Convertible debt consists of the following:

December 31,

2016

December 31,

2015

1% Convertible notes payable, due January 2017

$

240,000

$

240,000

11% Convertible note payable – HEP Investments, LLC, a related party, net of unamortized discount of $574,443 and $1,843,931, respectively, due at various dates ranging from January 2017 to October 2018

8,572,757

5,583,269

11% Convertible note payable – New Lenders; placed by Paulson, due at various dates ranging from September 2018 to October 2018

1,250,000

-

10,062,757

5,823,269

Less: Current portion

6,886,710

1,224,510

            Long term portion

$

3,176,047

$

4,598,759