NOTES PAYABLE

3 Months Ended

Mar. 31, 2018

NOTE 4– NOTES PAYABLE

Notes payable consist of the following as of March 31, 2018 and December 31, 2017:

	March 31, 2018			December 31, 2017
Series A notes payable; interest at 8% per annum; principal and accrued interest due at maturity in October 2011 (past due)	$	50,000		$	50,000
Net		50,000			50,000
Less: current portion		(50,000	)		(50,000	)
Balance	$	-		$	-

At March 31, 2018 and December 31, 2017 accrued interest on notes payable was $34,667 and $33,667.

On October 28, 2009 the Company issued an unsecured note payable for $50,000. The note and accrued interest at 8% per annum were due in full in October 2011. The holder has never demanded payment.

As of December 31, 2017, 1,749,683 shares of common stock and 1,749,683 of warrants issuable upon conversion for $120,000 principal and $2,478 accrued interest had not yet been issued in relation to the conversion of related party note payable held by a member of the Board, and as such the amount has been recorded as Common Stock payable included on the Balance Sheets as of December 31, 2017. During the three months ended March 31, 2018, those shares of common stock and warrants were issued and delivered.

Pursuant to ASC 470-50- 40 Modifications and Extinguishments, the Company assessed the nature of the transaction and based on its assessment concluded it is a capital transaction in essence, and as such accounted for it through Additional Paid-In Capital with no gain or loss recognized in the Income Statement during the period.

Interest expense including accretion of debt discount for the three months ended March 31, 2018 and 2017 was $1,000 and $66,544.