RELATED PARTIES

The Company has certain convertible notes payable to related parties that have a principal balance of $91,000 and $91,000 as of March 31, 2018 and December 31, 2017, respectively. These notes carry interest rates ranging from 7% - 9% and have due dates ranging from 1/23/2014 - 4/8/2015. All notes are currently in default carry a default interest rate of 10%, and conversion prices ranging from $0.0072 - $0.08 per share. The Company evaluated these convertible notes and determined that, for the embedded conversion option, there was a beneficial conversion value to record. The beneficial conversion feature was amortized over the life of the notes, one year, and was fully amortized at March 31, 2018 and December 31, 2017. No beneficial conversion feature expense was incurred during the three month period ended March 31, 2018 and March 31, 2017.

The Company has certain non-convertible notes payable to related parties that have a principal balance of $343,700 and $343,700 as of March 31, 2018 and December 31, 2017, respectively. These notes carry interest rates ranging from 0% - 10% and have due dates ranging from 8/03/2012 - 7/23/2016. All notes are currently in default and carry a default interest rate of 10%.

The Company has certain notes payable with detached free-standing warrants to related parties that have a principal balance of $236,144 and $215,844 as of March 31, 2018 and December 31, 2017, respectively. These notes carry interest rates ranging from 7% - 10% and have due dates ranging from 8/05/2015 - 02/27/2019. Eleven of these notes, carrying a total principal balance of $157,650 are currently in default and carry a default interest rate of 10%. The exercise price for each note payable attached warrant ranges from $0.0044 - $0.016. As of March 31, 2018 and December 31, 2017, these notes carried outstanding detached free-standing warrants of 18,953,003 and 16,070,611, respectively. The unamortized discount related to these warrants at March 31, 2018 and December 31, 2017 was $21,233 and $19,969, respectively. During the three month period ended March 31, 2018 and March 31, 2017, warrants expense recorded to interest expense was $10,958 and $17,983, respectively. The reason for the decrease is related to the decrease in funds borrowed. The fair market value adjustments were calculated utilizing the Black-Sholes method using the following assumptions: risk free rates ranging between 0.23% - 0.85%, dividend yield of 0%, expected life of 1 year, volatility between 256% - 375%.

Total interest expense for related party notes was $19,188 and $16,948 for the three month period ended March 31, 2018 and March 31, 2017, respectively.

NON-RELATED PARTIES

The Company has certain convertible notes payable to non-related parties that have a principal balance of $137,136 and $137,136 as of March 31, 2018 and December 31, 2017, respectively. These notes carry interest rates ranging from 8% - 30% and have due dates ranging from 2/08/2012 - 3/26/2016. All notes are currently in default and carry a default interest rate of 10%. These notes carry conversion prices ranging from $0.0017- $0.3235688 per share. The Company evaluated these convertible notes and determined that, for the embedded conversion option, there was a beneficial conversion value to record. The beneficial conversion feature was amortized over the life of the note, one year, and was fully amortized at March 31, 2018 and December 31, 2017. Beneficial conversion feature expense incurred was none and $3,500 during the three month period ended March 31, 2018 and March 31, 2017, respectively.

The Company has certain non-convertible notes payable to non-related parties that have a principal balance of $21,438 and $21,438 as of March 31, 2018 and December 31, 2017, respectively. These notes carry interest rates ranging from 9% - 18% and have due dates ranging from 1/31/2013 - 11/11/2015. All notes are currently in default and carry a default interest rate of 10%.

The Company has certain notes payable with detached free-standing warrants to a non-related party that has a principal balance of $5,000 and $5,000 as of March 31, 2018 and December 31, 2017, respectively. This note carries an interest rate of 10% and had a due date of 9/11/2014. This note is currently in default. The exercise price for the attached warrant is $0.019 for a total amount of 50,000 common shares. At March 31, 2018 and December 31, 2017, this note carried outstanding detached free-standing warrants of 50,000 and 50,000, respectively. There was no unamortized discount related to these warrants at March 31, 2018 and December 31, 2017 and no warrants expense recorded as interest expense for the three month period ended March 31, 2018 and March 31, 2017.

Total interest expense for non-related party notes was $12,005 and $11,059 for the three month period ended March 31, 2018 and March 31, 2017, respectively.