Note 12 – Subsequent Events

During December 2016 Company entered into forbearance agreements with the investors of the 3.5% OID Convertible Notes extending the maturity dates to February and March 2017. To extend a Note until February 15, 2017, the Company paid the holder $50,000 in cash, reducing the principal to $102,113 which includes a $7,500 penalty. If the Note is not paid, the $50,000 will be added to the principal. The other Notes were extended to March 31, 2017 in exchange for increasing the $336,787 principal including penalties to approximately $490,389 and issuing the lender 35,000 shares of common stock.

On January 4, 2017 the Company entered into a promissory note with David Lelong, the Company’s CEO. The Company issued the promissory note with a face amount of $52,000.  This note bears interest at a rate of 2% per annum and is due on demand.

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.