CONVERTIBLE PROMISSORY NOTES

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Note 8 - CONVERTIBLE PROMISSORY NOTES

Convertible promissory notes consist of the following at September 30, 2017 and December 31, 2016:

	September 30, 2017			December 31, 2016
Convertible promissory notes totaling $1,300,000 due between November 11, 2017 and March 5, 2018, interest payable at 8% per annum; unsecured; principal and accrued interest convertible into common stock at the lower of $7.00 per share or the price per share of the latest closing of a debt or equity offering by the Company greater than $3,000,000; accrued interest due between November 11, 2017 and March 5, 2018	$	1,300,000		$	-
		1,300,000			-
Unamortized discount		(650,634	)		-
Current portion of convertible promissory notes		649,366			-
Convertible promissory notes, less current portion	$	-		$	-

During the three and nine months ended September 30, 2017, the Company incurred $477,285 and $554,968, respectively, amortization of discount. During the three and nine months ended September 30, 2016, the Company incurred $0 amortization of discount. Interest expense for the three and nine months ended September 30, 2017 was $23,617 and $26,922, respectively. Interest expense for the three and nine months ended September 30, 2016 was $0.