Convertible debt consists of the following:

March 31,

2017

December 31,

2016

 (Unaudited)

1% Convertible notes payable, due April 2017

$

240,000

$

240,000

11% Convertible note payable – HEP Investments, a related party, net of unamortized discount of $638,809 and $574,443 at March 31, 2017 and December 31, 2016, respectively, due September 2018 (at March 31, 2017).

12,803,030

8,572,757

11% Convertible note payable – New Lenders; placed by Paulson, due at various dates ranging from September 2018 to October 2018

1,250,000

1,250,000

14,293,030

10,062,757

Less: Current portion

240,000

6,886,710

 Long term portion

$

14,053,030

$

3,176,047