| Balance Sheet as if ASU 2015-03 had been implemented properly |
| CONSOLIDATED BALANCE SHEET | | | | | | | | | | | As Originally Reported | | Effect of Change | | | As Revised | | | | December 31, 2017 | | December 31, 2017 | | | December 31, 2017 | | ASSETS | | | | | | | | | | | | | | | | | | CURRENT ASSETS: | | | | | | | | | Cash | $ | 317,135 | $ | - | | $ | 317,135 | | Prepaid Expenses | | 15,143 | | - | | | 15,143 | | Total Current Assets | | 332,278 | | - | | | 332,278 | | | | | | | | | | | PROPERTY AND EQUIPMENT, NET | | - | | | | | | | | | | | | | | | | OTHER ASSETS | | | | | | | | | Deferred Finance Costs, net | | 3,877,801 | | (3,877,801) | (A) | | - | | TOTAL ASSETS | $ | 4,210,079 | $ | (3,877,801) | | $ | 332,278 | | | | December 31, 2017 | | December 31, 2017 | | | December 31, 2017 | | LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | | | | | | CURRENT LIABILITIES: | | | | | | | | | Accounts Payable | $ | 541,710 | $ | - | | $ | 541,710 | | Due to Related Party | | 475,834 | | - | | | 475,834 | | Loans Payable, Related Parties | | 394,019 | | - | | | 394,019 | | Convertible Debentures Payable, less unamortized discounts and debt issuance costs of $0 and $0 at December 31, 2017- Originally, and December 31, 2017 - As Revised, respectively | | 1,490,000 | | - | | | 1,490,000 | | Accrued Interest | | 1,649,240 | | - | | | 1,649,240 | | Accrued Liabilities – Other | | 10,000 | | - | | | 10,000 | | Total Current Liabilities | | 4,560,803 | | - | | | 4,560,803 | | LONG TERM LIABILITIES: | | | | | | | | | Convertible Debentures Payable, less unamortized discounts and debt issuance costs of $458,072 and $4,335,873 at December 31, 2017- Originally, and December 31, 2017 - As Revised, respectively | | 15,953,768 | | (3,877,801) | (B) | | 12,075,967 | | Total Long Term Liabilities | | 15,953,768 | | (3,877,801) | | | 12,075,967 | | | | | | | | | | | TOTAL LIABILITIES | | 20,514,571 | | (3,877,801) | | | 16,636,770 | | | | | | | | | | | COMMITMENTS AND CONTINGENCIES | | | | | | | | | | | | | | | | | | STOCKHOLDERS’ DEFICIT: | | | | | | | | | Common stock, $.001 par value, 700,000,000 shares authorized; 168,500,743 and 141,106,061 issued and outstanding at September 30, 2018 and December 31, 2017 | | 141,107 | | - | | | 141,107 | | Additional Paid-In Capital | | 47,366,814 | | - | | | 47,366,814 | | Accumulated deficit | | (63,812,413) | | - | | | (63,812,413) | | Total Stockholders’ Deficit | | (16,304,492) | | - | | | (16,304,492) | | | | | | | | | | | TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ | 4,210,079 | $ | (3,877,801) | | $ | 332,278 | (A) Total Assets decreased in the amount of $3,877,801 as a result of the reclassification of net deferred finance costs (debt issuance costs). (B) Long Term and Total Liabilities decreased in the amount of $3,877,801 as a result of the reclassification of net deferred finance costs (debt issuance costs) as a direct deduction of the amount of the related convertible debt. The revisions related to the implementation of ASU 2015-03 did not have an effect on any previously reported net losses, working capital or stockholders’ deficit.
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