RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

NOTE 4 - RELATED PARTY TRANSACTIONS

On June 12, 2015, the Company executed a consulting agreement with an entity with common ownership. During the three month period June 30, 2017 and 2016, the Company incurred fees totaling $0 and $5,500,000 relating to services rendered under this agreement. During the six month period June 30, 2017 and 2016, the Company incurred fees totaling $0 and $12,358,255 relating to services rendered under this agreement.

The amount outstanding and payable as of June 30, 2017 and December 31, 2016, was $17,840,615 and $17,840,615, respectively. The amount is due on demand and does not accrue interest.

On April 30, 2017, the Company purchased $250,000 of secured debt that had been owed to a third party, by an operating subsidiary of a related party. (see Note 7). As a result of the transaction, the Company is now the creditor on the notes. The first note in the amount of $150,000 is dated March 13, 2013, carries an interest rate of 12% and was due on September 13, 2015. The second note in the amount of $100,000 is dated July 17, 2013, carries an interest rate of 12% and was due January 17, 2016. Both notes are in default.