NOTE 6 – LOAN PAYABLE, RELATED PARTIES

During the year ended December 31, 2014, Mr. Maggiore, a director and a significant shareholder of the Company, advanced the Company $134,670.  This amount remained unpaid as of December 31, 2014.  During 2015, Mr. Maggiore advanced the Company an additional $21,735, for a total advanced as of December 31, 2015 of $156,405.  The Company agreed to pay 11% interest on this loan. As of December 31, 2015 accrued interest on this indebtedness totaled $19,835 and is included in Accrued Liabilities on the Consolidated Balance Sheet.

During the fourth quarter of 2014, Officers, advanced the Company $6,344.  This amount remained unpaid as of December 31, 2014. During 2015, Officers, advanced the Company an additional $13,320, and were repaid $17,664 for a remaining balance of $2,000 as of December 31, 2015.

During the year ended December 31, 2015, HEP Investments, LLC loaned the Company $2,246,202 (see Note 7 - Convertible Debt). Pursuant to the terms of our agreement with HEP Investments, $2,067,500 of these loans were converted to 11% Convertible Secured Promissory Notes, leaving a remaining balance of $178,702 as of December 31, 2015.