On October 23, 2008, the Company entered into an agreement with an unrelated third party for an unsecured Line of Credit up to a maximum of $1,000,000. The Line of Credit provided for funds to be drawn as needed and carries an interest rate on amounts borrowed of 9% per annum originally payable quarterly based on the pro rata number of days outstanding. All funds originally advanced under the facility were due and payable by November 1, 2012. As an inducement to provide the facility, the lender was awarded an immediate option to purchase 50,000 shares of common stock of the Company at $1.75 per share. In addition, the lender received an option to purchase a maximum of 250,000 additional shares of common stock of the Company at $1.75 per share. The options expire following repayment in full by the Company of the amount borrowed. At June 30, 2016, the principal and accrued interest due on the obligation remain unpaid.

Pursuant to a Private Placement Memorandum dated March 1, 2010, the Company offered Units consisting of a two year unsecured, convertible promissory note in the principal amount of $25,000 with interest at 12% per annum, together with a five year Warrant to purchase 50,000 shares of the Company's common stock at an exercise price of $1.00 per share. The Promissory Note is convertible into 50,000 shares of common stock of the Company immediately upon issuance at the option of the investor. The five-year Warrants issued in connection with the Units have expired.

Pursuant to an additional Private Placement Memorandum dated October 25, 2010, the Company offered Units consisting of a two year unsecured, convertible promissory note in the principal amount of $25,000, together with a five year Warrant to purchase 50,000 shares of the Company's common stock at an exercise price of $1.00 per share. The Promissory Notes bear interest at 9% per annum and are convertible into 50,000 shares of common stock of the Company immediately upon issuance at the option of the investor. The five-year Warrants issued in connection with the Units have expired.

The Convertible Notes issued via the Private Placements discussed above total $962,500 and became due and payable beginning in March 2012 and extending at various dates through June 2013. As of the date of the filing of this report, all of the aforementioned debt obligations remain unpaid and in default under the repayment terms of the notes.

In the first six months of 2016, the Company received cash advances totaling $47,500 of which $25,000 came from the Chairman of the Board of Directors and two current Directors of the Company. Proceeds from the advanced funds were earmarked for the payment of accounting and auditing fees and other expenses required to file the Company's Form 10-Q. The advances, when made, were unsecured and carried an annual interest rate of 8%. A full year of interest will accrue in any year in which the advance remains unpaid for any portion of the year. The Company now intends to secure the $47,500, as well as interest payable thereon, with a lien on the Company's Mississippi property.

The table below summarizes the Company's debt arising from the above-described sources as of June 30, 2016 and December 31, 2015:

		June 30, 2016			Dec. 31, 2015
	Gross Amount	Amount Due	Amount Due	Gross Amount	Amount Due	Amount Due
Loan Facility	Owed	Related Parties	Others	Owed	Related Parties	Others

Line of Credit	$1,000,000	$-	$1,000,000	$1,000,000	$-	$1,000,000

Private Placements:
March 1, 2010	475,000	75,000	400,000	475,000	75,000	400,000
October 25, 2010	487,500	-	487,500	487,500	-	487,500

Total Private Placements	962,500	75,000	887,500	962,500	75,000	887,500

Interest Bearing Advances	47,500	25,000	22,500	-	-	-

Total	$2,010,000	$100,000	$1,910,000	$1,962,500	$75,000	$1,887,500