Convertible debt with a variable conversion feature consists of the following as of September 30, 2016 and December 31, 2015:

Noteholder (issuance date)		September 30, 2016			December 31, 2015
JMJ (3/4/15)	$	-		$	44,099
Prolific (5/8/15)		-			800
LG (7/16/15)		-			52,500
EMA Financial (10/29/15)		-			40,000
Harbour Gates (5/9/16)		110,000			-
EMA Financial (5/15/16)		40,000			-
Forest Capital ( 6/17/16)		25,000			-
LG (7/11/16)		29,000			-
Adar Bays (7/14/16)		35,000			-
Crown Bridge (7/28/16)		35,000			-
Forest Capital ( 8/25/16)		55,000			-
Forest Capital ( 8/26/16)		41,062			-
Crown Bridge (8/29/16)		2,466			-
Eagle Equities (8/30/16)		15,500			-
Eagle Equities (9/6/16)		60,000			-
Lucas Hoppel (9/13/16)		18,278			-
Micro Cap Equity (9/13/16)		13,800			-
Lucas Hoppel (9/13/16)		38,500			-
Crown Bridge (9/29/16)		56,700			-

		575,306			137,399
Less: debt discount		(450,705	)		(76,975	)
Convertible debentures, net	$	124,601		$	60,424

During the nine months ended September 30, 2016, the Company fully repaid the noteholders a total of $136,056 including principal and accrued interest of $48,856. The Company fully amortized the remaining discount of $76,975 with a corresponding charge to interest expense. In addition, the Company issued $427,500 in convertible notes, net of issuance costs of $57,000, recorded as a debt discount. The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $420,980 of which $390,957 was recorded as debt discount, $99,323 as additional interest expense and the Company amortized $105,206 of debt discount as interest expense and recorded accrued interest of $6,284.

The Company issued an additional $350,200 in convertible notes which was a an assumption of promissory notes and loans owing to shareholder-creditors and thereby a reduction in loans payable shareholders for the same amount. Accordingly the Company recorded a derivative liability of $380,107 of which $346,160 was recorded as debt discount, $33,947 as additional interest expense and the Company amortized $12,531 of debt discount as interest expense and recorded accrued interest of $1,355. The Company issued to creditors, 24,416,448 shares for converted notes of $202,305, fees of $3,000 and interest of $1,965. This resulted in a corresponding reduction in the debt discount of $194,475 that was expensed as interest expense.

During the nine months ended September 30, 2015, the Company repaid a noteholder $189,872 including interest of $13,333 and amortized the remaining $60,424 discount to interest expense. In addition, the Company issued $389,250 in convertible notes, net of issuance costs of $57,608, recorded as a debt discount. The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $751,776 of which $388,025 was recorded as debt discount, $366,251 as additional interest expense and the Company amortized $77,116 of debt discount as interest expense and recorded accrued interest of $1,761.

The Company issued an additional $32,000 in convertible notes which was an assumption of promissory notes owing to shareholder-creditors and thereby a reduction in loans payable shareholders for the same amount and a loss on settlement of debt of $36,103. Accordingly the Company recorded a derivative liability of $36,103 of which $32,000 was recorded as debt discount, $4,103 as additional interest expense and the Company amortized the full $32,000 of debt discount as interest expense as the lender converted all $32,000 of debt in exchange for 134,102 shares of the Company’s common stock.

						Debt Discount
Noteholder (issuance		December 31,				Net of			Debt			September 30,
date)		2015		Additions		Amortizations			Conversion			2016

JMJ (3/4/15)	$	43,566	$	-	$	-		$	(43,566	)	$	-
Prolific (5/8/15)		800		-		-			(800	)		-
LG (7/16/15)		52,500		-		-			(52,500	)		-
EMA Financial
(10/29/15)		40,000		-		-			(40,000	)		-
Oleg Poltaratskly (10/22/15)		-		20,000		-			(20,000	)		-
Harbour Gates (5/9/16)		-		110,000		(47,806	)		-			62,194
EMA Financial (5/15/16)		-		40,000		(24,918	)		-			15,082
Forest Capital ( 6/17/16)		-		25,000		(17,808	)		-			7,192
LG (7/11/16)		-		29,000		(22,564	)		-			6,436
LG (7/11/16)		-		25,000		-			(25,000	)		-
Adar Bays (7/14/16)		-		35,000		(27,521	)		-			7,479
Crown Bridge (7/28/16)		-		35,000		(28,863	)		-			6,137
Forest Capital ( 8/25/16)		-		55,000		(49,575	)		-			5,425
Forest Capital ( 8/26/16)		-		75,000		(34,177	)		(33,938	)		6,885
Crown Bridge (8/29/16)		-		35,000		(2,401	)		(32,534	)		65
Eagle Equities (8/30/16)		-		60,000		(14,330	)		(44,500	)		1,170
Eagle Equities (9/8/16)		-		60,000		(56,384	)		-			3,616
Lucas Hoppel (9/13/16)		-		53,500		(17,871	)		(35,222	)		407
Micro Cap Equity (9/13/16)		-		25,000		(13,266	)		(11,200	)		512
Lucas Hoppel (9/14/16)		-		38,500		(36,812	)		-			1,688
Crown Bridge (9/29/16)		-		56,700		(56,387	)		-			313

	$	136,866	$	777,700	$	(450,705	)	$	(339,260	)	$	124,601