Note 4 - Notes Payable

9 Months Ended

Sep. 30, 2016

NOTE 4

– NOTES PAYABLE

The following short-term loans are outstanding:

●

Global Holdings International, LLC

- $9,675,000 which bears interest at 12% per annum. This note matured June 30, 2015 and became due on demand. Subsequently, the maturity date was extended to June 30, 2016.

This loan is secured by the Company’s equipment.

●

Jeff Thomas

- $595,000 which bears interest at 10% per annum. Mr. Thomas is a former director of Creative Edge. This loan is unsecured.

●

Jeff Thomas

- $6,500 which bears interest at 10% per annum. Mr. Thomas is a former director of Creative Edge. This loan is unsecured.

●

Bill Chaaban (President of the Company)

- $113,348 which bears interest at 10% per annum and is unsecured. Mr. Chaaban is President of the Company. This note is due December 31, 2015.

●

Bill Chaaban (President of the Company)

– several notes aggregating $93,762 which bears interest at 10% per annum. These notes are due December 31, 2016.

●

Bill Chaaban (President of the Company)

– $16,805 which bears interest at 10% per annum. This note is due December 31, 2016.

●

Bill Chaaban (President of the Company)

– several notes aggregating $23,029 which bears interest at 10% per annum. These notes are due December 31, 2016.

There are 2 year convertible notes with a principal balance of $1,388,121 due to Mr. Chaaban. It bears interest at an annual rate of 12% and is convertible to 871,576 common shares. There are also multiple long-term convertible notes with a principle balance of $850,002. Two notes bear interest at 12% and all others bear interest at an annual rate of 5% and have conversion rights totaling up to 542,350 common shares.

SUMMARY TABLE OF NOTES PAYABLE

As of September 30, 2016 and 2015

SUMMARY OF NOTES PAYABLE	2016		2015

Loans Payable		9,969,179		9,881,855
Loans Payable – related parties		847,318		1,440,482
Long-Term Loans		850,002		-
Long-Term Loans – related parties		1,388,121		612,000
Total of All Notes Payable	$	13,054,620	$	11,934,337