5. Related Parties Notes Payable	12 Months Ended
Dec. 31, 2017
Notes
5. Related Parties Notes Payable	5. Related Parties Notes Payable At January 1, 2016, the Company had notes payable balances of $84,268 and $86,808 with Eric Jones, the Company’s President and Chief Executive Officer and Jim Collard, the Company’s Vice President and Chief Operating Officer, respectively. On January 18, 2016, the Company initiated a private offering for an aggregate 6,700,000 shares of common stock. In connection with this offering, Jim Collord and Eric Jones exchanged $25,000 each of their related notes payables for a total of 1 million shares. On November 15, 2016, Jim Collord exchanged an additional $2,000 to exercise warrants and received 20,000 shares of common stock. On July 8, 2016, the Company executed two new promissory notes payable to Eric Jones and Jim Collord. The amount of the notes was $15,000 and $10,000, respectively, for a total of $25,000. The terms of these notes are a 2% interest rate accrued per month for a term of two months. During the year ended December 31, 2016, the Company paid $17,500 on Mr. Jones’ outstanding note balance. At December 31, 2017, the notes payable balances were $56,768 and $69,808 for Mr. Jones and Mr. Collord, respectively. These notes, as amended, are due December 31, 2018. On June 21, 2017, the Company originated a short term promissory note payable to a Director of the Company, Paul Beckman. The note had a principal amount of $20,000 with simple interest calculated at 1% per month. On July 19, 2017, Mr. Beckman exercised stock options for 275,000 shares of common stock for total consideration of $28,275 which was in the form of the balance due on his note and interest expense of $20,000 and $125, respectively, and $8,150 in cash. On October 25, 2017 the Company received $100,000 from Mr. Beckman under a convertible promissory note. Terms of the note called for interest at 1% per month, with the entire balance of principal and interest due in full on April 24, 2018. The convertible promissory note contained the option for the holder to convert any portion of the principal and interest into Company common stock at $0.15 per common share (a total of 666,667 shares). On that date, the market price for the Company’s common stock was $0.17 per common share which exceeded the conversion price. As such, the convertible note contained a beneficial conversion feature of $13,333 which was recognized as a discount on the note on the date of issuance. The discount is being amortized over the note term using the straight-line method, which approximates the effective interest method. For the year ended December 31, 2017, the Company recorded $4,445 in interest expense related to the amortization of the discount. During December 31, 2017 and 2016, the Company recognized a total of $23,672 and $17,723, respectively, in interest expense for all of these notes discussed above. Accrued interest payable was $36,949 and $17,723 at December 31, 2017 and 2016, respectively.

5. Related Parties Notes Payable

12 Months Ended

Dec. 31, 2017

5. Related Parties Notes Payable

At January 1, 2016, the Company had notes payable balances of $84,268 and $86,808 with Eric Jones, the Company’s President and Chief Executive Officer and Jim Collard, the Company’s Vice President and Chief Operating Officer, respectively.

On January 18, 2016, the Company initiated a private offering for an aggregate 6,700,000 shares of common stock. In connection with this offering, Jim Collord and Eric Jones exchanged $25,000 each of their related notes payables for a total of 1 million shares. On November 15, 2016, Jim Collord exchanged an additional $2,000 to exercise warrants and received 20,000 shares of common stock.

On July 8, 2016, the Company executed two new promissory notes payable to Eric Jones and Jim Collord. The amount of the notes was $15,000 and $10,000, respectively, for a total of $25,000. The terms of these notes are a 2% interest rate accrued per month for a term of two months.

During the year ended December 31, 2016, the Company paid $17,500 on Mr. Jones’ outstanding note balance. At December 31, 2017, the notes payable balances were $56,768 and $69,808 for Mr. Jones and Mr. Collord, respectively. These notes, as amended, are due December 31, 2018.

On June 21, 2017, the Company originated a short term promissory note payable to a Director of the Company, Paul Beckman. The note had a principal amount of $20,000 with simple interest calculated at 1% per month. On July 19, 2017, Mr. Beckman exercised stock options for 275,000 shares of common stock for total consideration of $28,275 which was in the form of the balance due on his note and interest expense of $20,000 and $125, respectively, and $8,150 in cash.

On October 25, 2017 the Company received $100,000 from Mr. Beckman under a convertible promissory note. Terms of the note called for interest at 1% per month, with the entire balance of principal and interest due in full on April 24, 2018. The convertible promissory note contained the option for the holder to convert any portion of the principal and interest into Company common stock at $0.15 per common share (a total of 666,667 shares).

On that date, the market price for the Company’s common stock was $0.17 per common share which exceeded the conversion price. As such, the convertible note contained a beneficial conversion feature of $13,333 which was recognized as a discount on the note on the date of issuance. The discount is being amortized over the note term using the straight-line method, which approximates the effective interest method. For the year ended December 31, 2017, the Company recorded $4,445 in interest expense related to the amortization of the discount.

During December 31, 2017 and 2016, the Company recognized a total of $23,672 and $17,723, respectively, in interest expense for all of these notes discussed above. Accrued interest payable was $36,949 and $17,723 at December 31, 2017 and 2016, respectively.