Convertible debt consists of the following:

September 30, 2016

December 31, 2015

(Unaudited)

1% Convertible notes payable, due October 2016

$

240,000

$

240,000

11% Convertible note payable - HEP Investments, LLC, a related party, net of unamortized discount of $815,342  and $1,843,931, respectively, due at various dates ranging from January 2017 to August 2018

8,361,858

5,583,269

11% Convertible note payable - New Lender; placed by Paulson, due September 30, 2018

600,000

-

9,201,858

5,823,269

Less:  Current portion

2,383,987

1,224,510

            Long term portion

$

6,817,871

$

4,598,759