NOTE 5 – LOAN PAYABLE, RELATED PARTIES

As of December 31, 2015, Mr. Christopher Maggiore, a director and a significant shareholder of the Company, advanced the Company a total of $156,405.  During the nine months ended September 30, 2016, Mr. Maggiore advanced the Company an additional $20,000, for a total amount advanced of $176,405 as of September 30, 2016.  The Company has agreed to pay 11% interest on this loan.  As of September 30, 2016, and December 31, 2015 accrued interest on this indebtedness totaled $32,738 and $22,681, 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

During the year ended December 31, 2015, HEP Investments, LLC loaned the Company $2,246,202 (see Note 6 - 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 nine months ended September 30, 2016, HEP Investments, loaned the Company $1,734,316 (see Note 6 - Convertible Debt). Pursuant to the terms of the agreement with HEP Investments, $1,750,000 of these loans were converted to 11% Convertible Secured Promissory Notes, leaving a remaining balance of $163,018 as of September 30, 2016.