| Schedule of notes payable, related parties convertible |
| | | | | March 31, 2018 | | December 31, 2017 | | Note payable to a company controlled by an outside director (also a shareholder), due on demand together with accrued interest at 4.5% APR, and convertible at $0.01 per share of common stock. | | | (a) | | | $ | 60,000 | | | $ | 60,000 | | | Note payable to the Company’s general counsel (also a shareholder), due on demand together with accrued interest at 4.5% APR, and convertible at $0.01 per share of common stock. | | | (b) | | | | 150,000 | | | | 150,000 | | | Note payable to an outside director (also a shareholder), due on demand together with accrued interest at 4.5% APR, and convertible at $0.01 per share of common stock. | | | (c) | | | | 30,000 | | | | 30,000 | |
| Note payable to the Company’s general counsel (also a shareholder), due on demand together with accrued interest at 4.5% APR, and convertible at $0.007 per share of common stock. | | | (d) | | | | 120,000 | | | | 120,000 | | | Note payable to the Company’s general counsel (also a shareholder), due on demand together with accrued interest at 12% APR, and convertible at $0.008 per share of common stock. | | | (e) | | | | 10,000 | | | | 10,000 | | | Note payable to a related party investor (by virtue of shareholding percentage, both actual and on an as-converted basis), due November 13, 2018 together with accrued interest at 10% APR, and convertible at $0.01 per share of common stock. | | | (f) | | | | 100,000 | | | | 100,000 | | | Note payable to a related party investor (by virtue of shareholding percentage, both actual and on an as-converted basis), due March 4, 2017 together with accrued interest at 10% APR, and convertible at $0.01 per share of common stock. | | | (g) | | | | 50,000 | | | | 50,000 | | | Note payable to a related party investor (by virtue of shareholding percentage, both actual and on an as-converted basis), due March 18, 2019 together with accrued interest at 10% APR, and convertible at $0.01 per share of common stock. | | | (h) | | | | 100,000 | | | | 100,000 | | | Note payable to a related party investor (by virtue of shareholding percentage, both actual and on an as-converted basis), due May 12, 2019 together with accrued interest at 10% APR, and convertible at $0.01 per share of common stock. | | | (i) | | | | 50,000 | | | | 50,000 | | | Note payable to a related party investor (by virtue of shareholding percentage, both actual and on an as-converted basis), due June 7, 2019 together with accrued interest at 10% APR, and convertible at $0.01 per share of common stock. | | | (j) | | | | 200,000 | | | | 200,000 | | | Note payable to a related party investor (by virtue of shareholding percentage, both actual and on an as-converted basis), due July 28, 2019 together with accrued interest at 10% APR, and convertible at $0.01 per share of common stock. | | | (k) | | | | 300,000 | | | | 300,000 | | | Note payable to an outside director (also a shareholder), due on demand together with accrued interest at 4.5% APR, and convertible at $0.007 per share of common stock. | | | (l) | | | | 55,500 | | | | 55,500 | | | Note payable to an outside director (also a shareholder), due on demand together with accrued interest at 4.5% APR, and convertible at $0.007 per share of common stock. | | | (m) | | | | 20,500 | | | | 20,500 | | | Note payable to the Company’s president and chief executive officer (also a shareholder), due on demand together with accrued interest at 4.5% APR, and convertible at $0.007 per share of common stock. | | | (n) | | | | 349,329 | | | | 349,329 | | | Note payable to the Company’s controller who is also a shareholder, which note is due on demand together with interest at 4.5% APR, and convertible at $0.007 per share of common stock. | | | (o) | | | | 134,604 | | | | 134,604 | | | Note payable to the Company’s vice president of research and development (also a shareholder), due on demand together with accrued interest at 4.5% APR, and convertible at $0.007 per share of common stock. | | | (p) | | | | 49,000 | | | | 49,000 | |
| Note payable to an independent contractor (also a shareholder), which note payable is due on demand together with interest at 4.5% APR, and convertible at $0.007 per share of common stock. | | | (q) | | | | 25,700 | | | | 25,700 | | | Note payable in the name of a son of an outside director (also a shareholder), due on demand together with accrued interest at 4.5% APR, and convertible at $0.005 per share of common stock. | | | (r) | | | | 20,000 | | | | 20,000 | | | Note payable to an outside director (also a shareholder), due on demand together with accrued interest at 4.5% APR, and convertible at $0.015 per share of common stock. | | | (s) | | | | 28,500 | | | | 28,500 | | | Note payable to an outside
director (also a shareholder), due on demand together with accrued interest at 4.5% APR, and convertible at $0.015 per share of common stock. | | | (t) | | | | 9,500 | | | | 9,500 | | | Note payable to the Company’s president and chief executive officer (also a shareholder), due on demand together with accrued interest at 4.5% APR, and convertible at $0.015 per share of common stock. | | | (u) | | | | 87,532 | | | | 87,532 | | | Note payable to the Company’s controller who is also a shareholder, which note is due on demand together with interest at 4.5% APR, and convertible at $0.015 per share of common stock. | | | (v) | | | | 28,010 | | | | 28,010 | | | Note payable to an independent contractor (also a shareholder), which note is due on demand together with interest at 4.5% APR, and convertible at $0.01 per share of common stock. | | | (w) | | | | 81,250 | | | | 81,250 | | | Note payable to an investor (also a shareholder), which note is due on demand together with interest at 10% APR, and convertible at $0.01 per share of common stock. | | | (x) | | | | 20,000 | | | | — | | | Total | | | | | | $ | 2,079,425 | | | $ | 2,059,425 | |
Notes (a), (c), (l) (r) and (s) reflect amounts due to a single outside director of the Company, who also is a shareholder, based on such director having (i) made certain vendor obligation payments directly on behalf of and for the benefit of the Company, (ii) having advanced certain funds to the Company at various dates for general working capital purposes, and (iii) having accrued director’s fees earned through June 30, 2017. In addition, the Company has recorded accounts payable, related parties, in the amount of $12,426 to the holder of notes (a), (c), (l) (r) and (s). Notes (b) and (d) reflect payment obligations owed to the Company’s general counsel for legal services incurred by the Company for the years ended December 31, 2015 and 2014. Note (e) reflects a convertible debt investment made by the Company’s general counsel to the Company. Notes (f), (g), (h), (i), (j) and (k) reflect amounts due to a certain related party investor and significant shareholder for convertible debt investments made from time to time as indicated. Notes (m) and (t) reflect amounts due to an outside director, who is also a shareholder, for accrued director’s fees earned through June 30, 2017. Notes (n) and (u) reflect amounts due to the Company’s president and chief executive officer, who is also a shareholder, for previously accrued base salary. Note (o) and (v) reflect amounts due to the Company’s controller, who is also a shareholder,
for previously accrued base salary. Note (p) reflects amounts due to the Company’s vice president of research and development, who is also a shareholder, for previously accrued wages. Note (q) reflects amounts due to an independent contractor who was President of one of EcoSmart’s divisions prior to the merger with EcoSmart and a current shareholder of the Company, for past earnings. See Note 10. Note (w) reflects amounts due to an independent contractor, who is a shareholder, for previously accrued business development services. Note (x) reflects amounts due to an investor, who is a shareholder. |