all convertible debt determined to have fixed rate conversion options. On a going-forward basis, all put premiums will be recorded as a liability as put premium on stock settled debt on the consolidated balance sheets with a charge to interest expense. The company believes this change in accounting principles is preferable as it applies a more consistent method of accounting for convertible notes that contain similar conversion features. This accounting change resulted in a gain on new methodology for accounting for debt conversion features of $0 and $27,856 on the statement of operations for the years ended December 31, 2023, and December 31, 2022, respectively.

Put Premium on Stock Settled Debt

9 Months Ended

Sep. 30, 2024

Put Premium on Stock Settled Debt [Abstract]

NOTE 7 – PUT PREMIUM ON STOCK SETTLED DEBT

At the end of the quarter ended June 30, 2022, the Company decided to adopt ASC 480 - “Distinguishing Liabilities from Equity.” When they enter into convertible notes, some of which contain, predominantly, fixed rate conversion features (See Note 7 for conversion terms), whereby the outstanding principal and accrued interest may be converted by the holder, into common shares at a fixed discount to the market price of the common stock at the time of conversion. This results in a fair value of the convertible note being equal to a fixed monetary amount. The Company records the convertible note liability at its fixed monetary amount by measuring and recording a put premium on the consolidated balance sheets, as applicable, on the note date with a charge to interest expense.

The put premiums are expensed on issuance of the debt with the liability released to additional paid in capital on conversion of the principal.

In previous years, the Company had recorded such items as derivative liabilities (See Note 8). Thus, there was a charge to put premium on stock settled debt and a decrease to derivative liability for all convertible debt determined to have fixed rate conversion options. On a going-forward basis, all put premiums will be recorded as a liability as

put premium on stock settled debt on the consolidated balance sheets with a charge to interest expense.

The company believes this change in accounting principles is preferable as it applies a more consistent method of accounting for convertible notes that contain similar conversion features. This accounting change resulted in a gain on new methodology for accounting for debt conversion features of $0 and $27,856 on the statement of operations for the years ended December 31, 2023, and December 31, 2022, respectively.

bowmo, Inc. 10-Q