NOTE 5 – DUE TO RELATED PARTY

As of December 31, 2017 and 2016, the Company owed HEP Investments, a noteholder and significant shareholder of the Company, had cumulative balances of $475,834 and $319,234, respectively. The basis for the payable is a 5.4% cash finance fee for monies invested in the Company in the form of convertible debt. For the years ended December 31, 2017 and 2016, the Company incurred finance costs related to these transactions of $216,000 and $108,000, respectively.