Convertible debt consists of the following:

March 31,

2018

December 31,

2017

(Unaudited)

1% Convertible notes payable, due April 30 2018 (at March 31, 2018)

$

240,000

$

240,000

11% Convertible note payable – HEP Investments LLC, a related party, net of unamortized discount of $406,839 and $458,072 at March 31, 2018 and December 31, 2017, respectively, due April 1, 2019 (at March 31, 2018).

16,505,001

15,953,768

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

17,995,001

17,443,768

Less: Current portion

1,490,000

1,490,000

Long term portion

$

16,505,001

$

15,953,768