September 30, 2017

December 31, 2016

Notes payable bearing interest at 7.99%. The note is payable in monthly principal plus interest payments of $472 through December 2020. The note is secured by a vehicle.

$

-

$

16,642

Notes payable bearing interest at 8%. The notes have a 2-year maturity and are due at various dates between September 19, 2018 – October 19, 2018, and pay interest-only on a monthly basis.

460,000

547,500

Note payable bearing interest at 2.74%. The note is payable in monthly principal plus interest payments of $100 through December 2019.

2,608

-

Note payable bearing interest at 4.00%. The note is payable in quarterly principal plus interest payments of $9,614 through March 2019.

55,125

-

Convertible notes payable bearing interest at 4.00%. The notes principal plus accrued interest is due in full at various dates between April 3, 2020 – September 30, 2020. The notes have an automatic conversion feature upon the closing (or first in a series of closings) of the next equity financing in which the Company sells shares of its equity securities for an aggregate consideration of at least $4,000,000 at a purchase price of at least $7.50. The outstanding principal and unpaid accrued interest on the notes shall be automatically converted into equity securities at a price equal to 80% of the price paid per share by the investors in the next equity financing or $6.00, whichever is lower, provided, however, that in no event shall the conversion price be less than $6.00. The note has a voluntary conversion feature where the investor may convert, in whole or in part, at any time at the conversion price of $6.00.

915,850

-

Total notes payable

1,433,583

564,142

Less current portion

(39,032

)

(4,537

)

Less debt discount for detachable warrant

(63,544

)

(131,849

)

Long-term portion of notes payable

$

1,331,007

$

427,756