Convertible debt consists of the following:

December 31,

2017

December 31,

2016

1% Convertible notes payable, due January 2018

$

240,000

$

240,000

11% Convertible note payable – HEP Investments, LLC, a related party, net of unamortized discount of $458,072 and $574,443, respectively, due September 30, 2018 (See Note 13 - Subsequent Events)

15,953,768

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

17,443,768

10,062,757

Less: Current portion

1,490,000

6,886,710

Long term portion

$

15,953,768

$

3,176,047