Note 11 – Subsequent Events

On January 17, 2018, one of  our lenders (the “Lender”) purchased the convertible notes that were due on December 27, 2017, and we entered into an agreement with the Lender to extend the debt for one year and  reducing the conversion price to $0.03 per share. Accordingly, we issued the Lender a new secured 10% convertible note with the principal sum of $542,343. The Lender has expressed interest in converting the note to a new series of preferred stock once we obtain shareholder approval to clarify that our Board of Directors has the power to issue preferred stock without further shareholder approval. We expect to have that approval in mid to late February 2018. Because we have no binding agreement with the Lender, the conversion to preferred stock may not occur.

We evaluated subsequent events after the balance sheet date through the date the financial statements were issued. We did not identify any additional material events or transactions occurring during this subsequent event reporting period that required further recognition or disclosure in these financial statements.