NOTE 6 – LOAN PAYABLE, RELATED PARTIES

During the year ended December 31, 2015, Mr. Christopher Maggiore, a director and a significant shareholder of the Company, had advanced the Company a total of $156,405, which remained unpaid as of December 31, 2015.  During 2016, Mr. Maggiore advanced the Company an additional $20,000, for a total advanced as of December 31, 2016 of $176,405.  The Company has agreed to pay 11% interest on this loan. During the years ended December 31, 2016 and 2015, the Company recorded interest on this indebtedness of $20,396 and $19,835, respectively.

For the year ended December 31, 2015, Officers had advanced the Company $2,000, which amount remained unpaid as of December 31, 2015.  This amount was repaid in 2016.

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 the agreement with HEP Investments, $2,067,500 of these loans were recorded as 11% Convertible Secured Promissory Notes, leaving a remaining balance of $178,702 as of December 31, 2015.  

During the year ended December 31, 2016, HEP Investments loaned the Company $1,890,872 (see Note 7 - Convertible Debt). Pursuant to the terms of the agreement with HEP Investments, $2,000,000 of these loans were recorded as 11% Convertible Secured Promissory Notes, leaving a remaining balance of $69,574 as of December 31, 2016.