Short-term and Long-term borrowings consist of the following:

December 31, December 31,

Short term debt;

2018

2017

Convertible Promissory Notes, bearing an annual interest rate of 15% secured, due 02/14/2019

$ 50,000

$ -

Convertible Promissory Notes, bearing an annual interest rate of 12% secured, due 08/27/2019

250,000

300,000

-

Long term debt;

Convertible Promissory Notes, bearing an annual interest rate of 15% secured, due 08/07/2020

717,391

-

Total short-term and long term borrowings, before debt discount

$1,017,391

-

Less debt discount

(792,777)

$

-

Total Debt net of Discounts

$ 224,614

$

-