NOTES PAYABLE

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

NOTES PAYABLE

Note 7 – Notes Payable

Notes payable consists of the following:

	December 31, 2016		December 31, 2015
Note payable to an entity for the financing of insurance   premiums, unsecured; 7.75% interest, due March 2017	$	26,880	$	—
Note payable to an entity for the financing of insurance   premiums, unsecured; 7.44% interest, due March 2016		—		25,034
Two notes payable to investors, unsecured, 10% interest; due March 31, 2017		500,000		500,000
Notes Payable – Total	$	526,880	$	525,034
Notes Payable, Related Party
Term loan with a related party investor executed July 30, 2015, unsecured, 10% interest; due July 30, 2016	$	—	$	3,500,000
Total – Notes Payable & Notes Payable, Related Party	$	526,880	$	4,025,034

Interest expense for the year ended December 31, 2016 was $572,025. Of that amount $566,273 relates to preferred stock, notes payable and insurance financing and $5,751 is amortization of debt discount. Interest expense for the year ended December 31, 2015 was $220,413. Of that amount $209,168 relates to notes payable and insurance financing and $10,291 is amortization of debt discount.