(1)

The Company issued an unsecured promissory note on May 7, 2014, to an unrelated party for the amount of $25,000. The note bears 15% interest per annum and is due on November 7, 2015.

The Company issued an unsecured promissory note June 3, 2014, to an unrelated party for the amount of $28,800. The note bears interest in the amount of $1,600 and was payable on July 2, 2014. This note was paid in full on August 6, 2014.

The Company issued an unsecured promissory note on June 1, 2015, to an unrelated party for the amount of $31,868. The note bears interest in the amount of $1,500 and was payable on June 6, 2015. The Company is currently negotiating terms with the lender.

The Company issued a secured promissory note to an unrelated party May 13, 2015, for the amount of $100,000. The note bears 24% interest and matures on March 13, 2016. The balance as of June 30, 2015 is $84,763.

The Company issued a secured promissory note to an unrelated party on January 31, 2015, for $150,000. The note bears 21.88% interest and matures on April 12, 20164/12/2016. The balance as of June 30, 2015 is $95,453.

The Company issued an unsecured promissory note to an unrelated June 18, 2015, party for $10,000. The note bears 0% interest and is due on July 18, 2015.

(2)

On July 3April 6, 2015, the Company issued a secured promissory note to a shareholder for the amount of $100,000. The note bears 15% interest per annum and is payable monthly. The note is due on December 30, 2015.

The Company issued a note payable to a shareholder on August 1, 2013, in the amount $25,000 for the repurchase of common stock. The note is unsecured and bears interest at the rate of 0% per annum. The note was paid in full on August 4, 2014.

On March 27, 2014, the Company issued a secured promissory note to a shareholder for the amount of $10,000. The note bears 15% interest per annum and is payable on demand. The Company made an upfront interest payment of 15% paid in stock. This note was paid in full on August 6, 2014.

On March 27, 2014, the Company issued a secured promissory note to a shareholder for the amount of $70,000. The note bears 15% interest per annum and is payable on demand. The Company made an upfront interest payment of 15% paid in stock. This note was paid in full on September 4, 2014.

(3)

On June 12, 2013, the Company issued a note payable to a related party in the amount of $65,000. The note is payable on demand, and bears interest at the rate of 6% per annum. This note was converted into 1,625,000 shares of common stock on August 11, 2014.

(4)

On October 1, 2012, the Company issued an unsecured promissory note to a related party for the amount of $181,558. The note is due on October 1, 2015, and accrues interest at the rate of 3% per annum, interest is payable quarterly. The Company may pay the note in full or in part prior to maturity, without penalty or prior written notice to the holder. This note was paid in full on June 30, 2015.

(5)

KABA Loan and Security Agreement

In March 2012, the Company and Kenosha Area Business Alliance, Inc., a Wisconsin not-for-profit corporation (“KABA”), executed a Loan and Security Agreement (“the Loan Agreement”), whereby the Company borrowed $125,000 from KABA’s City Loan Fund (the “City Loan”) for business relocation expenses to the city of Kenosha, construction of leasehold improvements and machinery and equipment. The note is being amortized over a period of seven years with the final payment scheduled of May 1, 2019.

The City Loan is evidenced by a promissory note (the “CITY Note”), which is in the principal amount of One Hundred Twenty-Five Thousand and No/100 Dollars ($125,000.00) and bears an interest rate of six percent (6.00%) per annum.

Pursuant to the Loan Agreement, the Company has pledged and granted KABA a security interest in all the assets of the Company. Additionally, during the term of the City Loan, the Company is subject to several covenants pursuant to the Loan Agreement. The balance as of June 30, 2015, is $74,649.

(6)

The Company entered into a payment arrangement on May 12, 2015, with a vendor for $34,980. The agreement requires monthly payments of $1,933 and bears no interest. The agreement is due on November 12, 2016.

(7)

The Company entered into a capital lease agreement on July 7, 2014, for new manufacturing equipment. The lease has a $1 purchase option upon maturity. The lease agreement was for $72,453. This note requires monthly payments of $2,466. This lease has an inputted interest rate of 18.4% annual interest and matures on July 7, 2017.