March 31,
2019

December 31,
2018

Convertible notes of $550,000 issued in May of 2018. These notes have a maturity date of May 28, 2019 and accrue interest at a rate of 12% compounded annually. The conversion price for these notes is $0.23 per share of common stock, subject to adjustment. The borrowers have converted $344,642 of these notes including $9,922 of interest as of March 31, 2019 and December 31, 2018.

$

215,280

$

215,280

Warrants to purchase up to 2,391,305 shares of common stock with an exercise price of $0.28 per share. The fair value of the warrants was determined to be $533,691 and was recorded as a debt discount to be amortized over the life of the note. For the three months ended March 31, 2019 and year ended December 31, 2018, amortization of debt discount was $131,595 and $315,828, respectively.

(86,268

)

(217,864

)

Promissory note of $230,000 issued in October of 2018. This note has a maturity date of April 1, 2019 and bears no interest, but requires an additional $30,000 from the original $200,000 received. The Company has recorded $30,000 and $12,000 as accrued interest as of March 31, 2019 and December 31, 2018, respectively. This note was repaid on April 1, 2019.

200,000

Related party promissory note of $106,000 issued in December of 2018. This note has a maturity date of March 1, 2019 and bears no interest, but requires an additional $6,000 from the original $100,000 received. The Company has recorded $9,000 as accrued interest as of March 31, 2019.

100,000

50,000

$

429,012

$

247,416