| NOTE 5 - Convertible Notes Payable | The
Company accounted for the following Notes under ASC Topic 815-15 Embedded Derivative. The derivative component of
the obligation is initially valued and classified as a derivative liability with an offset to discounts on convertible debt. Discounts
have been amortized to interest expense over the respective terms of the related notes. See Note 6. On
December 19, 2014, the Company issued a convertible note payable, with a face value of $156,000 and stated interest of 8% to a
third-party investor. The note was convertible into a variable number of the Companys common stock, based on a conversion
ratio of 68% of the lowest closing bid prices for 20 days prior to conversion. During the six months ended September 30, 2017,
the investor added $360 of fees to the principal balance of the note. For the six months ended September 30, 2017, the investor
converted a total of $1,485 of the face value and $546 of accrued interest into 36,926,585 shares of common stock. As of September
30, 2017, and March 31, 2017, the outstanding principal amount of the note was $-0- and $1,125, respectively. On
December 19, 2014, the Company issued a convertible back-end note, with a face value of $156,000 and stated interest of 8% to
a third-party investor. The note is convertible at any time following the funding of the note into a variable number of the Companys
common stock, based on a conversion ratio of 68% of the lowest closing bid prices for 20 days prior to conversion. The note was
funded on June 18, 2015, when the Company received proceeds of $143,333, net of $12,663 of OID and costs. During the six months
ended September 30, 2017, the Company and the investor agreed to add $42,144 to the principal balance of the note for penalties
under the note. The embedded conversion feature included in the penalty added to the note, resulted in an initial debt discount
of $42,144, an initial derivative expense of $43,213 and an initial derivative liability of $85,357. For the six months ended
September 30, 2017, amortization of the debt discount of $42,144 was charged to interest expense. For the six months ended September30,
2017, the investor converted a total of $173,844 of the face value and $68,347 of accrued interest into 867,842,062 shares of
common stock. As of September 30, 2017, and March 31, 2017, the outstanding principal amount of the note was $-0- and $131,700,
respectively. On
December 19, 2014, the Company issued a convertible note payable, with a face value of $156,000 and stated interest of 8% to a
third-party investor. The outstanding balance of this note is convertible into a variable number of the Companys common
stock, based on a conversion ratio of 68% of the lowest closing bid prices for 20 days prior to conversion. For the six months
ended September 30, 2017, the investor converted a total of $45,957 of the face value and $17,469 of accrued interest into 1,153,206,726
shares of common stock. As of September 30, 2017, and March 31, 2017, and the outstanding principal amount of the note was $-0-
and $45,957, respectively. On
December 19, 2014, the Company issued a convertible back-end note, with a face value of $156,000 and stated interest of 8% to
a third-party investor. The note is convertible at any time following the funding of the note into a variable number of the Companys
common stock, based on a conversion ratio of 68% of the lowest closing bid prices for 20 days prior to conversion. The note was
funded on June 18, 2015, when the Company received proceeds of $143,333, net of $12,663 of OID and costs. On May 10, 2017, the
investor sent the Company a conversion notice to convert $6,521 of the face value into 118,559,273 shares of common stock. The
shares were not available at the time, and the Company recorded the value of the shares to be issued, as common stock to be issued
on the September 30, 2017, balance sheet (the shares were certificated on October 2, 2017). As of September 30, 2017, and March
31, 2017, the outstanding principal amount of the note was $149,479 and $156,000, respectively. On
January 11, 2015, the Company entered in to a securities purchase agreement providing for the purchase of two convertible promissory
notes in the principal amount of $52,000 each. One of the notes was funded on January 13, 2015, with the Company receiving $47,500
of net proceeds after payment of legal and origination expenses. The note bears interest at the rate of 8% per annum, was due
and payable on January 9, 2015, and may be converted at any time after funding into shares of Company common stock at a conversion
price equal to 67% of the lowest closing bid price on the OTCQB during the 15 prior trading days. The second note, which was funded
on August 7, 2015, has the same interest and conversion terms as the first note. For the six months ended September 30, 2017,
the investor converted a total of $19,906 of the face value and $6,448 of accrued interest into 23,138,244 shares of common stock.
As of September 30, 2017, and March 31, 2017, the outstanding principal amount of the second note was $-0- and $19,906, respectively. On
January 19, 2015, the Company issued a convertible promissory note in the face amount of $100,000, which bears interest at the
rate of 12% per annum, is due and payable on July 16, 2015, and may be converted at any time after funding into shares of Company
common stock at a conversion price equal to the lesser of (a) 55% of the lowest trading price during the 20 days preceding the
execution of the note, or (b) 55% of the of the lowest traded price during the 20 trading days preceding conversion. The note
was funded on January 28, 2015, with the Company receiving $93,000 of net proceeds after payment of legal and origination expenses.
On September 1, 2017, the investor sold $14,712 of the principal (see below). During the six months ended September 30, 2017,
the investor converted a total of $19,708 of the face value into 358,332,489 shares of common stock. As of September 30, 2017,
and March 31, 2017, the outstanding principal amount of the note was $-0- and $34,420, respectively. On
January 21, 2015, the Company issued a convertible promissory note in the face amount of $400,000, of which the Company is to
assume $40,000 in original interest discount (OID), which together with any unpaid accrued interest is due two years
after any funding of the note. The note is to be funded at the note holders discretion, and the initial tranche was funded
on January 21, 2015, when the Company received cash in the amount of $50,000, and received an additional $25,000 on April 28,
2015. The note is pre-payable for 90 days without interest, and incurs a one-time interest charge of 12% thereafter. The note
balance funded (plus a pro rata portion of the OID together with any unpaid accrued interest) is convertible into shares of Company
common stock at a conversion price equal to the lesser of $0.08 or 60% of the lowest traded price during the 25 prior trading
days. For the six months ended September 30, 2017, the investor converted a total of $15,480 of the face value and $3,332 of accrued
interest into 313,530,500 shares of common stock. As of September 30, 2017, and March 31, 2017, the outstanding principal amount
of the note was $-0- and $15,480, respectively. On
August 17, 2015, the Company issued a convertible promissory note in the face amount of $325,000, which bears interest at the
rate of 10% per annum, was due and payable on August 17, 2016, and may be converted at any time after funding into shares of Company
common stock at a conversion price equals the lesser of $.02 or 70% of the closing trading prices immediately preceding the conversion
date. In conjunction with the convertible note issued by the Company, the Company issued 2,064 warrants valued at $412,698. The
warrants have an exercise price of $270, subject to adjustment, and expire on August 17, 2020. During the year ended March 31,
2017, the Company and the noteholder agreed to add $30,000 to the principal balance of the note in exchange for the noteholders
waiver of Liquidated Damages as defined in the note. During the six months ended September 30, 2017, the investor converted $284,093
of the face value and $29,707 of accrued interest into 1,190,000,000 shares of common stock. On June 13, 2017, the investor sold
$70,907 of the principal (see below). As of September 30, 2017, and March 31, 2017, the outstanding principal amount of the note
was $-0- and $355,000, respectively. On
October 12, 2015, the Company issued a replacement convertible promissory note in the face amount of $110,351, to Carebourn
that replaced the convertible promissory note issued on April 10, 2015, with a face value of $105,000, and accrued interest
of $5,351. On October 12, 2015, Carebourn and the Company assigned $15,000 of the replacement note to More Capital, LLC. (More
Capital Assigned Note). On January 19, 2016, Carebourn assigned $10,000 of the replacement note to Carebourn Partners,
LLC (Carebourn Partners Assigned Note). As of September 30, 2017, and March 31, 2017, the principal amount of the
replacement note issued to Carebourn was $-0-. The
outstanding balance of the More Capital Assigned Note is convertible into a variable number of the Companys common stock,
based on a conversion ratio of 60% of the average of the three lowest closing bid prices for 20 days prior to conversion. The
note also bears an interest rate of 10% per annum. During the six months ended September 30, 2017, More Capital converted $2,050
of the face value into 34,132,000 shares of common stock. As of September 30, 2017, and March 31, 2017, the outstanding principal
amount of the More Capital Assigned Note was $-0- and $2,050, respectively. The
outstanding balance of the Carebourn Partners Assigned Note is convertible into a variable number of the Companys common
stock, based on a conversion ratio of 60% of the average of the three lowest closing bid prices for 20 days prior to conversion.
The note also bears an interest rate of 10% per annum. During the six months ended September 30, 2017, Carebourn Partners converted
$10,000 of the face value into 61,111,111 shares of common stock. As of September 30, 2017, and March 31, 2017, the outstanding
principal amount of the Carebourn Partners Assigned Note was $-0- and $10,000, respectively. On
October 26, 2015, the Company issued a convertible note, with a face value of $110,000 and stated interest of 10% to a third-party
investor, of which the company was to assume an OID of $10,000. The note was convertible into a variable number of the Companys
common stock, based on a conversion ratio of 60% of the lowest average of the three lowest closing bid prices for 20 days prior
to conversion. The investor sold $25,000 of the note on April 27, 2016, and the Company issued a replacement note to the buyer,
as described below. On June 7, 2016, the Company and the third-party investor agreed to extend the maturity of the note from July
26, 2016, to October 26, 2016, and to require daily payments of $250 per day via ACH. During the six months ended September 30,
2017, the investor converted $78,997 of the face value and $13,950 of accrued interest into 624,136,735 shares of common stock.
As of September 30, 2017, and March 31, 2017, the outstanding principal amount of the note was $-0- and $78,997, respectively. On
October 27, 2015, the Company issued a convertible note, with a face value of $110,000 and stated interest of 8% to a third-party
investor, of which the company was to assume an OID of $10,000. The outstanding balance of this note was convertible into a variable
number of the Companys common stock, based on a conversion ratio of 60% of the lowest average of the three lowest closing
bid prices for 20 days prior to conversion. During the six months ended September 30, 2017, the investor converted $10,000 of
the face value and $800 of accrued interest into 10,000,000 shares of common stock. On August 10, 2017, the Company entered into
a Note Settlement Agreement, agreeing to pay $245,000 in full settlement of this note and the note issued to the same investor
on February 4, 2016 (see below). The Company fully complied with its obligations under the settlement agreement, including, paying
the amount owed thereunder within the time required. The Company and the lender each released the other party from all claims.
As of September 30, 2017, and March 31, 2017, the outstanding principal amount of the note was $-0- and $110,000, respectively. On
November 18, 2015, the Company issued a replacement convertible promissory note in the face amount of $47,808, that replaced the
collateralized secured convertible promissory issued on February 3, 2015, that had a remaining face value of $43,479 and accrued
interest of $4,326. The replacement note is convertible into a variable number of the Companys common stock, based on a
conversion ratio of 60% of the average of the three lowest closing bid prices for 20 days prior to conversion. The note also bears
an interest rate of 10% per annum. During the six months ended September 30, 2017, the investor converted a total of $42,363 of
the face value and $10,997 of accrued interest into 133,400,350 shares of common stock. As of September 30, 2017, and March 31,
2017, the outstanding principal amount of the replacement note was $-0- and $42,363, respectively. On
November 27, 2015, the Company issued a convertible note for legal services previously provided with a face value of $27,000 and
stated interest of 10% to a third-party investor. The note was convertible into a variable number of the Companys common
stock, based on a conversion ratio of 70% of the average of the three lowest closing bid prices for 10 days prior to conversion.
The investor sold the note on May 3, 2017, and the Company issued a replacement note to the buyer, as described below. As of September
30, 2017, and March 31, 2017, the outstanding principal amount of the note was $-0- and $27,000, respectively. On
January 5, 2016, the Company issued a convertible note for legal services previously provided with a face value of $20,000 and
stated interest of 10% to a third-party investor. The note was convertible into a variable number of the Companys common
stock, based on a conversion ratio of 70% of the average of the three lowest closing bid prices for 10 days prior to conversion.
The investor sold the note on May 3, 2017, and the Company issued a replacement note to the buyer, as described below. As of September
30, 2017, and March 31, 2017, the outstanding principal amount of the note was $-0- and $20,000, respectively. On
February 4, 2016, the Company issued a convertible note, with a face value of $82,500 and stated interest of 8% to a third-party
investor, of which the company was to assume an OID of $7,500, and stated interest of 8% to a third-party investor. The outstanding
balance of this note is convertible into a variable number of the Companys common stock, based on a conversion ratio of
60% of the average of the three lowest closing bid prices for 20 days prior to conversion. On August 10, 2017, the Company entered
into a Note Settlement Agreement, agreeing to pay $245,000 in full settlement of this note and the note issued to the same investor
on October 27, 2015 (see above). The Company fully complied with its obligations under the settlement agreement, including, paying
the amount owed thereunder within the time required. The Company and the lender each released the other party from all claims,
and the lender released the pledge of the Series C Preferred Shares that were previously pledged as collateral for this note by
the Companys CEO. As of September 30, 2017, and March 31, 2017, the outstanding principal amount of the note was $-0- and
$82,500, respectively. On
February 8, 2016, the Company issued a convertible note, with a face value of $80,000 and stated interest of 10% to a third-party
investor, of which the company was to assume an original issue discount of $5,000. The outstanding balance of this note is convertible
into a variable number of the Companys common stock, based on a conversion ratio of 60% of the average of the three lowest
closing bid prices for 20 days prior to conversion and matured on November 8, 2016. During the six months ended September 30,
2017, the investor converted a total of $75,000 of the face value and $12,413 of accrued interest into 89,197,367 shares of common
stock. As of September 30, 2017, and March 31, 2017, the outstanding principal amount of the note was $5,000 and $80,000, respectively. On
March 24, 2016, the Company issued a convertible note, with a face value of $19,000 and stated interest of 10% to a third-party
investor, of which the company received $16,000 in proceeds. The outstanding balance of this note is convertible into a variable
number of the Companys common stock, based on a conversion ratio of 60% of the average of the three lowest closing bid
prices for 20 days prior to conversion and matured on December 24, 2016. During the six months ended September 30, 2017, the investor
converted a total of $14,000 of the face value and $1,586 of accrued interest into 15,903,887 shares of common stock. As of September
30, 2017, and March 31, 2017, the outstanding principal amount of the note was $5,000 and $19,000, respectively. On
March 24, 2016, the Company issued a convertible note, with a face value of $18,000 and stated interest of 10% to a third-party
investor, of which the company received $15,000 in proceeds. The note was convertible into a variable number of the Companys
common stock, based on a conversion ratio of 60% of the average of the three lowest closing bid prices for 20 days prior to conversion
and a maturity date of December 24, 2016. During the six months ended September 30, 2017, the investor converted $18,000 of the
face value and $2,114 of accrued interest into 192,825,852 shares of common stock. As of September 30, 2017, and March 31, 2017,
the outstanding principal amount of the note was $-0- and $18,000, respectively. On
April 11, 2016, the Company issued a convertible note, with a face value of $18,889 and stated interest of 10% to a third-party
investor. The note was convertible into a variable number of the Companys common stock, based on a conversion ratio of
60% of the average of the three lowest closing bid prices for 20 days prior to conversion. The Company received proceeds of $13,000
on April 28, 2016, of $13,000, after disbursements for the lenders transaction costs, fees, and expenses. The investor
sold the note on June 13, 2017, and the Company issued a replacement note to the buyer, as described below. As of September 30,
2017, and March 31, 2017, the outstanding principal amount of the note was $-0- and $18,889, respectively. On
April 11, 2016, the Company issued a replacement convertible promissory note (the first replacement note) in
the face amount of $26,123, to a third-party investor that replaces part of the convertible promissory note issued on October
26, 2015, with a face value of $25,000, and accrued interest of $1,123. The note was convertible into a variable number of the
Companys common stock, based on a conversion ratio of 60% of the average of the three lowest closing bid prices for 20
days prior to conversion. The note also carried an interest rate of 10% per annum. The investor sold a $6,647 portion of the note
on June 13, 2017, and the Company issued a replacement note (the second replacement note) to the buyer, as described
below. As of September 30, 2017, and March 31, 2017, the outstanding principal amount of the first replacement note was $-0- and
$6,647, respectively. On
June 3, 2016, the Company issued a convertible note, with a face value of $42,350 and stated interest of 12% to a third-party
investor. The note is convertible into a variable number of the Companys common stock, based on a conversion ratio of 60%
of the average of the three lowest closing bid prices for 20 days prior to conversion. The Company received proceeds on June 3,
2016, of $35,000, after disbursements for the lenders transaction costs, fees, and expenses. The note also requires 177
daily payments of $239 per day via ACH. During the six months ended September 30, 2017, the Company paid $362. During the six
months ended September 30, 2017, the investor converted $31,368 of the face value and $2,814 of accrued interest into 34,879,724
shares of common stock. The balance of the note as of September 30, 2017, and March 31, 2017, was $4,399 and $36,129, respectively. On
May 1, 2017, the Company issued to a third-party investor, three convertible notes, two of which were for $50,000 each and one
for $17,500, and three back-end convertible notes, two of which were for $50,000 each and one for $25,000. All of the notes have
a stated interest of 8% and each note is convertible at any time following the funding of such note, into a variable number of
the Companys common stock, based on a conversion ratio of 55% of the lowest traded price for 20 days prior to conversion.
Beginning on the six- month anniversary of the note the conversion price shall have ceiling of $0.0005. The three convertible
notes were funded on May 1, 2017, when the Company received proceeds of $111,625, after disbursements for the lenders transaction
costs, fees and expenses. The embedded conversion feature included in the three notes resulted in an initial debt discount of
$117,500, an initial derivative expense of $319,692 and an initial derivative liability of $437,192. For the three and six months
ended September 30, 2017, amortization of the debt discount of $30,028 and $49,611, respectively, was charged to interest expense.
As of September 30, 2017, the outstanding principal balance of the three convertible notes was $117,500. On August 8, 2017, the
investor funded the $25,000 back-end note when the Company received $23,750 after disbursements for the lenders transaction
costs, fees and expenses. The embedded conversion feature included in the $25,000 back-end note resulted in an initial debt
discount of $25,000, an initial derivative expense of $258,904 and an initial derivative liability of $283,904. For the three
and six months ended September 30, 2017, amortization of the debt discount of $10,556 was charged to interest expense. As of September
30, 2017, the outstanding principal balance of the funded back-end convertible note was $25,000. On
May 1, 2017, the Company issued to a third-party investor, three convertible notes, two of which were for $50,000 each and one
for $17,500, and three back-end convertible notes, two of which were for $50,000 each and one for $25,000. All of the notes have
a stated interest of 8% and each note is convertible at any time following the funding of such note, into a variable number of
the Companys common stock, based on a conversion ratio of 55% of the lowest traded price for 20 days prior to conversion.
Beginning on the six- month anniversary of the note the conversion price shall have ceiling of $0.0005. The three convertible
notes were funded on April 28, 2017, and May 3, 2017, when the Company received proceeds of $85,000 and $26,625, respectively,
after disbursements for the lenders transaction costs, fees and expenses. The embedded conversion feature included in the
three notes resulted in an initial debt discount of $117,500, an initial derivative expense of $319,692 and an initial derivative
liability of $437,192. For the three and six months ended September 30, 2017, amortization of the debt discount of $30,028 and
$49,611, respectively, was charged to interest expense. As of September 30, 2017, the outstanding principal balance of the three
convertible notes was $117,500. On August 8, 2017, the investor funded the $25,000 back-end note when the Company received $23,750
after disbursements for the lenders transaction costs, fees and expenses. The embedded conversion feature included in the
$25,000 back-end note resulted in an initial debt discount of $25,000, an initial derivative expense of $258,904 and an initial
derivative liability of $283,904. For the three and six months ended September 30, 2017, amortization of the debt discount of
$10,556 was charged to interest expense. As of September 30, 2017, the outstanding principal balance of the funded back-end convertible
note was $25,000. On
May 2, 2017, the Company issued a convertible note for legal services previously provided with a face value of $23,000 and stated
interest of 10% to a third-party investor. The note is convertible into a variable number of the Companys common stock,
based on a conversion ratio of 70% of the average of the three lowest closing bid prices for 10 days prior to conversion. The
investor sold the note on May 3, 2017, and the Company issued a replacement note to the buyer, as described below. On
May 3, 2017, the Company issued a convertible promissory note, with a face value of $124,775 and stated interest of 10% to a third-party
investor. The note is convertible at any time after ninety days following the funding of the note into a variable number of the
Companys common stock, based on a conversion ratio of 60% of the average of the three lowest closing bid prices for 20
days prior to conversion. The note was funded on May 4, 2017, when the Company received proceeds of $100,000, after disbursements
for the lenders transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in
an initial debt discount of $108,500, an initial derivative expense of $104,007 and an initial derivative liability of $212,507.
For the three and six months ended September 30, 2017, amortization of the debt discount of $27,727 and $45,208, respectively,
was charged to interest expense. The note also requires 240 daily payments of $520 per day via ACH. For the six months ended September
30, 2017, the Company paid $29,120. During the six months ended September 30, 2017, the investor converted a total of $43,699
of the face value into 33,614,841 shares of common stock. As of September 30, 2017, the outstanding principal balance of the note
was $51,956. On
May 3, 2017, the Company issued three replacement notes to a third-party investor. The replacement notes were in the amounts of
$22,000, $29,700 and $25,300, respectively, and replaced notes issued in the amounts of $20,000, $27,000 and $23,000, respectively.
The three replacement notes have a stated interest of 8% and each note is convertible at any time into a variable number of the
Companys common stock, based on a conversion ratio of 55% of the lowest traded price for 20 days prior to conversion. Beginning
on the six- month anniversary of the notes the conversion price shall have ceiling of $0.0005. The embedded conversion feature
included in the three replacement notes resulted in an initial debt discount of $77,000, an initial derivative expense of $158,790
and an initial derivative liability of $235,790. For the three and six months ended September 30, 2017, amortization of the debt
discount of $19,769 and $32,084, respectively, was charged to interest expense. As of September 30, 2017, the principal balance
of the three replacement notes in the aggregate is $77,000. On
June 8, 2017, the Company issued to a third-party investor a convertible promissory note for $140,750 and a back-end convertible
note for $140,750. The notes have a stated interest of 8% and each note is convertible at any time following the funding of such
note into a variable number of the Companys common stock, based on a conversion ratio of 55% of the lowest traded price
for 20 days prior to conversion. Beginning on the six-month anniversary of the note the conversion price shall have ceiling of
$0.0005. The note was funded on June 15, 2017, when the Company received proceeds of $135,000, after disbursements for the lenders
transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in an initial debt discount
of $140,750, an initial derivative expense of $454,574 and an initial derivative liability of $595,324. For the three and six
months ended September 30, 2017, amortization of the debt discount of $38,706 and $44,571, respectively, was charged to interest
expense. As of September 30, 2017, the principal balance of the note is $140,750. On August 8, 2017, the investor funded the $140,750
back-end note when the Company received $135,000 after disbursements for the lenders transaction costs, fees and expenses.
The embedded conversion feature included in the back-end note resulted in an initial debt discount of $140,750, an initial derivative
expense of $1,454,021 and an initial derivative liability of $1,594,771. For the three and six months ended September 30, 2017,
amortization of the debt discount of $44,571 was charged to interest expense. As of September 30, 2017, the outstanding principal
balance of the back-end convertible note was $140,750. On
June 8, 2017, the Company issued to a third-party investor a convertible promissory note for $140,750 and a back-end convertible
note for $140,750. The notes have a stated interest of 8% and each note is convertible at any time following the funding of such
note, convertible into a variable number of the Companys common stock, based on a conversion ratio of 55% of the lowest
traded price for 20 days prior to conversion. Beginning on the six-month anniversary of the note the conversion price shall have
ceiling of $0.0005. The note was funded on June 15, 2017, when the Company received proceeds of $135,000, after disbursements
for the lenders transaction costs, fees and expenses. The embedded conversion feature included in the note resulted in
an initial debt discount of $140,750, an initial derivative expense of $454,574 and an initial derivative liability of $595,324.
For the three and six months ended September 30, 2017, amortization of the debt discount of $38,706 and $44,571, respectively,
was charged to interest expense. As of September 30, 2017, the principal balance of the note is $140,750. On August 8, 2017, the
investor funded the $140,750 back-end note when the Company received $135,000 after disbursements for the lenders transaction
costs, fees and expenses. The embedded conversion feature included in the back-end note resulted in an initial debt discount
of $140,750, an initial derivative expense of $1,454,021 and an initial derivative liability of $1,594,771. For the three and
six months ended September 30, 2017, amortization of the debt discount of $44,571 was charged to interest expense. As of September
30, 2017, the outstanding principal balance of the back-end convertible note was $140,750. On
June 9, 2017, the Company issued a convertible promissory note, with a face value of $165,025 and stated interest of 10% to a
third-party investor. The note is convertible at any time after ninety days following the funding of the note into a variable
number of the Companys common stock, based on a conversion ratio of 60% of the average of the three lowest closing bid
prices for 20 days prior to conversion. The note was funded on May 12, 2017, when the Company received proceeds of $135,000, after
disbursements for the lenders transaction costs, fees and expenses. The embedded conversion feature included in the note
resulted in an initial debt discount of $143,500, an initial derivative expense of $134,496 and an initial derivative liability
of $277,996. For the three and six months ended September 30, 2017, amortization of the debt discount of $36,672 and $45,043,
respectively, was charged to interest expense. The note also requires 240 daily payments of $680 per day via ACH. For the six
months ended September 30, 2017, the Company paid $1,760. As of September 30, 2017, the outstanding principal balance of the note
was $143,265. On
June 13, 2017, an investor purchased a $6,879 portion of a collateralized secured convertible replacement promissory issued
on April 11, 2016, that had a remaining face value of $6,646 and accrued interest of $233. The purchased note is convertible into
a variable number of the Companys common stock, based on a conversion ratio of 60% of the average of the three lowest closing
bid prices for 20 days prior to conversion. The note also bears an interest rate of 10% per annum. During the six months ended
September 30, 2017, the investor converted a total of $6,879 of the face value into 8,388,719 shares of common stock. As of September
30, 2017, the outstanding principal amount of the purchased note was $-0-. On
June 13, 2017, an investor purchased a $21,056 |
