| CONVERTIBLE NOTES AND DERIVATIVE LIABILITIES | The following summary of convertible notes payable and the related
derivative liabilities associated with the convertible notes payable. As a result of the reverse merger, Breathe assumed
responsibility of these DNA Precious Metals, Inc. notes, and any related derivative liability that exists under these notes related
to the warrant agreements. Therefore, a full discussion has been provided for clarification. On August 6, 2014, the Company entered into an agreement with a U.S.-based
private equity fund (Investor) under which the Company issued an unsecured Convertible Note (Convertible Note)
in the principal amount of $250,000. The funds to be issued under the Convertible Note is $225,000 (Consideration).
The Convertible Note includes an original issue discount of $25,000 (OID), calculated at 10% of the principal amount
($250,000). The initial Consideration paid to the Company on August 6, 2014 was $66,000. The Investor was able to pay additional
Consideration to the Company in such amounts and at such dates as the Investor may choose in its sole discretion. The principal
sum due to the Investor was prorated based on the Consideration actually paid by the Investor plus a 10% OID, as well as any other
interest or fees, such that the Company is only required to repay the amounts funded and the Company is not required to repay any
unfunded portions of the Convertible Note. The Company was able to repay the Convertible Note at any time on or before 90 days
from the transaction date after which the Company was not permitted to make further payments on the Convertible Note prior to the
Maturity Date without written approval from the Investor. If the Company made a payment of Consideration on or before 90 days from
the transaction date, the interest rate on that payment of Consideration was to be at zero percent (0%). If the Company did
not repay a payment of Consideration on or before 90 days from the transaction date, a one-time interest was to be a charge of
12% shall be applied to the principal amount. Any interest payable is in addition to the OID and that OID (or prorated OID, if
applicable) remained payable regardless of time and manner of payment by the Company. The maturity date was two years from the
transaction date of each payment ("Maturity Date") and was the date upon which the principal amount of the Convertible
Note, as well as any unpaid interest and other fees, were due and payable. The Investor had the right, at any time after the transaction
date, at its election, to convert all or part of the outstanding and unpaid principal amount and accrued interest (and any other
fees) into fully paid and non-assessable shares of common stock of the Company. The conversion price was the lesser of $1.60 or 60% of the lowest
trade price in the 25 trading days prior to the conversion. Unless otherwise agreed in writing by both parties, at no time was
the Investor convert any amount of the Convertible Note into common stock that would result in the Investor owning more than 4.99%
of the common stock outstanding of the Company. At the time that this Convertible Note is outstanding, the Company agreed to reserve
at least 100,000 shares of common stock for conversion. On October 30, 2014, the Company and the Investor entered into an amendment
(Amendment #1), whereby the Company paid a partial note repayment in the amount of $33,333 on November 5, 2014 which
equaled 50% of the note balance which includes $3,333 in interest, with the remaining balance due by January 6, 2015,
which was repaid on December 29, 2014. On April 28, 2014, the Company entered into a Securities Purchase
Agreement (SPA), with a U.S.-based private equity fund, under which the Company issued a Secured Convertible Promissory
Note (the Convertible Note) in the amount of $552,500. The Convertible Note included an original issue
discount of $50,000 (OID), calculated at 10% of the principal amount ($500,000), plus an additional $2,500 (Transaction
Expense Amount) to cover the investors due diligence and legal fees in connection therewith. The principal
amount was to be paid to the investor in six (6) tranches of an initial amount under the Convertible Note of $250,000 and five
(5) additional amounts of $50,000, with each of the additional amounts represented by Investor Notes (the Convertible Note and
the Investor Notes are collectively referred to herein as the Notes). The initial $250,000 in cash was paid to the
Company on April 29, 2014. Payment of the Notes were to be made on a monthly basis, beginning six months after the issue date when
the Company received the initial $250,000, in the amount of $34,531 per month plus all accrued but unpaid interest and other costs,
fees or charges payable, for sixteen (16) months until the balance is paid in full. The Notes were convertible into
common stock, at the option of the investor, at a price of $0.40 per share subject to adjustment in the case of a default, reorganization
or recapitalization. In the event the Company elected to prepay all or any portion of the Notes, the Company was required to pay
to the investor an amount in cash equal to 125% of the outstanding balance of the Notes, plus accrued interest and any other amounts
owing. Interest accrued at the rate of 10% per annum. If the Company failed to repay the Notes when due, or if other events of
default thereunder apply, a default interest rate of 22% per annum would apply. In addition, if the Company failed to issue stock
to the investor within three trading days of receipt of a notice of conversion, the Company must pay a penalty equal to the greater
of greater of $500 per day and 2% of the applicable conversion amount or installment amount, as applicable (but, in any event,
the cumulative amount of such late fees shall not exceed the applicable conversion amount or installment amount). The Notes were
secured by an interest in all right, title, interest, claims and demands of the Company in and to the property described in the
Security Agreement, and all replacements, proceeds, products, and accessions thereof. The Notes were convertible into shares of our common stock in six
tranches, consisting of (i) an initial tranche in an amount equal to $277,500 and any interest, costs, fees or charges accrued
thereon or added thereto under the terms of this Note and the other Transaction Documents (as defined in the Securities Purchase
Agreement), and (ii) five (5) additional tranches, each in the amount of $55,000, plus any interest, costs, fees or charges accrued
thereon or added thereto under the terms of this Note and the other Transaction Documents. Except in the case of a Company default,
the Notes are convertible by the investor at a price of $40.00 per share. Concurrently with the Securities Purchase Agreement,
the Company also issued to the investor warrants (the "Warrants") to purchase 6,906 shares of the Companys
common stock at an exercise price of $75.00 per share subject to adjustment as more fully set forth in the warrant agreement. The
Warrants also contained a cashless exercise provision. The Warrants were for a term of two (2) years. In accordance with the warrant
agreement as described in Note 5, the warrant price was reset to equal the conversion price associated with these new debt agreements
from the stated strike price of $75.00. On May 18, 2015, Typenex Co-Investment, LLC (Typenex)
filed a binding arbitration notice against the Company in the State of Utah, Case No. 150903317 (the Utah Lawsuit)
regarding a certain Warrant to Purchase Shares of Common Stock (the Warrant) issued by the Company to Typenex on
April 28, 2014 (the Arbitration) in connection with a Convertible Promissory Note of the same date (the Note).
On April 29, 2015, Typenex sent a Notice of Exercise to the Company for the issuance of 75,415 shares of the Companys common
stock (the Initial Shares) based on a cashless exercise provision contained in the Warrant along with an opinion
letter indicating the shares should be issued without restrictive legend pursuant to Rule 144 under the Securities Act of 1933,
as amended. The Company immediately filed for an emergency injunction in the State of New Jersey, the location of the Companys
transfer agent. The injunction was granted The Company has filed a response and counterclaim to the Arbitration notice alleging,
among other things, that Typenex did not fulfill its obligations under the original Note and failed to disclose material matters
regarding Typenex and its principal to the Company and requested damages and attorneys fees be paid by Typenex to the Company. On September 8, 2015, the Companys transfer agent was required
to release the Initial Share to Typenex as a result of the Company failing to maintain the bond requirement agreed to by the Company
and Typenex as part of the injunction. The number of Initial Shares is based on a price reset to equal the conversion
price associated with the Note. The price reset which resulted in the partial conversion to 75,415 common shares based on the difference
between the current market value (market price of $25.00 multiplied by exercise shares of 6,906) and the exercise price ($3.75)
multiplied by number of exercise shares (6,906.) This number is then divided by the adjusted price of the common stock ($1.946.) On October 13, 2015, Typenex and the Company participated in a mediation
in an attempt to resolve the Utah Lawsuit without either party having to incur additional legal and court fees. As a
result of the mediation and in order to resolve the Utah Lawsuit and the Arbitration and all other disputes between, on
November 17, 2015 (the Typenex Effective Date), the Company and Typenex entered into a Settlement Agreement, Waiver
and Release of Claims (the Settlement Agreement) and related Exchange Agreement (the Exchange Agreement),
Pursuant to the terms of the Settlement Agreement and Exchange Agreement, the Company agreed to issue to Typenex 80,000 shares
of the Companys common shares of stock in exchanges for any rights Typenex may or may not have had under the Warrant. The
Company will deliver the shares to Typenex in two installments: (i) 40,000 Shares with five trading days of the Effective Date
(the First Installment Shares) and (ii) 40,000 Shares on or before January 1, 2016 (the Second Installment
Shares). The First Installment Shares and the Second Installment Shares are collectively referred to herein as
the Typenex Shares. Additionally, pursuant to the Settlement Agreement, beginning on
January 1, 2016, Typenex shall have the right to put the Typenex Shares back to the Company (the Put Right) at the
following prices: (a) for Typenex Shares put to the Company from January 1, 2016 to April 30, 2016 the price will be $1.00 per
share; (b) for Typenex Shares put to the Company from May 1, 2016 to August 31, 2016 the price will be at $2.00 per share;
and (c) any Typenex Shares put to Company between September 1, 2016 and December 31, 2016 the price will be at $3.00 per share.
Typenex shall have the right to put up to 6,667 Typenex Shares per month to Company (the Monthly Put Amount) per
month. If the number of Typenex Shares put to Company in a given month is less than the Monthly Put Amount such difference,
the Rollover Shares, Typenex shall have the right to put such Typenex Shares to Company at any time in the same or
immediately succeeding period. In addition to the Monthly Put Amount, Typenex shall also have the right to put up to
6,667 Rollover Shares per month to Company. At such time that Typenexs Net Sales (gross proceeds of sales of
the Typenex Shares sold in a minus any trading commissions or costs associated with clearing and selling such Typenex Shares minus
the purchase price paid for any shares of Common Stock purchased on the open market) of Typenex Shares is equal to or greater than
$200,000, Typenexs Put Right shall automatically terminate and Typenex shall have no further rights to put Typenex Shares
or Rollover Shares. Additionally, Typenex agreed that during any calendar week it would
not sell more Typenex Shares than the greater of (i) 10% of the weekly trading volume of the Common Stock as reported on Bloomberg,
L.P. or (ii) an aggregate market value of $5,000. Upon execution of the Settlement Agreement and Exchange Agreement,
both parties released all claims each may have against the other relating to any other agreements to which both may be party except
for any disputes that may arise under the Settlement Agreement, Exchange Agreement and the documents ancillary to both. Under
the Settlement Agreement, the Company executed a Confession of Judgment in the amount of $500,000 (the Confession of Judgment). In
the event the Company commits a material breach of the Settlement Agreement which is not cured within five trading days, Typenex
shall have the right to enforce the Confession of Judgment. The Confession of Judgment, if filed as set forth above,
would carry an interest rate of 12% until paid. On March 25, 2016, the Company paid $55,000 to Typenex to settle
all obligations resulting from these agreements. Convertible Note dated February 4, 2015 On February 4, 2015, the Company entered into a convertible note
in an amount up to $250,000 with an investor. The initial funding was in the gross amount of $27,500, with net proceeds received
of $25,000. The $2,500 represents Original Issue Discount. The maturity date of this note was two years from the date that each
tranche is paid. The note was convertible at the lesser of $0.065 or 60% of the lowest trade price in the 25 trading days previous
to the conversion. The Company was able to repay this note at any time on or before
90 days from the effective date (the date the Company receives the cash) of the note at no additional interest charge. If the note
remained outstanding beyond the 90 days, there would have been a one-time 12% interest charge applied in addition to the Original
Issue Discount recognized at the onset of the note. The investor had the right to convert at any time after the effective date
of this note. The Company repaid this note on April 22, 2015 with accrued interest in the amount of $27,778. The
maturity date of this note was two years from the date that each tranche is paid. Convertible Note dated February 9, 2015 On February 9, 2015, the Company entered into a convertible note
in an amount of $110,000 with an investor. The gross amount of the note is $110,000, with net proceeds received of $100,000. The
$10,000 represents Original Issue Discount. The note will also bear interest at 4%, compounded annually. The maturity date of this
note was one year from execution. The note may be converted, in whole or in part, into shares of the Companys common stock.
The conversion price will be 60%, equivalent to a 40% discount, of the lowest trading price of the Companys common stock
during the 25 trading days prior to conversion. For defaults, the note is immediately due and payable and subject to a penalty
interest rate of 20%. On May 7, 2015 this note was assigned to M Capital Partners LLC in consideration for a payment
of $145,000 by M Capital Partners LLC to the original note holder. The Company still owes the entire $110,000 note, however, the
noteholder is M Capital Partners LLC. As a result of this assignment, the Company as noted above issued 300,000 shares of common
stock to Iconic. The Company never reserved shares in the name of the noteholder and failing to maintain proper share
reserves is a default event. In the event of default, the noteholder is permitted to declare all of the then outstanding
principal amount of this note, including any interest due thereon, to be due and payable immediately without further action or
notice. In the event of such acceleration, the amount due and owing to the holder shall be increased to 150% of the outstanding
principal amount of the note held by the Holder plus all accrued and unpaid interest, fees, and liquidated damages, if any. Additionally,
this note shall accrue interest on any unpaid principal from and after the occurrence and during the continuance of an event of
default at a rate of 20%. The note would also accrue liquidated damages of $1,000 per day from and after the occurrence
and during the continuance of an Event of Default. Since notice was not delivered to the Company prior to full settlement no such
accelerated clauses were enacted nor were any related expenses incurred. The note was permitted to be prepaid according to the following schedule:
Between 1 and 45 days from the date of execution, the note may be prepaid for 105% of face value plus accrued interest. Between
46 and 90 days from the date of execution, the note may be prepaid for 110% of face value plus accrued interest. Between 91 and
135 days from the date of execution, the note may be prepaid for 125% of face value plus accrued interest. Between 136 and 180
days from the date of execution, the note may be prepaid for 135% of face value plus accrued interest. After 180 days from the
date of execution, the note may not be prepaid without written consent from the investor. On August 10, 2015, The Company entered into a share exchange agreement
with the assignee noteholder to settle this note in full in exchange for 36,250 shares of the common stock. The stock was issued
on June 2, 2015 at a value of $293,625 ($8.10 per share) and at the time was recorded to stock for services rendered, debt financing
note incentive. The Company reclassified this amount from professional fees to Notes Payable, current portion in the
amount of $110,000, interest paid (classified as a reduction to accrued interest) in the amount of $2,857, Interest expense, net
of $6,016 and the loss from conversion of debt to equity in the amount of $174,752. Convertible Note dated March 6, 2015 On March 6, 2015, the Company entered into an 8% convertible redeemable
note with an investor in the amount of $31,500. The gross amount of the note is $31,500, with net proceeds received of $30,000.
The $1,500 represents legal fees. This note was to mature on March 6, 2016. The investor is entitled, at its option, at any time,
to convert all or any amount of the principal face amount of the note, then outstanding into shares of the Companys common
stock at a price for each share of common stock equal to 58% of the lowest trading price of the Companys common stock as
reported on the OTCQB for the fifteen prior trading days including the day upon which a notice of conversion is delivered. The note may be prepaid according to the following schedule: Between
1 and 30 days from the date of execution, the note may be prepaid for 110% of face value plus accrued interest. Between 31 and
60 days from the date of execution, the note may be prepaid for 116% of face value plus accrued interest. Between 61 and 90 days
from the date of execution, the note may be prepaid for 122% of face value plus accrued interest. Between 91 and 120 days from
the date of execution, the note may be prepaid for 128% of face value plus accrued interest. Between 121 and 150 days from the
date of execution, the note may be prepaid for 134% of face value plus accrued interest. Between 151 and 180 days from the date
of execution, the note may be prepaid for 135% of face value plus accrued interest. After 180 days from the date of execution,
the note may not be prepaid. On October 2, 2015 the Company paid $34,000 in cash to a noteholder
on an 8% convertible note with an original face value of $31,500 dated March 6, 2015. At the time of payment, the note
had an unconverted principal balance of $17,000 and accrued unpaid interest of $779. The Company recognized a loss on
this debt conversion in the amount of $16,221. In September 2015, this noteholder converted $14,500 in principal
and $620 in interest in exchange for 28,865 shares of common stock. The Company paid this note in full October 2, 2015. The
Company realized a loss on extinguishment of debt in the amount of $16,221. The total payment to this noteholder was
$34,000. Convertible Note dated March 11, 2015 On March 11, 2015, the Company entered into an 8% convertible redeemable
note with an investor in the amount of $52,500. The gross amount of the note is $52,500, with net proceeds received of $50,000.
The $2,500 represents legal fees. This note was to mature on March 11, 2016. The investor is entitled, at its option, at any time,
to convert all or any amount of the principal face amount of the note, then outstanding into shares of the Companys common
stock at a price for each share of common stock equal to 55% of the lowest trading price of the Companys common stock as
reported on the OTCQB for the fifteen prior trading days including the day upon which a notice of conversion is delivered. In September 2015, this note holder converted $15,000 in principal
and $640 in interest in exchange for 406 shares of common stock. On October 14, 2015, the noteholder converted $10,501
in principal and $499 of accrued interest. The Company paid this note in full for cash, with remaining accrued interest
of $1,277 on October 14, 2015. The Company realized a loss on extinguishment of debt in the amount of $36,724. The
total payment to this noteholder was $65,000. Convertible Note dated March 13, 2015 On March 13, 2015, the Company entered into an 8% convertible redeemable
note with an investor in the amount of $52,500. The gross amount of the note was $52,500, with net proceeds received of $50,000.
The $2,500 represents legal fees. This note was to mature on March 13, 2016. The investor was entitled, at its option, at any time, to convert
all or any amount of the principal face amount of the note, then outstanding into shares of the Companys common stock at
a price for each share of common stock equal to 55% of the lowest trading price of the Companys common stock as reported
on the OTCQB for the fifteen prior trading days including the day upon which a notice of conversion is delivered. On September 25, 2015, the Company paid this note face value in full
with accrued interest in the amount of $2,246. The Company recognized a loss on debt extinguishment in the amount of
$36,254. This note was satisfied with $75,000 in cash and 150 common shares of stock, issued in three equal blocks of free trading
stock. These conversion shares are scheduled to be issued November 1, 2015; December 1, 2015 and January 1, 2016 and
shall not have a value of less than $5,000 each. As of June 30, 2016, the Company has recorded a liability to issue
stock in the amount of $15,000. Convertible Note dated March 31, 2015 On March 31, 2015, the Company entered into an 8% convertible redeemable
note with an investor in the amount of $105,000. The gross amount of the note is $105,000, with net proceeds received of $100,000.
The $5,000 represents legal fees. This note was to mature on March 31, 2016. The investor was entitled, at its option, at any time, to convert
all or any amount of the principal face amount of the note, then outstanding into shares of the Companys common stock at
a price for each share of common stock equal to 55% of the lowest trading price of the Companys common stock as reported
on the OTCQB for the fifteen prior trading days including the day upon which a notice of conversion is delivered. On September 30, 2015, the Company paid this note face value in full
for cash with accrued interest in the amount of $4,202. The Company recognized a loss on debt extinguishment in the
amount of $41,986. The total payment to this noteholder was $151,188. Convertible Note dated April 8, 2015 On April 8, 2015, the Company entered into a 10% convertible redeemable
note payable with an investor in the amount of $53,000. The gross amount of the note is $53,000, with net proceeds received of
$50,000. The $3,000 represents legal fees. This note was to mature on April 8, 2016. This note was funded on April 22,
2015, at which point the Company began to accrue interest. The investor is entitled, at its option, at any time, to convert
all or any amount of the principal face amount of the note, then outstanding into shares of the Companys common stock at
a price for each share of common stock equal to 60% of the lowest trading price of the Companys common stock as reported
on the OTCQB for the twenty prior trading days including the day upon which a notice of conversion is delivered. The note may be prepaid at any time during the period beginning on
the Issue Date and ending on the date which is three (3) months following the Issue Date (Prepayment Termination Date),
Borrower shall have the right, exercisable on not less than five (5) Trading Days prior written notice to the Holder of this Note,
to prepay the outstanding balance on this Note (principal and accrued interest), in full. After the Prepayment Termination Date, the Borrower shall have no
right to prepay this Note. For purposes hereof, the Prepayment Factor shall equal one hundred and fifty percent (150%),
provided that such Prepayment factor shall equal one hundred and twenty percent (120%) if the Optional Prepayment Date occurs on
or before the date which is three (3) months following the Issue Date hereof. During the month of October 2015, the Company paid
$83,638 in cash to this noteholder representing the face value of $53,000 and accrued interest of $2,740. The Company
recognized a loss on the debt conversion in the amount of $27,898. Convertible Note 1 dated May 22, 2015 On May 22, 2015, the Company entered into an 8% convertible redeemable
note payable with an investor in the amount of $137,500. The gross amount of the note is $137,500, with net proceeds received of
$118,750. The $18,750 represents legal fees of $6,250 and Original Issue Discount of $12,500. This note was to mature on May 22,
2016. The note will also bear interest at 8%, compounded annually. The maturity date of this note is one year from execution. The
note may be converted, in whole or in part, into shares of the Companys common stock. The conversion price will be 68%,
equivalent to a 32% discount, of the lowest trading price of the Companys common stock during the 15 trading days prior
to conversion. For defaults, the note is immediately due and payable and subject to a penalty interest rate of 24%. On November 8, 2015, the Company paid this note face value in full
for cash with accrued interest in the amount of $5,104. The Company recognized a loss on debt extinguishment in the
amount of $55,351. The total payment to this noteholder was $197,955. Convertible Note 2 dated May 22, 2015 On May 22, 2015, the Company entered into a 12% convertible redeemable
note payable with an investor in the amount of $82,500. The gross amount of the note is $82,500, with net proceeds received of
$75,000. The $7,500 represents an Original Issue Discount. This note was to mature on May 22, 2016. The note will also bear interest
at 12%, compounded annually. The maturity date of this note is one year from execution. The note may be converted, in whole or
in part, into shares of the Companys common stock. The conversion price will be the lower of 60%, equivalent to a 40% discount,
of the lowest trading price of the Companys common stock as of the date of conversion notice or $10.00 per share. For defaults,
the note is immediately due and payable and subject to a penalty interest rate of 18%. As consideration for the holders commitment to purchase this
debenture, borrower issued to holder 40 shares of the Companys common stock. These commitment fee shares have been earned
in full upon holders purchase of this debenture; none of the commitment fee shares will be returned in the event of prepayment
of the note. On October 14, 2015, the Company paid this note face value in full
for cash with accrued interest in the amount of $3,960. The Company recognized a loss on debt extinguishment in the
amount of $30,224. The total payment to this noteholder was $116,684. Convertible Note dated June 8, 2015 On June 8, 2015, the Company entered into a 12% convertible redeemable
note payable with an investor in the amount of $100,000. The gross amount of the note is $100,000, with net proceeds received of
$96,500. The $3,500 represents legal fees. This note matures on June 8, 2016. The note will also bear interest at 12%, compounded
annually. The maturity date of this note is one year from execution. The note may be converted, in whole or in part, into shares
of the Companys common stock. The conversion price will be the lower of closing price of the common stock on the principle
market on the training day immediately preceding the closing date or 35%, equivalent to a 65% discount, of the lowest trading price
of the Companys common stock during the 20 trading days prior to conversion and the closing sale price of the common stock
on the principal market on the trading day immediately preceding the closing date. Under terms of the convertible note agreement,
if the closing sale price at any time falls below $5.00, then such 35% figure specified above shall be reduced to 20%, equivalent
to an 80% discount. The stock closing price went below $5.00 per share in the three months ended September 30, 2015. For
defaults, the note is immediately due and payable and subject to a penalty interest rate of 24%. The note may be prepaid according to the following schedule: Between
1 and 90 days from the date of execution, the note may be prepaid for 120% of face value plus accrued interest. Between 91 and
180 days from the date of execution, the note may be prepaid for 140% of face value plus accrued interest. After 180 days from
the date of execution, the note may not be prepaid. As prescribed in the convertible note agreement, the Company was
required to maintain a sufficient number of shares, free from preemptive rights, to provide for the issuance of common stock upon
conversion. The Company was required at all times to authorize a reserve of five times the number of shares that are actually issuable
upon full conversion of this note. The Company initially instructed the transfer agent to reserve 165,000 shares of common stock
for the noteholder for issuance upon conversion. The noteholder waived the requirement of the reserve shares above
and beyond what was needed to convert through the maturity date, notwithstanding the initial reserve amount. At September
30, 2015 the number of share that were necessary and issuable upon full conversion of then outstanding principal and accrued unpaid
interest was 740,943. The shares needed to convert was based on 20% of the lowest trading price of the Companys
common stock as reported on the OTCQB for the twenty prior trading days including the day upon which a notice of conversion is
delivered ($0.70.) Under terms of the convertible note contract, if the closing sale price at any time falls below $5.00,
then such 35% figure specified above shall be reduced to 20%, equivalent to an 80% discount. The stock closing price
was below $5.00 per share at June 30, 2016. On January 4, 2016 the Company
issued 166,700 shares of common stock to holder of a convertible note dated June 8, 2015. The noteholder converted $10,002
of principal only for the shares. The applicable conversion price was $0.06. Upon this conversion, the note
had a remaining balance including default interest fees of $40,000. On March 29, 2016, the Company entered into an agreement with this
noteholder to amend this convertible note to cure the default clause of the original agreement (no notice of default was provided). The
event of default was due to the Companys inability to reserve sufficient shares required by the convertible note agreement
based on the total authorized and unissued shares, which was subsequently cured with the increase of the authorized shares to 8,000,000,000
on March 15, 2016. The holder agreed to reset the total balance due to the Adjust Current Balance of $40,000. Also,
under the agreement the price of future conversions will be set at $0.10. The Company was further required to reserve
common shares of not less than 400,000. From the date of this agreement, the note shall not be subject to interest. As of June 30, 2016, the Company has $40,000 outstanding on this
note inclusive of accrued default interest fees. On April 11, 2016 the Company
issued 200,000 shares of common stock (of the 400,000) to the noteholder. The noteholder converted $2,030 of principal
only for the shares. The applicable conversion price was $0.01015. Upon this conversion, the note had a balance of $37,970.
Upon the issuance of the remaining 200,000 shares, any applicable los |
