Balance as of June 30, 2017

March 23, 2017 convertible notes (4) payable for total cash proceeds of 1,000,000 DKK ($145,034 as of March 23, 2017). The notes bore no interest and matured on May 1, 2017 and automatically converted into 48,345 shares of the Company’s common stock at $3.00 per share, which shares were issued on 13 June 2017. The fair value of the stock on March 23, 2017 was $4.80 so the Company recognized a beneficial conversion feature and debt discount of $87,020. The discount is amortized over the term of the notes. The balance of the debt discount was $0 as of June 30, 2017.

$ -

May 9, 2017 convertible note payable of $58,000 to a third party at 9% interest and February 9, 2018 maturity date; principal and accrued interest is convertible at 65% of market value on the date of conversion; market value is calculated as the average of the 5 lowest close prices of the common stock during the previous 10 trading days; convertible into 22,222 shares at a conversion price of $2.61 as of the May 9, 2017 measurement date; convertible 180 days after the issue date until the maturity date. The Company recorded a derivative of $75,957 on May 9, 2017 due to the variable nature of the conversion price, as well as, a debt discount of $58,000 and a loss on derivative of $17,957. The discount is amortized over the term of the note. The derivative was remeasured on June 30, 2017, which resulted in a gain on derivative of $25,287. The balance of the debt discount was $47,072 as of June 30, 2017.

58,744

May 10, 2017 convertible note payable of $50,000 to a third party at 0% interest and November 9, 2017 maturity date; principal and accrued interest is convertible at $3.00 per share; however, if the Company provides more favorable terms or conversion price to another party, the terms and price on this agreement are adjusted to match the more favorable terms and price. As a result of the variability in the conversion price, the Company recorded a derivative of $49,334 on May 10, 2017 due to the variable nature of the conversion price, as well as, a debt discount of $50,000. The discount is amortized over the term of the note. The derivative was remeasured on June 30, 2017, which resulted in a gain on derivative of $11,735. The balance of the debt discount was $38,525 as of June 30, 2017. The full amount of the note is a loan commitment fee related to an equity purchase agreement; default interest of 24%; prepayment up to 180 days following issue date. $666 of the debt discount is for a beneficial conversion feature, which is the amount in excess of the derivative liability;

50,000

June 27, 2017 convertible note payable of 2,200,000 DKK ($331,325 at June 27, 2017) to a third party at 12% interest and an August 28, 2017 maturity date; upon conversion, principal and accrued interest is convertible at $2.75 per share into 174,924 shares. Cash proceeds were net of a loan origination fee of $33,133.

331,652

Total

440,396

Less debt discount

(108,000)

Add amortization of debt discount

20,681

Balance of convertible notes payable, net

353,077

Less current portion

353,077

Long-term convertible notes payable, net

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