We have related party debt obligations outstanding at December 31, 2016 as follows:

Note Description	Principal			Accrued Interest

Uncollateralized Note Payable to Gulf Coast Capital, LLC (a)	$	30,112		$	19,211
Uncollateralized Note Payable to Avcon Services, Inc. (b)		30,500			1,914
Totals	$	60,612		$	21,125
Less debt discount		(6,022	)
Net Notes Payable - Related Parties	$	54,590

(a)	Gulf Coast Capital, LLC is a company owned by Mark Bogani, our former CEO. The note is dated September 30, 2016 and represents the consolidation of various smaller notes payable previously outstanding totaling $145,112 plus $15,471 in accrued interest. Interest continues to accrue at the rate of 5%, with principal and interest being due on demand and convertible into our common stock at the option of the lender at a fixed rate of $.025 per share. Upon the note's inception, there was a beneficial conversion feature totaling $29,022 that is being amortized ratably over the five-year conversion period (with acceleration if converted) and netted against the principal balance as a debt discount. On the reverse merger date of October 27, 2016, $42 of the debt discount had been amortized, resulting in a debt discount balance of $28,980. On December 30, 2016, Gulf Coast Capital converted $115,000 of the note into 4,600,000 shares of the Company's Common Stock, resulting in an additional debt discount amortization of $22,958 through December 31, 2016 and remaining debt discount balance of $6,022 at year-end. The net balance of the note on December 31, 2016 was $24,090. Accrued interest on the reverse merger date of October 27, 2016 totaled $17,997. Interest expense for the period of October 27, 2016 through December 31, 2016 was $1,214 resulting in $19,211 in accrued interest outstanding at December 31, 2016.

(b)	Avcon Services, Inc. is a company owned by Tracy Madsen, our former CFO. The note represents amounts due for CFO services during the period of June 2014 through September 2015, is dated December 31, 2015, carries an interest rate of 5%, and is due on demand. The note and accrued interest, or any portion thereof, are convertible at the option of Avcon, into the Company's common stock at a fixed rate of $.025 per share at any time through December 31, 2020. Accrued interest on the reverse merger date of October 27, 2016 totaled $1,655. Interest expense for the period of October 27, 2016 through December 31, 2016 was $259 resulting in $1,914 in accrued interest outstanding at December 31, 2016.

On September 22, 2016, the Company entered into an uncollateralized note payable with an unaffiliated investor in the amount of $50,000. The note carries an interest rate of 6% and matures on September 22, 2017. The note and accrued interest, or any portion thereof, are convertible at the option of the lender, into the Company's common stock at a fixed rate of $.025 per share. Upon the note's inception, there was a beneficial conversion feature totaling $10,000 that is being amortized ratably over one-year note maturity period (with acceleration if converted) netted against the principal balance as a debt discount. On the reverse merger date of October 27, 2016, $959 of the debt discount had been amortized, resulting in a debt discount balance of $9,041. During the period of the reverse merger date of October 27, 2016 through December 31, 2016, we recognized an additional debt discount amortization of $1,760, resulting in a remaining debt discount balance of $7,281 at year-end. The net balance of the note on December 31, 2016 was $42,719. Accrued interest on the reverse merger date of October 27, 2016 totaled $208. Interest expense for the period of October 27, 2016 through December 31, 2016 was $614 resulting in $822 in accrued interest outstanding at December 31, 2016.