RELATED PARTY TRANSACTIONS (Tables)

3 Months Ended

12 Months Ended

Mar. 31, 2018

Dec. 31, 2017

The Company entered into the following promissory notes payable to its CEO during the year ended December 31, 2017 and during the three months ended March 31, 2018:

Note Date	Note Amount		Accrued Interest		Total
January 2017 (1)	$	300,000	$	16,504	$	316,504
June 2017 (2)		105,000		2,048		107,048
June 2017 (3)		130,050		2,564		132,614
	$	535,050	$	21,116		556,166
Expenses owed to related party						2,234
Principle of note payable to related party after consolidation at December 31, 2017					$	558,400

March 2018 (4)	$	72,000		-		72,000
Principle balance of notes payable to related party at March 31, 2018					$	630,400

(1) In January 2017, the Company entered into a note agreement in the amount of $300,000 with the Company’s CEO. The note bears interest at a rate of 8% per annum and specifies no due date. The Company accrued interest of $16,504 through September 25, 2017. Concurrently, the board of directors also approved issuance of 100,000 shares of the Company’s common stock as additional interest. These shares were accounted for as debt issuance costs, valued at $182,000. The costs were expensed at the commitment date of the note as interest expense since the note is a short term capital advance with no stated term. This note was convertible into the shares of the Company’s common stock at $0.50/share and the note holder did not exercise the conversion option.

(2) In June 2017, the Company entered into a note agreement in the amount of $105,000 with the Company’s CEO for short term working capital advance. The note bears interest at a rate of 8% per annum and specifies no due date. The Company accrued interest and recorded interest expense of $2,048 through September 25, 2017. This note was convertible into the shares of the Company’s common stock at $0.50/share and the note holder did not exercise the conversion option.

(3) In June 2017, the Company received a short term working capital advance of $130,050 from its CEO. The advance bears interest at a rate of 8% per annum and specifies no due date. The Company accrued interest and recorded interest expense of $2,564 through September 25, 2017.

On September 25, 2017, the board of directors approved the Company to enter into a consolidated note payable agreement with the Company’s CEO to consolidate the above notes and advances received from its CEO, including accrued interests on these notes. Interest expense on this note from September 25, 2017 to December 31, 2017 in the amount of $11,872 and for the three months ended March 31, 2018 in the amount of $11,015 are included in accrued expenses in Note 5. This note is secured by all of the Company’s assets.

(4) In March 31, 2018, the Company entered into three separate unsecured promissory note agreements with its CEO and his spouse, in the amounts of $12,000, $40,000 and $20,000, totaled $72,000. Each of these promissory notes bears interest at a rate of 8% per annum. The principle balance and accrued interest is due 60 days from the date of the note.

The following notes and advances, together with accrued interest, were consolidated into one single note payable to the Company’s CEO:

Note Date	Note Amount		Accrued Interest		Total
January 2017	$	300,000	$	16,504	$	316,504
June 2017		105,000		2,048		107,048
June 2017		130,050		2,564		132,614
		535,050		21,116		556,166
Expenses owed to related party						2,234
Principle of note payable to related party after consolidation					$	558,400

Payable to related parties consisted of the followings at March 31, 2018 and December 31, 2017:

	March 31,		December 31,
	2018		2017
Short term loan from related entity (1)	$	61,500	$	41,994
Storage and corporate housing and auto allowances owed to CEO (2)		16,000		10,000
Amount owed to a director (3)		5,416		29,064
	$	82,916	$	81,058

(1) In 2017, the Company received a working capital advance of $74,348 from a related entity. These advances are non-interest bearing and were intended as short term capital advances. The remaining balances have been included in payable to related parties on the consolidated balance sheet as current liabilities at March 31, 2018 and December 31, 2017.

(2) On May 1, 2016, the Company entered into an employment agreement with its CEO. The term of the employment is through December 31, 2019. The agreement provides for a monthly storage and corporate housing allowance of $1,000 for a property owned by the CEO and a monthly automobile allowance of $1,000. During the three months ended March 31, 2018 and 2017, expenses related to the housing and automobile allowances totaled $6,000 and $6,000, respectively. At March 31, 2018 and December 31, 2017, $16,000 and $10,000 remained owed to the Company’s CEO.

(3) During the year ended December 31, 2017, a director of the Company incurred time and expenses related to improving the retail space located in Tennessee. These costs have been recorded as leasehold improvements in the Company’s consolidated balance sheets. At December 31, 2017, the Company owed this director $29,064, of which $17,648 was paid in February 2018 through issuance of 36,018 shares of the Company’s common stock to the director and $6,000 was paid to the director.

Payable to related parties consisted of the followings at December 31, 2017 and 2016:

	2017		2016
Short term loan from related entity (1)	$	41,994	$	-
Storage and corporate housing and auto allowances owed to CEO (2)		10,000		4,000
Amount owed to a director (3)		29,064		-
	$	81,058	$	4,000

(1) In 2017, the Company received a working capital advance of $74,348 from a related entity. These advances are non-interest bearing and were intended as short term capital advances. The remaining balances of $41,994 have been included in payable to related parties on the consolidated balance sheet as current liabilities at December 31, 2017.

(2) On May 1, 2016, the Company entered into an employment agreement with its CEO. The term of the employment is through December 31, 2019. The agreement provides for a monthly storage and corporate housing allowance of $1,000 for a property owned by the CEO and a monthly automobile allowance of $1,000. During the year ended December 31, 2017, expenses related to the housing and automobile allowances totaled $24,000, of which $10,000 remained owed to the Company’s CEO at December 31, 2017. During the year ended December 31, 2016, expenses related to the housing and automobile allowances totaled $16,000, of which $4,000 remained owed to the CEO at December 31, 2016.

(3) During the year ended December 31, 2017, a director of the Company incurred time and expenses related to improving the retail space located in Tennessee. These costs have been recorded as property and equipment in the Company’s consolidated balance sheet at December 31, 2017. At December 31, 2017, the Company owed this director $29,064, of which $17,648 was paid after December 31, 2017 through issuance of 36,018 shares of the Company’s common stock to the director.

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

EMT allocated the purchase price among the assets acquired based on their fair values as follow:

Land purchase price	$	26,194
Land preparation and cleanup		15,000
Industrial Hemp Grower License		-
Compensation		86,806
Total Purchase Price	$	128,000