NOTE 4 – LOAN PAYABLE, RELATED PARTIES

During 2015, Mr. Christopher Maggiore, a director and a significant shareholder of the Company, advanced the Company $21,735, for a total advanced as of December 31, 2015 of $156,405, which amount remained unpaid as of June 30, 2016.  The Company has agreed to pay 11% interest on this loan.  As of June 30, 2016 and December 31, 2015 accrued interest on this indebtedness totaled $28,437 and $19,835, respectively, and is included in Accrued Liabilities on the Condensed Consolidated Balance Sheet.

As of December 31, 2015, there were outstanding advances of $2,000 from the Company's Officers. These funds were repaid during the first quarter of 2016 and there are no outstanding liabilities owed to Officers as of June 30, 2016.

During the year ended December 31, 2015, HEP Investments, LLC loaned the Company $2,246,202 (see Note 5 - Convertible Debt). Pursuant to the terms of the 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.  During the six months ended June 30, 2016, HEP Investments, LLC loaned the Company $1,294,315 (see Note 5 - Convertible Debt). Pursuant to the terms of the agreement with HEP Investments, $1,250,000 of these loans were converted to 11% Convertible Secured Promissory Notes, leaving a remaining balance of $223,017 as of June 30, 2016.