Convertible debt consists of the following:

June 30,

2018

December 31,

2017

(Unaudited)

1% Convertible notes payable, due August 2018

$

240,000

$

240,000

11% Convertible note payable – HEP Investments, a related party, net of unamortized discount and debt issuance costs of $3,624,436 and $4,335,873 at June 30, 2018 and December 31, 2017, respectively, due April 1, 2019 (September 30, 2018 at December 31, 2017).

14,257,403

12,075,967

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

15,747,403

13,565,967

Less: Current portion

15,747,403

1,490,000

Long term portion

$

-

$

12,075,967