0001554795-18-000097.txt : 20180417 0001554795-18-000097.hdr.sgml : 20180417 20180417170758 ACCESSION NUMBER: 0001554795-18-000097 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 75 CONFORMED PERIOD OF REPORT: 20171231 FILED AS OF DATE: 20180417 DATE AS OF CHANGE: 20180417 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AGRITEK HOLDINGS, INC. CENTRAL INDEX KEY: 0001040850 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-NONSTORE RETAILERS [5960] IRS NUMBER: 208484256 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15673 FILM NUMBER: 18759627 BUSINESS ADDRESS: STREET 1: 777 BRICKELL AVE STREET 2: SUITE 500 CITY: MIAMI STATE: FL ZIP: 33131 BUSINESS PHONE: (310) 205-2560 MAIL ADDRESS: STREET 1: 777 BRICKELL AVE STREET 2: SUITE 500 CITY: MIAMI STATE: FL ZIP: 33131 FORMER COMPANY: FORMER CONFORMED NAME: MEDISWIPE INC. DATE OF NAME CHANGE: 20110621 FORMER COMPANY: FORMER CONFORMED NAME: CANNABIS MEDICAL SOLUTIONS, INC. DATE OF NAME CHANGE: 20100305 FORMER COMPANY: FORMER CONFORMED NAME: COMMERCE ONLINE, INC. DATE OF NAME CHANGE: 20090720 10-K 1 agtk0416form10k.htm FORM 10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2017

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 000-1321002

AGRITEK HOLDINGS, INC.

(Exact name of registrant as specified in its charter)


Delaware		20-1321002
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

777 Brickell Ave. Suite 500
Miami, FL		33131
(Address of principal executive offices)		(Zip Code)

(305) 721-2727

(Registrant’s telephone number, including area code)

Securities registered under Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.0001 par value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☑

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☑

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or has for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☑ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes☑ No ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☑

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐

Non-accelerated filer☐ (Do not check if a smaller reporting company)	Smaller reporting company ☑

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter. $5,664,173 on June 30, 2017.

The number of shares outstanding of the registrant’s $0.0001 par value Common Stock as of April 13, 2018, was 779,245,512.

Table of Contents

	PART I	Page

Item 1	Business	4
Item 1A	Risk Factors	11
Item 1B	Unresolved Staff Comments	19
Item 2	Properties	19
Item 3	Legal Proceedings	19
Item 4	Mine Safety Disclosures	20

	PART II

Item 5	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	20
Item 6	Selected Financial Data	23
Item 7	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 7A	Quantitative and Qualitative Disclosures About Market Risk	28
Item 8	Financial Statements and Supplementary Data	29
Item 9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	29
Item 9A	Controls and Procedures	29
Item 9B	Other Information	30

	PART III

Item 10	Directors, Executive Officers and Corporate Governance	31
Item 11	Executive Compensation	33
Item 12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	34
Item 13	Certain Relationships and Related Transactions, and Director Independence	34
Item 14	Principal Accountant Fees and Services	35

	PART IV

Item 15	Exhibits and Financial Statement Schedules	36
	Signatures	39

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements. The Securities and Exchange Commission (the “SEC”) encourages companies to disclose forward-looking information so that investors can better understand a company’s future prospects and make informed investment decisions. This report and other written and oral statements that we make from time to time contain such forward-looking statements that set out anticipated results based on management’s plans and assumptions regarding future events or performance. We have tried, wherever possible, to identify such statements by using words such as “project”, “believe”, “anticipate”, “plan”, “expect”, “estimate”, “intend”, “should”, “would”, “could”, or “may”, or other such words, verbs in the future tense and words and phrases that convey similar meaning and uncertainty of future events or outcomes to identify these forward–looking statements. There are a number of important factors beyond our control that could cause actual results to differ materially from the results anticipated by these forward–looking statements. While we make these forward–looking statements based on various factors and using numerous assumptions, you have no assurance the factors and assumptions will prove to be materially accurate when the events they anticipate actually occur in the future. Factors that could cause our actual results of operations and financial condition to differ materially are discussed in greater detail under Item 1A, “Risk Factors” of this annual report on Form 10-K.

The forward–looking statements are based upon our beliefs and assumptions using information available at the time we make these statements. We caution you not to place undue reliance on our forward–looking statements as (i) these statements are neither predictions nor guaranties of future events or circumstances, and (ii) the assumptions, beliefs, expectations, forecasts and projections about future events may differ materially from actual results. We undertake no obligation to publicly update any forward–looking statement to reflect developments occurring after the date of this report.

PART I

ITEM 1. DESCRIPTION OF BUSINESS.

General Business Development

Corporate History

Agritek Holdings, Inc. (referred to hereafter as “AGTK,” or, the “Company”), was initially incorporated under the laws of the State of Delaware in 1997 under the name Easy Street Online, Inc.

In 1997, the Company changed its name to Frontline Communications Corp. (“Frontline”) and operated as a regional Internet service provider (“ISP”) providing Internet access, web hosting, website design, and related services to residential and small business customers throughout the Northeast United States and, through a network partnership agreement, Internet access to customers nationwide.

On April 3, 2003, the Company acquired Proyecciones y Ventas Organizadas, S.A. de C.V. (“Provo Mexico”) and in December 2003 the Company changed the name to Provo International Inc. (“Provo”).

In 2008, Provo changed its name to Ebenefits Direct, Inc., which, through its wholly-owned subsidiary, L.A. Marketing Plans, LLC, engaged in the business of direct response marketing. The Company’s principal business was to market and sell non-insurance healthcare programs designed to complement medical insurance products and to provide savings for those who cannot afford or qualify for traditional health insurance products.

On October 14, 2008, Ebenefits Direct, Inc. changed its name to Seraph Security, Inc. (“Seraph”).

On April 25, 2009, Seraph acquired Commerce Online Technologies, Inc., a credit and debit card processing company.

On May 20, 2009, Seraph Security, Inc. changed its name to Commerce Online, Inc. to more accurately reflect its core business of merchant processing, and financial services.

As of February 18, 2010, Commerce Online, Inc. changed its name to Cannabis Medical Solutions, Inc. (“CMSI”) as a provider of merchant processing payment technologies for the medical marijuana and wellness sector.

On March 8, 2010, the Company completed the acquisition of 800 Commerce, Inc. (“800 Commerce”) a Florida Corporation incorporated by the Company’s Chief Executive Officer. The company issued 1,000,000 shares of common stock to 800 Commerce for all the issued and outstanding stock of 800 Commerce, Inc.

In June 2010, 31,288,702 shares of common stock were issued as dividend shares (the “dividend”) to all existing shareholders of common stock of record.

On June 14, 2011, Cannabis Medical Solutions, Inc. changed its merchant name to MediSwipe Inc. (“MWIP”) as a result of its focus on the processing and financial services related to medical marijuana business.

On June 26, 2013, the Company formed American Hemp Trading Company, a wholly owned subsidiary.

On June 26, 2013, the Company formed Agritech Innovations, Inc. (“AGTI”), a wholly owned subsidiary. On September 3, 2013, AGTI changed its name to Agritech Venture Holdings, Inc. (“AVH”).

On November 12, 2013, the Board of Directors of the Company approved a 1-for-10 reverse stock split (the “Reverse Stock Split”) and a decrease in the authorized common stock of the Company to 250,000,000. Pursuant to the Reverse Stock Split, each 10 shares of the Company’s common stock automatically converted into one share of Company common stock.

On November 12, 2013, the Financial Industry Regulatory Authority (“FINRA”) approved the Reverse Stock Split with an effective date of December 11, 2013. All the share amounts in this annual report on Form 10-K reflect the Reverse Stock Split.

On April 23, 2014, MWIP changed its name to Agritek Holdings, Inc. (“AGTK”) to more properly reflect the Company’s current business model.

On May 27, 2014, AVH changed its names to Agritek Venture Holdings, Inc. (“AVHI”).

On August 27, 2014, American Hemp Trading Company changed its name to Prohibition Products, Inc. (“PPI”)

Unless otherwise noted, references in this Form 10-K to “Seraph,” “Commerce Online, Inc.,” “Cannabis Medical Solutions,” “Mediswipe,” the “Company,” “we,” “our” or “us” means Agritek Holdings, Inc.

Description of Business

Agritek Holdings Inc. (“the Company” or “Agritek Holdings”) is a fully integrated, active investor and operator in the legal cannabis sector. Specifically, Agritek Holdings provides strategic capital and functional expertise to accelerate the commercialization of its diversified portfolio of holdings. Currently, the Company is focused on three high-value segments of the cannabis market, including real estate investment, intellectual property brands; and infrastructure, with operations in three U.S. States, Colorado, Washington State, California as well as Canada and Puerto Rico. Agritek Holdings invests its capital via real estate holdings, licensing agreements, royalties and equity in acquisition operations.

Agritek Holdings Inc. has organized its interests across three business units – Agritek Venture Holdings; The American Hemp Trading Company; and MediSwipe, Inc. Agritek Venture Holdings includes the Company’s real estate portfolio, controlled equity holdings, minority equity holdings and royalty interests. Subsidiary operations also includes a portfolio of wholly owned and licensed brands that cover high growth segments of the cannabis sector including vaping, pre-rolls, edibles, topicals, medical devices, concentrates and animal health. MediSwipe, Inc. offers a suite of services including corporate finance, marketing & branding, operational support, financial management, and compliance & regulatory. These services are offered by a strong in-house team complemented by independent advisors with the objective of assisting clients and partners in accelerating the commercialization of their product(s) or services, and ultimately in leveraging their unique selling proposition to create a leadership position in their chosen niche within the global cannabis industry.

Agritek Holdings Inc. intends to build on its existing relationships by developing operating plans and providing oversight, strategy and management of the business units’ growth and integration. Further, Agritek Holdings plans to continue expanding its reach by building new partnerships with vertical market partners and end- user products companies as well as exploring opportunities with successful cultivators and processors. Through its expansion efforts, Agritek Holdings intends to utilize online sales and marketing platforms, participate in relevant trade shows and develop various advertising materials to communicate its multiple licensed brands including “California Premiums”, “Hemp Pops” and additional CBD products.

Agritek Holdings is also well-positioned to participate in the large and growing legal cannabis market for enhanced downstream cannabis products and new products with various consumer and medical applications.

Agritek Holdings focuses on the growth of its business units and expanding their reach to end-users and partners. Although the business units are primarily responsible for developing and operating their respective businesses, Agritek Holdings is available to provide functional expertise, financing, oversight and a framework of disciplined planning to the operations of the business units when needed.

Agritek Holdings’ short-term objective is to create a sustainable business in the key states of California, Colorado, Washington and Oregon as well as in Canada and Puerto Rico by integrating its holdings to create synergies and true end-to-end solutions geared to the needs of patients and consumers. Agritek Holdings has positioned itself for commercial growth by focusing its expanded resource base on finding and partnering with the best and most innovative companies, projects, assets and overall business frameworks in the legal cannabis sector in the aforementioned jurisdictions.

To achieve its objectives, the Company will continue making specific and deliberate investments, including acquisitions, to:

Increase the diversity and quality of the Company’s product offerings across different market segments; and

Increase the strength and segmentation of the Company’s diversified portfolio of real estate holdings and product brands.

In addition, management believes that significant opportunities exist today and will develop further in the future, to leverage the Company’s expertise, financial strength and business model in legal cannabis markets around the world. Agritek Holdings intends on pursuing opportunities in a number of jurisdictions where cannabis use is legal, and/or where governments are actively pursuing legalization.

Subject to legislative and regulatory compliance, strategic business opportunities pursued by the Company could include:

Providing advisory services to third-parties that are interested in establishing licensed cannabis cultivation, processing and sales operations;

Entering into strategic relationships that create value by sharing expertise and industry knowledge;

Providing capital in the form of debt, royalties, or equity to new business units; and

Entering into licensing agreements to generate revenue, create strategic partnerships, or other business opportunities.

Agritek Holdings and its wholly-owned subsidiaries, MediSwipe, Inc., Prohibition Products Inc., and Agritek Venture Holdings, Inc. provide turnkey support solutions to the legal cannabis industry. We provide key business services to the legal cannabis sector including:

•	Funding and Financing Solutions for Agricultural Land and Properties zoned for the regulated Cannabis Industry.
•	Dispensary and Retail Solutions
•	Commercial Production and Equipment Build Out Solutions
•	Banking and Payment Processing Solutions
•	Multichannel Supply Chain Solutions
•	Branding, Marketing and Sales Solutions of proprietary product lines
•	Consumer Product Solutions

The Company intends to bring its’ array of services to each new state that legalizes the use of cannabis according to appropriate state and federal laws. Our primary objective is acquiring commercial properties to be utilized in the commercial marijuana industry as cultivation facilities in compliance with state law. This is an essential aspect of our overall growth strategy because once acquired and re-zoned, the value of such real property is substantially higher than under the previous zoning and use.

Once properties are identified and acquired to be used for purposes related to the commercial marijuana industry as provided for by state law, and we plan to create vertical channels within that legal jurisdiction including equipment financing, payment processing and marketing of exclusive brands and services to retail dispensaries

Services and Markets

To date, we have purchased eighty (80) acres approved for licenses and cultivation in Pueblo, Colorado. We have multiple manufacturing and service contracts in place in areas in the following sectors:

Funding and Financing Solutions

Our goal is to become the funding and financing service partner of choice in the legal Colorado and California cannabis market before expanding nationwide if and when applicable state and federal laws allow us to do so. We offer financing and financial aid to cultivators, collectives, dispensaries and product businesses in the legal cannabis industry with alternative funding and financing solutions. In the evolving legal cannabis industry, where traditional banking opportunities are grossly limited, we step in to provide the “traditional” bank lending services; lines of credit, property financing, and/or commercial loans. Businesses and individuals seeking funding and financing solutions are qualified and scored based on their experience, current operations, financial records, and compliance grades given by our proprietary banking partners and credit lines that comply with all state governance rules.

Commercial Build Out and Dispensary Solutions

We offer turnkey build-out and commercial services to our clients. Whether it is financial assistance, real estate consulting, operations design, or building construction, our Company can design and rollout customized services for our clients. We also offer traditional business services to dispensaries as well. These services include infrastructure investment, technology partners, donation accounting, payment processing and succession strategies. It is important to note that we are not a “one size fits all” organization, but are committed to custom tailored solutions for legal cannabis industry participants.

Finance and Real Estate

Real Estate Leasing

Our real estate leasing business primarily includes the acquisition and leasing of cultivation space and related facilities to licensed marijuana growers and dispensary owners for their operations. Management anticipates that these facilities will range in size from 5,000 to 50,000 square feet. These facilities will only be leased to tenants that possess the requisite state licenses to operate cultivation facilities. The leases with the tenants will provide certain requirements that permit us to continually evaluate our tenants’ compliance with applicable laws and regulations.

As of the date of this report, we own one cultivation property that is located in a suburb of Pueblo, Colorado (the “Pueblo West Property”). The property consists of approximately eighty (80) acres of land. The property is currently zoned for cultivating cannabis and is expected to be leased to a medical cannabis cultivator or manufacturer this year. We are currently evaluating strategic options for this property.

Shared Office Space, Networking and Event Services

We plan to continue to acquire commercial real estate and lease office space to participants in the cannabis industry. These participants include media, internet, packaging, lighting, cultivation supplies, and financial services. In exchange for certain services that may be provided to these tenants, we expect to receive rental income. In certain cases, we may acquire equity interests or provide debt capital to these businesses and eventually acquire a specific business as a wholly owned subsidiary of Agritek.

Industry Finance and Equipment Leasing Services

We plan to lease cultivation equipment and facilities to customers in the cannabis industry. We expect we will enter into sale lease-back transactions of land zoned for cultivation, green houses, grow lights, tenant improvements and other grow equipment. Since Colorado State law does not allow entities operating under a cannabis license to pledge the assets or the license of the cannabis operation for any type of general borrowing activity, we intend to provide loans to individuals and businesses in the cannabis industry on an unsecured basis. Equipment will only be leased to tenants that possess the requisite state licenses to operate such facilities. The leases with the tenants will provide certain requirements that permit us to continually evaluate its tenants’ compliance with applicable laws and regulations.

Our finance strategy will include making direct term loans and providing revolving lines of credit to businesses involved in the cultivation and sale of cannabis and related products. These loans will generally be secured to the maximum extent permitted by law. We believe there is a significant demand for this financing. We are pursuing other finance services including customized finance, capital formation, and banking, for participants in the cannabis industry.

Competitive Strengths

We believe we possess certain competitive strengths and advantages in the industries which we operate:

Range of Services: We are able to leverage our breadth of services and resources to deliver a comprehensive, integrated solution to companies in the cannabis industry – from operational and compliance consulting to security and marketing to financing needs.

Strategic Alliances. We are dedicated to rapid growth through acquisitions, partnerships and agreements that will enable us to enter and expand into new markets. Our strategy in pursuing these alliances are based on the target’s ability to generate positive cash flow, effectively meet customer needs, and supply desirable products, services or technologies, among other considerations. We anticipate that strategic alliances will play a significant role as more states pass legislation permitting the cultivation and sale of hemp and cannabis.

Industry’s Access to Capital. In February 2014, the Treasury Department issued guidelines for financial institutions dealing with cannabis-related businesses, (see “FinCEN” under “Federal Regulations and Our Business” of this document). In March 2015, legislation was introduced in the U.S. Senate proposing to change federal law such that states could regulate medical use of cannabis without risk of federal prosecution. A key component of the proposed Compassionate Access, Research Expansion, and Respect States Act (the “CARERS Act”) is to reclassify cannabis under the Controlled Substances Act to Schedule II, thereby changing the plant from a federally-criminalized substance to one that has recognized medical uses. Many banks and traditional financial institutions refuse to provide financial services to cannabis-related business. We plan to provide finance and leasing solutions to market participants using the FinCEN guidelines as a primary guide for compliance with federal law.

Regulatory Compliance. The state laws regulating the cannabis industry are changing at a rapid pace. Currently, there are twenty-six U.S. states and the District of Columbia that have created a legislative body to manage the medical cannabis industry. There are also five states that have allowed recreational use. In Colorado and Washington states, cannabis is heavily regulated. It is a critical component of our business plan both to ensure that all aspects of our operations are in compliance with all laws, policies, guidance and regulations to which we are subject and to provide an opportunity to our customers and allies to use our services to ensure that they, too, are in full compliance.

Industry Breadth. We continue to create, share and leverage information and experiences with the purpose of creating awareness and identifying opportunities to increase shareholder value. Our management team has extensive knowledge of the cannabis industry and closely monitors changes in legislation. We work with partners who enhance our industry breadth.

Intellectual Property

On November 17, 2016, we filed with the United States Patent and Trademark Office (“USPTO”) a federal trademark registration for “Hemp Pops” in the category of Staple Food Products.

Competition

Currently, there are a number of other companies that provide similar products and/or services, such as direct finance, leasing of real estate, including shared workspace, warehouse sales, and consulting services to the cannabis industry. In the future we fully expect that other companies will recognize the value of ancillary businesses serving the cannabis industry and enter into the marketplace as competitors.

The cannabis industry in the United States is highly fragmented, rapidly expanding and evolving. The industry is characterized by new and potentially disruptive or conflicting legislation propounded on a state-by-state basis. Our competitors may be local or international enterprises and may have financial, technical, sales, marketing and other resources greater than ours. These companies may also compete with us in recruiting and retaining qualified personnel and consultants.

Our competitive position will depend on our ability to attract and retain qualified underwriters, investment banking partners and loan managers, consultants and advisors with industry depth, and talented managerial, operational and other personnel. Our competitive position will also depend on our ability to develop and acquire effective proprietary products and solutions, personal relationships of our executive officers and directors, and our ability to secure adequate capital resources. We compete to attract and retain customers of our services. We expect to compete in this area on the basis of price, regulatory compliance, vendor relationships, usefulness, availability, and ease of use of our services.

Government Regulation

As of January 31, 2018, there are 30 states plus the District of Columbia that have laws and/or regulation that recognize in one form or another legitimate medical uses for cannabis and consumer use of cannabis in connection with medical treatment. Many other states are considering similar legislation. Conversely, the federal government regulates drugs through the Controlled Substances Act (“CSA”), which does not recognize the difference between medical and recreational use of cannabis. Under federal law, cannabis is treated like every other controlled substance, such as cocaine and heroin. The federal government places every controlled substance in a schedule, in principle according to its relative potential for abuse and medicinal value. Under the CSA, cannabis is classified as a Schedule I drug, which means that the federal government views medical cannabis as highly addictive and having no medical value. Pursuant to the CSA, it is unlawful for any person (1) to sell or offer for sale drug paraphernalia; (2) to use the mails or any other facility of interstate commerce to transport drug paraphernalia; or (3) to import or export drug paraphernalia.

The extent to which the regulation of drug paraphernalia under the CSA is applicable to our business and the sale of our product is found in the definition of drug paraphernalia. Drug paraphernalia means any equipment, product, or material of any kind which is primarily intended or designed for use in manufacturing, compounding, converting, concealing, producing processing, preparing, injecting ingesting, inhaling or otherwise introducing into the human body a controlled substance, possession of which is unlawful. Our products are primarily designed for general agricultural use.

The United States Congress previously used the rider provision in the fiscal years 2015, 2016, and 2017 known as the Consolidated Appropriations Acts (formerly the Rohrabacher-Farr Amendment) to thwart the federal government from using congressionally appropriated funds to prevent states from implementing their own laws that authorize the use, distribution, possession, or cultivation of medical marijuana. The “Consolidated Appropriations Act, 2018” now known as the “Leahy Amendment,” is a $1.3 trillion-dollar spending bill, which will now allow continued protections for the implementation of state medical marijuana programs through fiscal year end, September 30, 2018.

The 2018 appropriations protection, continues this provision to 46 states, the District of Columbia, Guam, and Puerto Rico, with the exclusion of Idaho, Kansas, Nebraska, and South Dakota. The 2018 spending bill also continues existing provisions shielding state industrial hemp research programs from federal interference.

FinCEN

The Financial Crimes Enforcement Network (“FinCEN”) provided guidance on February 14, 2014 about how financial institutions can provide services to cannabis-related businesses consistent with their Bank Secrecy Act (“BSA”) obligations. For purposes of the FinCEN guidelines, a “financial institution” includes any person doing business in one or more of the following capacities:

•

Bank (except bank credit card systems);

•

Broker or dealer in securities;

•

Money services business;

•

Telegraph company;

•

Casino;

•

Card club; and

•

A person subject to supervision by any state or federal bank supervisory authority.

In general, the decision to open, close, or refuse any particular account or relationship should be made by each financial institution based on a number of factors specific to that institution. These factors may include its particular business objectives, an evaluation of the risks associated with offering a particular product or service, and its capacity to manage those risks effectively. Thorough customer due diligence is a critical aspect of making this assessment.

In assessing the risk of providing services to a cannabis-related business, a financial institution should conduct customer due diligence that includes: (i) verifying with the appropriate state authorities whether the business is duly licensed and registered; (ii) reviewing the license application (and related documentation) submitted by the business for obtaining a state license to operate its cannabis-related business; (iii) requesting from state licensing and enforcement authorities available information about the business and related parties; (iv) developing an understanding of the normal and expected activity for the business, including the types of products to be sold and the type of customers to be served (e.g., medical versus recreational customers); (v) ongoing monitoring of publicly available sources for adverse information about the business and related parties; (vi) ongoing monitoring for suspicious activity, including for any of the red flags described in this guidance; and (vii) refreshing information obtained as part of customer due diligence on a periodic basis and commensurate with the risk. With respect to information regarding state licensure obtained in connection with such customer due diligence, a financial institution may reasonably rely on the accuracy of information provided by state licensing authorities, where states make such information available.

As part of its customer due diligence, a financial institution should consider whether a cannabis-related business violates state law. This is a particularly important factor for a financial institution to consider when assessing the risk of providing financial services to a cannabis-related business. Considering this factor also enables the financial institution to provide information in BSA reports pertinent to law enforcement’s priorities. A financial institution that decides to provide financial services to a cannabis-related business would be required to file suspicious activity reports.

While we believe we do not qualify as a financial institution in the United States, we cannot be certain that we do not fall under the scope of the FinCEN guidelines. We plan to use the FinCEN Guidelines, as may be amended, as a basis for assessing our relationships with potential tenants, clients and customers. As such, as we engage in financing activities, we intend to adhere to the guidance of FinCEN in conducting and monitoring our financial transactions. Because this area of the law is uncertain but expected to evolve rapidly, we believe that FinCEN’s guidelines will help us best operate in a prudent, reasonable and acceptable manner. There is no assurance, however, that our activities will not violate some aspect of the CSA. If we are found to violate the federal statute or any other in connection with our activities, our company could face serious criminal and civil sanctions.

We intend to conduct rigorous due diligence to verify the legality of all activities that we engage in. We realize that there is a discrepancy between the laws in some states, which permit the distribution and sale of medical and recreational cannabis, from federal law that prohibits any such activities. The CSA makes it illegal under federal law to manufacture, distribute, or dispense cannabis. Many states impose and enforce similar prohibitions. Notwithstanding the federal ban, as of the date of this filing, twenty-six states and the District of Columbia have legalized certain cannabis-related activity.

Moreover, since the use of cannabis is illegal under federal law, we may have difficulty acquiring or maintaining bank accounts and insurance and our stockholders may find it difficult to deposit their stock with brokerage firms.

Employees

Other than the Company’s sole officer and director, we do not have any full-time employees. The Company relies on several independent contractors and other agreements it has with other companies to provide the services needed. Each contractor has been carefully selected to address immediate needs in particular functional areas, but also with consideration of the Company’s future needs during a period of expected rapid growth and expansion. Value is placed not only on outstanding credentials in specific areas of functional expertise, but also on cross-functionality, a strong knowledge of content acquisition and distribution, along with hands-on experience in scaling operations from initial beta and development stage through successful commercial deployment.

Corporate Contact Information

Our principal executive offices are located at 777 Brickell Avenue Suite 500, Miami, Florida 33131; Telephone No.: (305) 721-2727. Our website is located at http://www.AgritekHoldings.com. The content on our website is available for informational purposes only. It should not be relied upon for investment purposes, nor is it incorporated by reference into this Form 10-K.

Available Information

The public may read and copy any materials we file with the SEC, including our annual reports, quarterly reports, current reports, proxy statements, information statements and other information, at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549, on official business days during the hours of 10 a.m. to 3 p.m. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at http://www.sec.gov .

ITEM 1A – RISK FACTORS

You should carefully consider the risks described below, as well as other information provided to you in this document, including information in the section of this document entitled “Forward-Looking Statements.” The risks and uncertainties described below are not the only ones facing the Company. If any of the following risks actually occur, the Company’s business, financial condition or results of operations could be materially adversely affected.

Investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. Our business, financial condition and/or results of operation may be materially adversely affected by the nature and impact of these risks. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Risk Related to Our Company

Our independent auditors have expressed substantial doubt about our ability to continue as a going concern.

We incurred a net loss of $9,153,310 and $2,977,889 for the years ending December 31, 2017 and 2016, respectively. Because of our continued operating losses, negative cash flows from operations and working capital deficit, in their report on our financial statements for the year ended December 31, 2017, our independent auditors included an explanatory paragraph regarding their substantial doubt about our ability to continue as a going concern. We will continue to experience net operating losses in the foreseeable future. Our ability to continue as a going concern is subject to our ability to generate a profit and/or obtain necessary funding from outside sources, including obtaining additional funding from the sale of our securities, increasing sales or obtaining loan from various financial institutions where possible. Our continued net operating losses increase the difficulty in meeting such goals and there can be no assurances that such methods will prove successful.

Federal regulation and enforcement may adversely affect the implementation of medical marijuana laws and regulations may negatively impact our revenues and profits.

Currently, there are 30 states plus the District of Columbia that have laws and/or regulation that recognize in one form or another legitimate medical uses for cannabis and consumer use of cannabis in connection with medical treatment. Many other states are considering similar legislation. Conversely, under the Controlled Substances Act (the “CSA”), the policy and regulations of the Federal government and its agencies is that cannabis has no medical benefit and a range of activities including cultivation and use of cannabis for personal use is prohibited. Until Congress amends the CSA with respect to medical marijuana, there is a risk that federal authorities may enforce current federal law, and we may be deemed to be facilitating the selling or distribution of drug paraphernalia in violation of federal law. Active enforcement of the current federal regulatory position on cannabis may thus indirectly and adversely affect revenues and profits of the Company. The risk of strict enforcement of the CSA in light of congressional activity, judicial holdings and stated federal policy remains uncertain.

Federal authorities have not focused their resources on such tangential or secondary violations of the Act, nor have they threatened to do so, with respect to the leasing of real property or the sale of equipment that might be used by medical cannabis gardeners, or with respect to any supplies marketed to participants in the emerging medical cannabis industry. We are unaware of such a broad application of the CSA by federal authorities, and we believe that such an attempted application would be unprecedented.

The Company may provide services to and potentially handle monies for businesses in the legal cannabis industry.

Selling or distributing medical or retail cannabis is deemed to be illegal under the Federal Controlled Substances Act even though such activities may be permissible under state law. A risk exists that our lending and services could be deemed to be facilitating the selling or distribution of cannabis in violation of the federal Controlled Substances Act, or to constitute aiding or abetting, or being an accessory to, a violation of that Act. Such a finding, claim, or accusation would likely severely limit the Company’s ability to continue with its operations and may result in our investors losing all of their investment in our Company.

The legal cannabis industry faces an uncertain legal environment on state, federal, and local levels.

Although we continually monitor the most recent legal developments affecting the legal cannabis industry, the legal environment in California and elsewhere could shift in a manner not currently contemplated by the Company. For example, while we think there will always be a place for compliance-related services, broader state and federal legalization could render the compliance landscape significantly less technical, which would render our suite of compliance services less valuable and marketable. Lending money to legal cannabis participants could also be subject to legal challenge if the federal government or another jurisdiction decides to more actively enforce applicable laws. These unknown legal developments could directly and indirectly harm our business and results of operations.

Profit sharing, distributions, and equity ownership in California medical marijuana dispensaries and growing operations are not permissible.

The Company does not currently maintain an ownership interest in legal cannabis dispensaries or growing operations in California or elsewhere. We believe such ownership is not permitted by applicable law. Investors should be aware that the Company will not engage in such activity until such time as it is legally permissible. If the applicable laws make it so that the Company is unable to own interests in legal cannabis dispensaries in growing operations ever, the Company may not be able to attain its financial projections, and thus, this would directly and indirectly harm our business and results of operations.

We depend on third party providers for a reliable Internet infrastructure and the failure of these third parties, or the Internet in general, for any reason would significantly impair our ability to conduct our business.

We outsource all of our data center facility management to third parties who host the actual servers and provide power and security in multiple data centers in each geographic location. These third party facilities require uninterrupted access to the Internet. If the operation of our servers is interrupted for any reason, including natural disaster, financial insolvency of a third party provider, or malicious electronic intrusion into the data center, our business would be significantly damaged. If either a third party facility failed, or our ability to access the Internet was interfered with because of the failure of Internet equipment in general or we become subject to malicious attacks of computer intruders, our business and operating results will be materially adversely affected.

The gathering, transmission, storage and sharing or use of personal information could give rise to liabilities or additional costs of operation as a result of governmental regulation, legal requirements, civil actions or differing views of personal privacy rights.

We transmit and plan to store a large volume of personal information in the course of providing our services. Federal and state laws and regulations govern the collection, use, retention, sharing and security of data that we receive from our customers and their users. Any failure, or perceived failure, by us to comply with U.S. federal or state privacy or consumer protection-related laws, regulations or industry self-regulatory principles could result in proceedings or actions against us by governmental entities or others, which could potentially have an adverse effect on our business, operating results and financial condition. Additionally, we may also be contractually liable to indemnify and hold harmless our customers from the costs or consequences of inadvertent or unauthorized disclosure of their customers’ personal data which we store or handle as part of providing our services.

The interpretation and application of privacy, data protection and data retention laws and regulations are currently unsettled particularly with regard to location-based services, use of customer data to target advertisements and communication with consumers via mobile devices. Such laws may be interpreted and applied inconsistently from country to country and inconsistently with our current data protection policies and practices. Complying with these varying international requirements could cause us to incur substantial costs or require us to change our business practices in a manner adverse to our business, operating results or financial condition.

As privacy and data protection have become more sensitive issues, we may also become exposed to potential liabilities as a result of differing views on the privacy of personal information. These and other privacy concerns, including security breaches, could adversely impact our business, operating results and financial condition.

In the U.S., we have voluntarily agreed to comply with wireless carrier technological and other requirements for access to their customers’ mobile devices, and also trade association guidelines and codes of conduct addressing the provision of location-based services, delivery of promotional content to mobile devices and tracking of users or devices for the purpose of delivering targeted advertising. We could be adversely affected by changes to these requirements, guidelines and codes, including in ways that are inconsistent with our practices or in conflict with the rules or guidelines in other jurisdictions.

We have identified material weaknesses in our internal control over financial reporting which could, if not remediated, result in material misstatements in our financial statements.

Our management is responsible for establishing and maintaining adequate internal control over our financial reporting, as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). A material weakness is defined as a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. During the fourth quarter of fiscal year 2017, management identified material weaknesses in our internal control over financial reporting as discussed in Item 9A of this Annual Report on Form 10-K. As a result of these material weaknesses, our management concluded that our internal control over financial reporting was not effective based on criteria set forth by the Committee of Sponsoring Organization of the Treadway Commission in Internal Control-An Integrated Framework. We are planning to engage in developing a remediation plan designed to address these material weaknesses. If our remedial measures are insufficient to address the material weaknesses, or if additional material weaknesses or significant deficiencies in our internal control are discovered or occur in the future, our consolidated financial statements may contain material misstatements and we could be required to restate our financial results, which could lead to substantial additional costs for accounting and legal fees and shareholder litigation.

We may require additional capital in the future, which may not be available or may only be available on unfavorable terms.

We monitor our capital adequacy on an ongoing basis. To the extent that our funds are insufficient to fund future operating requirements, we may need to raise additional funds through corporate finance transactions or curtail our growth and reduce our liabilities. Any equity, hybrid or debt financing, if available at all, may be on terms that are not favorable to us. If we cannot obtain adequate capital on favorable terms or at all, our business, financial condition and operating results could be adversely affected.

Risks Relating to Ownership of Our Common Stock

Although there is presently a market for our common stock, the price of our common stock may be extremely volatile and investors may not be able to sell their shares at or above their purchase price, or at all. We anticipate that the market may be potentially highly volatile and may fluctuate substantially because of:

•

Actual or anticipated fluctuations in our future business and operating results;

•

Changes in or failure to meet market expectations;

•

Fluctuations in stock market price and volume

Our Chief Executive Officer, B. Michael Friedman, holds Series B Preferred Stock which will provide him continuing voting control over the Company and, as a result, he will exercise significant control over corporate decisions.

B. Michael Friedman, our President, Chief Executive Office and sole Director owns 100% of Class B Preferred Stock (the “Series B Preferred Stock”). Pursuant to the Certificate of Designation, the Series B Preferred Stock has the right to vote in aggregate, on all shareholder matters equal to 51% of the total vote, no matter how many shares of common stock or other voting stock of the Company are issued or outstanding in the future. The Series B Preferred Stock has a right to vote on all matters presented or submitted to the Company’s stockholders for approval in pari passu with the common stockholders, and not as a separate class. The holders of Series B Preferred Stock have the right to cast votes for each share of Series B Preferred Stock held of record on all matters submitted to a vote of common stockholders, including the election of directors. There is no right to cumulative voting in the election of directors. The holders of Series B Preferred Stock vote together with all other classes and series of common stock of the Company as a single class on all actions to be taken by the common stockholders except to the extent that voting as a separate class or series is required by law.

As a result of the above, Mr. Friedman exercises control in determining the outcome of corporate transactions or other matters, including the election of directors, mergers, consolidations, the sale of all or substantially all of our assets, and also the power to prevent or cause a change in control. Any investors who purchase shares will be minority shareholders and as such will have no say in the direction of the Company and the election of Directors. Investors in the Company should keep in mind that even if you own shares of the Company's common stock and wish to vote them at annual or special shareholder meetings, your shares will have no effect on the outcome of corporate decisions or the election of Directors. Furthermore, investors should be aware that Mr. Friedman may choose to elect new Directors to the Board of Directors of the Company and/or take the Company in a new business direction altogether, and, as a result, current shareholders of the Company will have little to no say in such matters.

As a public company, we will incur substantial expenses.

The U.S. securities laws require, among other things, review, audit, and public reporting of our financial results, business activities, and other matters. Recent SEC regulation, including regulation enacted as a result of the Sarbanes-Oxley Act of 2002, has also substantially increased the accounting, legal, and other costs related to becoming and remaining an SEC reporting company. If we do not have current information about our Company available to market makers, they will not be able to trade our stock. The public company costs of preparing and filing annual and quarterly reports, and other information with the SEC and furnishing audited reports to stockholders, will cause our expenses to be higher than they would be if we were privately-held. These increased costs may be material and may include the hiring of additional employees and/or the retention of additional advisors and professionals. Our failure to comply with the federal securities laws could result in private or governmental legal action against us and/or our officers and directors, which could have a detrimental effect on our business and finances, the value of our stock, and the ability of stockholders to resell their stock.

FINRA sales practice requirements may limit a stockholder’s ability to buy and sell our stock.

“FINRA” has adopted rules that relate to the application of the SEC’s penny stock rules in trading our securities and require that a broker/dealer have reasonable grounds for believing that the investment is suitable for that customer, prior to recommending the investment. Prior to recommending speculative, low priced securities to their non-institutional customers, broker/dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative, low priced securities will not be suitable for at least some customers. The FINRA requirements make it more difficult for broker/dealers to recommend that their customers buy our common stock, which may have the effect of reducing the level of trading activity and liquidity of our common stock. Further, many brokers charge higher transactional fees for penny stock transactions. As a result, fewer broker/dealers may be willing to make a market in our common stock, reducing a shareholder’s ability to resell shares of our common stock.

The Company’s common stock is currently deemed to be “penny stock”, which makes it more difficult for investors to sell their shares.

The Company’s common stock is currently subject to the “penny stock” rules adopted under section 15(g) of the Exchange Act. The penny stock rules apply to companies whose common stock is not listed on the NASDAQ Stock Market or other national securities exchange and trades at less than $5.00 per share or that have tangible net worth of less than $5,000,000 ($2,000,000 if the company has been operating for three or more years). These rules require, among other things, that brokers who trade penny stock to persons other than “established customers” complete certain documentation, make suitability inquiries of investors and provide investors with certain information concerning trading in the security, including a risk disclosure document and quote information under certain circumstances. Many brokers have decided not to trade penny stocks because of the requirements of the penny stock rules and, as a result, the number of broker-dealers willing to act as market makers in such securities is limited. If the Company remains subject to the penny stock rules for any significant period, it could have an adverse effect on the market, if any, for the Company’s securities. If the Company’s securities are subject to the penny stock rules, investors will find it more difficult to dispose of the Company’s securities.

We have raised capital through the use of convertible debt instruments that causes substantial dilution to our stockholders.

Because of the size of our Company and its status as a “penny stock” as well as the current economy and difficulties in companies our size finding adequate sources of funding, we have been forced to raise capital through the issuance of convertible notes and other debt instruments. These debt instruments carry favorable conversion terms to their holders of up to 42% discounts to the market price of our common stock on conversion and in some cases provide for the immediate sale of our securities into the open market. Accordingly, this has caused dilution to our stockholders in 2017 and may for the foreseeable future. As of December 31, 2017, we had approximately $979,443 in convertible debt and potential convertible debt outstanding. This convertible debt balance as well as additional convertible debt we incur in the future will cause substantial dilution to our stockholders.

Because we are quoted on the OTCQB instead of an exchange or national quotation system, our investors may have a tougher time selling their stock or experience negative volatility on the market price of our common stock.

Our common stock is quoted on the OTCQB. The OTCQB is often highly illiquid, in part because it does not have a national quotation system by which potential investors can follow the market price of shares except through information received and generated by a limited number of broker-dealers that make markets in particular stocks. There is a greater chance of volatility for securities that are quoted on the OTCQB as compared to a national exchange or quotation system. This volatility may be caused by a variety of factors, including the lack of readily available price quotations, the absence of consistent administrative supervision of bid and ask quotations, lower trading volume, and market conditions. Investors in our common stock may experience high fluctuations in the market price and volume of the trading market for our securities. These fluctuations, when they occur, have a negative effect on the market price for our securities. Accordingly, our stockholders may not be able to realize a fair price from their shares when they determine to sell them or may have to hold them for a substantial period of time until the market for our common stock improves.

We do not intend to pay dividends.

We do not anticipate paying cash dividends on our common stock in the foreseeable future. We may not have sufficient funds to legally pay dividends. Even if funds are legally available to pay dividends, we may nevertheless decide in our sole discretion not to pay dividends. The declaration, payment and amount of any future dividends will be made at the discretion of the board of directors, and will depend upon, among other things, the results of our operations, cash flows and financial condition, operating and capital requirements, and other factors our board of directors may consider relevant. There is no assurance that we will pay any dividends in the future, and, if dividends are paid, there is no assurance with respect to the amount of any such dividend.

Our operating history and lack of profits which could lead to wide fluctuations in our share price. You may be unable to sell your common shares at or above your purchase price, which may result in substantial losses to you. The market price for our common shares is particularly volatile given our status as a relatively unknown company with a small and thinly traded public float.

The market for our common shares is characterized by significant price volatility when compared to seasoned issuers, and we expect that our share price will continue to be more volatile than a seasoned issuer for the indefinite future. The volatility in our share price is attributable to a number of factors. First, our common shares are sporadically and thinly traded. As a consequence of this lack of liquidity, the trading of relatively small quantities of shares by our shareholders may disproportionately influence the price of those shares in either direction. The price for our shares could, for example, decline precipitously in the event that a large number of our common shares are sold on the market without commensurate demand, as compared to a seasoned issuer which could better absorb those sales without adverse impact on its share price. Secondly, we are a speculative or “risky” investment due to our limited operating history and lack of profits to date, and uncertainty of future market acceptance for our potential products. As a consequence of this enhanced risk, more risk-adverse investors may, under the fear of losing all or most of their investment in the event of negative news or lack of progress, be more inclined to sell their shares on the market more quickly and at greater discounts than would be the case with the stock of a seasoned issuer. Many of these factors are beyond our control and may decrease the market price of our common shares, regardless of our operating performance. We cannot make any predictions or projections as to what the prevailing market price for our common shares will be at any time, including as to whether our common shares will sustain their current market prices, or as to what effect that the sale of shares or the availability of common shares for sale at any time will have on the prevailing market price.

Shareholders should be aware that, according to SEC Release No. 34-29093, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include (1) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer; (2) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (3) boiler room practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (4) excessive and undisclosed bid-ask differential and markups by selling broker-dealers; and (5) the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses. Our management is aware of the abuses that have occurred historically in the penny stock market. Although we do not expect to be in a position to dictate the behavior of the market or of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to our securities. The occurrence of these patterns or practices could increase the volatility of our share price.

Federal regulation and enforcement may adversely affect the implementation of marijuana laws and regulations may negatively impact our revenues and profits.

Currently, there are thirty states plus the District of Columbia that have laws and/or regulation that recognize in one form or another legitimate medical uses for cannabis and consumer use of cannabis in connection with medical treatment. There are currently two states that have laws and/or regulation that permits consumer use of cannabis for commercial and recreational purposes. Many other states are considering legislation to similar effect. As of the date of this writing, the policy and regulations of the Federal government and its agencies is that cannabis has no medical benefit and a range of activities including cultivation and use of cannabis for personal use is prohibited on the basis of federal law and may or may not be permitted on the basis of state law. Active enforcement of the current federal regulatory position on cannabis on a regional or national basis may directly and adversely affect the willingness of customers of the Company to invest in or lease properties from the Company that may be used in connection with cannabis. Active enforcement of the current federal regulatory position on cannabis may thus indirectly and adversely affect revenues and profits of the Company.

We may be subject to unknown or contingent liabilities or restrictions related to properties that we acquire for which we may have limited or no recourse.

Assets and entities that we have acquired or may acquire in the future may be subject to unknown or contingent liabilities for which we may have limited or no recourse against the sellers. Unknown or contingent liabilities might include liabilities for or with respect to liens attached to properties, unpaid real estate tax, or utilities charges for which a subsequent owner remains liable, clean-up or remediation of environmental conditions or code violations, claims of customers, vendors or other persons dealing with the acquired entities and tax liabilities, among other things.

Our revenue and expenses are not directly correlated, and because a large percentage of our costs and expenses are fixed, we may not be able to adapt our cost structure to offset declines in our revenue.

Most of the expenses associated with our business, such as acquisition costs, renovation and maintenance costs, real estate taxes, personal and ad valorem taxes, insurance, utilities, employee wages and benefits and other general corporate expenses are fixed and do not necessarily decrease with a reduction in revenue from our business. Our expenses and ongoing capital expenditures will also be affected by inflationary increases and certain of our cost increases may exceed the rate of inflation in any given period. By contrast, as described above, our rental income will be affected by many factors beyond our control such as the availability of alternative rental properties and economic conditions in our target markets. As a result, we may not be able to fully offset rising costs and capital spending by higher lease rates, which could have a material adverse effect on our results of operations and cash available for distribution. In addition, state and local regulations may require us to maintain properties that we own, even if the cost of maintenance is greater than the value of the property or any potential benefit from leasing the property.

Our future portfolio consists of properties geographically concentrated in certain markets and any adverse developments in local economic conditions, the demand for commercial property in these markets or natural disasters may negatively affect our operating results.

Our future portfolio consists of properties geographically concentrated in Colorado. As such, we are susceptible to local economic conditions, other regulations, the supply of and demand for commercial rental properties and natural disasters in these areas. If there is a downturn in the economy, an oversupply of or decrease in demand for commercial rental properties in these markets or natural disasters in these geographical areas, our business could be materially adversely affected to a greater extent than if we owned a real estate portfolio that was more geographically diversified.

We may be subject to losses that are either uninsurable, not economically insurable or that are in excess of our insurance coverage.

Our properties may be subject to environmental liabilities and we will be exposed to personal liability for accidents which may occur on our properties. Our insurance may not be adequate to cover all damages or losses from these events, or it may not be economically prudent to purchase insurance for certain types of losses. As a result, we may be required to incur significant costs in the event of adverse weather conditions and natural disasters or events which result in environmental or personal liability. We may not carry or may discontinue certain types of insurance coverage on some or all of our properties in the future if the cost of premiums for any of these policies in our judgment exceeds the value of the coverage discounted for the risk of loss. If we experience losses that are uninsured or exceed policy limits, we could incur significant uninsured costs or liabilities, lose the capital invested in the properties, and lose the anticipated future cash flows from those properties. In addition, our environmental or personal liability may result in losses substantially in excess of the value of the related property.

Compliance with new or existing laws, regulations and covenants that are applicable to our future properties, including permit, license and zoning requirements, may adversely affect our ability to make future acquisitions or renovations, result in significant costs or delays and adversely affect our growth strategy.

Our future properties are subject to various covenants and local laws and regulatory requirements, including permitting and licensing requirements. Local regulations, including municipal or local ordinances, zoning restrictions and restrictive covenants imposed by community developers may restrict our use of our properties and may require us to obtain approval from local officials or community standards organizations at any time with respect to our properties, including prior to acquiring a property or when undertaking renovations of any of our existing properties. We cannot assure you that existing regulatory policies will not adversely affect us or the timing or cost of any future acquisitions or renovations, or that additional regulations will not be adopted that would increase such delays or result in additional costs. Our failure to obtain permits, licenses and zoning approvals on a timely basis could have a material adverse effect on our business, financial condition and results of operations.

Poor tenant selection and defaults by renters may negatively affect our financial performance and reputation.

Our success will depend in large part upon our ability to attract and retain qualified tenants for our properties. This will depend, in turn, upon our ability to screen applicants, identify good tenants and avoid tenants who may default. We will inevitably make mistakes in our selection of tenants, and we may rent to tenants whose default on our leases or failure to comply with the terms of the lease negatively affect our financial performance, reputation and the quality and value of our properties. For example, tenants may default on payment of rent, make unreasonable and repeated demands for service or improvements, make unsupported or unjustified complaints to regulatory or political authorities, make use of our properties for illegal purposes, damage or make unauthorized structural changes to our properties which may not be fully covered by security deposits, refuse to leave the property when the lease is terminated, engage in violence or similar disturbances, disturb nearby residents with noise, trash, odors or eyesores, fail to comply with regulations, sublet to less desirable individuals in violation of our leases, or permit unauthorized persons to live therein. The process of evicting a defaulting renter from a commercial property can be adversarial, protracted and costly. Furthermore, some tenants facing eviction may damage or destroy the property. Damage to our properties may significantly delay re-leasing after eviction, necessitate expensive repairs or impair the rental income or value of the property, resulting in a lower than expected rate of return. In addition, we will incur turnover costs associated with re-leasing the properties such as marketing and brokerage commissions and will not collect revenue while the property sits vacant. Although we will attempt to work with tenants to prevent such damage or destruction, there can be no assurance that we will be successful in all or most cases. Such tenants will not only cause us not to achieve our financial objectives for the properties, but may subject us to liability, and may damage our reputation with our other tenants and in the communities where we do business.

Declining real estate valuations and impairment charges could adversely affect our earnings and financial condition.

Our success will depend upon our ability to acquire rental properties at attractive valuations, such that we can earn a satisfactory return on the investment primarily through rental income and secondarily through increases in the value of the properties. If we overpay for properties or if their value subsequently drops or fails to rise because of market factors, we will not achieve our financial objectives.

We will periodically review the value of our properties to determine whether their value, based on market factors, projected income and generally accepted accounting principles, has permanently decreased such that it is necessary or appropriate to take an impairment loss in the relevant accounting period. Such a loss would cause an immediate reduction of net income in the applicable accounting period and would be reflected in a decrease in our balance sheet assets. The reduction of net income from an impairment loss could lead to a reduction in our dividends, both in the relevant accounting period and in future periods. Even if we do not determine that it is necessary or appropriate to record an impairment loss, a reduction in the intrinsic value of a property would become manifest over time through reduced income from the property and would therefore affect our earnings and financial condition.

Increasing real estate taxes, fees and insurance costs may negatively impact our financial results.

The cost of real estate taxes and insuring our properties is a significant component of our expenses. Real estate taxes, fees and insurance premiums are subject to significant increases, which can be outside of our control. If the costs associated with real estate taxes, fees and assessments or insurance should rise significantly and we are unable to raise rents to offset such increases, our results of operations would be negatively impacted.

We may not be able to effectively manage our growth, which requires significant resources, and our results may be adversely affected.

We plan to continue our acquisition strategy, which will demand significant resources and attention and may affect our financial performance. Our future operating results depend on our ability to effectively manage this growth, which is dependent, in part, upon the ability of the Company to:

•	stabilize and manage a rapidly increasing number of properties and tenant relationships while maintaining a high level of customer service and building and enhancing our brand;
•	identify and supervise an increasing number of suitable third parties on which we rely on to provide certain services to our properties;
•	continue to improve our operational and financial controls and reporting procedures and systems; and,
•	scale our technology and other infrastructure platforms to adequately service new properties.

We cannot assure you that we will be able to achieve these results or that we may otherwise be able to manage our growth effectively. Any failure to do so may have an adverse effect on our business and financial results.

Should one or more of the foregoing risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned.

ITEM 1B. UNRESOLVED STAFF COMMENTS

Not applicable to a smaller reporting company.

ITEM 2. DESCRIPTION OF PROPERTY

Owned Real Estate

The Company owns approximately 80 acres real property, including all buildings, fixtures and equipment located in Pueblo County, Colorado. The Company acquired the property for the purpose of making it suitable for use in the legal commercial cannabis industry.

Office Space

Our corporate offices are located at 777 Brickell Avenue Suite 500, Miami, FL 33131. We can be reached by phone at 1 (305) 721-2727 and by email at info@Agritekholdings.com

Leased Properties

On April 28, 2014, the Company executed and closed a 10 year lease agreement for 20 acres of an agricultural farming facility located in South Florida following the approval of the so-called “Charlotte’s Web” legislation, aimed at decriminalizing low grade marijuana specifically for the use of treating epilepsy and cancer patients. The Company prepaid the first-year lease amount of $24,000. The Company is currently in default of the lease agreement, as rents have not been for the second year of the lease beginning May 2015.

On July 11, 2014, the Company signed a ten year lease agreement for an additional 40 acres in Pueblo, Colorado. The lease requires monthly rent payments of $10,000 during the first year and is subject to a 2% annual increase over the life of the lease. The lease also provides rights to 50 acres of certain tenant water rights for $50,000 annually plus cost of approximately $2,400 annually. The Company paid the $50,000 in July 2014. The Company is currently in default of the lease agreement, as rents have not been paid since February 2015.

In January 2017, the Company signed a five (5) year lease, beginning February 1, 2107, for approximately 6,000 square feet of office space, comprised of two floors, in San Juan, Puerto Rico. Pursuant to the lease, the Company will pay $3,000 per month for the third floor of the building for the first year of the lease. The rent will increase 3% per year on February beginning in 2018 and an additional 3% per year on each successive February 1, during the term of the lease. The landlord has agreed that for the month of February 2017, the rent will be $1,500. The rent for second floor of the building will be $2,000 per month during the term of the lease and the Company does not have any rent payments for the first three months of the lease (February 2017 through April 2017). Through September 30, 2017, the Company calculated the total amount of the rent for the term lease and recorded straight line rent expense of $45,417 and had made payments of $20,516. As of December 31, 2017, the Company has a balance of $24,916 in deferred rent which is included in the consolidated balance sheet. The leases for the second and third floor were cancelled in September 2017, as a result of Hurricane Irma.

On December 1, 2016, the Company signed a one (1) year lease for a corporate apartment in Puerto Rico for $5,500 per month. This lease expired in November 30, 2017.

ITEM 3. LEGAL PROCEEDINGS.

On March 2, 2015, the Company, the Company’s CEO and the Company’s CFO at the time were named in a civil complaint filed by Erick Rodriguez in the District Court in Clark County, Nevada (the “DCCC”). The complaint alleges that Mr. Rodriguez never received 250,000 shares of Series B preferred stock that were initially approved by the Board of Directors in 2012, subject to the completion of a merger of a company controlled by Mr. Rodriguez. Since the merger was never completed, the shares were never certificated to Mr. Rodriguez. On March 21, 2017, the DCC agreed to Set Aside the Entry of Default against the Defendants. Mr. Rodriguez resigned in June 2013. On April 12, 2018, the Arbitrator issued a final award to Rodriguez in the amount of $399,291. The Company and the Company’s counsel believe the Arbitrator denied a number of detailed objections to the award, which cited clear mistakes as to Nevada law and to the facts. The Company has retained a Nevada attorney who is an expert in fighting attempts to convert arbitration awards into judgments in Nevada courts, to work with our arbitration counsel. The Company recorded a loss on legal matter, included in other expenses for the year ended December 31, 2017.

On May 6, 2016, the Company, B. Michael Freidman and Barry Hollander (former CFO) were named as defendants in a Summons/Complaint filed by Justin Braune (the “Plaintiff”) in Palm Beach County Civil Court, Florida (the “PBCCC”). The complaint alleges that Mr. Braune was entitled to shares of common stock of the Company. On December 5, 2016, the PBCCC set aside a court default that had been previously issued. The defendants have answered the complaint, including the defenses that Mr. Braune advised the Company’s transfer agent and the Company in his letter of resignation dated November 4, 2015, clearly stating that he has relinquished all shares of common stock. The Company has filed a counterclaim suit against the Plaintiff, as well as sanctions against the Plaintiff and their counsel.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

The Company’s common stock is traded in the over-the-counter market, and quoted on the OTCQB tier of the OTC Markets Group Inc. under the symbol “AGTK.”

(a) Market Information

The following table sets forth for the periods indicated the high and low bid quotations for our common stock. These quotations represent inter-dealer quotations, without adjustment for retail markup, markdown, or commission and may not represent actual transactions.

Period	High		Low
Fiscal Year 2017
First Quarter (January 1, 2017 – March 31, 2017)	$	0.0336	$	0.0011
Second Quarter (April 1, 2017 – June 30, 2017)	$	0.0072	$	0.002
Third Quarter (July 1, 2017 – September 30, 2017)	$	0.0069	$	0.0014
Fourth Quarter (October 1, 2017 – December 31,2017)	$	0.0586	$	0.0065

Fiscal Year 2016
First Quarter (January 1, 2016 – March 31, 2016)	$	0.0109	$	0.0011
Second Quarter (April 1, 2016 – June 30, 2016)	$	0.0072	$	0.002
Third Quarter (July 1, 2016 - September 30, 2016)	$	0.0069	$	0.0014
Fourth Quarter (October 1, 2016 – December 31, 2016)	$	0.0586	$	0.0065

(b) Holders

The number of record holders of our common stock as of March 31, 2018, was approximately 265. This excludes shareholders who hold their stock in street name. The Company estimates that there are over 10,000 stockholders who hold their shares of common stock in street name.

The Company did not declare any cash dividends for the years ended December 31, 2017 and 2016. Our Board of Directors does not intend to distribute any cash dividends in the near future. The declaration, payment and amount of any future dividends will be made at the discretion of the Board of Directors, and will depend upon, among other things, the results of our operations, cash flows and financial condition, operating and capital requirements, and other factors as the Board of Directors considers relevant. There is no assurance that future dividends will be paid, and if dividends are paid, there is no assurance with respect to the amount of any such dividend.

(d) Securities authorized for issuance under equity compensation plans

None

Recent Sales of Unregistered Equity Securities

During the year ended December 31, 2017, the Company issued the following shares of common stock upon the conversions of portions of the Convertible Notes:

Date		Principal Conversion		Interest Conversion		Total Conversion		Conversion Price		Shares Issued		Issued to
	1/10/17	$	73,000	$	5,664	$	78,664	$	0.01595		4,931,912	Cerberus
	1/17/17	$	57,500	$	4,562	$	62,062	$	0.01537		4,037,878	LG
	1/27/17	$	48,129	$	3,914	$	52,043	$	0.01276		4,078,598	Cerberus
	2/8/17	$	60,000	$	5,050	$	65,050	$	0.012934		5,029,369	LG
	2/27/17	$	26,120	$	2,171	$	28,291	$	0.013804		2,049,467	Cerberus
	3/10/17	$	40,000	$	3,630	$	43,630	$	0.01363		3,200,997	LG
	3/27/17	$	34,775	$	3,255	$	38,030	$	0.012876		2,953,523	Cerberus
	3/28/17	$	65,625	$	3,697	$	69,322	$	0.01276		5,432,725	LG
	4/25/17	$	76,081	$	4,752	$	80,833	$	0.009744		8,295,680	LG
	5/10/17	$	22,000	$	2,199	$	24,199	$	0.008		3,023,338	Cerberus
	5/10/17	$	20,640	$	9,360	$	30,000	$	0.0075		4,000,000	St Georges
	5/25/17	$	29,052	$	947	$	30,000	$	0.00564		5,319,149	St Georges
	6/6/17	$	32,813	$	2,999	$	35,811	$	.00551		6,499,359	LG
	6/8/17	$	34,100	$	900	$	35,000	$	0.00564		6,205,674	St Georges
	6/9/17	$	22,000	$	1,500	$	23,500	$	0.00551		4,264,903	Cerberus
	6/29/17	$	48,849	$	1,151	$	50,000	$	.00564		8,865,248	St Georges
	6/30/17	$	30,625	$	2,960	$	33,585	$	0.0058		5,790,541	LG
	7/17/17	$	37,358	$	733	$	38,091	$	0.00564		6,753,817	St Georges
	7/25/17	$	35,000	$	3,575	$	38,575	$	0.005568		6,927,943	LG
	7/26/17	$	28,000	$	1,117	$	29,117	$	0.005568		5,229,334	Cerberus
	8/15/17	$	35,199	$	409	$	35,608	$	0.0058		6,139,276	LG
	8/29/17	$	38,000	$	558	$	38,558	$	0.005858		6,582,115	LG
	9/19/17	$	34,500	$	665	$	35,165	$	0.008178		4,300,002	LG
	10/9/17	$	30,000	$	710	$	30,710	$	0.007076		4,340,042	LG
	10/23/17	$	30,000	$	802	$	30,802	$	0.006090		5,057,830	LG
	11/6/17	$	28,376	$	6,624	$	35,000	$	0.005640		6,205,674	St Georges
	11/6/17	$	19,500	$	1,218	$	20,718	$	0.005858		3,536,715	LG
	11/13/17	$	35,000	$	2,240	$	37,240	$	0.005858		6,357,118	Cerberus
	11/14/17	$	26,624	$	428	$	27,052	$	0.005640		4,796,452	St Georges
	11/15/17	$	75.000	$	4,833	$	79,833	$	0.005742		13,903,322	LG
	12/1/17	$	32,813	$	453	$	33,266	$	0.005742		5,793,378	LG
	12/5/17	$	16,756	$	1,105	$	17,861	$	0.005640		3,166,816	St Georges
	12/7/17	$	32,813	$	2,567	$	35,380	$	0.005916		5,980,387	LG
	12/15/17	$	52,000	$	889	$	52,889	$	0.005916		8,939,991	LG
	12/28/17	$	42,000	$	2,209	$	44,209	$	0.006728		6,570,945	Cerberus
		$	1,350,247	$	89,846	$	1,440,093				194,559,520

In addition to the above, during the year ended December 31, 2017, the Company:

On January 16, 2017, the Company entered into a Business Consultant Agreement (the “BCA”). Pursuant to the BCA, the Company issued 5,000,000 shares of common stock for services to be provided to the Company related to business development, product marketing, helping identify mergers and acquisition candidates, and will consult with and advise the Company on matters pertaining to business modeling and strategic alliances. The Company valued the shares at $0.0267 per share (the market price of the common stock) and recorded stock compensation expense for the year ended December 31, 2017, of $133,500.

On January 30, 2017, the Company issued 1,000,000 shares of common stock to Venture Equity. The Company valued the shares at $0.03 per share (the market price of the common stock) and cancelled of $13,169 of accrued and unpaid fees owed Venture Equity and recorded stock-based compensation expense for the year ended December 31, 2017, of $16,831.

Also, on January 30, 2017, the Company issued 10,000,000 shares of common stock to the Company’s CEO. The shares were issued for services performed as the sole Officer and director of the Company since November 2014. The Company valued the shares at $0.0301 per share (the market price of the common stock) and for the year ended December 31, 2017, recorded stock compensation expense, management, of $301,000.

On June 19, 2017, the Company issued 1,319,149 shares of common stock to St. George pursuant to the “true-up” terms and conditions of the St. George note.

On August 8, 2017, the Company issued 2,000,000 shares of common stock for compensation for services of the Company’s chief operating officer. The Company valued the shares at $0.0123 per share (the market price of the common stock) and for the year ended December 31, 2017, recorded stock compensation expense, management, of $24,600.

On August 8, 2017, the Company issued 5,000,000 shares of common stock for the property known as the "420 Style" resort and estate, located in Canada (see note 11). The Company valued the shares at $0.0123 per share (the market price of the common stock) and has included $61,500 in stock- based compensation expense for the year ended December 31, 2017.

During the year ended December 31, 2017, the company issued 52,574,335 shares of common stock to St. George pursuant to Notices of Exercise of Warrant received. The shares were issued based upon the cashless exercise provision of the warrant.

During the year ended December 31, 2016, the Company issued the following shares of common stock upon the conversions of portions of the 2014 Company Note and portions of the 2015 Convertible Notes:

Date		Principal Conversion		Interest Conversion		Total Conversion		Conversion Price		Shares Issued		Issued to
	12/28/16	$	45,000	$	3,511	$	48,511	$	0.015080		3,216,925	LG
	12/13/16	$	9,500	$	400	$	9,900	$	0.000754		13,129,683	Cerberus
	9/26/16	$	8,613	$	629	$	9,242	$	0.001218		7,587,824	LG
	7/29/16	$	7,500	$	801	$	8,301	$	0.000081		10,222,352	LG
	7/20/16	$	9,500	$	995	$	10,495	$	0.000098		10,644,310	LG
	7/12/16	$	9,000	$	927	$	9,927	$	0.000986		10,068,073	LG
	7/1/16	$	8,000	$	805	$	8,805	$	0.001160		7,590,362	LG
	6/22/16	$	5,000	$	973	$	5,973	$	0.001450		4,119,414	GW
	6/20/16	$	10,500	$	1,003	$	11,503	$	0.001450		7,933,377	Cerberus
	6/20/16	$	5,000	$	967	$	5,967	$	0.001450		4,114,879	GW
	6/20/16	$	6,000	$	589	$	6,589	$	0.001450		4,544,241	LG
	6/10/16	$	6,075	$	1,134	$	7,209	$	0.001798		4,009,701	GW
	6/9/16	$	5,000	$	479	$	5,479	$	0.001798		3,047,219	LG
	6/2/16	$	9,000	$	848	$	9,848	$	0.002378		4,141,387	Cerberus
	5/23/16	$	5,000	$	460	$	5,460	$	0.002436		2,241,490	LG
	3/17/16	$	9,000	$	696	$	9,696	$	0.002436		3,980,431	LG
	3/17/16	$	3,000	$	138	$	3,138	$	0.000638		4,918,624	Service
	3/8/16	$	7,425	$	928	$	8,353	$	0.00174		4,800,354	GW
	3/7/16	$	6,500	$	489	$	6,989	$	0.00174		4,016,471	LG
		$	174,613	$	16,772	$	191,385				114,327,117

In addition to the above during the year ended December 31, 2016, the Company:

On November 7, 2016, the Company issued 5,000,000 shares of common stock and completed the stock purchase for the acquisition of Sterling Classic Compassion, LLC. (“Sterling”).

All such shares were issued in reliance on the exemption found in Section 4(a)(2) of the Securities Act of 1933, as amended. Each share recipient was provided with access to information which would be required to be included in a registration statement and such issuances did not involve a public offering.

ITEM 6. SELECTED FINANCIAL DATA

Not applicable to a smaller reporting company.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is management’s discussion and analysis of certain significant factors that have affected our financial position and operating results during the periods included in the accompanying consolidated financial statements, as well as information relating to the plans of our current management. This report includes forward-looking statements. Generally, the words “believes,” “anticipates,” “may,” “will,” “should,” “expect,” “intend,” “estimate,” “continue,” and similar expressions or the negative thereof or comparable terminology are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, including the matters set forth in this report or other reports or documents we file with the Securities and Exchange Commission from time to time, which could cause actual results or outcomes to differ materially from those projected. Undue reliance should not be placed on these forward-looking statements which speak only as of the date hereof. We undertake no obligation to update these forward-looking statements.

The independent auditors’ reports on our financial statements for the years ended December 31, 2017 and 2016 includes a “going concern” explanatory paragraph that describes substantial doubt about our ability to continue as a going concern. Management’s plans in regard to the factors prompting the explanatory paragraph are discussed below and also in Note 10 to the consolidated financial statements filed herein.

While our financial statements are presented on the basis that we are a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business over a reasonable length of time, our auditors have raised a substantial doubt about our ability to continue as a going concern.

Results of Operations

Year ended December 31, 2017 compared to December 31, 2016

Revenues

Revenues for the years ended December 31, 2017 and 2016 were $50,000 and $3,228, respectively. Revenues for the year ended December 31, 2017, were comprised of consulting fees of $48,000 and other fees of $2,000.

Cost of Sales

For the year ended December 31, 2017 and 2016, cost of sales were $64,000 and $3,161, respectively.

Operating Expenses

Operating expenses were $1,715,984 for the year ended December 31, 2017 compared to $607,921 for the year ended December 31, 2016. The expenses were comprised of:

	Year Ended December 31,
Description	2017		2016
Administration and management fees	$	504,200	$	163,850
Professional and consulting fees		730,357		161,150
Advertising and promotional expenses		54,927		6,321
Rent and occupancy costs		101,279		40,303
Leased property for sub-lease including maintenance costs		41,546		114,894
Travel and entertainment		136,751		27,506
General and other administrative		146,924		93,897
Total	$	1,715,984	$	607,921

Administrative and management fees include stock compensation expense of $301,000 for the issuance of 10,000,000 shares of common stock to the Company’s CEO. The shares were issued for services performed as the sole Officer and director of the Company since November 2014. The Company valued the shares at $0.0301 per share (the market price of the common stock) and for the year ended December 31, 2017, recorded stock compensation expense, management, of $301,000.

Professional and consulting fees include stock-based compensation of $219,600 and $2,371 for the years ended December 31, 2017 and 2016, respectively. The 2017 expense was comprised of:

•

The Company issuing 5,000,000 shares of common stock issued in January 2017 for services to be provided to the Company related to business development, product marketing, helping identify mergers and acquisition candidates. The Company valued the shares at $0.0267 per share (the market price of the common stock) and recorded stock compensation expense for the year ended December 31, 2017, of $133,500.

•

$61,500 for the issuance of 5,000,000 shares of common stock for the property known as the "420 Style" resort and estate, located in Canada (see note 11). The Company valued the shares at $0.0123 per share (the market price of the common stock) and has included $61,500 in stock- based compensation expense for the year ended December 31, 2017.

Professional and consulting fees (excluding stock compensation expense, other) increased for the year ended December 31, 2017 compared to December 31, 2016, and is comprised of the following:

	Year ended December 31,
	2017		2016
Legal fees	$	324,057	$	52,608
Consulting fees		29,000		4,000
Accounting and auditing fees		78,000		60,442
Investor relation costs (including related of $30,500 and $41,400 for 2017 and 2016, respectively)		79,700		44,100
	$	510,757	$	161,150

Legal fees increased for the year ended December 31, 2017, for costs incurred related to the Braune and Rodriguez matters (see Note 11 to consolidated financial statements included herein). Consulting fees increased for the year ended December 31, 2017, as the Company had engaged various consultants to assist the Company in strategic planning regarding the Company’s current operations and future growth plans.

Advertising and promotional expenses increased for the year ended December 31, 2017 compared to the year ended December 31, 2016, as a result of the Company distributing product samples to distributors and dispensaries in California as part of a marketing campaign regarding a product launch and introduction.

Rent and occupancy costs increased for the year ended December 31, 2017 compared to the year ended December 31, 2016. The increase was primarily as a result of the Company not beginning operations in Puerto Rico at the beginning of 2017.due to Hurricane Irma in Puerto Rico in the summer of 2017, the leases were terminated.

Leased property available for sub-lease and property maintenance costs were $41,456 and $114,894 for the years ended December 31, 2017 and 2016, respectively. The costs were comprised of leased real estate costs.

General and other administrative costs for the year ended December 31, 2017, increased compared to the year ended December 31, 2016. The significant expenses is comprised of the following:

Description	2017		2016
Filing fees and transfer agent fees	$	15,913	$	14,236
Other taxes		8,182		6,259
Depreciation		15,516		2,625
Telephone, internet and website expenses		39,738		10,417
Investor relations		25,508		17,231
Office supplies and expense		9,866		2,508
Other general and other administrative		32,200		40,621
Total	$	146,923	$	93,897

Other Income (Expense), Net

Other expense for the year ended December 31, 2017 was $7,423,327 compared to $2,370,035 for the year ended December 31, 2016. Other expenses for the 2017 period was from the increase on the fair value of derivatives of $4,986,057, interest expense of $1,873,198, a loss on legal matter of $399,291 and losses on debt settlements of $114,781 and an impairment of investments of $50,000.

Other expense for the 2016 period was from the increase on the fair value of derivatives of $1,457,071, loss on investment in subsidiary of $255,000 and interest expense of $742,041 partially offset by a gain in debt extinguishment of $84,057.

Interest expense increased in the current period and was comprised of:

	Year ended December 31,
	2017		2016
Interest on face value and other	$	92,147	$	54,251
Prepayment interest		65,000		—
Amortization of note discount		1,587,831		663,031
Amortization of deferred financing fees		128,220		25,355
Interest income		—		(616	)
Total	$	1,873,198	$	742,021

Liquidity and Capital Resources

For the year ended December 31, 2017, net cash used in operating activities was $1,228,835 compared to $445,260 for the year ended December 31, 2016. The net loss for the year ended December 31, 2017 of $9,153,310 was offset by non- cash expenses of $2,223,824 for the initial fair value of derivative liabilities, the change in fair values of derivative liabilities of $2,762,231, the amortization of discounts on convertible notes of $1,587,831, stock- based compensation of $520,600 and amortization of deferred financing costs of $128,220. Changes in operating assets and liabilities that reduced cash used in operating activities were in the aggregate $602,246.

The net loss for the year ended December 31, 2016 of $2,977,889 was primarily impacted by the amortization of discounts on convertible notes of $635,780, $3,249,056 for the initial fair value of derivative liabilities and $255,000 for the loss on investment in subsidiary, offset by the change in fair values of derivative liabilities of $1,791,988 and the gain on settlements of debt of $84,057. Changes in operating assets and liabilities that reduced cash used in operating activities included increases in accounts payable and accrued expenses of $234,234 and due to related party increase of $32,935.

During the year ended December 31, 2017, net cash used in investing activities was $397,651 compared to $20,757 for the year ended December 31, 2016. For the period ending December 31, 2017, the Company purchased furniture and equipment of $187,651 compared to $20,757 for the year ended December 31, 2016. The Company has also expended $210,000 to invest in note receivables related to two separate five- year exclusive licensing and operation agreements.

Net cash provided by financing activities was $1,864,115 and $521,731 for the years ended December 31, 2017 and 2016, respectively. The 2017 activity was comprised of proceeds received related to the issuance of convertible promissory notes of $1,678,494 and $545,000 related to Stock Purchase Agreements with St. George. The Company also made payments of $322,879 of principal and accrued interest on convertible promissory notes and $36,500 on notes payable.

For the year ended December 31, 2017, cash and cash equivalents increased by $67,260 compared to $11,548 for the year ended December 31, 2016. Ending cash and cash equivalents at December 31, 2017 was $304,889 compared to $67,260 at December 31, 2016.

We do not have cash and cash equivalents on hand to meet our obligations. We presently maintain our daily operations and capital needs through the sale of our products and financings available to us from our lenders.

Off-Balance Sheet Arrangements

There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Critical Accounting Policies

Accounting Policies and Estimates

The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Our management periodically evaluates the estimates and judgments made. Management bases its estimates and judgments on historical experience and on various factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates as a result of different assumptions or conditions.

As such, in accordance with the use of accounting principles generally accepted in the United States of America, our actual realized results may differ from management’s initial estimates as reported. A summary of significant accounting policies are detailed in notes to the financial statements which are an integral component of this annual report on Form 10-K.

Revenue Recognition

The Company recognizes revenue in accordance with the Securities and Exchange Commission, Staff Accounting Bulletin (SAB) No. 104, “Revenue Recognition” (“SAB No. 104”). SAB 104 clarifies application of generally accepted accounting principles related to revenue transactions. The Company also follows the guidance in EITF Issue No. 00-21, Revenue Arrangements with Multiple Deliverables (“EITF Issue No. 00-21”), in arrangements with multiple deliverables.

The Company recognizes revenues when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery of products and services has occurred, (3) the fee is fixed or determinable and (4) collectability is reasonably assured.

The Company recognizes revenue during the month in which products are shipped or commissions were earned.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of revenues and expenses during the reported period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original term of three months or less to be cash equivalents.

Accounts Receivable

The Company records accounts receivable from amounts due from its customers upon the shipment of products. The allowance for losses is established through a provision for losses charged to expenses. Receivables are charged against the allowance for losses when management believes collectibility is unlikely. The allowance is an amount that management believes will be adequate to absorb estimated losses on existing receivables, based on evaluation of the collectability of the accounts and prior loss experience. While management uses the best information available to make its evaluations, this estimate is susceptible to significant change in the near term.

Inventory

Inventory is valued at the lower of cost or market value. Cost is determined using the first in first out (FIFO) method. Provision for potentially obsolete or slow moving inventory is made based on management analysis or inventory levels and future sales forecasts.

Notes receivable

During the year ended December 31, 2017, the Company has recorded notes receivable the following:

$110,000 pursuant to a five (5) year operational and exclusive licensing agreement with a third party who leases a 25,000-sq. ft. approved cultivation facility located in San Juan, Puerto Rico (see Note 10).

$100,000 pursuant to a five (5) year operational and exclusive licensing agreement with a third party who leases a 10,000-sq. ft. approved cultivation facility located in Washington State (see Note 10).

Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed

We evaluate long-lived assets and identifiable intangible assets with finite useful lives in accordance with ASC 350-30 and ASC 360 (formerly SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets), and accordingly, management reviews our long-lived assets and identifiable intangible assets with finite useful lives for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We recognize an impairment loss when the sum of the future undiscounted net cash flows expected to be realized from the asset is less than its carrying amount. If an asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Considerable judgment is necessary to estimate the fair value of the assets and accordingly, actual results could vary significantly from such estimates. Our most significant estimates and judgments relating to the long-lived asset impairments include the timing and amount of projected future cash flows.

Fair Value of Financial Instruments

Fair value measurements are determined under a three-level hierarchy for fair value measurements that prioritizes the inputs to valuation techniques used to measure fair value, distinguishing between market participant assumptions developed based on market data obtained from sources independent of the reporting entity (“observable inputs”) and the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (“unobservable inputs”).

Fair value is the price that would be received to sell an asset or would be paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company primarily uses prices and other relevant information generated by market transactions involving identical or comparable assets (“market approach”). The Company also considers the impact of a significant decrease in volume and level of activity for an asset or liability when compared with normal activity to identify transactions that are not orderly.

The highest priority is given to unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Securities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The three hierarchy levels are defined as follows:

Level 1 – Quoted prices in active markets that is unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly;

Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

Credit risk adjustments are applied to reflect the Company’s own credit risk when valuing all liabilities measured at fair value. The methodology is consistent with that applied in developing counterparty credit risk adjustments, but incorporates the Company’s own credit risk as observed in the credit default swap market.

The Company’s financial instruments consist primarily of cash, accounts payable and accrued expenses, and convertible debt. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short-term maturities and approximate market interest rates of these instruments. The estimated fair value is not necessarily indicative of the amounts the Company would realize in a current market exchange or from future earnings or cash flows.

Earnings (Loss) Per Share

Earnings (loss) per share are computed in accordance with ASC 260, “Earnings per Share”. Basic earnings (loss) per share is computed by dividing net income (loss), after deducting preferred stock dividends accumulated during the period, by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities, if any, outstanding during the period. As of December 31, 2017, there were warrants and options to purchase 49,135,392 shares of common stock and the Company’s outstanding convertible debt is convertible into approximately 138,041,561 shares of common stock. These amounts are not included in the computation of dilutive loss per share because their impact is antidilutive.

Accounting for Stock-Based Compensation

The Company accounts for stock awards issued to non-employees in accordance with ASC 505-50, Equity-Based Payments to Non-Employees. The measurement date is the earlier of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty’s performance is complete. Stock awards granted to non-employees are valued at their respective measurement dates based on the trading price of the Company’s common stock and recognized as expense during the period in which services are provided.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required for smaller reporting companies.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

See Index to Financial Statements and Financial Statement Schedules appearing on pages F-1 to F-12 of this annual report on Form 10-K.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

A review and evaluation was performed by the Company’s management, including the Company’s Chief Executive Officer (the “CEO”) and Chief Financial Officer (the “CFO”), as of the end of the period covered by this annual report on Form 10-K, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of the end of the period covered by this annual report. Based on that review and evaluation, the CEO and CFO have concluded that as of December 31, 2017 disclosure controls and procedures were not effective at ensuring that the material information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported as required in the application of SEC rules and forms.

Management’s Report on Internal Controls over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Internal control over financial reporting is a set of processes designed by, or under the supervision of, a company’s principal executive and principal financial officers, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP and includes those policies and procedures that:

•	Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and disposition of our assets;
•	Provide reasonable assurance our transactions are recorded as necessary to permit preparation of our financial statements in accordance with GAAP, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors; and
•	Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. It should be noted that any system of internal control, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system will be met. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our CEO and CFO have evaluated the effectiveness of our internal control over financial reporting as described in Exchange Act Rules 13a-15(e) and 15d-15(e) as of the end of the period covered by this report based upon criteria established in “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). As a result of this evaluation, we concluded that our internal control over financial reporting was not effective as of December 31, 2017 as described below.

We assessed the effectiveness of the Company’s internal control over financial reporting as of evaluation date and identified the following material weaknesses:

Lack of Control Procedures: Due to the Company not having formal Control procedures related to the approval of related party transactions.

Insufficient Resources: We have an inadequate number of personnel with requisite expertise in the key functional areas of finance and accounting.

Inadequate Segregation of Duties: We have an inadequate number of personnel to properly implement control procedures.

Lack of Audit Committee: We do not have a functioning audit committee, resulting in lack of independent oversight in the establishment and monitoring of required internal controls and procedures.

We are committed to improving the internal controls and will (1) consider to use third party specialists to address shortfalls in staffing and to assist us with accounting and finance responsibilities, (2) increase the frequency of independent reconciliations of significant accounts which will mitigate the lack of segregation of duties until there are sufficient personnel and (3) may consider appointing additional outside directors and audit committee members in the future.

We have discussed the material weakness noted above with our independent registered public accounting firm. Due to the nature of these material weaknesses, there is a more than remote likelihood that misstatements which could be material to the annual or interim financial statements could occur that would not be prevented or detected.

This Annual Report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our independent registered public accounting firm pursuant to the rules of the SEC that permit us to provide only management’s report in this annual report.

Changes in Internal Control over Financial Reporting

There have been no changes in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

ITEM 9B. OTHER INFORMATION

None.

PART III

ITEM 10, DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Identification of directors and executive officers.

Set forth below is information regarding the Company’s current directors and executive officers. There are no family relationships between any of our directors or executive officers. The directors are elected annually by stockholders. The executive officers serve at the pleasure of the Board of Directors:

Name	Age	Positions Held and Tenure
B. Michael Friedman	51	Chief Executive Officer and Director

B. Michael Friedman, Chief Executive Officer. From 2009 to March 2016, Mr. B. Michael Friedman had been the Company’s Chief Executive Officer and member of the Company’s Board of Directors. On November 4, 2016, Mr. Friedman was named interim CEO and was appointed to the Board of directors. In February 2010 (inception date) Mr. Friedman founded 800 Commerce and had been the President from inception date until his resignation on February 29, 2016. Mr. Friedman has over 20 years of investment banking experience, particularly in the areas of mergers and acquisitions, manufacturing, marketing, advertising, and licensing. Since 2008 Mr. Friedman operates in a managerial capacity, First Level Capital LLC, a mergers and acquisitions and financial consulting firm located in Los Angeles, California. Mr. Friedman received his Bachelor of Science (BS) in Marketing and Management in 1986 from the University of Florida, in Gainesville, Florida.

Involvement in Certain Legal Proceedings

No director, executive officer, significant employee or control person of the Company has been involved in any legal proceeding listed in Item 401(f) of Regulation S-K in the past 10 years.

Code of Ethics

We adopted a Code of Ethics for Senior Financial Management to promote honest and ethical conduct and to deter wrongdoing. This Code applies to our Chief Executive Officer and Chief Financial Officer and other employees performing similar functions. The obligations of the Code of Ethics supplement, but do not replace, any other code of conduct or ethics policy applicable to our employees generally.

Under the Code of Ethics, all members of the senior financial management shall:

•	Act honestly and ethically in the performance of their duties at our company,
•	Avoid actual or apparent conflicts of interest between personal and professional relationships,
•	Provide full, fair, accurate, timely and understandable disclosure in reports and documents that we file with, or submits to, the SEC and in other public communications by our company,
•	Comply with rules and regulations of federal, state and local governments and other private and public regulatory agencies that effect the conduct of our business and our financial reporting,
•	Act in good faith, responsibly, with due care, competence and diligence, without misrepresenting material facts or allowing the member’s independent judgment to be subordinated
•	Respect the confidentiality of information in the course of work, except when authorized or legally obtained to disclosure such information,
•	Share knowledge and maintain skills relevant to carrying out the member’s duties within our company,
•	Proactively promote ethical behavior as a responsible partner among peers and colleagues in the work environment and community,
•	Achieve responsible use of and control over all assets and resources of our company entrusted to the member, and
•	Promptly bring to the attention of the Chief Executive Officer any information concerning (a) significant deficiencies in the design or operating of internal controls which could adversely affect to record, process, summarize and report financial data or (b) any fraud, whether or not material, that involves management or other employees who have a significant role in our financial reporting or internal controls.

Corporate Governance

During the quarter ended December 31, 2017, there were no material changes to procedures by which security holders may recommend nominees to our board of directors.

We currently have no standing audit, nominating or compensation committees of our board of directors. Our entire board of directors currently performs these functions. The functions of those committees are being undertaken by our officers and directors. Because we do not have any independent directors, our officers and directors believe that the establishment of committees of the Board would not provide any benefits to our company and could be considered more form than substance.

Director Independence

None of the members of our Board of Directors qualifies as an independent director in accordance with the published listing requirements of the NASDAQ Global Market. The NASDAQ independence definition includes a series of objective tests, such as that the director is not, and has not been for at least three years, one of our employees and that neither the director, nor any of his family members has engaged in various types of business dealings with us. In addition, our Board has not made a subjective determination as to each director that no relationships exist which, in the opinion of our Board, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director, though such subjective determination is required by the NASDAQ rules. Had our Board of Directors made these determinations, our Board would have reviewed and discussed information provided by the directors and us with regard to each director’s business and personal activities and relationships as they may relate to us and our management.

In performing the functions of the audit committee, our board oversees our accounting and financial reporting process. In this function, our board performs several functions. Our board, among other duties, evaluates and assesses the qualifications of the Company’s independent auditors; determines whether to retain or terminate the existing independent auditors; meets with the independent auditors and financial management of the Company to review the scope of the proposed audit and audit procedures on an annual basis; reviews and approves the retention of independent auditors for any non-audit services; reviews the independence of the independent auditors; reviews with the independent auditors and with the Company’s financial accounting personnel the adequacy and effectiveness of accounting and financial controls and considers recommendations for improvement of such controls; reviews the financial statements to be included in our annual and quarterly reports filed with the Securities and Exchange Commission; and discusses with the Company’s management and the independent auditors the results of the annual audit and the results of our quarterly financial statements.

Our board as a whole considers executive officer compensation, and our entire board participates in the consideration of director compensation. Our board as a whole oversees our compensation policies, plans and programs, reviews and approves corporate performance goals and objectives relevant to the compensation of our executive officers, if any, and reviews the compensation and other terms of employment of our Chief Executive Officer and our other executive officers. Our board also administers our equity incentive and stock option plans, if any.

Each of our directors participates in the consideration of director nominees. In addition to nominees recommended by directors, our board will consider nominees recommended by shareholders if submitted in writing to our secretary. Our board believes that any candidate for director, whether recommended by shareholders or by the board, should be considered on the basis of all factors relevant to our needs and the credentials of the candidate at the time the candidate is proposed. Such factors include relevant business and industry experience and demonstrated character and judgment.

Compliance with Section 16(a) of the Securities Exchange Act of 1934

Section 16(a) of the Securities Exchange Act of 1934, as amended, requires our executive officers and directors, and persons who beneficially own more than 10% of a registered class of our equity securities to file with the SEC initial statements of beneficial ownership, reports of changes in ownership and annual reports concerning their ownership of our common shares and other equity securities, on Forms 3, 4 and 5 respectively. Executive officers, directors and greater than 10% shareholders are required by the SEC regulations to furnish us with copies of all Section 16(a) reports they file. Based solely upon a review of such reports, and on written representations from certain reporting persons, the Company believes that, with respect to the fiscal year ended December 31, 2017, each director, executive officer and 10% stockholder made timely filings of all reports required by Section 16 of the Exchange Act.

ITEM 11. EXECUTIVE COMPENSATION.

The following tables set forth all of the compensation awarded to, earned by or paid to: (i) each individual serving as our principal executive officer; and (ii) each other individual that served as an executive officer at the conclusion of the fiscal year ended December 31, 2017 and who received in excess of $100,000.

Summary Compensation Table

Name & Principal Position	Year		Salary		Stock Awards (2)		Option Awards		All Other Compensation		Total
B. Michael Friedman (1)		2017	$	150,000	$	301,000	$	—	$	—	$	451,000
Chief Executive Officer and Chief Financial Officer		2016	$	150,000	$	—	$	—	$	—	$	150,000

(1)

(2)

Mr. Friedman resigned as an officer and director of the Company effective March 20, 2015 and was re-appointed and named interim CEO and as a member of the BOD on November 4, 2015. Effective January 1, 2013, the Company agreed to an annual compensation of $150,000 for its CEO, Mr. Michael Friedman (resigned March 20, 2015, re-appointed November 4, 2015).

On January 30, 2017, the Company issued 10,000,000 shares of common stock to the Company’s CEO. The shares were issued for services performed as the sole Officer and director of the Company since November 2014. The Company valued the shares at $0.0301 per share (the market price of the common stock) and for the year ended December 31, 2017, recorded stock compensation expense, management, of $301,000.

We do not presently have pension, health, annuity, insurance, profit sharing or similar benefit plans; however, we may adopt plans in the future. There are presently no personal benefits available to our directors and officers.

Employment Agreements; Termination of Employment and Change of Control Arrangements

There are no current employment agreements between the Company and our executive officers or understandings regarding future compensation. There are no compensatory plans or arrangements, including payments to be received from the Company, with respect to any person named in the summary compensation table set out above which would in any way result in payments to any such person because of his resignation, retirement, or other termination of such person’s employment with the Company or its subsidiaries, or any change in control of the Company, or a change in the person’s responsibilities following a changing in control of the Company.

Outstanding Equity Awards at Fiscal Year-End

Other than the awards included in the Summary Compensation Table above, no executive officer received any equity awards during 2017, or holds exercisable or unexercisable options, as of December 31, 2017.

Long-Term Incentive Plans

There are no arrangements or plans in which the Company would provide pension, retirement or similar benefits for directors or executive officers.

Compensation Committee

We currently do not have a compensation committee of our Board of Directors. The Board as a whole determines executive compensation.

Director Compensation

We do not pay fees to our directors for attendance at meetings of the board; however, we may adopt a policy of making such payments in the future. We will reimburse out-of-pocket expenses incurred by directors in attending board and committee meetings.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The following table sets forth information known to the Company with respect to the beneficial ownership (as such term is defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended) of the outstanding common stock of the Company as of March 31, 2018 by: (1) each person known by the Company to beneficially own 5% or more of the Company’s outstanding common stock; (2) each of the named executive officers as defined in Item 402(m)(2); (3) each of the Company’s directors; and (4) all of the Company’s executive officers and directors as a group. The number of shares beneficially owned is determined under rules promulgated by the SEC, and the information is not necessarily indicative of beneficial ownership for any other purpose. Including those shares in the tables does not, however, constitute an admission that the named stockholder is a direct or indirect beneficial owner of those shares.

	Common Stock			Series B Preferred Stock
Name and Address of Beneficial Owner	Amount and Nature of Beneficial Ownership	Percent of Class (1)		Amount and Nature of Beneficial Ownership	Percent of Class (2)
B. Michael Friedman 777 Brickell Avenue, Suite 500 Miami, FL 33131	38,000,778	4.9	%	1,000	100	%

All directors and executive officers as a group – 1 person	38,000,778	4.9	%	1,000	100	%

(1)	Based on a total of an aggregate of 779,245,512 shares of common stock outstanding.
(2)	Based on 1,000 shares of Series B preferred stock outstanding.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

Management fees

Effective January 1, 2013, the Company agreed to an annual compensation of $150,000 for its CEO, Mr. Michael Friedman (resigned March 20, 2015, re-appointed November 4, 2015).

For the years ended December 31, 2017 and 2016, the Company recorded expenses to its officers the following amounts included in Administrative and Management Fees in the consolidated statements of operations, included herein:

		2017				2016
Mr. Friedman		$	150,000			$	150,000

As of December 31, 2017, and 2016, the Company owed to its officers the following amounts, included in Due to related party on the Company’s consolidated balance sheet:

		2017				2016
Mr. Friedman		$	7,715			$	54,246

Effective June 26, 2015, the Company issued 1,000 shares of Class B Preferred Stock (super voting rights, non-convertible securities) to Mr. Friedman, resulting in Mr. Friedman having majority control in determining the outcome of all corporate transactions subject to vote, including the election of officers.

Agreements with prior management

In December 2011 the Company issued a $50,000 convertible promissory note as part of a guaranty fee due to a Company that is affiliated with a former officer of the Company. Terms of the note include an eight percent per annum interest rate and the note matured on the one year anniversary on December 20, 2012. Additionally, the holder of the Note has the right to convert the note into shares of common stock of the Company at a conversion price equal to eighty percent (80%) of the lowest closing bid price of the common stock within five (5) days of the conversion. On March 31, 2013, the Company and the noteholder elected to convert the remaining balance of the note of $32,000 and accrued and unpaid interest of $6,060 into 369,928 shares of common stock.

Also in December 2011, the Company agreed to pay an additional $50,000 in common stock, which is included in accounts payable and accrued expenses on the December 31, 2016 and 2015 balance sheets.

Amounts Due from 800 Commerce, Inc.

As of December 31, 2012, the Company owned 6,000,000 shares of 800 Commerce’s (now known as Petrogress, Inc.) common stock, representing approximately 32% of 800 Commerce’s outstanding common stock. Effective September 4, 2013, Agritek distributed the 6,000,000 shares of the Company’s common stock to their shareholders of record as of September 3, 2013. Through February 29, 2016, the Company and 800 Commerce were commonly controlled due to common management and board members. 800 Commerce owes Agritek $282,947 and $236,759 as of February 29, 2016 and December 31, 2015, respectively, as a result of advances received from or payments made by Agritek on behalf of 800 Commerce. In February 2016, the Company entered into a Debt Settlement Agreement (the “Settlement Agreement”) with Petrogress, Inc. whereby the Company accepted 1,101,642 shares of common stock of Petrogress in settlement of the amount due. Based on the market value of the Petrogress common stock on the date of the Settlement Agreement, the Company recognized a loss of $266,422 for the year ended December 31, 2015. Based on the market price of the Petrogress common stock as of December 31, 2017 and 2016, the Company recorded unrealized gains on marketable securities of $2,093 and $23,244 for the years ended December 31, 2017, and 2016, respectively.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The following table shows the fees that were billed for the audit and other services provided by our auditors for the years ended December 31, 2017 and 2016.

	2017		2016
Audit Fees	$	47,000	$	33,000
Audit-Related Fees		—		—
Tax Fees		—		—
All Other Fees		—		—
Total	$	47,000	$	33,000

Audit Fees — This category includes the audit of our annual financial statements, review of financial statements included in our Quarterly Reports on Form 10-Q and services that are normally provided by the independent registered public accounting firm in connection with engagements for those fiscal years. This category also includes advice on audit and accounting matters that arose during, or as a result of, the audit or the review of interim financial statements.

Audit-Related Fees — This category consists of assurance and related services by the independent registered public accounting firm that are reasonably related to the performance of the audit or review of our financial statements and are not reported above under “Audit Fees.” The services for the fees disclosed under this category include consultation regarding our correspondence with the SEC and other accounting consulting.

Tax Fees — This category consists of professional services rendered by our independent registered public accounting firm for tax compliance and tax advice.

All Other Fees — This category consists of fees for other miscellaneous items.

Our board of directors has adopted a procedure for pre-approval of all fees charged by our independent registered public accounting firm. Under the procedure, the board approves the engagement letter with respect to audit, tax and review services. Other fees are subject to pre-approval by the board. All audit and permissible non-audit services provided by the auditors with respect to 2015 and 2014 were pre-approved by the board of directors.

PART IV

ITEM 15. EXHIBITS AND REPORTS.

(a)	1.	Financial Statements

		The consolidated financial statements and Report of Independent Registered Public Accounting Firms are included on pages F-1 through F-22.

	2.	Financial Statement Schedules

		All schedules for which provisions made in the applicable accounting regulations of the Securities and Exchange Commission (the “Commission”) are either not required under the related instructions, are not applicable (and therefore have been omitted), or the required disclosures are contained in the financial statements included herein.

	3.	Exhibits (including those incorporated by reference).

Exhibit

Number

Description of Exhibit

10.1	Form of Convertible Promissory Note by and between Agritek Holdings, Inc. and Vis Vires Group, Inc. dated February 23, 2015. (Incorporated herein by reference to Exhibit 10.1 as filed on Form 10-Q with the SEC on May 18, 2015).
10.2	Form of 8% Convertible Redeemable Note by and between Agritek Holdings, Inc. and LG Capital Funding, LLC dated March 27, 2015. (Incorporated herein by reference to Exhibit 10.1 as filed on Form 10-Q with the SEC on May 18, 2015).
10.3	Form of 8% Convertible Redeemable Note by and between Agritek Holdings, Inc. and GW Holding Group, LLC dated March 30, 2015. (Incorporated herein by reference to Exhibit 10.1 as filed on Form 10-Q with the SEC on May 18, 2015).
10.4+	Employment and Board of Directors Agreement effective March 20, 2015 by and between Agritek Holdings, Inc. and Justin Braune (Incorporated herein by reference to Exhibit 10.1 as filed on Form 8-K with the SEC on March 20, 2015).
10.5	Deed in Lieu of Foreclosure Agreement dated December 16, 2015, by and among Agritek Holdings, Inc. and Tonaquint, Inc. (Incorporated herein by reference to Exhibit 10.1 as filed on Form 8-K with the SEC on February 12, 2016).
10.6	Replacement Note dated January 5, 2016, issued to LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.2 as filed on Form 8-K with the SEC on February 12, 2016).
10.7	Replacement Note dated January 5, 2016, issued to LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.3 as filed on Form 8-K with the SEC on February 12, 2016).
10.8	Replacement Note dated January 5, 2016, issued to Cerebrus Finance Group, LTD (Incorporated herein by reference to Exhibit 10.4 as filed on Form 8-K with the SEC on February 12, 2016).
10.9	Securities Purchase Agreement dated January 19, 2016, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.5 as filed on Form 8-K with the SEC on February 12, 2016).
10.10	Convertible Redeemable Note dated January 19, 2016, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.6 as filed on Form 8-K with the SEC on February 12, 2016).
10.11	Securities Purchase Agreement dated January 19, 2016, by and between Agritek Holdings, Inc. and Cerebrus Finance Group, LTD. (Incorporated herein by reference to Exhibit 10.7 as filed on Form 8-K with the SEC on February 12, 2016).
10.12	Convertible Redeemable Note dated January 19, 2016, by and between Agritek Holdings, Inc. and Cerebrus Finance Group, LTD (Incorporated herein by reference to Exhibit 10.8 as filed on Form 8-K with the SEC on February 12, 2016).

10.13	Securities Purchase Agreement dated March 23, 2016, by and between Agritek Holdings, Inc. and Cerebrus Finance Group, LTD. (Incorporated herein by reference to Exhibit 10.13 as filed on Form 10-Q with the SEC on May 23, 2016).
10.14	Convertible Redeemable Note dated March 23, 2016, by and between Agritek Holdings, Inc. and Cerebrus Finance Group, LTD (Incorporated herein by reference to Exhibit 10.14 as filed on Form 10-Q with the SEC on May 23, 2016).
10.15	Securities Purchase Agreement dated December 13, 2016 by and between Agritek Holdings, Inc. and LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.1 as filed on Form 8-K with the SEC on December 19, 2016).
10.16	Convertible Redeemable Note dated December 13, 2016, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.2 as filed on Form 8-K with the SEC on December 19, 2016).
10.17	Convertible Redeemable Note Back End dated December 13, 2016, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.3 as filed on Form 8-K with the SEC on December 19, 2016).
10.18	Collateralized Secured Promissory Note dated December 13, 2016, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.4 as filed on Form 8-K with the SEC on December 19, 2016).
10.19	Termination Agreement dated December 13, 2016 by and between Agritek Holdings, Inc. and LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.5 as filed on Form 8-K with the SEC on December 19, 2016).
10.20	Investor Note #1 dated October 31, 2016, by and between Agritek Holdings, Inc. and St. George Investments LLC. (Incorporated herein by reference to Exhibit 10.6 as filed on Form 8-K with the SEC on December 19, 2016).
10.21	Warrant #2 dated October 31, 2016, by and between Agritek Holdings, Inc. and St. George Investments LLC. (Incorporated herein by reference to Exhibit 10.7 as filed on Form 8-K with the SEC on December 19, 2016).
10.22	Securities Purchase Agreement dated January 24, 2017 by and between Agritek Holdings, Inc. and LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.1 as filed on Form 8-K with the SEC on January 31, 2017).
10.23	Convertible Redeemable Note dated January 24, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.2 as filed on Form 8-K with the SEC on January 31, 2017).
10.24	Convertible Redeemable Note Back End dated January 24, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.3 as filed on Form 8-K with the SEC on January 31, 2017).
10.25	Collateralized Secured Promissory Note dated January 24, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.4 as filed on Form 8-K with the SEC on January 31, 2017).
10.26	Securities Purchase Agreement dated January 24, 2017 by and between Agritek Holdings, Inc. and Cerberus Finance Group LTD. (Incorporated herein by reference to Exhibit 10.5 as filed on Form 8-K with the SEC on January 31, 2017).
10.27	Convertible Redeemable Note dated January 24, 2017, by and between Agritek Holdings, Inc. and Cerberus Finance Group LTD. (Incorporated herein by reference to Exhibit 10.6 as filed on Form 8-K with the SEC on January 31, 2017).
10.28	Convertible Redeemable Note Back End dated January 24, 2017, by and between Agritek Holdings, Inc. and Cerberus Finance Group LTD. (Incorporated herein by reference to Exhibit 10.7 as filed on Form 8-K with the SEC on January 31, 2017).
10.29	Collateralized Secured Promissory Note dated January 24, 2017, by and between Agritek Holdings, Inc. and Cerberus Finance Group LTD. (Incorporated herein by reference to Exhibit 10.8 as filed on Form 8-K with the SEC on January 31, 2017).
10.30	Securities Purchase Agreement dated February 1, 2017 by and between Agritek Holdings, Inc. and Power Up Lending Group, LTD.
10.31	Convertible Promissory Note dated February 1, 2017, by and between Agritek Holdings, Inc. and Power Up Lending Group, LTD.

10.32	Securities Purchase Agreement dated February 24, 2017 by and between Agritek Holdings, Inc. and LG Capital Funding, LLC.
10.33	Convertible Redeemable Note dated February 24, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC.
10.34	Convertible Redeemable Note Back End dated February 24, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC.
10.35	Collateralized Secured Promissory Note dated February 24, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC.
10.36	Securities Purchase Agreement dated February 24, 2017 by and between Agritek Holdings, Inc. and Cerberus Finance Group LTD.
10.37	Convertible Redeemable Note dated February 24, 2017, by and between Agritek Holdings, Inc. and Cerberus Finance Group LTD.
10.38	Convertible Redeemable Note Back End dated February 24, 2017, by and between Agritek Holdings, Inc. and Cerberus Finance Group LTD.
10.39	Collateralized Secured Promissory Note dated February 24, 2017, by and between Agritek Holdings, Inc. and Cerberus Finance Group LTD.
10.40	Securities Purchase Agreement dated February 24, 2017 by and between Agritek Holdings, Inc. and LG Capital Funding, LLC.
10.41	Convertible Redeemable Note dated February 24, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC.
10.42	Convertible Redeemable Note Back End dated February 24, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC.
10.43	Collateralized Secured Promissory Note dated February 24, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC.
10.44	Collateralized Secured Promissory Note dated February 24, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC.

10.45	Securities Purchase Agreement dated March 24, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.41 as filed on Form 10-K with the SEC on March 31, 2017).
10.46	Convertible Redeemable Note dated March 24, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.42 as filed on Form 10-K with the SEC on March 31, 2017).
10.47	Convertible Redeemable Note Back-End dated March 24, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.43 as filed on Form 10-K with the SEC on March 31, 2017).
10.48	Collateralized Secured Promissory Note dated March 24, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.44 as filed on Form 10-K with the SEC on March 31, 2017).
10.49	Securities Purchase Agreement dated April 24, 2017 by and between Agritek Holdings, Inc. and Cerberus Finance Group LTD. (Incorporated herein by reference to Exhibit 10.45 as filed on Form 10-Q with the SEC on May 15, 2017).
10.50	Convertible Redeemable Note dated April 24, 2017, by and between Agritek Holdings, Inc. and Cerberus Finance Group LTD. (Incorporated herein by reference to Exhibit 10.46 as filed on Form 10-Q with the SEC on May 15, 2017).
10.51	Convertible Redeemable Note Back-End dated April 24, 2017, by and between Agritek Holdings, Inc. and Cerberus Finance Group LTD. (Incorporated herein by reference to Exhibit 10.47 as filed on Form 10-Q with the SEC on May 15, 2017).
10.52	Securities Purchase Agreement dated May 24, 2017 by and between Agritek Holdings, Inc. and LG Capital Funding, LLC (Incorporated herein by reference to Exhibit 10.48 as filed on Form 10-Q with the SEC on August 14, 2017).
10.53	Convertible Redeemable Note dated May 24, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC (Incorporated herein by reference to Exhibit 10.49 as filed on Form 10-Q with the SEC on August 14, 2017).

10.54	Convertible Redeemable Note Back-End dated May 24, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC (Incorporated herein by reference to Exhibit 10.50 as filed on Form 10-Q with the SEC on August 14, 2017).
10.55	Replacement Note dated June 23, 2017, by and between Agritek Holdings, Inc. and LG Capital Funding, LLC. (Incorporated herein by reference to Exhibit 10.51 as filed on Form 10-Q with the SEC on August 14, 2017).
10.56	Replacement Note dated June 23, 2017, by and between Agritek Holdings, Inc. and Cerberus Finance Group, LTD (Incorporated herein by reference to Exhibit 10.52 as filed on Form 10-Q with the SEC on August 14, 2017).
10.57	Securities Purchase Agreement dated August 7, 2017 by and between Agritek Holdings, Inc. and Power Up Lending Group, LTD. (Incorporated herein by reference to Exhibit 10.53 as filed on Form 10-Q with the SEC on August 14, 2017).
10.58	Convertible Promissory Note dated August 7, 2017, by and between Agritek Holdings, Inc. and Power Up Lending Group, LTD. (Incorporated herein by reference to Exhibit 10.54 as filed on Form 10-Q with the SEC on August 14, 2017).
10.59	Securities Purchase Agreement dated December 20, 2017 by and between Agritek Holdings, Inc. and St. George Investments, LLC. (Incorporated herein by reference to Exhibit 10.1 as filed on Form 8-K with the SEC on February 6, 2018).
10.60	Convertible Promissory Note dated December 20, 2017, by and between Agritek Holdings, Inc. and St. George Investments, LLC. (Incorporated herein by reference to Exhibit 10.2 as filed on Form 8-K with the SEC on February 6, 2018).

31.1*	Rule 13a-14(a)/15d-14(a) Certification of Principal Executive and Financial Officer
32.1*	Section 1350 Certification of Chief Executive Officer and Chief Financial Officer
101.INS*	XBRL Instance
101.SCH*	XBRL Taxonomy Extension Schema
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase
101.DEF*	XBRL Taxonomy Extension Definition Linkbase
101.LAB*	XBRL Taxonomy Extension Labels Linkbase
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase

* Filed herewith.

+ Management contract or compensatory plan or arrangement.

*Filed herewith

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Agritek Holdings, Inc.

By:	/s/ B. Michael Friedman
	B. Michael Friedman
	Chief Executive Officer

Date:	April 17, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date

/s/ B. Michael Friedman	Chief Executive Officer, President and Director (principal executive officer and principal accounting officer)	April 17, 2018
B. Michael Friedman

AGRITEK HOLDINGS, INC.

FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016

INDEX TO FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firms	F-2 – F-3
Balance Sheets as of December 31, 2017 and 2016	F-4
Statements of Operations for the years ended December 31, 2017 and 2016	F-5
Statement of Changes in Stockholders Deficit for the years ended December 31, 2017 and 2016	F-6
Statements of Cash Flows for the years ended December 31, 2017 and 2016	F-7
Notes to Financial Statements	F-8 – F-34

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and

Stockholders of Agritek Holdings, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Agritek Holdings, Inc. (the Company) as of December 31, 2017, and the related consolidated statements of operations, stockholders’ equity (deficit), and cash flows for the year ended December 31, 2017, and the related notes and schedules (collectively referred to as the consolidated financial statements). The financial statements for the period ended December 31, 2016 were audited by other auditors who report expressed an unqualified opinion on the consolidated financial statements. In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2017, and the results of its operations and its cash flows for each of the years in the year ended December 31, 2017, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 14 to the consolidated financial statements, the Company suffered losses from operations which raise substantial doubt about its ability to continue as a going concern. Managements plans regarding those matters are also described in Note 14. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ M&K CPAS, PLLC

We have served as the Company’s auditor since 2017.

Houston, TX

April 17, 2018

F-2

To the Board of Directors and

Agritek Holdings, Inc.

We have audited the accompanying balance sheet of Agritek Holdings, Inc. (the “Company”) as of December 31, 2016 and related statements of operations, stockholders’ deficit, and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Agritek Holdings, Inc. as of December 31, 2016 and the results of its operations and its cash flows for year then ended in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has suffered recurring operating losses, has an accumulated stockholders’ deficit, has negative working capital, has had minimal revenues from operations, and has yet to generate an internal cash flow that raises substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are described in Note 14. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ L&L CPAS, PA

L&L CPAS, PA

Certified Public Accountants

Cornelius, NC

The United States of America

March 31, 2017

F-3

AGRITEK HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

	December 31,
	2017			2016
ASSETS
Current Assets:
Cash and cash equivalents	$	304,889		$	67,260
Marketable Securities		41,862			39,769
Inventory, net		10,000			—
Prepaid assets and other		48,500			10,000
Total current assets		405,251			117,029

Note receivable		210,000			—
Property and equipment, net of accumulated depreciation of $23,824 (2017) and $8,308 (2016)		286,415			26,280
Investments in non-marketable securities		—			50,000
Security deposit and other		13,825			825
Total assets	$	915,491		$	194,134

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:
Accounts payable and accrued expenses	$	1,089,333		$	550,885
Due to related party		7,715			54,246
Customer deposits		2,400			2,400
Deferred rent		24,916			—
Convertible notes payable, net of discount of $494,193 (2017) and $257,034 (2016)		485,250			569,446
Derivative liabilities		5,416,830			1,613,770
Note payable, current portion		51,500			—
Total current liabilities		7,077,944			2,790,747

Commitments and Contingencies

Stockholders' Deficit:
Series B convertible preferred stock, $0.01 par value; 1,000,000 shares authorized, and 1,000 shares issued and outstanding		10			10
Common stock, $.0001 par value; 1,000,000,000 shares authorized; 723,680,348 (2017) and 400,867,449 (2016) shares issued and outstanding		72,369			40,087
Common stock to be issued		5,257
Additional paid-in capital		19,312,650			13,764,813
Deferred expenses		—
Accumulated comprehensive gain		25,337			23,244
Accumulated deficit		(25,578,077	)		(16,424,767	)
Total stockholders' deficit		(6,162,464	)		(2,596,613	)

Total liabilities and stockholders' deficit	$	915,491		$	194,134


See notes to consolidated financial statements.

F-4

AGRITEK HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

		Year Ended December 31,
		2017			2016
Consulting income	$	48,000		$	—
Product revenue		2,000			3,228
Total revenue		50,000			3,228
Cost of revenue, includes $30,000 related party for 2017		64,000			3,161
Gross profit (loss)		(14,000	)		67

Operating Expenses:
Management fees		421,000			150,000
Administrative fees		83,200			13,850
Professional and consulting fees		730,357			161,150
Rent and other occupancy costs		101,279			40,303
Leased property expense		41,546			114,894
Other general and administrative expenses		338,601			127,724

Total operating expenses		1,715,983			607,921

Operating loss		(1,729,983	)		(607,854	)

Other Income (Expense):
Gain (loss) on debt settlement		(114,781	)		84,057
Loss on legal matter		(399,291	)		—
Impairment of investments		(50,000	)		(255,000	)
Interest expense		(1,873,198	)		(742,021	)
Derivative liability expense		(4,986,057	)		(1,457,071	)

Total other expense, net		(7,423,327	)		(2,370,035	)

Net loss	$	(9,153,310	)	$	(2,977,889	)

Unrealized gain on marketable securities		2,093			23,244
Net comprehensive loss	$	(9,151,217	)	$	(2,954,645	)

Basic and diluted loss per share	$	(0.02	)	$	(0.01	)

Weighted average number of common shares outstanding
Basic and diluted		536,650,839			334,772,545


See notes to consolidated financial statements.

F-5

AGRITEK HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT

							Series B Preferred				Additional			Accumulated					Total
	Common stock			Common stock			stock				Paid-in			Comprehensive		Accumulated			Stockholders’
	Shares		Amount	Shares		Amount	Shares		Amount		Capital			Gain		Deficit			Deficiency
Balances January 1, 2016	281,540,332	$	28,155	—	$	—	1,000	$	10	$	12,536,138		$	—	$	(13,446,878	)	$	(882,575	)

Common stock issued upon conversion of convertible debt and accrued interest	114,327,117		11,432	—		—	—		—		179,953			—		—			191,385

Issuance of warrants for services	—		—	—		—	—		—		2,371			—		—			2,371

Issuance of common stock for acquisition	5,000,000		500	—		—	—		—		254,500			—		—			255,000

Reclassification for conversions of convertible debt	—		—	—		—	—		—		791,851			—		—			791,851

Unrealized gain on marketable securities	—		—	—		—	—		—		—			23,244		—			23,244

Net loss	—		—	—		—	—		—		—			—		(2,977,889	)		(2,977,889	)

Balances, December 31, 2016	400,867,449		40,087	—		—	1,000		10		13,764,813			23,244		(16,424,767	)		(2,596,613	)

Common stock issued upon conversion of convertible debt and accrued interest	194,559,519		19,457	—		—	—		—		1,420,638			—		—			1,440,095

Common stock issued for additional interest on convertible notes	1,319,149		132	—		—	—		—		15,962			—		—			16,094

Common stock issued upon settlement of accounts payable	2,000,000		200	—		—	—		—		55,500			—		—			55,700

Issuance of common stock investment in Canadian property	5,000,000		500	—		—	—		—		61,000			—		—			61,500

Common stock issued for services, related party	10,000,000		1,000	—		—	—		—		300,000			—		—			301,000

Amortization of deferred stock compensation	—		—	—		—	—		—		—

Issuance of common stock for services	7,000,000		700	—		—	—		—		157,400			—		—			158,100

Reclassification for conversions of convertible debt	—		—	—		—	—		—		3,007,887			—		—			3,007,887

Common stock to be issued pursuant to Stock Purchase Agreements	—		—	52,574,335		5,257	—		—		539,743			—		—			545,000

Common stock previously cancelled on Company’s records	15,000,000		1,500	—		—	—		—		(1,500	)		—		—			—

Common stock issued upon cashless warrant exercises	87,934,231		8,793	—		—	—		—		—			—		—			8,793

Unrealized gain on marketable securities	—		—	—		—	—		—		—			2,093		—			2,093

Net loss	—		—	—		—	—		—		—			—		(9,153,310	)		(9,153,310	)

Balances, December 31, 2017	723,680,348	$	72,369	52,574,335	$	5,257	1,000	$	10	$	19,312,650		$	25,337	$	(25,578,077	)	$	(6,162,454	)


See notes to consolidated financial statements.

F-6

AGRITEK HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

		Year Ended December 31,
		2017			2016
Cash flow from operating activities:
Net loss	$	(9,153,310	)	$	(2,977,889	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation		520,600			2,371
Common stock issued for additional interest to convertible noteholder		16,091			—
Amortization of deferred financing costs		128,220			—
Impairment of investments		50,000			255,000
Loss on settlement of accounts payable		17,916			—
Depreciation		15,516			3,566
Initial expense for fair value of derivative liabilities		2,223,824			3,249,056
Amortization of discounts on convertible notes		1,587,831			635,780
Change in fair values of derivative liabilities		2,762,231			(1,791,988	)
Gain on debt settlement		—			(84,057	)
Changes in operating assets and liabilities:
Decrease (increase) in :
Inventory		(10,000	)		—
Prepaid assets and other		(38,500	)		(6,667	)
Security deposit		(13,000	)		—
Increase (decrease) in:
Accounts payable and accrued expenses		685,361			234,234
Due to related party		(46,531	)		32,935
Deferred rent		24,916			—
Tenant deposits		—			2,400
Net cash used in operating activities		(1,228,835	)		(445,260	)

Cash flows from investing activities:
Purchase of property, equipment and furniture		(187,651	)		(20,757	)
Purchase of notes receivable		(210,000	)		—
Net cash used in investing activities		(397,651	)		(20,757	)

Cash flows from financing activities:
Proceeds from issuance of convertible debt		1,678,494			521,731
Payments made of principal and accrued interest on convertible notes		(322,879	)		—
Payments made on note payable		(36,500	)		—
Proceeds from sale of common stock to be issued		545,000			—
Net cash provided by financing activities		1,864,115			521,731

Net increase in cash and cash equivalents		237,629			55,711

Cash and cash equivalents, Beginning		67,260			11,548

Cash and cash equivalents, Ending	$	304,889		$	67,260

Supplemental disclosure of cash flow information:
Cash paid for interest	$	1,275		$	—
Cash paid for income taxes	$	—		$	—

Schedule of non-cash financing activities:
Discount from derivatives	$	1,824,892		$	865,593
Accrued interest converted into convertible note	$	6,398		$	—
Conversion of notes payable and interest into common stock	$	1,440,093		$	191,386
Fair value of marketable securities issued in exchange for debt	$	—		$	16,525
Change in fair value for available for sale marketable securities	$	2,093		$	23,244
Issuance of note payable as part of land acquisition	$	88,000		$	—
Settlement of derivatives	$	3,007,887		$	791,851
Stock issued for settlement of accounts payable	$	37,784		$	—
Stock issued for cashless exercise	$	8,793		$	—


See notes to consolidated financial statements.

F-7

FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q contains forward-looking statements regarding our business, financial condition, results of operations and prospects. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements, but are not deemed to represent an all-inclusive means of identifying forward-looking statements as denoted in this quarterly report on Form 10-Q. Additionally, statements concerning future matters are forward-looking statements.

Although forward-looking statements in this quarterly report on Form 10-Q reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our annual report on Form 10-K for the fiscal year ended December 31, 2017, and 2016, in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in quarterly reports on Form 10-Q and in other reports that we file with the Securities and Exchange Commission (the “SEC”). You are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this annual report on Form 10-K.

We file reports with the SEC. The SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including us. You can also read and copy any materials we file with, or furnish to, the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. You can obtain additional information about the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.

We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this quarterly report on Form 10-Q, except as required by law. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this quarterly report, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.

F-8

AGRITEK HOLDINGS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

December 31, 2017 and 2016

Note 1 - Organization

Business

Agritek Holdings Inc. (“the Company” or “Agritek Holdings”) and its wholly-owned subsidiaries, MediSwipe, Inc. (“MediSwipe”), Prohibition Products Inc., and Agritek Venture Holdings, Inc. (“AVHI”) is a fully integrated, active investor and operator in the legal cannabis sector. Specifically, Agritek Holdings provides strategic capital and functional expertise to accelerate the commercialization of its diversified portfolio of holdings. Currently, the Company is focused on three high-value segments of the cannabis market, including real estate investment, intellectual property brands; and infrastructure, with operations in three U.S. States, Colorado, Washington State, California as well as Canada and Puerto Rico. Agritek Holdings invests its capital via real estate holdings, licensing agreements, royalties and equity in acquisition operations.

We provide key business services to the legal cannabis sector including:

	•	Funding and Financing Solutions for Agricultural Land and Properties zoned for the regulated Cannabis Industry.
	•	Dispensary and Retail Solutions
	•	Commercial Production and Equipment Build Out Solutions
	•	Multichannel Supply Chain Solutions
	•	Branding, Marketing and Sales Solutions of proprietary product lines
	•	Consumer Product Solutions

The Company intends to bring its’ array of services to each new state that legalizes the use of cannabis according to appropriate state and federal laws. Our primary objective is acquiring commercial properties to be utilized in the commercial marijuana industry as cultivation facilities in compliance with state laws. This is an essential aspect of our overall growth strategy because once acquired and re-zoned, the value of such real property is substantially higher than under the previous zoning and use.

Agritek’s business focus is primarily to hold, develop and manage real property. The Company shall also provide oversight on every property that is part of its portfolio. This can include complete architectural design and subsequent build-outs, general support, landscaping, general up-keep, and state of the art security systems. At this time, Agritek does not grow, process, own, handle, transport, or sell marijuana as the Company is organized and directed to operate strictly in accordance with all applicable state and federal laws. As the legal environment changes in Colorado, California and other states, the Company’s management may explore business opportunities that involve ownership interests in dispensaries and growing operations if and when such business opportunities become legally permissible under applicable state and federal laws.

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements are prepared in accordance with Generally Accepted Accounting Principles in the United States of America ("US GAAP"). The consolidated financial statements of the Company include the consolidated accounts of Agritek and its’ wholly owned subsidiaries MediSwipe, AVHI, The American Hemp Trading Company, Inc., a Colorado Corporation (dba 77Acres, Inc.) and PPI. PPI, a Florida corporation, was originally formed on July 1, 2013 as The American Hemp Trading Company, Inc. (“HempFL”) and on August 27, 2014, HempFL changed its’ name to PPI. All intercompany accounts and transactions have been eliminated in consolidation.

F-9

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original term of three months or less to be cash equivalents.

Accounts Receivable

The Company records accounts receivable from amounts due from its customers upon the shipment of products. The allowance for losses is established through a provision for losses charged to expenses. Receivables are charged against the allowance for losses when management believes collectability is unlikely. The allowance is an amount that management believes will be adequate to absorb estimated losses on existing receivables, based on evaluation of the collectability of the accounts and prior loss experience. While management uses the best information available to make its evaluations, this estimate is susceptible to significant change in the near term. As of December 31, 2017 and 2016, based on the above criteria, the Company has a full allowance for doubtful accounts of $43,408.

Inventory

Inventory is valued at the lower of cost or market value. Cost is determined using the first in first out (FIFO) method. Provision for potentially obsolete or slow-moving inventory is made based on management analysis or inventory levels and future sales forecasts.

Notes receivable

During the year ended December 31, 2017, the Company has recorded notes receivable the following:

•

Deferred Financing Costs

The costs related to the issuance of debt are capitalized and amortized to interest expense using the straight-line method through the maturities of the related debt.

Derivative Financial Instruments

The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of it financial instruments, including stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income.

For option-based simple derivative financial instruments, the Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period.

Debt Issue Costs and Debt Discount

The Company may record debt issue costs and/or debt discounts in connection with raising funds through the issuance of debt. These costs may be paid in the form of cash, or equity (such as warrants). These costs are amortized to interest expense over the life of the debt. If a conversion of the underlying debt occurs prior to maturity a proportionate share of the unamortized amounts is immediately expensed.

F-10

Original Issue Discount

For certain convertible debt issued, the Company may provide the debt holder with an original issue discount. The original issue discount would be recorded to debt discount, reducing the initial carrying value of the note and is amortized to interest expense through the maturity of the debt. If a conversion of the underlying debt occurs prior to maturity a proportionate share of the unamortized amounts is immediately expensed.

Marketable Securities and Other Comprehensive Income

The Company classifies its marketable securities as available-for-sale securities, which are carried at their fair value based on the quoted market prices of the securities with unrealized gains and losses, net of deferred income taxes, reported as accumulated other comprehensive income (loss), a separate component of stockholders’ equity. Realized gains and losses on available-for-sale securities are included in net earnings in the period earned or incurred.

Investment of Non-Marketable Securities

In 2014, the Company purchased an investment in non-marketable securities of a less than 10% interest in two privately held companies of $25,000 each, that provide merchant processing services. During the year ended December 31, 2017, due to recent losses, management wrote off the investment of $50,000, which is included in Other expenses on the consolidated statements of operations included herein. As of December 31, 2017, and 2016, the balance of the Investment of Non-Marketable Securities and Other was $-0- and $50,000, respectively

Property and Equipment

Property and equipment are stated at cost, and except for land, depreciation is provided by use of a straight-line method over the estimated useful lives of the assets. The Company reviews property and equipment for potential impairment whenever events or changes in circumstances indicate that the carrying amounts of assets may not be recoverable. In February, 2017, the Company entered into a land purchase contract to acquire approximately 80 acres including water and mineral rights. The total cost of the land was $129,555. The Company paid $41,554 at closing and issued a note payable for $88,000. As of December 31, 2017, the Company is on the deed of trust of the property with a remaining note balance of $51,500 due the seller. The estimated useful lives of property and equipment are as follows:

Furniture and equipment	5 years
Manufacturing equipment	7 years

The Company's property and equipment consisted of the following at December 31, 2017, and 2016:

	December 31, 2017			December 31, 2016
Furniture and equipment	$	180,684		$	34,587
Land		129,555			—
Accumulated depreciation		(23,824	)		(8,307	)
Balance	$	286,415		$	26,280

Depreciation expense of $15,516 and $3,566 was recorded for the years ended December 31, 2017, and 2016, respectively.

Long-Lived Assets

Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

F-11

Deferred rent

The Company calculates the total cost of the lease for the entire lease period and divides that amount by the number of months of the lease. The result is the average monthly expense and is charged to rent expense with the offset to deferred rent, irrespective of the actual amount paid. The amounts paid are charged to the deferred rent account. Rent expense of $45,417 for the year ended December 31, 2017, was recorded for the office space in Puerto Rico and the Company made payments of $20,516. As of December 31, 2017, the Company has a balance of $24,916 in deferred rent which is included in the consolidated balance sheet.

Revenue Recognition

The Company recognizes revenue in accordance with FASB ASC 605, Revenue Recognition. ASC 605 requires that four basic criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery of products and services has occurred, (3) the fee is fixed or determinable and (4) collectability is reasonably assured. The Company recognizes revenue during the month in which products are shipped or fees are earned. Consulting revenue of $48,000 and product sales (net) of $2,000 has been recognized for the year ended December 31, 2017.

Fair Value of Financial Instruments

The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level.

The following are the hierarchical levels of inputs to measure fair value:

	☐	Level 1 - Observable inputs that reflect quoted market prices in active markets for identical assets or liabilities.
	☐	Level 2 - Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.
	☐	Level 3 - Unobservable inputs reflecting the Company's assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

The carrying amounts of the Company's financial assets and liabilities, such as cash, prepaid expenses, other current assets, accounts payable and accrued expenses, certain notes payable and notes payable - related party, approximate their fair values because of the short maturity of these instruments.

The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis as of December 31, 2017, and 2016, for each fair value hierarchy level:

December 31, 2017	Derivative Liabilities		Total
Level I	$	—	$	—
Level II	$	—	$	—
Level III	$	5,416,830	$	5,416,830
December 31, 2016
Level I	$	—	$	—
Level II	$	—	$	—
Level III	$	1,613,770	$	1,613,770

F-12

Income Taxes

The Company accounts for income taxes in accordance with ASC 740-10, Income Taxes. Deferred tax assets and liabilities are recognized to reflect the estimated future tax effects, calculated at the tax rate expected to be in effect at the time of realization. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.

ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. Interest and penalties are classified as a component of interest and other expenses. To date, the Company has not been assessed, nor paid, any interest or penalties.

Uncertain tax positions are measured and recorded by establishing a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Only tax positions meeting the more-likely-than-not recognition threshold at the effective date may be recognized or continue to be recognized. The Company’s tax years subsequent to 2005 remain subject to examination by federal and state tax jurisdictions.

Earnings (Loss) Per Share

Earnings (loss) per share are computed in accordance with ASC 260, "Earnings per Share". Basic earnings (loss) per share is computed by dividing net income (loss), after deducting preferred stock dividends accumulated during the period, by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities, if any, outstanding during the period. As of December 31, 2017, there were warrants and options to purchase 49,135,392 shares of common stock and the Company’s outstanding convertible debt is convertible into approximately 138,041,561 shares of common stock. These amounts are not included in the computation of dilutive loss per share because their impact is anti-dilutive.

Accounting for Stock-Based Compensation

The Company accounts for stock awards issued to non-employees in accordance with ASC 505-50, Equity-Based Payments to Non-Employees. The measurement date is the earlier of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty's performance is complete. Stock awards granted to non-employees are valued at their respective measurement dates based on the trading price of the Company’s common stock and recognized as expense during the period in which services are provided. For the year ended December 31, 2017, and 2016 the Company recorded stock- based compensation of $520,600 and $2,371, respectively (See Notes 10 and 11).

Use of Estimates

Advertising

The Company records advertising costs as incurred. For the years ending December 31, 2017, and 2016, advertising expenses was $54,927 and $8,321, respectively.

F-13

Note 3 – Recent Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)”. Under this guidance, an entity is required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. This guidance offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard will have on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is permitted. The Company elected to early adopt the new guidance in the second quarter of fiscal year 2016 which requires us to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The primary impact of adoption was the recognition of additional stock compensation expense and paid-in capital for all periods in fiscal year 2016. Additional amendments to the recognition of excess tax benefits, accounting for income taxes and minimum statutory withholding tax requirements had no impact to retained earnings as of January 1, 2016, where the cumulative effect of these changes is required to be recorded. We have elected to account for forfeitures as they occur to determine the amount of compensation cost to be recognized in each period.

In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230).” ASU No. 2016-18 requires that restricted cash be included with cash and cash equivalents when reconciling the change in cash flow. This guidance is reflected in these financial statements.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which removes the second step of the two-step goodwill impairment test. Under ASU 2017-04, an entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ASU 2017-04 does not amend the optional qualitative assessment of goodwill impairment. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019; early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has not elected early adoption of this standard and is currently in the process of evaluating the impact of adopting ASU 2017-04 and cannot currently estimate the financial statement impact of adoption.

In May 2017, the FASB issued ASU No. 2017-09, “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting.” The amendments in this update provide guidance about which changes to the terms or conditions of a share-based award require an entity to apply modification accounting in Topic 718. The guidance will be effective for the Company for its fiscal year 2018, with early adoption permitted. The Company does not expect this ASU to materially impact the Company’s consolidated financial statements.

Accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption.

F-14

Note 4 – Marketable Securities

The Company owns marketable securities (common stock) as outlined below:

	2017		2016
Balance January 1	$	39,769	$	—
Fair value of stock received		—		16,525
Unrealized gain marked to fair value		2,093		23,244
Balance December 31	$	41,862	$	39,769

800 Commerce, Inc. (now known as Petrogress, Inc), was a commonly controlled entity until February 29, 2016, owed Agritek $282,947 as of February 29, 2016, as a result of advances received from or payments made by Agritek on behalf of 800 Commerce. These advances were non-interest bearing and were due on demand. Effective February 29, 2016, the Company received 1,102,462 shares of common stock of Petrogress, Inc. as settlement of the $282,947 owed to the Company. The market value on the date the Company received the shares of common stock was $16,525.

Note 5 - Prepaid Expenses

Prepaid expenses consisted of the following at December 31, 2017 and December 31, 2016:

	December 31, 2017		December 31, 2016

Vendor deposits	$	46,000	$	6,000
Consulting fees		—		4,000
Investor relations		2,500		—
Total prepaid expenses	$	48,500	$	10,000

Note 6– Concentration of Credit Risk

Cash

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company maintains cash balances at one financial institution, which is insured by the Federal Deposit Insurance Corporation (“FDIC”). The FDIC insured institution insures up to $250,000 on account balances.

Note 7 – Note Payable

Note Payable Land

In February, 2017, the Company entered into a land purchase contract to acquire approximately 80 acres including water and mineral rights. The total cost of the land was $129,555. The Company paid $41,554 at closing and issued a note payable for $88,000. As of December 31, 2017, the Company is on the deed of trust of the property with a remaining note balance of $51,500 due the seller.

F-15

Note 8 – Convertible Debt

2014 Convertible Note

In January 2014, the Company entered into a Secured Promissory Note for $1,660,000 (the “2014 Company Note”) to Tonaquint, Inc. (“Tonaquint”) which includes a purchase price of $1,500,000 and transaction costs of $160,000. On January 31, 2014, the Company received $300,000 of the purchase price. Tonaquint also issued to the Company 6 secured promissory notes, each in the amount of $200,000 (the 2014 “Investor Notes”). All or any portion of the outstanding balance of the 2014 Investor Notes may be prepaid, without penalty, along with accrued but unpaid interest at any time prior to maturity. The Company has no obligation to pay Tonaquint any amounts on the unfunded portion of the 2014 Company Note. The 2014 Company Note bears interest at 8% per annum (increases to 22% per annum upon an event of default) and is convertible into shares of the Company’s common stock at Tonaquint’s option at a price of $0.55 per share, exercisable in seven tranches, consisting of a first tranche of $340,000 of principal and any interest, fees costs or charges, and six additional tranches of $220,000 each, plus any interest, costs, fees or charges.

Beginning on the date that is six (6) months after the later of (i) the Issuance Date, and (ii) the date the Initial Cash Purchase Price is paid to the Company (the “Initial Installment Date”), and on each applicable Installment Date thereafter, the Company is to pay the Holder, the applicable Installment Amount due on such date. Ten Installment Amounts of $166,000 plus the sum of any accrued and unpaid interest, fees, costs or charges may be made (a) in cash (a “Company Redemption”), (b) by converting such Installment Amount into shares of Common Stock (a “Company Conversion”), or (c) by any combination of a Company Conversion and a Company Redemption so long as the entire amount of such Installment Amount due shall be converted and/or redeemed by the Company on the applicable Installment Date. The 2014 Company Note matured fifteen months after the Issuance Date.

As of December 31, 2015, $311,815 of principal and accrued interest of $1,041 is outstanding on the 2014 Company Note.

On January 19, 2016, the Company accepted and agreed to a Debt Purchase Agreement (the “DPA”), whereby LG Capital Funding, LLC (“LG”) acquired $157,500 of the Tonaquint 2014 Convertible Note in exchange for $75,000. The Company issued an 8% Replacement Note to LG for $157,500 (the “First Replacement Note”). The First Replacement Note was due January 19, 2017 and was convertible into shares of the Company’s common stock at any time at the discretion of LG at a variable conversion price (“VCP”). The VCP is calculated as the lowest trading price during the eighteen (18) trading days immediately prior to the conversion date multiplied by fifty eight percent (58%), representing a forty two percent (42%) discount. On January 19, 2016, the Company recorded a debt discount on the note of $157,500 and for the year ended December 31, 2016 recorded amortization expense of $151,813. The principal and interest balance of the First Replacement Note as of December 31, 2016, was $157,500 and $12,145, respectively. During the year ended December 31, 2017, the Company issued 12,268,244 shares of common stock upon the conversion of $157,500 of principal and $13,242 accrued and unpaid interest on the First Replacement Note. For the year ended December 31, 2017, the Company recorded amortization expense of $5,687 on the remaining amount of the debt discount. The shares were issued at approximately $0.014 per share. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.

On January 19, 2016, the Company accepted and agreed to a DPA, whereby Cerberus Finance Group, LTD (“Cerberus”) acquired $154,315 of principal and $2,434 of accrued and unpaid interest of the Tonaquint 2014 Convertible Note in exchange for $75,000. The Company issued an 8% Replacement Note to Cerberus for $156,749 (the “Second Replacement Note”). The Second Replacement Note was due January 19, 2017 and was convertible into shares of the Company’s common stock at any time at the discretion of LG at a VCP. The VCP is calculated as the lowest trading price during the eighteen (18) trading days immediately prior to the conversion date multiplied by fifty eight percent (58%), representing a forty two percent (42%) discount. On January 19, 2016, the Company recorded a debt discount on the note of $156,749 and for the year ended December 31, 2016 recorded amortization expense of $151,432. During the year ended December 31, 2016, the Company issued 13,129,683 shares of common stock upon the conversion of $9,500 of principal and $400 accrued and unpaid interest on the Second Replacement Note. The shares were issued at approximately $0.000754 per share. The principal and interest balance of the Second Replacement Note as of December 31, 2016, was $147,249 and $11,617, respectively. During the year ended December 31, 2017, the Company issued 11,059,977 shares of common stock upon the conversion of $147,249 of principal and $11,749 accrued and unpaid interest on the Second Replacement Note. For the year ended December 31, 2017, the Company recorded amortization expense of $5,317 on the remaining amount of the debt discount. The shares were issued at approximately $0.0144 per share. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.

F-16

2016 Convertible Notes

On January 19, 2016, the Company completed the closing of a private placement financing transaction with LG, pursuant to a Securities Purchase Agreement (the “LG Purchase Agreement”). Pursuant to the LG Purchase Agreement, LG purchased an 8% Convertible Debenture (the “LG Debenture”) in the aggregate principal amount of $76,080, and delivered on January 31, 2016, gross proceeds of $62,500 excluding transaction costs, fees, and expenses. The Company recorded a debt discount of $76,080 and during the year ended December 31, 2016, recorded amortization expense of $72,911. The principal and interest balance of the note as of December 31, 2016 was $76,080 and $5,833, respectively. During the year ended December 31, 2017, the Company issued 28,295,680 shares of common stock upon the conversion of $76,080 of principal and $4,752 accrued and unpaid interest on the note. The shares were issued at approximately $0.0097 per share. During the year ended December 31, 2017, the Company recorded amortization expense of $3,170 for the remaining portion of the debt discount. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.

On January 19, 2016, the Company also issued a back end note to LG, under the same terms and conditions, in the amount of $65,625. The back-end note was funded July 14, 2016, upon the receipt of $62,500, excluding transaction costs, fees and expenses. The Company recorded a debt discount of $65,625 and during the year ended December 31, 2016, recorded amortization expense of $47,396. The principal and interest balance of the note as of December 31, 2016 was $65,625 and $2,465, respectively. During the year ended December 31, 2017, the Company issued 5,432,726 shares of common stock upon the conversion of $65,625 of principal and $3,698 accrued and unpaid interest on the note. The shares were issued at approximately $0.01276 per share. During the year ended December 31, 2017, the Company recorded amortization expense of $34,818 for the remaining portion of the debt discount. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.

On January 19, 2016, the Company completed the closing of a private placement financing transaction with Cerberus, pursuant to a Securities Purchase Agreement (the “Cerberus Purchase Agreement”). Pursuant to the Cerberus Purchase Agreement, Cerberus purchased an 8% Convertible Debenture (the “Cerberus Debenture”) in the aggregate principal amount of $34,775, and delivered on January 25, 2016, gross proceeds of $25,000 excluding transaction costs, fees, and expenses. The Company recorded a debt discount of $34,475 and during the year ended December 31, 2016, recorded amortization expense of $32,843. The principal and interest balance of the note as of December 31, 2016 was $34,775 and $2,496, respectively. During the year ended December 31, 2017, the Company issued 2,953,523 shares of common stock upon the conversion of $34,775 of principal and $3,255 accrued and unpaid interest on the note. The shares were issued at approximately $0.01287 per share. During the year ended December 31, 2017, the Company recorded amortization expense of $1,982 for the remaining portion of the debt discount. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.

On January 19, 2016, the Company also issued a back-end note to Cerberus, under the same terms and conditions, in the amount of $22,000. The back-end note was funded August 1 upon receipt of $20,000, excluding transaction costs, fees and expenses. The Company recorded a debt discount of $22,000 and during the year ended December 31, 2016, recorded amortization expense of $17,294. The principal and interest balance of the note as of December 31, 2016 was $22,000 and $743, respectively. During the year ended December 31, 2017, the Company issued 4,264,903 shares of common stock upon the conversion of $22,000 of principal and $1,500 accrued and unpaid interest on the note. The shares were issued at approximately $0.00551 per share. During the year ended December 31, 2017, the Company recorded amortization expense of $4,706 for the remaining portion of the debt discount. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.

F-17

On March 23, 2016, the Company completed the closing of a private placement financing transaction with Cerberus, pursuant to a Securities Purchase Agreement (the “Cerberus Purchase Agreement”). Pursuant to the Cerberus Purchase Agreement, Cerberus purchased an 8% Convertible Debenture (the “Cerberus Debenture”) in the aggregate principal amount of $22,000, and delivered on March 31, 2016, gross proceeds of $20,000 excluding transaction costs, fees, and expenses. The Company recorded a debt discount of $22,000 and during the year ended December 31, 2016, recorded amortization expense of $16,989. The principal and interest balance of the note as of December 31, 2016 was $22,000 and $1,271, respectively. During the year ended December 31, 2017, the Company issued 3,023,338 shares of common stock upon the conversion of $22,000 of principal and $2,199 accrued and unpaid interest on the note. The shares were issued at approximately $0.008 per share. During the year ended December 31, 2017, the Company recorded amortization expense of $5,011 for the remaining portion of the debt discount. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.

On April 15, 2016, the Company completed the closing of a private placement financing transaction with LG, pursuant to a Securities Purchase Agreement (the “LG Purchase Agreement”). Pursuant to the LG Purchase Agreement, LG purchased an 8% Convertible Debenture (the “LG Debenture”) in the aggregate principal amount of $65,625, and delivered on April 15, 2016, gross proceeds of $62,500 excluding transaction costs, fees, and expenses. The Company recorded a debt discount of $65,625 and during the year ended December 31, 2016, recorded amortization expense of $47,396. The principal and interest balance of the note as of December 31, 2016 was $65,625 and $3,792, respectively. During the year ended December 31, 2017, the Company issued 12,718,484 shares of common stock upon the conversion of $65,625 of principal and $6,535 accrued and unpaid interest on the note. The shares were issued at approximately $0.0057 per share. During the year ended December 31, 2017, the Company recorded amortization expense of $18,229 for the remaining portion of the debt discount. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.

On October 14, 2016, the Company completed the closing of a private placement financing transaction with LG, pursuant to a Securities Purchase Agreement (the “LG Purchase Agreement”). Pursuant to the LG Purchase Agreement, LG purchased an 8% Convertible Debenture (the “LG Debenture”) in the aggregate principal amount of $32,813, and delivered on October 14, 2016, gross proceeds of $30,813 excluding transaction costs, fees, and expenses. The Company recorded a debt discount of $30,813 and during the year ended December 31, 2016, recorded amortization expense of $6,676. The principal and interest balance of the note as of December 31, 2016 was $32,813 and $569, respectively. During the year ended December 31, 2017, the Company issued 6,499,359 shares of common stock upon the conversion of $32,813 of principal and $2,999 accrued and unpaid interest on the note. The shares were issued at approximately $0.00551 per share. During the year ended December 31, 2017, the Company recorded amortization expense of $24,137 for the remaining portion of the debt discount. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.

On October 31, 2016, the Company entered into a Convertible Promissory Note ("St. George 2016 Notes") for $555,000 to St. George Investments, LLC. (“St. George”) which includes a purchase price of $500,000 and transaction costs of $5,000 and OID interest of $50,000. On October 31, 2016, the Company received $100,000 and recorded $115,000 as convertible note payable, including $5,000 of transaction costs and $10,000 OID interest. St. George also issued to the Company eight secured promissory notes, each in the amount of $50,000. All or any portion of the outstanding balance of the St. George 2016 Notes may be prepaid, without penalty, along with accrued but unpaid interest at any time prior to maturity. The Company has no obligation to pay St. George any amounts on the unfunded portion of the St. George 2016 Notes. The St. George 2016 Note bears interest at 10% per annum (increases to 22% per annum upon an event of default) and is convertible into shares of the Company’s common stock at St. George’s option at a price of $0.05 per share. On December 14, 2016, St. George funded one of the secured promissory notes issued to the Company. During the year ended December 31, 2016, the Company recorded debt discounts of $150,000 and during the year ended December 31, 2016, recorded amortization expense of $25,416. The principal and interest balance of the note as of December 31, 2016 was $170,000 and $1,933, respectively. During the year ended December 31, 2017, St. George funded the remaining secured promissory notes issued to the Company. During the year ended December 31, 2017, the Company recorded debt discounts of $350,000 and during the year ended December 31, 2017, recorded amortization expense of $474,584. During the year ended December 31, 2017, the Company issued 46,631,979 shares of common stock upon the conversion of $241,756 of principal and $21,249 accrued and unpaid interest on the note. The shares were issued at approximately $0.00564 per share. The principal and interest balance of the note as of December 31, 2017, was $313,244 and $1,946, respectively.

F-18

Beginning on the date that is six (6) months after the later of (i) the Issuance Date, and (ii) the date the Initial Cash Purchase Price is paid to the Company (the “Initial Installment Date”), and on each applicable Installment Date thereafter, the Company is to pay the Holder, the applicable Installment Amount due on such date. Five Installment Amounts of $111,000 plus the sum of any accrued and unpaid interest, fees, costs or charges may be made (a) in cash (a “Company Redemption”), (b) by converting such Installment Amount into shares of Common Stock (a “Company Conversion”), or (c) by any combination of a Company Conversion and a Company Redemption so long as the entire amount of such Installment Amount due shall be converted and/or redeemed by the Company on the applicable Installment Date. The St. George 2016 Note matures fifteen months after the Issuance Date.

On December 15, 2016, the Company completed the closing of a private placement financing transaction with LG, pursuant to a Securities Purchase Agreement (the “LG Purchase Agreement”). Pursuant to the LG Purchase Agreement, LG purchased an 8% Convertible Debenture (the “LG Debenture”) in the aggregate principal amount of $32,813, and delivered on December 15, 2016, gross proceeds of $30,813 excluding transaction costs, fees, and expenses. During the year ended December 31, 2016, the Company recorded a debt discount of $32,813 and during the year ended December 31, 2016, recorded amortization expense of $1,369. The principal and interest balance of the note as of December 31, 2016 was $32,813 and $117, respectively. During the year ended December 31, 2017, the Company issued 5,980,387 shares of common stock upon the conversion of $32,813 of principal and $2,567 accrued and unpaid interest on the note. The shares were issued at approximately $0.005916 per share. During the year ended December 31, 2017, the Company recorded amortization expense of $29,443 for the remaining portion of the debt discount. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.

Also, on December 15, 2016, the Company issued to LG, a back-end note under the same terms and conditions, in the amount of $32,813. On September 28, 2017, the back-end note was funded upon receipt of $30,813, excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $30,813 and during the year ended December 31, 2017, recorded amortization expense of $30,813. During the year ended December 31, 2017, the Company issued 5,793,378 shares of common stock upon the conversion of $32,813 of principal and $453 accrued and unpaid interest on the note. The shares were issued at approximately $0.005742 per share. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.

Principal and interest on the above LG and Cerberus convertible debentures is due and payable one year from their respective funding date, and the LG and Cerberus Debentures are convertible into shares of the Company’s common stock at any time at the discretion of LG and Cerberus, respectively, at a VCP. The VCP is calculated as the lowest trading price during the eighteen (18) trading days immediately prior to the conversion date multiplied by fifty eight percent (58%), representing a forty two percent (42%) discount.

The Company determined that the conversion feature of the 2016 Convertible Notes represent an embedded derivative since the Notes are convertible into a variable number of shares upon conversion. Accordingly, the 2016 Convertible Notes were not considered to be conventional debt under ASC 815-40 (formerly EITF 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock) and the embedded conversion feature was bifurcated from the debt host and accounted for as a derivative liability. Accordingly, the fair value of these derivative instruments being recorded as a liability on the consolidated balance sheet with the corresponding amount recorded as a discount to each Note. Such discount is being amortized from the date of issuance to the maturity dates of the Notes. The change in the fair value of the liability for derivative contracts are recorded in other income or expenses in the consolidated statements of operations at the end of each quarter, with the offset to the derivative liability on the balance sheet. The embedded feature included in the 2016 Convertible Notes resulted in an initial debt discount of $865,593, an initial derivative liability expense of $2,317,830 and an initial derivative liability of $3,183,423. Amortization of debt discount on the notes issued in 2016 was $257,033 and $608,560 for the years ended December 31, 2017 and 2016, respectively.

F-19

2017 Convertible Notes

On January 24, 2017, the Company completed the closing of a private placement financing transaction with LG, pursuant to a Securities Purchase Agreement (the “LG Purchase Agreement”). Pursuant to the LG Purchase Agreement, LG purchased an 8% Convertible Debenture (the “LG Debenture”) in the aggregate principal amount of $94,500, and delivered on January 25, 2017, gross proceeds of $90,000 excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $90,000 and during the year ended December 31, 2017, recorded amortization expense of $90,000. During the year ended December 31, 2017, the Company issued 17,440,037 shares of common stock upon the conversion of $94,500 of principal and $6,051 accrued and unpaid interest on the note. The shares were issued at approximately $0.00577 per share. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion. Also, on January 24, 2017, the Company issued to LG, a back-end note under the same terms and conditions, in the amount of $94,500. On June 26, 2017, the back-end note was funded upon receipt of $90,000, excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $86,340 and during the year ended December 31, 2017, recorded amortization expense of $86,340. During the year ended December 31, 2017, the Company issued 13,697,874 shares of common stock upon the conversion of $94,500 of principal and $2,178 accrued and unpaid interest on the back-end note. The shares were issued at approximately $0.00706 per share. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.

On January 24, 2017, the Company completed the closing of a private placement financing transaction with Cerberus, pursuant to a Securities Purchase Agreement (the “Cerberus Purchase Agreement”). Pursuant to the Cerberus Purchase Agreement, Cerberus purchased an 8% Convertible Debenture (the “Cerberus Debenture”) in the aggregate principal amount of $63,000, and delivered on January 25, 2017, gross proceeds of $60,000 excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $60,000 and during the year ended December 31, 2017, recorded amortization expense of $60,000. During the year ended December 31, 2017, the Company issued 11,586,452 shares of common stock upon the conversion of $63,000 of principal and $3,357 accrued and unpaid interest on the note. The shares were issued at approximately $0.00573 per share. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion. Also, on January 24, 2017, the Company issued to Cerberus, a back-end note under the same terms and conditions, in the amount of $63,000. On June 30, 2017, the back-end note was funded upon receipt of $60,000, excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $56,340 and during the year ended December 31, 2017, recorded amortization expense of $53,367. The principal and interest balance of the back-end note as of December 31, 2017 was $63,000 and $2,632, respectively.

F-20

On February 1, 2017, the Company completed the closing of a private placement financing transaction with Power Up Lending Group, LTD (“Power Up”), pursuant to a Securities Purchase Agreement (the “Power Up Purchase Agreement”). Pursuant to the Power Up Purchase Agreement, Power Up purchased an 12% Convertible Debenture (the “Power Up Debenture”) in the aggregate principal amount of $140,000, and delivered on February 3, 2017 (the “Funding Date”), gross proceeds of $136,500 excluding transaction costs, fees, and expenses. Principal and interest on the Power Up Debentures is due and payable on November 5, 2017, and the Power Up Debenture is convertible into shares of the Company’s common stock beginning six months from the Funding Date, at a VCP. The VCP is calculated as the average of the three (3) lowest closing bid price during the ten (10) trading days immediately prior to the conversion date multiplied by fifty eight percent (58%), representing a forty two percent (42%) discount. During the year ended December 31, 2017, the Company recorded a debt discount of $136,500 and during the year ended December 31, 2017, recorded amortization expense of $136,500. The Company may prepay the Power Up Debenture, subject to prior notice to the holder within an initial 30-day period after issuance, by paying an amount equal to 120% multiplied by the amount that the Company is prepaying. For each additional 30-day period the amount being prepaid is multiplied by an additional 5%, up to a maximum of 140% on the 180^th day from issuance. Beginning on the 180^th day after the issuance of the Debentures, the Company is not permitted to prepay the Debenture, so long as the Debenture is still outstanding, unless the Company and the holder agree otherwise in writing. On June 23, 2017, the Company accepted and agreed to Assignment Agreements (‘AA”), whereby, Power Up assigned $70,000 of their note to LG, and $70,000 of their note to Cerberus. As part of the AA, the Company agreed to pay Power Up $65,000. The Company issued an 8% Replacement Note to LG for $73,198 (the “First Power Up Replacement Note”), and an 8% Replacement Note to Cerberus for $73,198 (the “Second Power Up Replacement Note”) The First and Second Power Up Replacement Notes are due June 23, 2018 and are convertible into shares of the Company’s common stock at any time at the discretion of LG and Cerberus, respectively, at a VCP. The VCP is calculated as the lowest trading price during the eighteen (18) trading days immediately prior to the conversion date multiplied by fifty eight percent (58%), representing a forty two percent (42%) discount. During the year ended December 31, 2017, the Company recorded a debt discount of $73,198 for the First Power up Replacement Note and during the year ended December 31, 2017, recorded amortization expense of $73,198. During the year ended December 31, 2017, the Company issued 12,721,391 shares of common stock upon the conversion of $73,198 of principal and $967 accrued and unpaid interest on the First Power Up Replacement Note. The shares were issued at approximately $0.00583 per share. The principal balance of the First Power Up Replacement Note as of December 31, 2017 was $-0-. During the year ended December 31, 2017, the Company recorded a debt discount of $73,198 for the Second Power up Replacement Note and during the year ended December 31, 2017, recorded amortization expense of $38,836. The principal and interest balance of the Second Power Up Replacement Note as of December 31, 2017 was $73,199 and $3,107 respectively.

On February 24, 2017, the Company completed the closing of a private placement financing transaction with LG. Pursuant to the LG Purchase Agreement, LG purchased an 8% Convertible Debenture in the aggregate principal amount of $26,000, and delivered on February 24, 2017, gross proceeds of $24,000 excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $24,000 and during the year ended December 31, 2017, recorded amortization expense of $24,000. On December 29,2017, the Company paid LG $35,421 to redeem the note, including $7,723 of excess over principal and interest due. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.

On February 24, 2017, the Company completed the closing of a private placement financing transaction with Cerberus, pursuant to a Securities Purchase Agreement (the “Cerberus Purchase Agreement”). Pursuant to the Cerberus Purchase Agreement, Cerberus purchased an 8% Convertible Debenture (the “Cerberus Debenture”) in the aggregate principal amount of $17,500, and delivered on February 27, 2017, gross proceeds of $16,000 excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $16,000 and during the year ended December 31, 2017, recorded amortization expense of $13,644. The principal and interest balance of the note as of December 31, 2017 was $17,500 and $1,206, respectively. Also, on February 24, 2017, the Company issued to Cerberus, a back-end note under the same terms and conditions, in the amount of $17,500. On December 7, 2017, the back-end note was funded upon receipt of $16,000, excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $16,000 and during the year ended December 31, 2017, recorded amortization expense of $4,861. The principal and interest balance of the back-end note as of December 31, 2017 was $17,500 and $80, respectively.

F-21

On March 24, 2017, the Company completed the closing of a private placement financing transaction with LG. Pursuant to the LG Purchase Agreement, LG purchased an 8% Convertible Debenture in the aggregate principal amount of $52,000, and delivered on March 28, 2017, gross proceeds of $49,600 excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $49,400 and during the year ended December 31, 2017, recorded amortization expense of $49,400. On December 29,2017, the Company paid LG $70,376 to redeem the note, including $15,344 of excess over principal and interest due. The principal balance of the note as of December 31, 2017 was $-0-. Also, on March 24, 2017, the Company issued to LG, a back-end note under the same terms and conditions, in the amount of $52,000. On September 28, 2017, the back-end note was funded upon receipt of $49,600, excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $49,400 and during the year ended December 31, 2017, recorded amortization expense of $49,400. During the year ended December 31, 2017, the Company issued 8,939,991 shares of common stock upon the conversion of $52,000 of principal and $889 accrued and unpaid interest on the note. The shares were issued at approximately $0.00592 per share. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.

On April 24, 2017, the Company completed the closing of a private placement financing transaction with Cerberus, pursuant to a Securities Purchase Agreement (the “Cerberus Purchase Agreement”). Pursuant to the Cerberus Purchase Agreement, Cerberus purchased an 8% Convertible Debenture (the “Cerberus Debenture”) in the aggregate principal amount of $42,000, and delivered on May 3, 2017, gross proceeds of $40,000 excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $40,000 and during the year ended December 31, 2017, recorded amortization expense of $40,000. During the year ended December 31, 2017, the Company issued 6,570,945 shares of common stock upon the conversion of $42,000 of principal and $2,209 accrued and unpaid interest on the note. The shares were issued at approximately $0.00673 per share. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.

On May 24, 2017, the Company completed the closing of a private placement financing transaction with LG. Pursuant to the LG Purchase Agreement, LG purchased an 8% Convertible Debenture in the aggregate principal amount of $52,000, and delivered on May 24, 2017, gross proceeds of $49,600 excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $49,400 and during the year ended December 31, 2017, recorded amortization expense of $49,400. On December 29,2017, the Company paid LG $69,545 to redeem the note, including $15,163 of excess over principal and interest due. The principal balance of the note as of December 31, 2017 was $-0-. Also, on May 24, 2017, the Company issued to LG, a back-end note under the same terms and conditions, in the amount of $52,000. On December 4, 2017, the back-end note was funded upon receipt of $49,600, excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $49,400 and during the year ended December 31, 2017, recorded amortization expense of $49,400. On December 29,2017, the Company paid LG $66,718 to redeem the back-end note, including $14,547 of excess over principal and interest due. The principal balance of the back-end note as of December 31, 2017 was $-0-.

On August 8, 2017, the Company completed the closing of a private placement financing transaction with Power Up, pursuant to a Securities Purchase Agreement (the “Power Up Purchase Agreement”). Pursuant to the Power Up Purchase Agreement, Power Up purchased an 12% Convertible Debenture (the “Power Up Debenture”) in the aggregate principal amount of $128,000, and delivered on August 9, 2017 (the “Funding Date”), gross proceeds of $125,000 excluding transaction costs, fees, and expenses. Principal and interest on the Power Up Debentures is due and payable on May 15, 2018, and the Power Up Debenture is convertible into shares of the Company’s common stock beginning six months from the Funding Date, at a VCP. The VCP is calculated as the average of the three (3) lowest closing bid price during the ten (10) trading days immediately prior to the conversion date multiplied by fifty eight percent (58%), representing a forty two percent (42%) discount. During the year ended December 31, 2017, the Company recorded a debt discount of $125,000 and during the year ended December 31, 2017, recorded amortization expense of $125,000. The Company may prepay the Power Up Debenture, subject to prior notice to the holder within an initial 30-day period after issuance, by paying an amount equal to 120% multiplied by the amount that the Company is prepaying. For each additional 30-day period the amount being prepaid is multiplied by an additional 5%, up to a maximum of 140% on the 180^th day from issuance. Beginning on the 180^th day after the issuance of the Debentures, the Company is not permitted to prepay the Debenture, so long as the Debenture is still outstanding, unless the Company and the holder agree otherwise in writing. On December 21,2017, the Company paid Power Up $177,639 to redeem the note, including $44,087 of excess over principal and interest due. The principal balance of the note as of December 31, 2017 was $-0-.

F-22

On December 20, 2017, the Company entered into a Convertible Promissory Note ("St. George 2017 Notes") for $1,105,000 to St. George which includes a purchase price of $1,000,000 and transaction costs of $5,000 and OID interest of $100,000. On December 21, 2017, the Company received $200,000 and recorded $225,000 as convertible note payable, including $5,000 of transaction costs and $20,000 OID interest. St. George also issued to the Company four secured promissory notes, each in the amount of $200,000. All or any portion of the outstanding balance of the St. George 2017 Notes may be prepaid, without penalty, along with accrued but unpaid interest at any time prior to maturity. The Company has no obligation to pay St. George any amounts on the unfunded portion of the St. George 2017 Notes. The St. George 2017 Note bears interest at 10% per annum (increases to 22% per annum upon an event of default) and is convertible into shares of the Company’s common stock at St. George’s option at a price of $0.05 per share. On December 27, 2017, St. George funded $250,000 of the secured promissory notes issued to the Company, and the Company recorded $270,000 as convertible note payable, including $20,000 OID interest. During the year ended December 31, 2017, the Company recorded debt discounts of $450,000 and during the year ended December 31, 2017, recorded amortization expense of $6,637. The principal and interest balance of the St George 2017 Note as of December 31, 2017, was $495,000 and $926, respectively.

Principal and interest on the 2017 LG and Cerberus Debentures above is due and payable one year from their respective funding date, and the LG and Cerberus Debentures are convertible into shares of the Company’s common stock at any time at the discretion of LG and Cerberus, respectively, at a VCP. The VCP is calculated as the lowest trading price during the eighteen (18) trading days immediately prior to the conversion date multiplied by fifty eight percent (58%), representing a forty two percent (42%) discount.

The Company may prepay the 2017 LG and/or the Cerberus Debentures, subject to prior notice to the holder within an initial 30-day period after issuance, by paying an amount equal to 118% multiplied by the amount that the Company is prepaying. For each additional 30-day period the amount being prepaid is multiplied by an additional 6%, up to a maximum of 148% on the 180^th day from issuance. Beginning on the 180^th day after the issuance of the Debentures, the Company is not permitted to prepay the Debenture, so long as the Debenture is still outstanding, unless the Company and the holder agree otherwise in writing.

The Company determined that the conversion feature of the 2017 Convertible Notes represent an embedded derivative since the Notes are convertible into a variable number of shares upon conversion. Accordingly, the 2017 Convertible Notes were not considered to be conventional debt under ASC 815-40 (formerly EITF 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock) and the embedded conversion feature was bifurcated from the debt host and accounted for as a derivative liability. Accordingly, the fair value of these derivative instruments being recorded as a liability on the consolidated balance sheet with the corresponding amount recorded as a discount to each Note. Such discount is being amortized from the date of issuance to the maturity dates of the Notes. The change in the fair value of the liability for derivative contracts are recorded in other income or expenses in the consolidated statements of operations at the end of each quarter, with the offset to the derivative liability on the balance sheet. The embedded feature included in the 2017 Convertible Notes resulted in an initial debt discount of $1,824,991, an initial derivative liability expense of $1,808,511 and an initial derivative liability of $3,633,502. For the ear ended December 31, 2017, the Company recorded amortization expense on the debt discounts of the 2017 Notes of $1,330,798, and there remains $494,193 of unamortized debt discount as of December 31, 2017.

The total amount paid to redeem convertible notes and accrued interest during the year ended December 31, 2017, was $419,699, including $96,864 of excess over principal and interest due.

F-23

Convertible Note Conversions

During the year ended December 31, 2017, the Company issued the following shares of common stock upon the conversions of portions of the Convertible Notes:

Date		Principal Conversion		Interest Conversion		Total Conversion		Conversion Price		Shares Issued		Issued to
	1/10/17	$	73,000	$	5,664	$	78,664	$	0.01595		4,931,912	Cerberus
	1/17/17	$	57,500	$	4,562	$	62,062	$	0.01537		4,037,878	LG
	1/27/17	$	48,129	$	3,914	$	52,043	$	0.01276		4,078,598	Cerberus
	2/8/17	$	60,000	$	5,050	$	65,050	$	0.012934		5,029,369	LG
	2/27/17	$	26,120	$	2,171	$	28,291	$	0.013804		2,049,467	Cerberus
	3/10/17	$	40,000	$	3,630	$	43,630	$	0.01363		3,200,997	LG
	3/27/17	$	34,775	$	3,255	$	38,030	$	0.012876		2,953,523	Cerberus
	3/28/17	$	65,625	$	3,697	$	69,322	$	0.01276		5,432,725	LG
	4/25/17	$	76,081	$	4,752	$	80,833	$	0.009744		8,295,680	LG
	5/10/17	$	22,000	$	2,199	$	24,199	$	0.008		3,023,338	Cerberus
	5/10/17	$	20,640	$	9,360	$	30,000	$	0.0075		4,000,000	St Georges
	5/25/17	$	29,052	$	947	$	30,000	$	0.00564		5,319,149	St Georges
	6/6/17	$	32,813	$	2,999	$	35,811	$	.00551		6,499,359	LG
	6/8/17	$	34,100	$	900	$	35,000	$	0.00564		6,205,674	St Georges
	6/9/17	$	22,000	$	1,500	$	23,500	$	0.00551		4,264,903	Cerberus
	6/29/17	$	48,849	$	1,151	$	50,000	$	.00564		8,865,248	St Georges
	6/30/17	$	30,625	$	2,960	$	33,585	$	0.0058		5,790,541	LG
	7/17/17	$	37,358	$	733	$	38,091	$	0.00564		6,753,817	St Georges
	7/25/17	$	35,000	$	3,575	$	38,575	$	0.005568		6,927,943	LG
	7/26/17	$	28,000	$	1,117	$	29,117	$	0.005568		5,229,334	Cerberus
	8/15/17	$	35,199	$	409	$	35,608	$	0.0058		6,139,276	LG
	8/29/17	$	38,000	$	558	$	38,558	$	0.005858		6,582,115	LG
	9/19/17	$	34,500	$	665	$	35,165	$	0.008178		4,300,002	LG
	10/9/17	$	30,000	$	710	$	30,710	$	0.007076		4,340,042	LG
	10/23/17	$	30,000	$	802	$	30,802	$	0.006090		5,057,830	LG
	11/6/17	$	28,376	$	6,624	$	35,000	$	0.005640		6,205,674	St Georges
	11/6/17	$	19,500	$	1,218	$	20,718	$	0.005858		3,536,715	LG
	11/13/17	$	35,000	$	2,240	$	37,240	$	0.005858		6,357,118	Cerberus
	11/14/17	$	26,624	$	428	$	27,052	$	0.005640		4,796,452	St Georges
	11/15/17	$	75.000	$	4,833	$	79,833	$	0.005742		13,903,322	LG
	12/1/17	$	32,813	$	453	$	33,266	$	0.005742		5,793,378	LG
	12/5/17	$	16,756	$	1,105	$	17,861	$	0.005640		3,166,816	St Georges
	12/7/17	$	32,813	$	2,567	$	35,380	$	0.005916		5,980,387	LG
	12/15/17	$	52,000	$	889	$	52,889	$	0.005916		8,939,991	LG
	12/28/17	$	42,000	$	2,209	$	44,209	$	0.006728		6,570,945	Cerberus
		$	1,350,247	$	89,846	$	1,440,093				194,559,520

F-24

During the year ended December 31, 2016, the Company issued the following shares of common stock upon the conversion of portions of the 2015 Convertible Notes and accrued interest thereon:

Date		Principal Conversion		Interest Conversion		Total Conversion		Conversion Price		Shares Issued		Issued to
	12/28/16	$	45,000	$	3,511	$	48,511	$	0.015080		3,216,925	LG
	12/13/16	$	9,500	$	400	$	9,900	$	0.000754		13,129,683	Cerberus
	9/26/16	$	8,613	$	629	$	9,242	$	0.001218		7,587,824	LG
	7/29/16	$	7,500	$	801	$	8,301	$	0.000081		10,222,352	LG
	7/20/16	$	9,500	$	995	$	10,495	$	0.000098		10,644,310	LG
	7/12/16	$	9,000	$	927	$	9,927	$	0.000986		10,068,073	LG
	7/1/16	$	8,000	$	805	$	8,805	$	0.001160		7,590,362	LG
	6/22/16	$	5,000	$	973	$	5,973	$	0.001450		4,119,414	GW
	6/20/16	$	10,500	$	1,003	$	11,503	$	0.001450		7,933,377	Cerberus
	6/20/16	$	5,000	$	967	$	5,967	$	0.001450		4,114,879	GW
	6/20/16	$	6,000	$	589	$	6,589	$	0.001450		4,544,241	LG
	6/10/16	$	6,075	$	1,134	$	7,209	$	0.001798		4,009,701	GW
	6/9/16	$	5,000	$	479	$	5,479	$	0.001798		3,047,219	LG
	6/2/16	$	9,000	$	848	$	9,848	$	0.002378		4,141,387	Cerberus
	5/23/16	$	5,000	$	460	$	5,460	$	0.002436		2,241,490	LG
	3/17/16	$	9,000	$	696	$	9,696	$	0.002436		3,980,431	LG
	3/17/16	$	3,000	$	138	$	3,138	$	0.000638		4,918,624	Service
	3/8/16	$	7,425	$	928	$	8,353	$	0.00174		4,800,354	GW
	3/7/16	$	6,500	$	489	$	6,989	$	0.00174		4,016,471	LG
		$	174,613	$	16,772	$	191,385				114,327,117

A summary of the convertible notes payable balance as of December 31, 2017, and 2016 is as follows:

	2017			2016
Beginning Principal Balance	$	826,480		$	472,515
Convertible notes-newly issued		1,813,210			521,731
Conversion of convertible notes (principal)		(1,350,247	)		6,848
Principal payments		(310,000	)		(174,613	)
Unamortized discount		(494,193	)		(257,033	)
Ending Principal Balance, net	$	485,250		$	569,448

Note 9 - Derivative liabilities

As of December 31, 2017, the Company revalued the embedded conversion feature of the 2016 and 2017 Convertible Notes, and warrants (see note 11). The fair value of the 2016 and 2017 Convertible Notes and warrants was calculated at December 31, 2017 based on the Monte Carlo simulation method consistent with the terms of the related debt.

A summary of the derivative liability balance as of December 31, 2017, is as follows:

	Notes			Warrants			Total
Beginning Balance	$	1,410,647		$	203,023	$	1,613,670
Initial Derivative Liability		3,633,502			415,313		4,048,815
Fair Value Change		1,571,986			1,190,244		2,762,230
Reclassified to Additional paid- in capital		(2,184,277	)		—		(2,184,277	)
Reduction for debt assignment		(823,610	)		—		(823,610	)
Ending Balance	$	3,608,250		$	1,808,580	$	5,416,830

F-25

The embedded derivative within Warrant #’s 2 thru 9 (see Note 11) resulted in an initial derivative liability expense and an initial derivative liability of $415,313. The valuation of the embedded derivative within the effective warrants was recorded with an offsetting expense on derivative liabilities.

The fair value at the commitment date for the 2017 Convertible Notes and the re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of December 31, 2017:

	Commitment date		Remeasurement date
Expected dividends		-0-		-0-
Expected volatility		199%-361%		320%-331%
Expected term		12 months		3-12 months
Risk free interest		.65%-1.78%		1.51%-1.79%

The Company evaluated all outstanding warrants to determine whether these instruments may be tainted. All warrants outstanding were considered tainted. The Company valued the embedded derivatives within the warrants using the Black-Scholes valuation model. The fair value at the funding date for Warrant #’s 2-9 and the re-measurement dates for Warrant #’s 1-9 were based upon the following management assumptions:

	Commitment date		Remeasurement date
Expected dividends		-0-		-0-
Expected volatility		203% - 384%		320%
Expected term		3.87 - 4.64 years		3.84 years
Risk free interest		1.72% - 2.05%		1.81%

As of December 31, 2016, the Company revalued the embedded conversion feature of the 2015 and 2016 Convertible Notes. The fair value of the 2015 and 2016 Convertible Notes was calculated at December 31, 2016 based on the Black Scholes method consistent with the terms of the related debt.

A summary of the derivative liability balance as of December 31, 2016 is as follows:

Beginning Balance	$	167,014
Initial Derivative Liability		4,114,649
Fair Value Change		(1,791,988	)
Debt extinguishment		(84,057	)
Reduction for conversions		(791,851	)
Ending Balance	$	1,613,767

F-26

The fair value at the commitment date for the 2016 Convertible Notes and the re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of December 31, 2016:

	Commitment date		Remeasurement date
Expected dividends		-0-		-0-
Expected volatility		243%-268%		246%
Expected term		12 months		1-12 months
Risk free interest		.44%-.68%		.48%-.85%

Note 10 – Related Party Transactions

Effective January 1, 2013, the Company agreed to an annual compensation of $150,000 for its CEO, Mr. Michael Friedman (resigned March 20, 2015, re-appointed November 4, 2015). Effective March 20, 2015, Mr. Justin Braune was named CEO and President. Mr. Braune also was appointed to the Board of Directors. The Company agreed to an annual compensation of $100,000 for Mr. Braune in his role of CEO and Director of the Company and to issue Mr. Braune 15,000,000 shares of restricted common stock. Mr. Braune resigned from the board of directors and as CEO on November 4, 2015, and agreed to cancel the 15,000,000 shares in his letter of resignation. The Company also initially issued Mr. Braune 12,500,000 shares of common stock on October 13, 2015. On October 16, 2015, Mr. Braune advised the Company’s transfer agent at the time to cancel the shares. The Company’s transfer agent has not canceled the shares, and accordingly, as of December 31, 2017, the shares are included in the outstanding shares of the Company. Management has requested that the transfer agent cancel the shares.

For the years ended December 31, 2017 and 2016, the Company recorded expenses of $150,000 to the CEO, included in Management Fees in the consolidated statements of operations, included herein. As of December 31, 2017, and 2016, the Company owed the CEO $7,715 and $54,246, respectively, and is included in due to related party on the Company’s consolidated balance sheet. On January 30, 2017, the Company issued 10,000,000 shares of common stock to the Company’s CEO. The shares were issued for services performed as the sole Officer and director of the Company since November 2014. The shares were valued at $301,000 ($0.0301 per share, the market price of the common stock on the grant date) and are included in Management Fees in the consolidated statements of operations, included herein.

On April 14, 2015, the Company appointed Dr. Stephen Holt to the Advisory Board of the Board of Directors of the Company. The Company issued 5,000,000 shares of restricted common stock to Dr. Holt for his appointment. Additionally, the Company agreed the advisor shall receive a non-qualified stock option to purchase 1,000,000 shares (“Option Shares”) of the Company’s common stock at an exercise price equal to $0.05 per share. 400,000 Option Shares vested immediately and the remaining 600,000 Option Shares vested over 12 months. Accordingly, the Company has recorded $2,371 for the year ended December 31, 2016, in stock compensation expense and all of the options have vested.

On October 5, 2017, the Company agreed to lease from the Company’s CEO, a "420 Style" resort and estate property approximately one hour outside of Quebec City, Canada. The fifteen-acre estate consists of nine (9) unique guest suites, horse stables, and is within walking distance to a public golf course. A separate structure will serve as a small grow facility run by patient employees and caretakers on the property which may be toured by guests of the facility. Pursuant to the agreement, the Company will pay $8,000 per month in exchange for the Company being entitled to all rents and income generated from the property. The Company will be responsible for all costs of the property, including, but not limited to, renovations, repairs and maintenance, insurance and utilities. On August 8, 2017, the Company issued 5,000,000 shares of common stock to the seller. The Company valued the shares at $0.0123 per share (the market price of the common stock) and has included $61,500 in stock- based compensation expense for the year ended December 31, 2017. The Company purchased from the previous owner furniture and fixtures for $96,000. As of December 31, 2017, the Company has not received any rents from the property, as it is renovating the house.

Amounts Due from 800 Commerce, Inc.

800 Commerce, Inc., a commonly controlled entity until February 29, 2016, owed Agritek $282,947 as of February 29, 2016, as a result of advances received from or payments made by Agritek on behalf of 800 Commerce. These advances were non-interest bearing and were due on demand. Effective February 29, 2016, the Company received 1,102,462 shares of common stock of Petrogress, Inc. (formerly known as 800 Commerce, Inc.) as settlement of the $282,947 owed to the Company.

F-27

Note 11 – Common and Preferred Stock

Common Stock

2017 Issuances

During the year ended December 31, 2017, the Company issued the following shares of common stock upon the conversions of portions of the convertible notes:

Date		Principal Conversion		Interest Conversion		Total Conversion		Conversion Price		Shares Issued		Issued to
	1/10/17	$	73,000	$	5,664	$	78,664	$	0.01595		4,931,912	Cerberus
	1/17/17	$	57,500	$	4,562	$	62,062	$	0.01537		4,037,878	LG
	1/27/17	$	48,129	$	3,914	$	52,043	$	0.01276		4,078,598	Cerberus
	2/8/17	$	60,000	$	5,050	$	65,050	$	0.012934		5,029,369	LG
	2/27/17	$	26,120	$	2,171	$	28,291	$	0.013804		2,049,467	Cerberus
	3/10/17	$	40,000	$	3,630	$	43,630	$	0.01363		3,200,997	LG
	3/27/17	$	34,775	$	3,255	$	38,030	$	0.012876		2,953,523	Cerberus
	3/28/17	$	65,625	$	3,697	$	69,322	$	0.01276		5,432,725	LG
	4/25/17	$	76,081	$	4,752	$	80,833	$	0.009744		8,295,680	LG
	5/10/17	$	22,000	$	2,199	$	24,199	$	0.008		3,023,338	Cerberus
	5/10/17	$	20,640	$	9,360	$	30,000	$	0.0075		4,000,000	St Georges
	5/25/17	$	29,052	$	947	$	30,000	$	0.00564		5,319,149	St Georges
	6/6/17	$	32,813	$	2,999	$	35,811	$	.00551		6,499,359	LG
	6/8/17	$	34,100	$	900	$	35,000	$	0.00564		6,205,674	St Georges
	6/9/17	$	22,000	$	1,500	$	23,500	$	0.00551		4,264,903	Cerberus
	6/29/17	$	48,849	$	1,151	$	50,000	$	.00564		8,865,248	St Georges
	6/30/17	$	30,625	$	2,960	$	33,585	$	0.0058		5,790,541	LG
	7/17/17	$	37,358	$	733	$	38,091	$	0.00564		6,753,817	St Georges
	7/25/17	$	35,000	$	3,575	$	38,575	$	0.005568		6,927,943	LG
	7/26/17	$	28,000	$	1,117	$	29,117	$	0.005568		5,229,334	Cerberus
	8/15/17	$	35,199	$	409	$	35,608	$	0.0058		6,139,276	LG
	8/29/17	$	38,000	$	558	$	38,558	$	0.005858		6,582,115	LG
	9/19/17	$	34,500	$	665	$	35,165	$	0.008178		4,300,002	LG
	10/9/17	$	30,000	$	710	$	30,710	$	0.007076		4,340,042	LG
	10/23/17	$	30,000	$	802	$	30,802	$	0.006090		5,057,830	LG
	11/6/17	$	28,376	$	6,624	$	35,000	$	0.005640		6,205,674	St Georges
	11/6/17	$	19,500	$	1,218	$	20,718	$	0.005858		3,536,715	LG
	11/13/17	$	35,000	$	2,240	$	37,240	$	0.005858		6,357,118	Cerberus
	11/14/17	$	26,624	$	428	$	27,052	$	0.005640		4,796,452	St Georges
	11/15/17	$	75,000	$	4,833	$	79,833	$	0.005742		13,903,322	LG
	12/1/17	$	32,813	$	453	$	33,266	$	0.005742		5,793,378	LG
	12/5/17	$	16,756	$	1,105	$	17,861	$	0.005640		3,166,816	St Georges
	12/7/17	$	32,813	$	2,567	$	35,380	$	0.005916		5,980,387	LG
	12/15/17	$	52,000	$	889	$	52,889	$	0.005916		8,939,991	LG
	12/28/17	$	42,000	$	2,209	$	44,209	$	0.006728		6,570,945	Cerberus
		$	1,350,247	$	89,846	$	1,440,093				194,559,520

F-28

In addition to the above, during the year ended December 31, 2017, the Company:

On January 27, 2017, the Company issued 1,000,000 shares of restricted common stock to Kopelowitz Ostrow P.A. (“KO”) pursuant to a Debt Settlement and Release Agreement (the “Debt Settlement”) by and between the Company and KO. Among the terms of the Debt Settlement was the forgiveness of $24,614 of debt the Company owed KO for legal services provided. The Company valued the shares at $0.0257 per share (the market price of the common stock) and recorded a loss on the settlement of accounts payable for the year ended December 31, 2017, of $1,086.

On January 30, 2017, the Company issued 1,000,000 shares of common stock to Venture Equity. The Company valued the shares at $0.03 per share (the market price of the common stock) and cancelled of $13,169 of accrued and unpaid fees owed Venture Equity and recorded a loss on the settlement of accounts payable for the year ended December 31, 2017, of $16,831.

On June 19, 2017, the Company issued 1,319,149 shares of common stock valued at $16,094 to St. George pursuant to the “true-up” terms and conditions of the St. George note.

During the year ended December 31, 2017, the Company issued 87,934,231 shares of common stock to St. George pursuant to Notices of Exercise of Warrant received. The shares were issued based upon the cashless exercise provision of the warrant.

During the year ended December 31, 2017, the Company recorded 15,000,000 shares of common stock to Mr. Braune (see Note 10) that have been included in the Company’s transfer agent’s records despite Mr. Braune’s request to the transfer agent of record at the time to cancel the shares. The Company had previously removed the shares from its records.

F-29

2016 Issuances

During the year ended December 31, 2016, the Company issued the following shares of common stock upon the conversions of portions of the 2014 Company Note and portions of the 2015 Convertible Notes:

Date		Principal Conversion		Interest Conversion		Total Conversion		Conversion Price		Shares Issued		Issued to
	12/28/16	$	45,000	$	3,511	$	48,511	$	0.015080		3,216,925	LG
	12/13/16	$	9,500	$	400	$	9,900	$	0.000754		13,129,683	Cerberus
	9/26/16	$	8,613	$	629	$	9,242	$	0.001218		7,587,824	LG
	7/29/16	$	7,500	$	801	$	8,301	$	0.000081		10,222,352	LG
	7/20/16	$	9,500	$	995	$	10,495	$	0.000098		10,644,310	LG
	7/12/16	$	9,000	$	927	$	9,927	$	0.000986		10,068,073	LG
	7/1/16	$	8,000	$	805	$	8,805	$	0.001160		7,590,362	LG
	6/22/16	$	5,000	$	973	$	5,973	$	0.001450		4,119,414	GW
	6/20/16	$	10,500	$	1,003	$	11,503	$	0.001450		7,933,377	Cerberus
	6/20/16	$	5,000	$	967	$	5,967	$	0.001450		4,114,879	GW
	6/20/16	$	6,000	$	589	$	6,589	$	0.001450		4,544,241	LG
	6/10/16	$	6,075	$	1,134	$	7,209	$	0.001798		4,009,701	GW
	6/9/16	$	5,000	$	479	$	5,479	$	0.001798		3,047,219	LG
	6/2/16	$	9,000	$	848	$	9,848	$	0.002378		4,141,387	Cerberus
	5/23/16	$	5,000	$	460	$	5,460	$	0.002436		2,241,490	LG
	3/17/16	$	9,000	$	696	$	9,696	$	0.002436		3,980,431	LG
	3/17/16	$	3,000	$	138	$	3,138	$	0.000638		4,918,624	Service
	3/8/16	$	7,425	$	928	$	8,353	$	0.00174		4,800,354	GW
	3/7/16	$	6,500	$	489	$	6,989	$	0.00174		4,016,471	LG
		$	174,613	$	16,772	$	191,385				114,327,117

In addition to the above during the year ended December 31, 2016, the Company:

On November 7, 2016, the Company issued 5,000,000 shares of common stock and completed the stock purchase for the acquisition of Sterling Classic Compassion, LLC. (“Sterling”). The Company valued the shares at $0.081 per share (the market price of the common stock).

Preferred Stock

On June 26, 2015, the Company filed with the Delaware Secretary of State the Amended and Restated Designation Preferences and Rights (the “Certificate of Designation”) of Class B Preferred Stock (the “Series B Preferred Stock”). Pursuant to the Certificate of Designation, 1,000 shares constitute the Series B Preferred Stock. The Series B Preferred Stock and any accrued and unpaid dividends thereon shall, with respect to rights on liquidation, winding up and dissolution, rank senior to the Company’s issued and outstanding common stock and Series A preferred stock.

The Series B Preferred Stock has the right to vote in aggregate, on all shareholder matters equal to 51% of the total vote, no matter how many shares of common stock or other voting stock of the Company are issued or outstanding in the future. The Series B Preferred Stock has a right to vote on all matters presented or submitted to the Company’s stockholders for approval in pari passu with the common stockholders, and not as a separate class. The holders of Series B Preferred Stock have the right to cast votes for each share of Series B Preferred Stock held of record on all matters submitted to a vote of common stockholders, including the election of directors. There is no right to cumulative voting in the election of directors. The holders of Series B Preferred Stock vote together with all other classes and series of common stock of the Company as a single class on all actions to be taken by the common stockholders except to the extent that voting as a separate class or series is required by law. As of December 31, 2017, and 2016, there were 1,000 shares of Class B Preferred Stock outstanding.

F-30

Warrants and Options

On April 14, 2015, in connection with the appointment of Dr. Stephen Holt to the advisory board, the Company agreed the advisor shall receive a non-qualified stock option to purchase 1,000,000 shares (“Option Shares”) of the Company’s common stock at an exercise price equal to $0.05 per share and expiring April 14, 2018. Option Shares of 400,000 vested immediately and 50,000 Option Shares vested each month from April 2015 through March 2016. Accordingly, as of March 31, 2016, 1,000,000 Option Shares have vested and the Company recorded $2,317 as stock compensation expense for the year ended December 31, 2016, based on Black-Scholes.

On April 26, 2013 and in connection with the appointment of Mr. James Canton to the Company’s advisory board, the Company issued a warrant to Mr. Canton to purchase 300,000 shares of common stock. The warrant expired April 26, 2016.

On October 31, 2016, the Company granted (Warrant #1) to St. George the right to purchase at any time on or after November 10, 2016 (the “Issue Date”) until the date which is the last calendar day of the month in which the fifth anniversary of the Issue Date occurs (the “Expiration Date”), a number of fully paid and non-assessable shares (the “Warrant Shares”) of Company’s common stock, equal to $57,500 divided by the Market Price (defined below) as of the Issue Date, as such number may be adjusted from time to time pursuant to the terms and conditions of Warrant #1 to Purchase Shares of Common Stock. The Market Price is equal to the lowest intra-day trade price in the twenty (20) Trading Days immediately preceding the applicable date of exercise, multiplied by sixty percent (60%). The exercise price is the lower of $0.05 and is subject to price adjustments pursuant to the agreement and includes a cashless exercise provision. The Company also issued Warrant #’s 2-9, with each warrant only effective upon St. George funding of the secured notes they issued to the Company. Warrant #’s 2-9 give St. George the right to purchase Warrant Shares equal to $27,500 divided by the Market Price on the funded date. On December 14, 2016, the Company received a payment of $50,000, and accordingly, Warrant #2 became effective. During the year ended December 31, 2017, the Company received the funding on the remaining notes and Warrant #’s 3-9 became effective. During the year ended December 31, 2017, the company issued 87,934,231 shares of common stock to St. George pursuant to Notices of Exercise of 9,364,108 Warrants received. The shares were issued based upon the cashless exercise provision of the warrant.

The following table summarizes the activity related to warrants of the Company for the years ended December 31, 2017 and 2016:

	Number of Warrants			Weighted-Average Exercise Price per share			Weighted-Average Remaining Life (Years)
Outstanding at January 1, 2016		1,300,000		$	0.05			3.00
Warrants issued		16,926,130			0.00564
Warrants expired		(300,000	)		(0.05	)
Outstanding and exercisable at December 31, 2016		17,926,130			0.0811			4.88
Warrant issued		40,573,870			0.00564
Warrants exercised		(9,364,108	)		0.00564
Outstanding and exercisable at December 31, 2017		49,135,892			0.00654			4.17

Note 12 – Income Taxes

The Company accounts for income taxes under standards issued by the FASB. Under those standards, deferred tax assets and liabilities are recognized for future tax benefits or consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided for significant deferred tax assets when it is more likely than not that such assets will not be realized through future operations.

F-31

No provision for federal income taxes has been recorded due to the available net operating loss carry forwards of approximately $491,107 will expire in various years through 2032. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the future tax loss carry forwards.

The actual income tax provisions differ from the expected amounts calculated by applying the statutory income tax rate to the Company's loss before income taxes. The components of these differences are as follows at December 31, 2017, and 2016:

	2017			2016
Net tax loss carry-forwards	$	7,878,733		$	5,836,000
Statutory rate		37.6	%		37.6	%
Expected tax recovery		2,962,404			2,194,336
Change in valuation allowance		(2,962,404	)		(2,194,336	)
Income tax provision	$	—		$	—

Components of deferred tax asset:
Non capital tax loss carry forwards	$	2,962,404		$	2,194,336
Less: valuation allowance		(2,962,404	)		(2,194,336	)
Net deferred tax asset	$	—		$	—

Note 13 – Commitments and Contingencies

Office Space

In April 2014, the Company entered into a two-year sublease agreement for the use of up to 7,500 square feet with a Colorado based oncology clinical trial and drug testing company and facility presently doing cancer research and testing for established pharmaceutical companies seeking FDA approval for new drugs. Pursuant to the lease, as amended, the Company agreed to pay $3,500 per month for the space. The lease expired in April 2016, and the Company owes the landlord $48,750.

In December 2016, the Company signed a one-year lease for office space in San Juan, Puerto Rico. The lease requires monthly base rent of $800 for the months of December 2016 through February 2017, and $900 per month for the months of March 2017 through November 2017.

On December 1, 2016, the Company signed a one (1) year lease for a corporate apartment in Puerto Rico for $5,500 per month. This lease expired in November 30, 2017.

Rent expense was $101,279 and $40,303, respectively, and for the years ended December 31 2017, and 2016, respectively.

F-32

Leased Properties

On April 28, 2014, the Company executed and closed a ten-year lease agreement for 20 acres of an agricultural farming facility located in South Florida following the approval of the so-called “Charlotte’s Web” legislation, aimed at decriminalizing low grade marijuana specifically for the use of treating epilepsy and cancer patients. Pursuant to the lease agreement, the Company maintains a first right of refusal to purchase the property for three years. The Company has recorded $38,244 of expense (included in leased property expenses) for the years ended December 31, 2017, and 2016, respectively. The Company is currently in default of the lease agreement, as rents have not been for the second year of the lease beginning May 2015.

On July 11, 2014, the Company signed a ten-year lease agreement for an additional 40 acres in Pueblo, Colorado. The lease requires monthly rent payments of $10,000 during the first year and is subject to a 2% annual increase over the life of the lease. The lease also provides rights to 50 acres of certain tenant water rights for $50,000 annually plus cost of approximately $2,400 annually. The Company paid the $50,000 in July 2014, and has not used the property and any water and has not paid for any water rights after September 30, 2015. The Company has recorded $-0- of expense for the year ended December 31, 2017, and $76,650 for the year ended December 31, 2016, (included in leased property expenses). The Company is currently in default of the lease agreement, as rents have not been paid since February 2015.

Agreements

On April 5, 2017, the Company executed a five (5) year operational and exclusive licensing agreement with a third party who leases a 25,000-sq. ft. approved cultivation facility located in San Juan, Puerto Rico. The Company will be the exclusive funding source, and supervise all infrastructure buildout, equipment lease/finance, security systems and personnel and provide access of seasoned Colorado and California cultivation crews to ensure the facility meets all standard operating procedures as set forth by the Department Of Health of Puerto Rico. Under the agreement, the Company receives $12,000 a month in consulting fees, licensing fees on all vaporizer and edible sales, equipment and lighting rental and financing fees along with equity interest in the property. For the year ended December 31, 2017, the Company received $48,000 in consulting fees. As of December 31, 2017, the Company has invested $110,000.

On August 7, 2017, the Company signed a LOI with Green Acres, whereby in consideration of consulting fees, licensing fees on all vaporizer and edible brands, equipment and lighting rental and financing fees, the Company will provide up to $250,000 of working capital and potentially, up to $3,500,000 for the buyout of Green Acres existing mortgage on their Washington State facility. As of December 31, 2017, the Company has invested $100,000. Repayment terms are to be from thirty percent of Green Acres monthly EBITDA. If Green Acres does not have EBITDA in a month there will not be a payment for that month.

On October 5, 2017, the Company agreed to lease from the Company’s CEO, a "420 Style" resort and estate property approximately one hour outside of Quebec City, Canada. The fifteen-acre estate consists of nine (9) guest suites, horse stables, and is within walking distance to a public golf course. A separate structure will serve as a small grow facility run by patient employees and caretakers on the property which may be toured by guests of the facility. On August 8, 2017, the Company issued 5,000,000 shares of common stock to the seller. The Company valued the shares at $0.0123 per share (the market price of the common stock) and has included $61,500 in stock compensation expense. The Company purchase from the seller furniture and fixtures for $96,000. Pursuant to the agreement, the Company will pay $8,000 per month in exchange for the Company being entitled to all rents and income generated from the property. The Company will be responsible for all costs of the property, including, but not limited to, renovations, repairs and maintenance, insurance and utilities. As of December 31, 2017, the Company has not made any monthly payments and also has not received any rental income from the property, as it is currently renovating the house.

Legal & Other

F-33

Note 14 – Going Concern

The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. As of December 31, 2017, the Company had an accumulated deficit of $25,578,077 and working capital deficit of $6,672,693, inclusive of a derivative liability of $5,416,830. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Note 15 – Segment Reporting

During the year ended December 31, 2017 and 2016, the Company operated in one reportable segment, wholesale sales.

Note 16 – Subsequent Events

On January 2, 2018, the Company issued 2,631,579 shares of common stock upon the exercise of warrant #1 (see note 9).

On January 5, 2018, the Company issued 4,870,000 shares of common stock upon the exercise of warrant #1 (see note 9).

On January 9, 2018, the company received $50,000 pursuant to a Stock Purchase Agreement by and between the Company and St George.

On January 9, 2018, St. George funded $200,000 of the secured promissory notes issued to the Company, and the Company recorded $220,000 as convertible note payable, including $20,000 OID interest.

On January 10, 2018, the Company issued 7,500,000 shares of common stock upon the exercise of warrant #1 (see note 9).

On January 12, 2018, the Company paid $236,817 to Cerberus to redeem all of their remaining convertible notes with the Company.

On January 23, 2018, the Company issued 5,550,000 shares of common stock upon the exercise of warrant #1 (see note 9).

On January 23, 2018, the company received $100,000 pursuant to a Stock Purchase Agreement by and between the Company and St George.

On February 2, 2018, the Company issued 8,000,000 shares of common stock upon the exercise of warrant #1 (see note 9).

On February 2, 2018, the company received $100,000 pursuant to a Stock Purchase Agreement by and between the Company and St George.

On February 12, 2018, the Company issued 13,297,872 shares of common stock upon the conversion of $75,000 of principal and interest. The shares were issued at $0.00564 per share.

On February 27, 2018, the company received $90,000 pursuant to a Stock Purchase Agreement by and between the Company and St George.

On March 20, 2018, the company received $75,000 of the secured promissory notes issued to the Company by St George.

On March 28, 2018, the Company issued 8,865,248 shares of common stock upon the conversion of $50,000 of principal and interest. The shares were issued at $0.00564 per share.

F-34

EX-31.1 2 agtk0416form10kexh31_1.htm EXHIBIT 31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, B. Michael Friedman, certify that:

1. I have reviewed this Form 10-K of Agritek Holdings, Inc..;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods present in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

(b) Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the small business issuer's internal control over financing reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonable likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Date: April 17, 2018

/s/ B. Michael Friedman

B. Michael Friedman, Principal Executive Officer and Principal Financial Officer

Agritek Holdings, Inc.

EX-32.1 3 agtk0416form10kexh32_1.htm EXHIBIT 32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Annual Report on Form 10-K of Agritek Holdings, Inc., for the Year ended December 31, 2017, I, B. Michael Friedman hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 17, 2018

/s/ B. Michael Friedman

B. Michael Friedman

Principal Executive Officer and Principal Financial Officer

Agritek Holdings, Inc.

EX-101.INS 4 agtk-20171231.xml XBRL INSTANCE FILE 0001040850 2017-01-01 2017-12-31 0001040850 2018-04-13 0001040850 2017-12-31 0001040850 2016-12-31 0001040850 2016-01-01 2016-12-31 0001040850 2015-12-31 0001040850 us-gaap:SecuredDebtMember 2016-12-31 0001040850 us-gaap:CommonStockMember 2016-01-01 2016-12-31 0001040850 us-gaap:CommonStockMember 2017-01-01 2017-12-31 0001040850 us-gaap:CommonStockMember 2015-12-31 0001040850 us-gaap:CommonStockMember 2016-12-31 0001040850 us-gaap:CommonStockMember 2017-12-31 0001040850 us-gaap:PreferredStockMember 2016-01-01 2016-12-31 0001040850 us-gaap:PreferredStockMember 2017-01-01 2017-12-31 0001040850 us-gaap:PreferredStockMember 2015-12-31 0001040850 us-gaap:PreferredStockMember 2016-12-31 0001040850 us-gaap:PreferredStockMember 2017-12-31 0001040850 us-gaap:AdditionalPaidInCapitalMember 2016-01-01 2016-12-31 0001040850 us-gaap:AdditionalPaidInCapitalMember 2017-01-01 2017-12-31 0001040850 us-gaap:AdditionalPaidInCapitalMember 2015-12-31 0001040850 us-gaap:AdditionalPaidInCapitalMember 2016-12-31 0001040850 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001040850 us-gaap:RetainedEarningsMember 2016-01-01 2016-12-31 0001040850 us-gaap:RetainedEarningsMember 2017-01-01 2017-12-31 0001040850 us-gaap:RetainedEarningsMember 2015-12-31 0001040850 us-gaap:RetainedEarningsMember 2016-12-31 0001040850 us-gaap:RetainedEarningsMember 2017-12-31 0001040850 2015-06-26 0001040850 AGTK:ConvertibleDebCompanyNoteMember 2017-01-01 2017-12-31 0001040850 AGTK:ConvertibleNotesPayableBalanceMember 2016-12-31 0001040850 AGTK:ConvertibleNotesPayableBalanceMember 2017-01-01 2017-12-31 0001040850 AGTK:ConvertibleNotesPayableBalanceMember 2017-12-31 0001040850 us-gaap:SecuredDebtMember 2014-01-31 0001040850 us-gaap:SecuredDebtMember 2014-01-01 2014-01-31 0001040850 us-gaap:SecuredDebtMember 2015-12-31 0001040850 us-gaap:SecuredDebtMember 2014-07-02 2015-04-30 0001040850 us-gaap:SecuredDebtMember 2015-12-16 0001040850 AGTK:RelatedParty1Member 2015-03-20 2015-11-04 0001040850 2014-04-28 0001040850 2014-04-29 2024-04-28 0001040850 2014-07-11 0001040850 2014-07-12 2024-07-10 0001040850 us-gaap:FurnitureAndFixturesMember 2017-01-01 2017-12-31 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-12-27 2016-12-28 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-12-12 2016-12-13 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-09-25 2016-09-26 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-07-28 2016-07-29 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-07-19 2016-07-20 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-07-11 2016-07-12 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-06-21 2016-06-22 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-06-19 2016-06-20 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-06-08 2016-06-10 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-06-08 2016-06-09 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-06-01 2016-06-02 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-05-22 2016-05-23 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-03-16 2016-03-17 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-03-06 2016-03-08 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-03-06 2016-03-07 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-12-28 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-12-13 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-09-26 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-07-29 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-07-20 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-07-12 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-06-20 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-06-22 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-06-10 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-06-09 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-06-02 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-05-23 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-03-17 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-03-08 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-03-07 0001040850 us-gaap:SecuredDebtMember 2014-12-31 0001040850 AGTK:ConvertibleDebtReplacementNote1Member 2016-01-18 2016-01-19 0001040850 AGTK:ConvertibleDebtReplacementNote1Member 2016-01-19 0001040850 AGTK:ConvertibleDebtReplacementNote2Member 2016-01-18 2016-01-19 0001040850 AGTK:ConvertibleDebtReplacementNote2Member 2016-01-19 0001040850 AGTK:ConvertibleNotesLG1Member 2016-01-19 0001040850 AGTK:ConvertibleNotesLG1Member 2016-01-01 2016-01-31 0001040850 AGTK:ConvertibleNotesCB1Member 2016-01-19 0001040850 AGTK:ConvertibleNotesCB1Member 2016-01-01 2016-01-25 0001040850 AGTK:ConvertibleNotesCB2Member 2016-03-23 0001040850 AGTK:ConvertibleNotesCB2Member 2016-03-01 2016-03-31 0001040850 AGTK:ConvertibleNotesLG2Member 2016-04-15 0001040850 AGTK:ConvertibleNotesLG2Member 2016-04-01 2016-04-15 0001040850 AGTK:DebtSecurities1Member 2017-12-31 0001040850 AGTK:DebtSecurities1Member 2017-01-01 2017-12-31 0001040850 AGTK:ConvertibleNotesLG4Member 2016-10-13 2016-10-14 0001040850 AGTK:ConvertibleNotesLG4Member 2016-10-14 0001040850 AGTK:ConvertibleNotesLG5Member 2016-12-15 0001040850 AGTK:ConvertibleNotesLG5Member 2016-12-12 2016-12-15 0001040850 AGTK:ConvertibleNotesStGeorge1Member 2016-10-31 0001040850 AGTK:ConvertibleNotesStGeorge1Member 2016-10-30 2016-10-31 0001040850 AGTK:RelatedParty2Member 2013-01-01 2017-03-31 0001040850 us-gaap:DirectorMember 2015-04-13 2016-09-30 0001040850 2016-02-29 0001040850 AGTK:Warrants1Member 2015-04-13 2015-04-14 0001040850 AGTK:Warrants2Member 2013-04-26 0001040850 AGTK:Warrants1Member 2016-01-01 2016-12-31 0001040850 AGTK:RentalLease2Member 2014-04-01 2016-03-31 0001040850 AGTK:RentalLease4Member 2016-12-01 2017-02-28 0001040850 AGTK:RentalLease4Member 2017-03-01 2017-11-30 0001040850 AGTK:RentalLease5Member 2017-02-02 2017-02-28 0001040850 AGTK:RentalLease5Member 2017-03-01 2017-12-31 0001040850 AGTK:RentalLease6Member 2017-05-01 2017-12-31 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-01-09 2017-01-10 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-01-15 2017-01-17 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-01-26 2017-01-27 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-02-07 2017-02-08 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-02-26 2017-02-27 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-03-09 2017-03-10 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-03-26 2017-03-27 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-03-26 2017-03-28 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-01-10 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-01-17 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-01-27 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-02-08 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-02-27 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-03-10 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-03-27 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-03-28 0001040850 AGTK:ConvertibleDebtReplacementNote1Member 2017-12-31 0001040850 AGTK:ConvertibleDebtReplacementNote1Member 2016-12-31 0001040850 AGTK:ConvertibleDebtReplacementNote2Member 2017-12-31 0001040850 AGTK:ConvertibleDebtReplacementNote2Member 2016-12-31 0001040850 AGTK:ConvertibleNotesCB1Member 2017-01-01 2017-12-31 0001040850 AGTK:ConvertibleNotesCB1Member 2017-12-31 0001040850 AGTK:ConvertibleNotesCB1Member 2016-12-31 0001040850 AGTK:ConvertibleNotesLG2Member 2017-01-01 2017-12-31 0001040850 AGTK:ConvertibleNotesLG2Member 2017-12-31 0001040850 AGTK:ConvertibleNotesLG2Member 2016-12-31 0001040850 AGTK:ConvertibleNotes2017LG1Member 2017-01-24 0001040850 AGTK:ConvertibleNotes2017LG1Member 2017-01-01 2017-01-25 0001040850 AGTK:ConvertibleNotes2017Cerebrus1Member 2017-01-24 0001040850 AGTK:ConvertibleNotes2017Cerebrus1Member 2017-01-01 2017-01-25 0001040850 AGTK:ConvertibleNotes2017PowerUp1Member 2017-02-01 0001040850 AGTK:ConvertibleNotes2017PowerUp1Member 2017-02-02 2017-02-03 0001040850 AGTK:ConvertibleNotes2017LG2Member 2017-02-24 0001040850 AGTK:ConvertibleNotes2017LG2Member 2017-02-02 2017-02-24 0001040850 AGTK:ConvertibleNotes2017Cerebrus2Member 2017-02-24 0001040850 AGTK:ConvertibleNotes2017Cerebrus2Member 2017-02-02 2017-02-24 0001040850 AGTK:ConvertibleNotes2017LG3Member 2017-03-24 0001040850 AGTK:ConvertibleNotes2017LG3Member 2017-03-01 2017-03-28 0001040850 AGTK:ConvertibleNotes2017TotalsMember 2017-12-31 0001040850 AGTK:ConvertibleNotes2017TotalsMember 2017-01-01 2017-12-31 0001040850 AGTK:RelatedParty2Member 2017-01-30 0001040850 AGTK:BCACommonStockIssuancesMember 2017-01-16 0001040850 AGTK:KOCommonStockIssuancesMember 2017-01-27 0001040850 AGTK:VentureEquityCommonStockIssuancesMember 2017-01-30 0001040850 AGTK:CEOCommonStockIssuancesMember 2017-01-30 0001040850 2016-12-14 0001040850 AGTK:DerivativeFinancialInstrumentsLiabilities1Member 2017-01-01 2017-12-31 0001040850 us-gaap:ManufacturingFacilityMember 2017-01-01 2017-12-31 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-04-23 2017-04-25 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-05-09 2017-05-10 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-04-25 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-05-10 0001040850 AGTK:ConvertibleDebtCompanyNote2AMember 2017-05-09 2017-05-10 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-05-23 2017-05-25 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-06-05 2017-06-06 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-06-07 2017-06-08 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-06-07 2017-06-09 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-06-28 2017-06-29 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-06-28 2017-06-30 0001040850 AGTK:ConvertibleDebtCompanyNote2AMember 2017-05-10 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-05-25 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-06-06 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-06-08 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-06-09 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-06-29 0001040850 AGTK:ConvertibleNotesLG1Member 2017-01-01 2017-12-31 0001040850 AGTK:ConvertibleNotesLG1Member 2017-12-31 0001040850 AGTK:ConvertibleNotesLG1Member 2016-12-31 0001040850 AGTK:ConvertibleNotesLG1BackEndMember 2016-01-19 0001040850 AGTK:ConvertibleNotesLG1BackEndMember 2016-01-01 2016-01-31 0001040850 AGTK:ConvertibleNotesLG1BackEndMember 2017-01-01 2017-12-31 0001040850 AGTK:ConvertibleNotesLG1BackEndMember 2017-12-31 0001040850 AGTK:ConvertibleNotesLG1BackEndMember 2016-12-31 0001040850 AGTK:ConvertibleNotesCB1BackEndMember 2016-01-19 0001040850 AGTK:ConvertibleNotesCB1BackEndMember 2016-01-01 2016-01-25 0001040850 AGTK:ConvertibleNotesCB1BackEndMember 2017-01-01 2017-12-31 0001040850 AGTK:ConvertibleNotesCB1BackEndMember 2017-12-31 0001040850 AGTK:ConvertibleNotesCB1BackEndNoteMember 2016-12-31 0001040850 AGTK:ConvertibleNotesCB2Member 2017-01-01 2017-12-31 0001040850 AGTK:ConvertibleNotesCB2Member 2017-12-31 0001040850 AGTK:ConvertibleNotesCB2Member 2016-12-31 0001040850 AGTK:ConvertibleNotesLG4Member 2017-01-01 2017-12-31 0001040850 AGTK:ConvertibleNotesLG4Member 2017-12-31 0001040850 AGTK:ConvertibleNotesLG4Member 2016-12-31 0001040850 AGTK:ConvertibleNotesStGeorge1Member 2017-01-01 2017-12-31 0001040850 AGTK:ConvertibleNotesStGeorge1Member 2017-12-31 0001040850 AGTK:ConvertibleNotesStGeorge1Member 2016-12-31 0001040850 AGTK:ConvertibleNotes2017Cerebrus3Member 2017-04-24 0001040850 AGTK:ConvertibleNotes2017Cerebrus3Member 2017-04-01 2017-04-24 0001040850 AGTK:ConvertibleNotes2017LG4Member 2017-05-24 0001040850 AGTK:ConvertibleNotes2017LG4Member 2017-05-01 2017-05-24 0001040850 us-gaap:NotesPayableOtherPayablesMember 2017-01-01 2017-12-31 0001040850 us-gaap:NotesPayableOtherPayablesMember 2016-12-31 0001040850 us-gaap:NotesPayableOtherPayablesMember 2017-12-31 0001040850 us-gaap:WarrantMember 2017-01-01 2017-12-31 0001040850 us-gaap:WarrantMember 2016-12-31 0001040850 us-gaap:WarrantMember 2017-12-31 0001040850 AGTK:DerivativeFinancialInstrumentsLiabilitiesCommitmentDateMember 2017-01-01 2017-12-31 0001040850 AGTK:DerivativeFinancialInstrumentsLiabilitiesTotalsMember 2017-01-01 2017-12-31 0001040850 AGTK:DerivativeFinancialInstrumentsLiabilitiesTotalsMember 2016-12-31 0001040850 AGTK:DerivativeFinancialInstrumentsLiabilitiesTotalsMember 2017-12-31 0001040850 AGTK:WarrantsCommitmentDateMember 2017-01-01 2017-12-31 0001040850 AGTK:WarrantsRemeasurementDateMember 2017-01-01 2017-12-31 0001040850 AGTK:StGeorgeIssuanceMember 2017-06-19 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-07-16 2017-07-17 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-07-24 2017-07-25 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-07-24 2017-07-26 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-08-14 2017-08-15 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-08-28 2017-08-29 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-09-18 2017-09-19 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-07-17 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-07-25 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-07-26 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-08-15 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-08-29 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-09-19 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-06-30 0001040850 us-gaap:DirectorMember 2016-01-01 2016-12-31 0001040850 2017-10-04 2017-10-05 0001040850 AGTK:COOCommonStockIssuancesMember 2017-08-08 0001040850 AGTK:PropertyPrepaymentMember 2017-08-08 0001040850 AGTK:StGeorgeIssuanceMember 2017-01-01 2017-12-31 0001040850 AGTK:ConvertibleNotes2017LG1Member 2017-01-01 2017-12-31 0001040850 AGTK:ConvertibleNotes2017LG1Member 2017-12-31 0001040850 AGTK:ConvertibleNotes2017Cerebrus1Member 2017-01-01 2017-12-31 0001040850 AGTK:ConvertibleNotes2017Cerebrus1Member 2017-12-31 0001040850 AGTK:ConvertibleNotes2017LG2Member 2017-12-31 0001040850 AGTK:ConvertibleNotes2017Cerebrus2Member 2017-12-31 0001040850 AGTK:ConvertibleNotes2017LG3Member 2017-12-31 0001040850 AGTK:ConvertibleNotes2017Cerebrus3Member 2017-12-31 0001040850 AGTK:ConvertibleNotes2017LG4Member 2017-12-31 0001040850 AGTK:ConvertibleNotes2017PowerUp2Member 2017-08-08 0001040850 AGTK:ConvertibleNotes2017PowerUp2Member 2017-08-01 2017-08-08 0001040850 AGTK:ConvertibleNotes2017PowerUp2Member 2017-12-31 0001040850 2017-06-30 0001040850 AGTK:CommonStockToBeIssuedMember 2016-01-01 2016-12-31 0001040850 AGTK:CommonStockToBeIssuedMember 2017-01-01 2017-12-31 0001040850 AGTK:CommonStockToBeIssuedMember 2015-12-31 0001040850 AGTK:CommonStockToBeIssuedMember 2016-12-31 0001040850 AGTK:CommonStockToBeIssuedMember 2017-12-31 0001040850 us-gaap:ComprehensiveIncomeMember 2016-01-01 2016-12-31 0001040850 us-gaap:ComprehensiveIncomeMember 2017-01-01 2017-12-31 0001040850 us-gaap:ComprehensiveIncomeMember 2015-12-31 0001040850 us-gaap:ComprehensiveIncomeMember 2016-12-31 0001040850 us-gaap:ComprehensiveIncomeMember 2017-12-31 0001040850 us-gaap:FairValueInputsLevel1Member 2017-12-31 0001040850 us-gaap:FairValueInputsLevel1Member 2016-12-31 0001040850 us-gaap:FairValueInputsLevel2Member 2017-12-31 0001040850 us-gaap:FairValueInputsLevel2Member 2016-12-31 0001040850 us-gaap:FairValueInputsLevel3Member 2017-12-31 0001040850 us-gaap:FairValueInputsLevel3Member 2016-12-31 0001040850 AGTK:DebtSecurities1Member 2016-12-31 0001040850 AGTK:ConvertibleNotes2017StGeorge2017NotesMember 2017-12-20 0001040850 AGTK:ConvertibleNotes2017StGeorge2017NotesMember 2017-12-01 2017-12-20 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-10-08 2017-10-09 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-10-22 2017-10-23 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-11-05 2017-11-06 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-11-12 2017-11-13 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-11-12 2017-11-14 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-11-12 2017-11-15 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-12-01 2017-12-02 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-12-04 2017-12-05 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-12-06 2017-12-07 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-12-14 2017-12-15 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-12-27 2017-12-28 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-10-09 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-10-23 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-11-06 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-11-13 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-11-14 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-11-15 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-12-02 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-12-05 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-12-07 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-12-15 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2017-12-28 0001040850 AGTK:ConvertibleDebtCompanyNote2AMember 2017-11-05 2017-11-06 0001040850 AGTK:ConvertibleDebtCompanyNote2AMember 2017-11-06 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-06-29 2016-07-01 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-01-01 2016-12-31 0001040850 AGTK:ConvertibleDebtCompanyNoteMember 2016-07-01 0001040850 AGTK:ConvertibleDebtCompanyNote2AMember 2016-06-19 2016-06-20 0001040850 AGTK:ConvertibleDebtCompanyNote2AMember 2016-03-16 2016-03-17 0001040850 AGTK:ConvertibleDebtCompanyNote2AMember 2016-06-20 0001040850 AGTK:ConvertibleDebtCompanyNote2AMember 2016-03-17 0001040850 AGTK:ConvertibleDebtCompanyNote3AMember 2016-06-19 2016-06-20 0001040850 AGTK:ConvertibleDebtCompanyNote3AMember 2016-06-20 0001040850 AGTK:ConvertibleNotesPayableBalanceSecondMember 2016-01-01 2016-12-31 0001040850 AGTK:ConvertibleNotesPayableBalanceSecondMember 2015-12-31 0001040850 AGTK:ConvertibleNotesPayableBalanceSecondMember 2016-12-31 0001040850 AGTK:DerivativeFinancialInstrumentsLiabilitiesTotalsAMember 2016-01-01 2016-12-31 0001040850 AGTK:DerivativeFinancialInstrumentsLiabilitiesTotalsAMember 2015-12-31 0001040850 AGTK:DerivativeFinancialInstrumentsLiabilitiesTotalsAMember 2016-12-31 0001040850 AGTK:DerivativeFinancialInstrumentsLiabilitiesCommitmentDateMember 2016-01-01 2016-12-31 0001040850 AGTK:DerivativeFinancialInstrumentsLiabilities1Member 2016-01-01 2016-12-31 0001040850 AGTK:WarrantOutstandingMember 2016-01-01 2016-12-31 0001040850 AGTK:WarrantOutstandingMember 2015-12-31 0001040850 AGTK:WarrantsIssuedMember 2017-01-01 2017-12-31 0001040850 AGTK:WarrantsIssuedMember 2016-01-01 2016-12-31 0001040850 AGTK:WarrantsIssuedMember 2016-12-31 0001040850 AGTK:WarrantsIssuedMember 2015-12-31 0001040850 AGTK:WarrantsExpiredMember 2016-01-01 2016-12-31 0001040850 AGTK:WarrantsOutstandingExercisableMember 2017-01-01 2017-12-31 0001040850 AGTK:WarrantsOutstandingExercisableMember 2016-01-01 2016-12-31 0001040850 AGTK:WarrantsOutstandingExercisableMember 2016-12-31 0001040850 AGTK:WarrantsOutstandingExercisableMember 2017-12-31 0001040850 AGTK:WarrantsOutstandingExercisableMember 2015-12-31 0001040850 AGTK:WarrantsExercisedMember 2017-01-01 2017-12-31 0001040850 AGTK:WarrantsExercisedMember 2016-12-31 0001040850 2018-01-02 0001040850 2018-01-05 0001040850 2018-01-09 0001040850 2018-01-10 0001040850 2018-01-12 0001040850 2018-01-23 0001040850 2018-02-02 0001040850 2018-02-12 0001040850 2018-02-27 0001040850 2018-03-20 0001040850 2018-03-28 iso4217:USD xbrli:shares iso4217:USD xbrli:shares utr:acre xbrli:pure AGRITEK HOLDINGS, INC. 0001040850 10-K 2017-12-31 false --12-31 No No Yes Smaller Reporting Company FY 2017 779245512

-4986057

-1457071

1571986

1190244

2762230

-1791988

Note 1 - Organization   Business   Agritek Holdings Inc. (“the Company” or “Agritek Holdings”) and its wholly-owned subsidiaries, MediSwipe, Inc. (“MediSwipe”), Prohibition Products Inc., and Agritek Venture Holdings, Inc. (“AVHI”) is a fully integrated, active investor and operator in the legal cannabis sector. Specifically, Agritek Holdings provides strategic capital and functional expertise to accelerate the commercialization of its diversified portfolio of holdings. Currently, the Company is focused on three high-value segments of the cannabis market, including real estate investment, intellectual property brands; and infrastructure, with operations in three U.S. States, Colorado, Washington State, California as well as Canada and Puerto Rico. Agritek Holdings invests its capital via real estate holdings, licensing agreements, royalties and equity in acquisition operations.   We provide key business services to the legal cannabis sector including:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="vertical-align: bottom; width: 3%; text-align: justify"> </td> <td style="vertical-align: top; width: 3%; text-align: justify">• </td> <td style="width: 94%; text-align: justify">Funding and Financing Solutions for Agricultural Land and Properties zoned for the regulated Cannabis Industry.</td></tr> <tr> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify">• </td> <td style="text-align: justify">Dispensary and Retail Solutions</td></tr> <tr> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify">• </td> <td style="text-align: justify">Commercial Production and Equipment Build Out Solutions</td></tr> <tr> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify">• </td> <td style="text-align: justify">Multichannel Supply Chain Solutions</td></tr> <tr> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify">• </td> <td style="text-align: justify">Branding, Marketing and Sales Solutions of proprietary product lines</td></tr> <tr> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify">• </td> <td style="vertical-align: bottom; text-align: justify">Consumer Product Solutions </td></tr> </table>   The Company intends to bring its’ array of services to each new state that legalizes the use of cannabis according to appropriate state and federal laws. Our primary objective is acquiring commercial properties to be utilized in the commercial marijuana industry as cultivation facilities in compliance with state laws. This is an essential aspect of our overall growth strategy because once acquired and re-zoned, the value of such real property is substantially higher than under the previous zoning and use.   Once properties are identified and acquired to be used for purposes related to the commercial marijuana industry as provided for by state law, and we plan to create vertical channels within that legal jurisdiction including equipment financing, payment processing and marketing of exclusive brands and services to retail dispensaries.   Agritek’s business focus is primarily to hold, develop and manage real property. The Company shall also provide oversight on every property that is part of its portfolio. This can include complete architectural design and subsequent build-outs, general support, landscaping, general up-keep, and state of the art security systems. At this time, Agritek does not grow, process, own, handle, transport, or sell marijuana as the Company is organized and directed to operate strictly in accordance with all applicable state and federal laws. As the legal environment changes in Colorado, California and other states, the Company’s management may explore business opportunities that involve ownership interests in dispensaries and growing operations if and when such business opportunities become legally permissible under applicable state and federal laws.

Note 2 – Summary of Significant Accounting Policies   Basis of Presentation and Principles of Consolidation   The accompanying consolidated financial statements are prepared in accordance with Generally Accepted Accounting Principles in the United States of America ("US GAAP"). The consolidated financial statements of the Company include the consolidated accounts of Agritek and its’ wholly owned subsidiaries MediSwipe, AVHI, The American Hemp Trading Company, Inc., a Colorado Corporation (dba 77Acres, Inc.) and PPI. PPI, a Florida corporation, was originally formed on July 1, 2013 as The American Hemp Trading Company, Inc. (“HempFL”) and on August 27, 2014, HempFL changed its’ name to PPI. All intercompany accounts and transactions have been eliminated in consolidation.    Cash and Cash Equivalents   The Company considers all highly liquid investments with an original term of three months or less to be cash equivalents.   Accounts Receivable   The Company records accounts receivable from amounts due from its customers upon the shipment of products. The allowance for losses is established through a provision for losses charged to expenses. Receivables are charged against the allowance for losses when management believes collectability is unlikely. The allowance is an amount that management believes will be adequate to absorb estimated losses on existing receivables, based on evaluation of the collectability of the accounts and prior loss experience. While management uses the best information available to make its evaluations, this estimate is susceptible to significant change in the near term. As of December 31, 2017 and 2016, based on the above criteria, the Company has a full allowance for doubtful accounts of $43,408.   Inventory   Inventory is valued at the lower of cost or market value. Cost is determined using the first in first out (FIFO) method. Provision for potentially obsolete or slow-moving inventory is made based on management analysis or inventory levels and future sales forecasts.   Notes receivable   During the year ended December 31, 2017, the Company has recorded notes receivable the following:   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt/11.75pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">•</td><td style="text-align: justify">$110,000 pursuant to a five (5) year operational and exclusive licensing agreement with a third party who leases a 25,000-sq. ft. approved cultivation facility located in San Juan, Puerto Rico (see Note 10). </td></tr></table> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt/11.75pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">•</td><td style="text-align: justify">$100,000 pursuant to a five (5) year operational and exclusive licensing agreement with a third party who leases a 10,000-sq. ft. approved cultivation facility located in Washington State (see Note 10).</td></tr></table>   Deferred Financing Costs   The costs related to the issuance of debt are capitalized and amortized to interest expense using the straight-line method through the maturities of the related debt.   Derivative Financial Instruments   The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of it financial instruments, including stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income.    For option-based simple derivative financial instruments, the Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period.    Debt Issue Costs and Debt Discount   The Company may record debt issue costs and/or debt discounts in connection with raising funds through the issuance of debt. These costs may be paid in the form of cash, or equity (such as warrants). These costs are amortized to interest expense over the life of the debt. If a conversion of the underlying debt occurs prior to maturity a proportionate share of the unamortized amounts is immediately expensed.    Original Issue Discount   For certain convertible debt issued, the Company may provide the debt holder with an original issue discount. The original issue discount would be recorded to debt discount, reducing the initial carrying value of the note and is amortized to interest expense through the maturity of the debt. If a conversion of the underlying debt occurs prior to maturity a proportionate share of the unamortized amounts is immediately expensed.    Marketable Securities and Other Comprehensive Income   The Company classifies its marketable securities as available-for-sale securities, which are carried at their fair value based on the quoted market prices of the securities with unrealized gains and losses, net of deferred income taxes, reported as accumulated other comprehensive income (loss), a separate component of stockholders’ equity. Realized gains and losses on available-for-sale securities are included in net earnings in the period earned or incurred.   Investment of Non-Marketable Securities   In 2014, the Company purchased an investment in non-marketable securities of a less than 10% interest in two privately held companies of $25,000 each, that provide merchant processing services. During the year ended December 31, 2017, due to recent losses, management wrote off the investment of $50,000, which is included in Other expenses on the consolidated statements of operations included herein. As of December 31, 2017, and 2016, the balance of the Investment of Non-Marketable Securities and Other was $-0- and $50,000, respectively   Property and Equipment   Property and equipment are stated at cost, and except for land, depreciation is provided by use of a straight-line method over the estimated useful lives of the assets. The Company reviews property and equipment for potential impairment whenever events or changes in circumstances indicate that the carrying amounts of assets may not be recoverable. In February, 2017, the Company entered into a land purchase contract to acquire approximately 80 acres including water and mineral rights. The total cost of the land was $129,555. The Company paid $41,554 at closing and issued a note payable for $88,000. As of December 31, 2017, the Company is on the deed of trust of the property with a remaining note balance of $51,500 due the seller. The estimated useful lives of property and equipment are as follows:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="width: 35%">Furniture and equipment</td> <td style="vertical-align: bottom; width: 65%">5 years</td></tr> <tr> <td>Manufacturing equipment</td> <td style="vertical-align: bottom">7 years</td></tr> </table>   The Company's property and equipment consisted of the following at December 31, 2017, and 2016:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">December 31, 2017</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">December 31, 2016</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 62%; font-size: 10pt; text-align: left; padding-left: 5.4pt">Furniture and equipment</td><td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 15%; font-size: 10pt; text-align: right">180,684</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 15%; font-size: 10pt; text-align: right">34,587</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-left: 5.4pt">Land</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">129,555</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Accumulated depreciation</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(23,824</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(8,307</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.5pt; padding-left: 5.4pt">Balance</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">286,415</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">26,280</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table>   Depreciation expense of $15,516 and $3,566 was recorded for the years ended December 31, 2017, and 2016, respectively.   Long-Lived Assets   Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.   Deferred rent   The Company calculates the total cost of the lease for the entire lease period and divides that amount by the number of months of the lease. The result is the average monthly expense and is charged to rent expense with the offset to deferred rent, irrespective of the actual amount paid. The amounts paid are charged to the deferred rent account. Rent expense of $45,417 for the year ended December 31, 2017, was recorded for the office space in Puerto Rico and the Company made payments of $20,516. As of December 31, 2017, the Company has a balance of $24,916 in deferred rent which is included in the consolidated balance sheet.   Revenue Recognition   The Company recognizes revenue in accordance with FASB ASC 605, Revenue Recognition. ASC 605 requires that four basic criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery of products and services has occurred, (3) the fee is fixed or determinable and (4) collectability is reasonably assured. The Company recognizes revenue during the month in which products are shipped or fees are earned. Consulting revenue of $48,000 and product sales (net) of $2,000 has been recognized for the year ended December 31, 2017.   Fair Value of Financial Instruments   The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level.    The following are the hierarchical levels of inputs to measure fair value:    <table cellspacing="3" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="vertical-align: top; width: 5%; padding: 0.75pt"> </td> <td style="vertical-align: top; width: 5%; padding: 0.75pt">☐</td> <td style="padding: 0.75pt; width: 90%">Level 1 - Observable inputs that reflect quoted market prices in active markets for identical assets or liabilities.</td></tr> <tr> <td style="vertical-align: top; padding: 0.75pt"> </td> <td style="vertical-align: top; padding: 0.75pt">☐</td> <td style="padding: 0.75pt; text-align: justify">Level 2 - Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.</td></tr> <tr> <td style="vertical-align: top; padding: 0.75pt"> </td> <td style="vertical-align: top; padding: 0.75pt">☐</td> <td style="padding: 0.75pt; text-align: justify">Level 3 - Unobservable inputs reflecting the Company's assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.</td></tr> </table>   The carrying amounts of the Company's financial assets and liabilities, such as cash, prepaid expenses, other current assets, accounts payable and accrued expenses, certain notes payable and notes payable - related party, approximate their fair values because of the short maturity of these instruments.    The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis as of December 31, 2017, and 2016, for each fair value hierarchy level:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify; border-bottom: Black 1pt solid">  December 31, 2017</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Derivative Liabilities</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Total</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level I</td><td style="width: 5%; font-size: 12pt; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 12pt; text-align: left">$</td><td style="width: 20%; border-bottom: Black 2.5pt double; font-size: 12pt; text-align: right">—  </td><td style="width: 1%; padding-bottom: 2.5pt; font-size: 12pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 20%; border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level II</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level III</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,416,830</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,416,830</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt; border-bottom: Black 1pt solid">December 31, 2016</td><td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="font-size: 12pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level I</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level II</td><td style="font-size: 12pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 12pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 12pt; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 12pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level III</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,613,770</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,613,770</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>   Income Taxes   The Company accounts for income taxes in accordance with ASC 740-10, Income Taxes. Deferred tax assets and liabilities are recognized to reflect the estimated future tax effects, calculated at the tax rate expected to be in effect at the time of realization. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.   ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. Interest and penalties are classified as a component of interest and other expenses. To date, the Company has not been assessed, nor paid, any interest or penalties.   Uncertain tax positions are measured and recorded by establishing a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Only tax positions meeting the more-likely-than-not recognition threshold at the effective date may be recognized or continue to be recognized. The Company’s tax years subsequent to 2005 remain subject to examination by federal and state tax jurisdictions.   Earnings (Loss) Per Share   Earnings (loss) per share are computed in accordance with ASC 260, "Earnings per Share". Basic earnings (loss) per share is computed by dividing net income (loss), after deducting preferred stock dividends accumulated during the period, by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities, if any, outstanding during the period. As of December 31, 2017, there were warrants and options to purchase 49,135,392 shares of common stock and the Company’s outstanding convertible debt is convertible into approximately 138,041,561 shares of common stock. These amounts are not included in the computation of dilutive loss per share because their impact is anti-dilutive.   Accounting for Stock-Based Compensation    The Company accounts for stock awards issued to non-employees in accordance with ASC 505-50, Equity-Based Payments to Non-Employees. The measurement date is the earlier of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty's performance is complete. Stock awards granted to non-employees are valued at their respective measurement dates based on the trading price of the Company’s common stock and recognized as expense during the period in which services are provided. For the year ended December 31, 2017, and 2016 the Company recorded stock- based compensation of $520,600 and $2,371, respectively (See Notes 10 and 11).   Use of Estimates   The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of revenues and expenses during the reported period. Actual results could differ from those estimates.   Advertising   The Company records advertising costs as incurred. For the years ending December 31, 2017, and 2016, advertising expenses was $54,927 and $8,321, respectively.

Basis of Presentation and Principles of Consolidation   The accompanying consolidated financial statements are prepared in accordance with Generally Accepted Accounting Principles in the United States of America ("US GAAP"). The consolidated financial statements of the Company include the consolidated accounts of Agritek and its’ wholly owned subsidiaries MediSwipe, AVHI, The American Hemp Trading Company, Inc., a Colorado Corporation (dba 77Acres, Inc.) and PPI. PPI, a Florida corporation, was originally formed on July 1, 2013 as The American Hemp Trading Company, Inc. (“HempFL”) and on August 27, 2014, HempFL changed its’ name to PPI. All intercompany accounts and transactions have been eliminated in consolidation.

Cash and Cash Equivalents   The Company considers all highly liquid investments with an original term of three months or less to be cash equivalents.

Accounts Receivable   The Company records accounts receivable from amounts due from its customers upon the shipment of products. The allowance for losses is established through a provision for losses charged to expenses. Receivables are charged against the allowance for losses when management believes collectability is unlikely. The allowance is an amount that management believes will be adequate to absorb estimated losses on existing receivables, based on evaluation of the collectability of the accounts and prior loss experience. While management uses the best information available to make its evaluations, this estimate is susceptible to significant change in the near term. As of December 31, 2017 and 2016, based on the above criteria, the Company has a full allowance for doubtful accounts of $43,408.

Inventory   Inventory is valued at the lower of cost or market value. Cost is determined using the first in first out (FIFO) method. Provision for potentially obsolete or slow-moving inventory is made based on management analysis or inventory levels and future sales forecasts.

Deferred Financing Costs   The costs related to the issuance of debt are capitalized and amortized to interest expense using the straight-line method through the maturities of the related debt.

Property and Equipment   Property and equipment are stated at cost, and except for land, depreciation is provided by use of a straight-line method over the estimated useful lives of the assets. The Company reviews property and equipment for potential impairment whenever events or changes in circumstances indicate that the carrying amounts of assets may not be recoverable. In February, 2017, the Company entered into a land purchase contract to acquire approximately 80 acres including water and mineral rights. The total cost of the land was $129,555. The Company paid $41,554 at closing and issued a note payable for $88,000. As of December 31, 2017, the Company is on the deed of trust of the property with a remaining note balance of $51,500 due the seller. The estimated useful lives of property and equipment are as follows:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="width: 35%">Furniture and equipment</td> <td style="vertical-align: bottom; width: 65%">5 years</td></tr> <tr> <td>Manufacturing equipment</td> <td style="vertical-align: bottom">7 years</td></tr> </table>   The Company's property and equipment consisted of the following at December 31, 2017, and 2016:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">December 31, 2017</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">December 31, 2016</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 62%; font-size: 10pt; text-align: left; padding-left: 5.4pt">Furniture and equipment</td><td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 15%; font-size: 10pt; text-align: right">180,684</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 15%; font-size: 10pt; text-align: right">34,587</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-left: 5.4pt">Land</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">129,555</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Accumulated depreciation</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(23,824</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(8,307</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.5pt; padding-left: 5.4pt">Balance</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">286,415</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">26,280</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table>   Depreciation expense of $15,516 and $3,566 was recorded for the years ended December 31, 2017, and 2016, respectively.

Revenue Recognition   The Company recognizes revenue in accordance with FASB ASC 605, Revenue Recognition. ASC 605 requires that four basic criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery of products and services has occurred, (3) the fee is fixed or determinable and (4) collectability is reasonably assured. The Company recognizes revenue during the month in which products are shipped or fees are earned. Consulting revenue of $48,000 and product sales (net) of $2,000 has been recognized for the year ended December 31, 2017.

Fair Value of Financial Instruments   The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level.    The following are the hierarchical levels of inputs to measure fair value:    <table cellspacing="3" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="vertical-align: top; width: 5%; padding: 0.75pt"> </td> <td style="vertical-align: top; width: 5%; padding: 0.75pt">☐</td> <td style="padding: 0.75pt; width: 90%">Level 1 - Observable inputs that reflect quoted market prices in active markets for identical assets or liabilities.</td></tr> <tr> <td style="vertical-align: top; padding: 0.75pt"> </td> <td style="vertical-align: top; padding: 0.75pt">☐</td> <td style="padding: 0.75pt; text-align: justify">Level 2 - Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.</td></tr> <tr> <td style="vertical-align: top; padding: 0.75pt"> </td> <td style="vertical-align: top; padding: 0.75pt">☐</td> <td style="padding: 0.75pt; text-align: justify">Level 3 - Unobservable inputs reflecting the Company's assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.</td></tr> </table>   The carrying amounts of the Company's financial assets and liabilities, such as cash, prepaid expenses, other current assets, accounts payable and accrued expenses, certain notes payable and notes payable - related party, approximate their fair values because of the short maturity of these instruments.    The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis as of December 31, 2017, and 2016, for each fair value hierarchy level:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify; border-bottom: Black 1pt solid">  December 31, 2017</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Derivative Liabilities</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Total</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level I</td><td style="width: 5%; font-size: 12pt; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 12pt; text-align: left">$</td><td style="width: 20%; border-bottom: Black 2.5pt double; font-size: 12pt; text-align: right">—  </td><td style="width: 1%; padding-bottom: 2.5pt; font-size: 12pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 20%; border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level II</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level III</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,416,830</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,416,830</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt; border-bottom: Black 1pt solid">December 31, 2016</td><td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="font-size: 12pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level I</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level II</td><td style="font-size: 12pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 12pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 12pt; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 12pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level III</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,613,770</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,613,770</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Income Taxes   The Company accounts for income taxes in accordance with ASC 740-10, Income Taxes. Deferred tax assets and liabilities are recognized to reflect the estimated future tax effects, calculated at the tax rate expected to be in effect at the time of realization. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.   ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. Interest and penalties are classified as a component of interest and other expenses. To date, the Company has not been assessed, nor paid, any interest or penalties.   Uncertain tax positions are measured and recorded by establishing a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Only tax positions meeting the more-likely-than-not recognition threshold at the effective date may be recognized or continue to be recognized. The Company’s tax years subsequent to 2005 remain subject to examination by federal and state tax jurisdictions.

Earnings (Loss) Per Share   Earnings (loss) per share are computed in accordance with ASC 260, "Earnings per Share". Basic earnings (loss) per share is computed by dividing net income (loss), after deducting preferred stock dividends accumulated during the period, by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities, if any, outstanding during the period. As of December 31, 2017, there were warrants and options to purchase 49,135,392 shares of common stock and the Company’s outstanding convertible debt is convertible into approximately 138,041,561 shares of common stock. These amounts are not included in the computation of dilutive loss per share because their impact is anti-dilutive.

Accounting for Stock-Based Compensation    The Company accounts for stock awards issued to non-employees in accordance with ASC 505-50, Equity-Based Payments to Non-Employees. The measurement date is the earlier of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty's performance is complete. Stock awards granted to non-employees are valued at their respective measurement dates based on the trading price of the Company’s common stock and recognized as expense during the period in which services are provided. For the year ended December 31, 2017, and 2016 the Company recorded stock- based compensation of $520,600 and $2,371, respectively (See Notes 10 and 11).

Use of Estimates   The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of revenues and expenses during the reported period. Actual results could differ from those estimates.

43408

Note 3 – Recent Accounting Pronouncements   In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)”. Under this guidance, an entity is required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. This guidance offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard will have on our consolidated financial statements.   In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is permitted. The Company elected to early adopt the new guidance in the second quarter of fiscal year 2016 which requires us to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The primary impact of adoption was the recognition of additional stock compensation expense and paid-in capital for all periods in fiscal year 2016. Additional amendments to the recognition of excess tax benefits, accounting for income taxes and minimum statutory withholding tax requirements had no impact to retained earnings as of January 1, 2016, where the cumulative effect of these changes is required to be recorded. We have elected to account for forfeitures as they occur to determine the amount of compensation cost to be recognized in each period.   In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230).” ASU No. 2016-18 requires that restricted cash be included with cash and cash equivalents when reconciling the change in cash flow. This guidance is reflected in these financial statements.   In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which removes the second step of the two-step goodwill impairment test. Under ASU 2017-04, an entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ASU 2017-04 does not amend the optional qualitative assessment of goodwill impairment. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019; early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has not elected early adoption of this standard and is currently in the process of evaluating the impact of adopting ASU 2017-04 and cannot currently estimate the financial statement impact of adoption.   In May 2017, the FASB issued ASU No. 2017-09, “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting.” The amendments in this update provide guidance about which changes to the terms or conditions of a share-based award require an entity to apply modification accounting in Topic 718. The guidance will be effective for the Company for its fiscal year 2018, with early adoption permitted. The Company does not expect this ASU to materially impact the Company’s consolidated financial statements.     Accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption.

250000

Note 8 – Convertible Debt   2014 Convertible Note   In January 2014, the Company entered into a Secured Promissory Note for $1,660,000 (the “2014 Company Note”) to Tonaquint, Inc. (“Tonaquint”) which includes a purchase price of $1,500,000 and transaction costs of $160,000. On January 31, 2014, the Company received $300,000 of the purchase price. Tonaquint also issued to the Company 6 secured promissory notes, each in the amount of $200,000 (the 2014 “Investor Notes”). All or any portion of the outstanding balance of the 2014 Investor Notes may be prepaid, without penalty, along with accrued but unpaid interest at any time prior to maturity. The Company has no obligation to pay Tonaquint any amounts on the unfunded portion of the 2014 Company Note. The 2014 Company Note bears interest at 8% per annum (increases to 22% per annum upon an event of default) and is convertible into shares of the Company’s common stock at Tonaquint’s option at a price of $0.55 per share, exercisable in seven tranches, consisting of a first tranche of $340,000 of principal and any interest, fees costs or charges, and six additional tranches of $220,000 each, plus any interest, costs, fees or charges.   Beginning on the date that is six (6) months after the later of (i) the Issuance Date, and (ii) the date the Initial Cash Purchase Price is paid to the Company (the “Initial Installment Date”), and on each applicable Installment Date thereafter, the Company is to pay the Holder, the applicable Installment Amount due on such date. Ten Installment Amounts of $166,000 plus the sum of any accrued and unpaid interest, fees, costs or charges may be made (a) in cash (a “Company Redemption”), (b) by converting such Installment Amount into shares of Common Stock (a “Company Conversion”), or (c) by any combination of a Company Conversion and a Company Redemption so long as the entire amount of such Installment Amount due shall be converted and/or redeemed by the Company on the applicable Installment Date. The 2014 Company Note matured fifteen months after the Issuance Date.   As of December 31, 2015, $311,815 of principal and accrued interest of $1,041 is outstanding on the 2014 Company Note.   On January 19, 2016, the Company accepted and agreed to a Debt Purchase Agreement (the “DPA”), whereby LG Capital Funding, LLC (“LG”) acquired $157,500 of the Tonaquint 2014 Convertible Note in exchange for $75,000. The Company issued an 8% Replacement Note to LG for $157,500 (the “First Replacement Note”). The First Replacement Note was due January 19, 2017 and was convertible into shares of the Company’s common stock at any time at the discretion of LG at a variable conversion price (“VCP”). The VCP is calculated as the lowest trading price during the eighteen (18) trading days immediately prior to the conversion date multiplied by fifty eight percent (58%), representing a forty two percent (42%) discount. On January 19, 2016, the Company recorded a debt discount on the note of $157,500 and for the year ended December 31, 2016 recorded amortization expense of $151,813. The principal and interest balance of the First Replacement Note as of December 31, 2016, was $157,500 and $12,145, respectively. During the year ended December 31, 2017, the Company issued 12,268,244 shares of common stock upon the conversion of $157,500 of principal and $13,242 accrued and unpaid interest on the First Replacement Note. For the year ended December 31, 2017, the Company recorded amortization expense of $5,687 on the remaining amount of the debt discount. The shares were issued at approximately $0.014 per share. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.   On January 19, 2016, the Company accepted and agreed to a DPA, whereby Cerberus Finance Group, LTD (“Cerberus”) acquired $154,315 of principal and $2,434 of accrued and unpaid interest of the Tonaquint 2014 Convertible Note in exchange for $75,000. The Company issued an 8% Replacement Note to Cerberus for $156,749 (the “Second Replacement Note”). The Second Replacement Note was due January 19, 2017 and was convertible into shares of the Company’s common stock at any time at the discretion of LG at a VCP. The VCP is calculated as the lowest trading price during the eighteen (18) trading days immediately prior to the conversion date multiplied by fifty eight percent (58%), representing a forty two percent (42%) discount. On January 19, 2016, the Company recorded a debt discount on the note of $156,749 and for the year ended December 31, 2016 recorded amortization expense of $151,432. During the year ended December 31, 2016, the Company issued 13,129,683 shares of common stock upon the conversion of $9,500 of principal and $400 accrued and unpaid interest on the Second Replacement Note. The shares were issued at approximately $0.000754 per share. The principal and interest balance of the Second Replacement Note as of December 31, 2016, was $147,249 and $11,617, respectively. During the year ended December 31, 2017, the Company issued 11,059,977 shares of common stock upon the conversion of $147,249 of principal and $11,749 accrued and unpaid interest on the Second Replacement Note. For the year ended December 31, 2017, the Company recorded amortization expense of $5,317 on the remaining amount of the debt discount. The shares were issued at approximately $0.0144 per share. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.   2016 Convertible Notes   On January 19, 2016, the Company completed the closing of a private placement financing transaction with LG, pursuant to a Securities Purchase Agreement (the “LG Purchase Agreement”). Pursuant to the LG Purchase Agreement, LG purchased an 8% Convertible Debenture (the “LG Debenture”) in the aggregate principal amount of $76,080, and delivered on January 31, 2016, gross proceeds of $62,500 excluding transaction costs, fees, and expenses. The Company recorded a debt discount of $76,080 and during the year ended December 31, 2016, recorded amortization expense of $72,911. The principal and interest balance of the note as of December 31, 2016 was $76,080 and $5,833, respectively. During the year ended December 31, 2017, the Company issued 28,295,680 shares of common stock upon the conversion of $76,080 of principal and $4,752 accrued and unpaid interest on the note. The shares were issued at approximately $0.0097 per share. During the year ended December 31, 2017, the Company recorded amortization expense of $3,170 for the remaining portion of the debt discount. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.   On January 19, 2016, the Company also issued a back end note to LG, under the same terms and conditions, in the amount of $65,625. The back-end note was funded July 14, 2016, upon the receipt of $62,500, excluding transaction costs, fees and expenses. The Company recorded a debt discount of $65,625 and during the year ended December 31, 2016, recorded amortization expense of $47,396. The principal and interest balance of the note as of December 31, 2016 was $65,625 and $2,465, respectively. During the year ended December 31, 2017, the Company issued 5,432,726 shares of common stock upon the conversion of $65,625 of principal and $3,698 accrued and unpaid interest on the note. The shares were issued at approximately $0.01276 per share. During the year ended December 31, 2017, the Company recorded amortization expense of $34,818 for the remaining portion of the debt discount. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.   On January 19, 2016, the Company completed the closing of a private placement financing transaction with Cerberus, pursuant to a Securities Purchase Agreement (the “Cerberus Purchase Agreement”). Pursuant to the Cerberus Purchase Agreement, Cerberus purchased an 8% Convertible Debenture (the “Cerberus Debenture”) in the aggregate principal amount of $34,775, and delivered on January 25, 2016, gross proceeds of $25,000 excluding transaction costs, fees, and expenses. The Company recorded a debt discount of $34,475 and during the year ended December 31, 2016, recorded amortization expense of $32,843. The principal and interest balance of the note as of December 31, 2016 was $34,775 and $2,496, respectively. During the year ended December 31, 2017, the Company issued 2,953,523 shares of common stock upon the conversion of $34,775 of principal and $3,255 accrued and unpaid interest on the note. The shares were issued at approximately $0.01287 per share. During the year ended December 31, 2017, the Company recorded amortization expense of $1,982 for the remaining portion of the debt discount. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.   On January 19, 2016, the Company also issued a back-end note to Cerberus, under the same terms and conditions, in the amount of $22,000. The back-end note was funded August 1 upon receipt of $20,000, excluding transaction costs, fees and expenses. The Company recorded a debt discount of $22,000 and during the year ended December 31, 2016, recorded amortization expense of $17,294. The principal and interest balance of the note as of December 31, 2016 was $22,000 and $743, respectively. During the year ended December 31, 2017, the Company issued 4,264,903 shares of common stock upon the conversion of $22,000 of principal and $1,500 accrued and unpaid interest on the note. The shares were issued at approximately $0.00551 per share. During the year ended December 31, 2017, the Company recorded amortization expense of $4,706 for the remaining portion of the debt discount. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.   On March 23, 2016, the Company completed the closing of a private placement financing transaction with Cerberus, pursuant to a Securities Purchase Agreement (the “Cerberus Purchase Agreement”). Pursuant to the Cerberus Purchase Agreement, Cerberus purchased an 8% Convertible Debenture (the “Cerberus Debenture”) in the aggregate principal amount of $22,000, and delivered on March 31, 2016, gross proceeds of $20,000 excluding transaction costs, fees, and expenses. The Company recorded a debt discount of $22,000 and during the year ended December 31, 2016, recorded amortization expense of $16,989. The principal and interest balance of the note as of December 31, 2016 was $22,000 and $1,271, respectively. During the year ended December 31, 2017, the Company issued 3,023,338 shares of common stock upon the conversion of $22,000 of principal and $2,199 accrued and unpaid interest on the note. The shares were issued at approximately $0.008 per share. During the year ended December 31, 2017, the Company recorded amortization expense of $5,011 for the remaining portion of the debt discount. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.   On April 15, 2016, the Company completed the closing of a private placement financing transaction with LG, pursuant to a Securities Purchase Agreement (the “LG Purchase Agreement”). Pursuant to the LG Purchase Agreement, LG purchased an 8% Convertible Debenture (the “LG Debenture”) in the aggregate principal amount of $65,625, and delivered on April 15, 2016, gross proceeds of $62,500 excluding transaction costs, fees, and expenses. The Company recorded a debt discount of $65,625 and during the year ended December 31, 2016, recorded amortization expense of $47,396. The principal and interest balance of the note as of December 31, 2016 was $65,625 and $3,792, respectively. During the year ended December 31, 2017, the Company issued 12,718,484 shares of common stock upon the conversion of $65,625 of principal and $6,535 accrued and unpaid interest on the note. The shares were issued at approximately $0.0057 per share. During the year ended December 31, 2017, the Company recorded amortization expense of $18,229 for the remaining portion of the debt discount. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.   On October 14, 2016, the Company completed the closing of a private placement financing transaction with LG, pursuant to a Securities Purchase Agreement (the “LG Purchase Agreement”). Pursuant to the LG Purchase Agreement, LG purchased an 8% Convertible Debenture (the “LG Debenture”) in the aggregate principal amount of $32,813, and delivered on October 14, 2016, gross proceeds of $30,813 excluding transaction costs, fees, and expenses. The Company recorded a debt discount of $30,813 and during the year ended December 31, 2016, recorded amortization expense of $6,676. The principal and interest balance of the note as of December 31, 2016 was $32,813 and $569, respectively. During the year ended December 31, 2017, the Company issued 6,499,359 shares of common stock upon the conversion of $32,813 of principal and $2,999 accrued and unpaid interest on the note. The shares were issued at approximately $0.00551 per share. During the year ended December 31, 2017, the Company recorded amortization expense of $24,137 for the remaining portion of the debt discount. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.   On October 31, 2016, the Company entered into a Convertible Promissory Note ("St. George 2016 Notes") for $555,000 to St. George Investments, LLC. (“St. George”) which includes a purchase price of $500,000 and transaction costs of $5,000 and OID interest of $50,000. On October 31, 2016, the Company received $100,000 and recorded $115,000 as convertible note payable, including $5,000 of transaction costs and $10,000 OID interest. St. George also issued to the Company eight secured promissory notes, each in the amount of $50,000. All or any portion of the outstanding balance of the St. George 2016 Notes may be prepaid, without penalty, along with accrued but unpaid interest at any time prior to maturity. The Company has no obligation to pay St. George any amounts on the unfunded portion of the St. George 2016 Notes. The St. George 2016 Note bears interest at 10% per annum (increases to 22% per annum upon an event of default) and is convertible into shares of the Company’s common stock at St. George’s option at a price of $0.05 per share. On December 14, 2016, St. George funded one of the secured promissory notes issued to the Company. During the year ended December 31, 2016, the Company recorded debt discounts of $150,000 and during the year ended December 31, 2016, recorded amortization expense of $25,416. The principal and interest balance of the note as of December 31, 2016 was $170,000 and $1,933, respectively. During the year ended December 31, 2017, St. George funded the remaining secured promissory notes issued to the Company. During the year ended December 31, 2017, the Company recorded debt discounts of $350,000 and during the year ended December 31, 2017, recorded amortization expense of $474,584. During the year ended December 31, 2017, the Company issued 46,631,979 shares of common stock upon the conversion of $241,756 of principal and $21,249 accrued and unpaid interest on the note. The shares were issued at approximately $0.00564 per share. The principal and interest balance of the note as of December 31, 2017, was $313,244 and $1,946, respectively.   Beginning on the date that is six (6) months after the later of (i) the Issuance Date, and (ii) the date the Initial Cash Purchase Price is paid to the Company (the “Initial Installment Date”), and on each applicable Installment Date thereafter, the Company is to pay the Holder, the applicable Installment Amount due on such date. Five Installment Amounts of $111,000 plus the sum of any accrued and unpaid interest, fees, costs or charges may be made (a) in cash (a “Company Redemption”), (b) by converting such Installment Amount into shares of Common Stock (a “Company Conversion”), or (c) by any combination of a Company Conversion and a Company Redemption so long as the entire amount of such Installment Amount due shall be converted and/or redeemed by the Company on the applicable Installment Date. The St. George 2016 Note matures fifteen months after the Issuance Date.   On December 15, 2016, the Company completed the closing of a private placement financing transaction with LG, pursuant to a Securities Purchase Agreement (the “LG Purchase Agreement”). Pursuant to the LG Purchase Agreement, LG purchased an 8% Convertible Debenture (the “LG Debenture”) in the aggregate principal amount of $32,813, and delivered on December 15, 2016, gross proceeds of $30,813 excluding transaction costs, fees, and expenses. During the year ended December 31, 2016, the Company recorded a debt discount of $32,813 and during the year ended December 31, 2016, recorded amortization expense of $1,369. The principal and interest balance of the note as of December 31, 2016 was $32,813 and $117, respectively. During the year ended December 31, 2017, the Company issued 5,980,387 shares of common stock upon the conversion of $32,813 of principal and $2,567 accrued and unpaid interest on the note. The shares were issued at approximately $0.005916 per share. During the year ended December 31, 2017, the Company recorded amortization expense of $29,443 for the remaining portion of the debt discount. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.   Also, on December 15, 2016, the Company issued to LG, a back-end note under the same terms and conditions, in the amount of $32,813. On September 28, 2017, the back-end note was funded upon receipt of $30,813, excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $30,813 and during the year ended December 31, 2017, recorded amortization expense of $30,813. During the year ended December 31, 2017, the Company issued 5,793,378 shares of common stock upon the conversion of $32,813 of principal and $453 accrued and unpaid interest on the note. The shares were issued at approximately $0.005742 per share. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.   Principal and interest on the above LG and Cerberus convertible debentures is due and payable one year from their respective funding date, and the LG and Cerberus Debentures are convertible into shares of the Company’s common stock at any time at the discretion of LG and Cerberus, respectively, at a VCP. The VCP is calculated as the lowest trading price during the eighteen (18) trading days immediately prior to the conversion date multiplied by fifty eight percent (58%), representing a forty two percent (42%) discount.   The Company determined that the conversion feature of the 2016 Convertible Notes represent an embedded derivative since the Notes are convertible into a variable number of shares upon conversion. Accordingly, the 2016 Convertible Notes were not considered to be conventional debt under ASC 815-40 (formerly EITF 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock) and the embedded conversion feature was bifurcated from the debt host and accounted for as a derivative liability. Accordingly, the fair value of these derivative instruments being recorded as a liability on the consolidated balance sheet with the corresponding amount recorded as a discount to each Note. Such discount is being amortized from the date of issuance to the maturity dates of the Notes. The change in the fair value of the liability for derivative contracts are recorded in other income or expenses in the consolidated statements of operations at the end of each quarter, with the offset to the derivative liability on the balance sheet. The embedded feature included in the 2016 Convertible Notes resulted in an initial debt discount of $865,593, an initial derivative liability expense of $2,317,830 and an initial derivative liability of $3,183,423. Amortization of debt discount on the notes issued in 2016 was $257,033 and $608,560 for the years ended December 31, 2017 and 2016, respectively.   2017 Convertible Notes   On January 24, 2017, the Company completed the closing of a private placement financing transaction with LG, pursuant to a Securities Purchase Agreement (the “LG Purchase Agreement”). Pursuant to the LG Purchase Agreement, LG purchased an 8% Convertible Debenture (the “LG Debenture”) in the aggregate principal amount of $94,500, and delivered on January 25, 2017, gross proceeds of $90,000 excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $90,000 and during the year ended December 31, 2017, recorded amortization expense of $90,000. During the year ended December 31, 2017, the Company issued 17,440,037 shares of common stock upon the conversion of $94,500 of principal and $6,051 accrued and unpaid interest on the note. The shares were issued at approximately $0.00577 per share. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion. Also, on January 24, 2017, the Company issued to LG, a back-end note under the same terms and conditions, in the amount of $94,500. On June 26, 2017, the back-end note was funded upon receipt of $90,000, excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $86,340 and during the year ended December 31, 2017, recorded amortization expense of $86,340. During the year ended December 31, 2017, the Company issued 13,697,874 shares of common stock upon the conversion of $94,500 of principal and $2,178 accrued and unpaid interest on the back-end note. The shares were issued at approximately $0.00706 per share. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.   On January 24, 2017, the Company completed the closing of a private placement financing transaction with Cerberus, pursuant to a Securities Purchase Agreement (the “Cerberus Purchase Agreement”). Pursuant to the Cerberus Purchase Agreement, Cerberus purchased an 8% Convertible Debenture (the “Cerberus Debenture”) in the aggregate principal amount of $63,000, and delivered on January 25, 2017, gross proceeds of $60,000 excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $60,000 and during the year ended December 31, 2017, recorded amortization expense of $60,000. During the year ended December 31, 2017, the Company issued 11,586,452 shares of common stock upon the conversion of $63,000 of principal and $3,357 accrued and unpaid interest on the note. The shares were issued at approximately $0.00573 per share. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion. Also, on January 24, 2017, the Company issued to Cerberus, a back-end note under the same terms and conditions, in the amount of $63,000. On June 30, 2017, the back-end note was funded upon receipt of $60,000, excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $56,340 and during the year ended December 31, 2017, recorded amortization expense of $53,367. The principal and interest balance of the back-end note as of December 31, 2017 was $63,000 and $2,632, respectively.   On February 1, 2017, the Company completed the closing of a private placement financing transaction with Power Up Lending Group, LTD (“Power Up”), pursuant to a Securities Purchase Agreement (the “Power Up Purchase Agreement”). Pursuant to the Power Up Purchase Agreement, Power Up purchased an 12% Convertible Debenture (the “Power Up Debenture”) in the aggregate principal amount of $140,000, and delivered on February 3, 2017 (the “Funding Date”), gross proceeds of $136,500 excluding transaction costs, fees, and expenses. Principal and interest on the Power Up Debentures is due and payable on November 5, 2017, and the Power Up Debenture is convertible into shares of the Company’s common stock beginning six months from the Funding Date, at a VCP. The VCP is calculated as the average of the three (3) lowest closing bid price during the ten (10) trading days immediately prior to the conversion date multiplied by fifty eight percent (58%), representing a forty two percent (42%) discount. During the year ended December 31, 2017, the Company recorded a debt discount of $136,500 and during the year ended December 31, 2017, recorded amortization expense of $136,500. The Company may prepay the Power Up Debenture, subject to prior notice to the holder within an initial 30-day period after issuance, by paying an amount equal to 120% multiplied by the amount that the Company is prepaying. For each additional 30-day period the amount being prepaid is multiplied by an additional 5%, up to a maximum of 140% on the 180th day from issuance. Beginning on the 180th day after the issuance of the Debentures, the Company is not permitted to prepay the Debenture, so long as the Debenture is still outstanding, unless the Company and the holder agree otherwise in writing. On June 23, 2017, the Company accepted and agreed to Assignment Agreements (‘AA”), whereby, Power Up assigned $70,000 of their note to LG, and $70,000 of their note to Cerberus. As part of the AA, the Company agreed to pay Power Up $65,000. The Company issued an 8% Replacement Note to LG for $73,198 (the “First Power Up Replacement Note”), and an 8% Replacement Note to Cerberus for $73,198 (the “Second Power Up Replacement Note”) The First and Second Power Up Replacement Notes are due June 23, 2018 and are convertible into shares of the Company’s common stock at any time at the discretion of LG and Cerberus, respectively, at a VCP. The VCP is calculated as the lowest trading price during the eighteen (18) trading days immediately prior to the conversion date multiplied by fifty eight percent (58%), representing a forty two percent (42%) discount. During the year ended December 31, 2017, the Company recorded a debt discount of $73,198 for the First Power up Replacement Note and during the year ended December 31, 2017, recorded amortization expense of $73,198. During the year ended December 31, 2017, the Company issued 12,721,391 shares of common stock upon the conversion of $73,198 of principal and $967 accrued and unpaid interest on the First Power Up Replacement Note. The shares were issued at approximately $0.00583 per share. The principal balance of the First Power Up Replacement Note as of December 31, 2017 was $-0-. During the year ended December 31, 2017, the Company recorded a debt discount of $73,198 for the Second Power up Replacement Note and during the year ended December 31, 2017, recorded amortization expense of $38,836. The principal and interest balance of the Second Power Up Replacement Note as of December 31, 2017 was $73,199 and $3,107 respectively.   On February 24, 2017, the Company completed the closing of a private placement financing transaction with LG. Pursuant to the LG Purchase Agreement, LG purchased an 8% Convertible Debenture in the aggregate principal amount of $26,000, and delivered on February 24, 2017, gross proceeds of $24,000 excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $24,000 and during the year ended December 31, 2017, recorded amortization expense of $24,000. On December 29,2017, the Company paid LG $35,421 to redeem the note, including $7,723 of excess over principal and interest due. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.   On February 24, 2017, the Company completed the closing of a private placement financing transaction with Cerberus, pursuant to a Securities Purchase Agreement (the “Cerberus Purchase Agreement”). Pursuant to the Cerberus Purchase Agreement, Cerberus purchased an 8% Convertible Debenture (the “Cerberus Debenture”) in the aggregate principal amount of $17,500, and delivered on February 27, 2017, gross proceeds of $16,000 excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $16,000 and during the year ended December 31, 2017, recorded amortization expense of $13,644. The principal and interest balance of the note as of December 31, 2017 was $17,500 and $1,206, respectively. Also, on February 24, 2017, the Company issued to Cerberus, a back-end note under the same terms and conditions, in the amount of $17,500. On December 7, 2017, the back-end note was funded upon receipt of $16,000, excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $16,000 and during the year ended December 31, 2017, recorded amortization expense of $4,861. The principal and interest balance of the back-end note as of December 31, 2017 was $17,500 and $80, respectively.   On March 24, 2017, the Company completed the closing of a private placement financing transaction with LG. Pursuant to the LG Purchase Agreement, LG purchased an 8% Convertible Debenture in the aggregate principal amount of $52,000, and delivered on March 28, 2017, gross proceeds of $49,600 excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $49,400 and during the year ended December 31, 2017, recorded amortization expense of $49,400. On December 29,2017, the Company paid LG $70,376 to redeem the note, including $15,344 of excess over principal and interest due. The principal balance of the note as of December 31, 2017 was $-0-. Also, on March 24, 2017, the Company issued to LG, a back-end note under the same terms and conditions, in the amount of $52,000. On September 28, 2017, the back-end note was funded upon receipt of $49,600, excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $49,400 and during the year ended December 31, 2017, recorded amortization expense of $49,400. During the year ended December 31, 2017, the Company issued 8,939,991 shares of common stock upon the conversion of $52,000 of principal and $889 accrued and unpaid interest on the note. The shares were issued at approximately $0.00592 per share. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.   On April 24, 2017, the Company completed the closing of a private placement financing transaction with Cerberus, pursuant to a Securities Purchase Agreement (the “Cerberus Purchase Agreement”). Pursuant to the Cerberus Purchase Agreement, Cerberus purchased an 8% Convertible Debenture (the “Cerberus Debenture”) in the aggregate principal amount of $42,000, and delivered on May 3, 2017, gross proceeds of $40,000 excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $40,000 and during the year ended December 31, 2017, recorded amortization expense of $40,000. During the year ended December 31, 2017, the Company issued 6,570,945 shares of common stock upon the conversion of $42,000 of principal and $2,209 accrued and unpaid interest on the note. The shares were issued at approximately $0.00673 per share. As of December 31, 2017, principal and interest were paid in full with stock, mentioned above, and the conversions occurred within the terms of the note agreement, as such, no gain or loss was recognized upon the conversion.   On May 24, 2017, the Company completed the closing of a private placement financing transaction with LG. Pursuant to the LG Purchase Agreement, LG purchased an 8% Convertible Debenture in the aggregate principal amount of $52,000, and delivered on May 24, 2017, gross proceeds of $49,600 excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $49,400 and during the year ended December 31, 2017, recorded amortization expense of $49,400. On December 29,2017, the Company paid LG $69,545 to redeem the note, including $15,163 of excess over principal and interest due. The principal balance of the note as of December 31, 2017 was $-0-. Also, on May 24, 2017, the Company issued to LG, a back-end note under the same terms and conditions, in the amount of $52,000. On December 4, 2017, the back-end note was funded upon receipt of $49,600, excluding transaction costs, fees, and expenses. During the year ended December 31, 2017, the Company recorded a debt discount of $49,400 and during the year ended December 31, 2017, recorded amortization expense of $49,400. On December 29,2017, the Company paid LG $66,718 to redeem the back-end note, including $14,547 of excess over principal and interest due. The principal balance of the back-end note as of December 31, 2017 was $-0-.   On August 8, 2017, the Company completed the closing of a private placement financing transaction with Power Up, pursuant to a Securities Purchase Agreement (the “Power Up Purchase Agreement”). Pursuant to the Power Up Purchase Agreement, Power Up purchased an 12% Convertible Debenture (the “Power Up Debenture”) in the aggregate principal amount of $128,000, and delivered on August 9, 2017 (the “Funding Date”), gross proceeds of $125,000 excluding transaction costs, fees, and expenses. Principal and interest on the Power Up Debentures is due and payable on May 15, 2018, and the Power Up Debenture is convertible into shares of the Company’s common stock beginning six months from the Funding Date, at a VCP. The VCP is calculated as the average of the three (3) lowest closing bid price during the ten (10) trading days immediately prior to the conversion date multiplied by fifty eight percent (58%), representing a forty two percent (42%) discount. During the year ended December 31, 2017, the Company recorded a debt discount of $125,000 and during the year ended December 31, 2017, recorded amortization expense of $125,000. The Company may prepay the Power Up Debenture, subject to prior notice to the holder within an initial 30-day period after issuance, by paying an amount equal to 120% multiplied by the amount that the Company is prepaying. For each additional 30-day period the amount being prepaid is multiplied by an additional 5%, up to a maximum of 140% on the 180th day from issuance. Beginning on the 180th day after the issuance of the Debentures, the Company is not permitted to prepay the Debenture, so long as the Debenture is still outstanding, unless the Company and the holder agree otherwise in writing. On December 21,2017, the Company paid Power Up $177,639 to redeem the note, including $44,087 of excess over principal and interest due. The principal balance of the note as of December 31, 2017 was $-0-.   On December 20, 2017, the Company entered into a Convertible Promissory Note ("St. George 2017 Notes") for $1,105,000 to St. George which includes a purchase price of $1,000,000 and transaction costs of $5,000 and OID interest of $100,000. On December 21, 2017, the Company received $200,000 and recorded $225,000 as convertible note payable, including $5,000 of transaction costs and $20,000 OID interest. St. George also issued to the Company four secured promissory notes, each in the amount of $200,000. All or any portion of the outstanding balance of the St. George 2017 Notes may be prepaid, without penalty, along with accrued but unpaid interest at any time prior to maturity. The Company has no obligation to pay St. George any amounts on the unfunded portion of the St. George 2017 Notes. The St. George 2017 Note bears interest at 10% per annum (increases to 22% per annum upon an event of default) and is convertible into shares of the Company’s common stock at St. George’s option at a price of $0.05 per share. On December 27, 2017, St. George funded $250,000 of the secured promissory notes issued to the Company, and the Company recorded $270,000 as convertible note payable, including $20,000 OID interest. During the year ended December 31, 2017, the Company recorded debt discounts of $450,000 and during the year ended December 31, 2017, recorded amortization expense of $6,637. The principal and interest balance of the St George 2017 Note as of December 31, 2017, was $495,000 and $926, respectively.   Principal and interest on the 2017 LG and Cerberus Debentures above is due and payable one year from their respective funding date, and the LG and Cerberus Debentures are convertible into shares of the Company’s common stock at any time at the discretion of LG and Cerberus, respectively, at a VCP. The VCP is calculated as the lowest trading price during the eighteen (18) trading days immediately prior to the conversion date multiplied by fifty eight percent (58%), representing a forty two percent (42%) discount.   The Company may prepay the 2017 LG and/or the Cerberus Debentures, subject to prior notice to the holder within an initial 30-day period after issuance, by paying an amount equal to 118% multiplied by the amount that the Company is prepaying. For each additional 30-day period the amount being prepaid is multiplied by an additional 6%, up to a maximum of 148% on the 180th day from issuance. Beginning on the 180th day after the issuance of the Debentures, the Company is not permitted to prepay the Debenture, so long as the Debenture is still outstanding, unless the Company and the holder agree otherwise in writing.   The Company determined that the conversion feature of the 2017 Convertible Notes represent an embedded derivative since the Notes are convertible into a variable number of shares upon conversion. Accordingly, the 2017 Convertible Notes were not considered to be conventional debt under ASC 815-40 (formerly EITF 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock) and the embedded conversion feature was bifurcated from the debt host and accounted for as a derivative liability. Accordingly, the fair value of these derivative instruments being recorded as a liability on the consolidated balance sheet with the corresponding amount recorded as a discount to each Note. Such discount is being amortized from the date of issuance to the maturity dates of the Notes. The change in the fair value of the liability for derivative contracts are recorded in other income or expenses in the consolidated statements of operations at the end of each quarter, with the offset to the derivative liability on the balance sheet. The embedded feature included in the 2017 Convertible Notes resulted in an initial debt discount of $1,824,991, an initial derivative liability expense of $1,808,511 and an initial derivative liability of $3,633,502. For the ear ended December 31, 2017, the Company recorded amortization expense on the debt discounts of the 2017 Notes of $1,330,798, and there remains $494,193 of unamortized debt discount as of December 31, 2017.   The total amount paid to redeem convertible notes and accrued interest during the year ended December 31, 2017, was $419,699, including $96,864 of excess over principal and interest due.   Convertible Note Conversions   	   During the year ended December 31, 2017, the Company issued the following shares of common stock upon the conversions of portions of the Convertible Notes:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Date</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Principal Conversion</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Interest Conversion</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Total Conversion</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Conversion Price</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Shares Issued</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; border-bottom: Black 1pt solid">Issued to</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; text-align: center"> </td><td style="width: 10%; text-align: center">1/10/17</td><td style="width: 1%; text-align: center"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">73,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">5,664</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">78,664</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">0.01595</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">4,931,912</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 16%; padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">1/17/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">57,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,562</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">62,062</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.01537</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,037,878</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">1/27/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">48,129</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,914</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">52,043</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.01276</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,078,598</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">2/8/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">60,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">5,050</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">65,050</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.012934</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,029,369</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">2/27/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">26,120</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,171</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">28,291</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.013804</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,049,467</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">3/10/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">40,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,630</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">43,630</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.01363</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,200,997</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">3/27/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">34,775</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,255</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,030</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.012876</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,953,523</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">3/28/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">65,625</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,697</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">69,322</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.01276</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,432,725</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">4/25/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">76,081</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,752</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">80,833</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.009744</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,295,680</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">5/10/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,199</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">24,199</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.008</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,023,338</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">5/10/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">20,640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">9,360</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.0075</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,000,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">5/25/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">29,052</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">947</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,319,149</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">6/6/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">32,813</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,999</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,811</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">.00551</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,499,359</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">6/8/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">34,100</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">900</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,205,674</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">6/9/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">23,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00551</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,264,903</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">6/29/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">48,849</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,151</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">.00564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,865,248</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">6/30/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,625</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,960</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">33,585</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.0058</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,790,541</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">7/17/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">37,358</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">733</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,091</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,753,817</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">7/25/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,575</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,575</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005568</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,927,943</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">7/26/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">28,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,117</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">29,117</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005568</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,229,334</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">8/15/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,199</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">409</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,608</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.0058</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,139,276</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">8/29/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">558</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,558</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005858</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,582,115</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">9/19/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">34,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">665</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,165</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.008178</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,300,002</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">10/9/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">710</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,710</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.007076</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,340,042</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">10/23/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">802</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,802</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.006090</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,057,830</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">11/6/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">28,376</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6,624</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,205,674</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">11/6/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">19,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,218</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">20,718</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005858</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,536,715</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">11/13/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,240</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">37,240</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005858</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,357,118</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">11/14/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">26,624</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">428</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">27,052</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,796,452</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">11/15/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">75.000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,833</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">79,833</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005742</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,903,322</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">12/1/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">32,813</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">453</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">33,266</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005742</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,793,378</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">12/5/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">16,756</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,105</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">17,861</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,166,816</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">12/7/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">32,813</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,567</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,380</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005916</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,980,387</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">12/15/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">52,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">889</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">52,889</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005916</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,939,991</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">12/28/17</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">42,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">2,209</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">44,209</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left">$</td><td style="text-align: right">0.006728</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,570,945</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 12pt; text-align: center"> </td><td style="font-size: 12pt; text-align: center"> </td><td style="padding-bottom: 1pt; font-size: 12pt; text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,350,247</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">89,846</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,440,093</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-size: 12pt; padding-bottom: 1pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="padding-bottom: 1pt; font-size: 12pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">194,559,520</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-size: 12pt; padding-bottom: 1pt"> </td> <td style="font-size: 12pt; text-align: right; padding-bottom: 1pt; padding-left: 5.4pt"> </td></tr> </table>   During the year ended December 31, 2016, the Company issued the following shares of common stock upon the conversion of portions of the 2015 Convertible Notes and accrued interest thereon:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Date</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Principal Conversion</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Interest Conversion</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Total Conversion</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Conversion Price</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Shares Issued</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid; padding-left: 0pt">Issued to</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; font-size: 10pt; text-align: center"> </td><td style="width: 10%; font-size: 10pt; text-align: center">12/28/16</td><td style="width: 1%; font-size: 10pt; text-align: center"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">45,000</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">3,511</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">48,511</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">0.015080</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 10%; font-size: 10pt; text-align: right">3,216,925</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 16%; font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">12/13/16</td><td style="font-size: 10pt; text-align: center"></td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">400</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,900</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000754</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">13,129,683</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">9/26/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,613</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">629</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,242</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001218</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">7,587,824</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">7/29/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">7,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">801</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,301</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000081</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,222,352</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">7/20/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">995</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">10,495</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000098</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,644,310</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">7/12/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">927</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,927</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000986</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,068,073</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">7/1/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">805</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,805</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001160</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">7,590,362</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/22/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">973</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,973</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001450</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,119,414</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">GW</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/20/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">10,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">1,003</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">11,503</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001450</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">7,933,377</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/20/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">967</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,967</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001450</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,114,879</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">GW</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/20/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">6,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">589</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">6,589</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001450</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,544,241</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/10/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">6,075</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">1,134</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">7,209</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001798</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,009,701</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">GW</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/9/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">479</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,479</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001798</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3,047,219</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/2/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">848</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,848</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.002378</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,141,387</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">5/23/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">460</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,460</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.002436</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2,241,490</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">3/17/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">696</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,696</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.002436</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3,980,431</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">3/17/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">3,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">138</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">3,138</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000638</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,918,624</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Service</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">3/8/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">7,425</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">928</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,353</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.00174</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,800,354</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">GW</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">3/7/16</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">6,500</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">489</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">6,989</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">0.00174</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,016,471</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center"> </td><td style="text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">174,613</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">16,772</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">191,385</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">114,327,117</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 10pt"> </td></tr> </table>   A summary of the convertible notes payable balance as of December 31, 2017, and 2016 is as follows:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2017</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2016</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 67%; text-align: left; padding-left: 5.4pt">Beginning Principal Balance</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">826,480</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">472,515</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Convertible notes-newly issued</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,813,210</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">521,731</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 5.4pt">Conversion of convertible notes (principal)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,350,247</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,848</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Principal payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(310,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(174,613</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Unamortized discount</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(494,193</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(257,033</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Ending Principal Balance, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">485,250</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">569,448</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Note 10 – Related Party Transactions   Effective January 1, 2013, the Company agreed to an annual compensation of $150,000 for its CEO, Mr. Michael Friedman (resigned March 20, 2015, re-appointed November 4, 2015). Effective March 20, 2015, Mr. Justin Braune was named CEO and President. Mr. Braune also was appointed to the Board of Directors. The Company agreed to an annual compensation of $100,000 for Mr. Braune in his role of CEO and Director of the Company and to issue Mr. Braune 15,000,000 shares of restricted common stock. Mr. Braune resigned from the board of directors and as CEO on November 4, 2015, and agreed to cancel the 15,000,000 shares in his letter of resignation. The Company also initially issued Mr. Braune 12,500,000 shares of common stock on October 13, 2015. On October 16, 2015, Mr. Braune advised the Company’s transfer agent at the time to cancel the shares. The Company’s transfer agent has not canceled the shares, and accordingly, as of December 31, 2017, the shares are included in the outstanding shares of the Company. Management has requested that the transfer agent cancel the shares.   For the years ended December 31, 2017 and 2016, the Company recorded expenses of $150,000 to the CEO, included in Management Fees in the consolidated statements of operations, included herein. As of December 31, 2017, and 2016, the Company owed the CEO $7,715 and $54,246, respectively, and is included in due to related party on the Company’s consolidated balance sheet. On January 30, 2017, the Company issued 10,000,000 shares of common stock to the Company’s CEO. The shares were issued for services performed as the sole Officer and director of the Company since November 2014. The shares were valued at $301,000 ($0.0301 per share, the market price of the common stock on the grant date) and are included in Management Fees in the consolidated statements of operations, included herein.   On April 14, 2015, the Company appointed Dr. Stephen Holt to the Advisory Board of the Board of Directors of the Company. The Company issued 5,000,000 shares of restricted common stock to Dr. Holt for his appointment. Additionally, the Company agreed the advisor shall receive a non-qualified stock option to purchase 1,000,000 shares (“Option Shares”) of the Company’s common stock at an exercise price equal to $0.05 per share. 400,000 Option Shares vested immediately and the remaining 600,000 Option Shares vested over 12 months. Accordingly, the Company has recorded $2,371 for the year ended December 31, 2016, in stock compensation expense and all of the options have vested.    On October 5, 2017, the Company agreed to lease from the Company’s CEO, a "420 Style" resort and estate property approximately one hour outside of Quebec City, Canada. The fifteen-acre estate consists of nine (9) unique guest suites, horse stables, and is within walking distance to a public golf course. A separate structure will serve as a small grow facility run by patient employees and caretakers on the property which may be toured by guests of the facility. Pursuant to the agreement, the Company will pay $8,000 per month in exchange for the Company being entitled to all rents and income generated from the property. The Company will be responsible for all costs of the property, including, but not limited to, renovations, repairs and maintenance, insurance and utilities. On August 8, 2017, the Company issued 5,000,000 shares of common stock to the seller. The Company valued the shares at $0.0123 per share (the market price of the common stock) and has included $61,500 in stock- based compensation expense for the year ended December 31, 2017. The Company purchased from the previous owner furniture and fixtures for $96,000. As of December 31, 2017, the Company has not received any rents from the property, as it is renovating the house.   Amounts Due from 800 Commerce, Inc.   800 Commerce, Inc., a commonly controlled entity until February 29, 2016, owed Agritek $282,947 as of February 29, 2016, as a result of advances received from or payments made by Agritek on behalf of 800 Commerce. These advances were non-interest bearing and were due on demand. Effective February 29, 2016, the Company received 1,102,462 shares of common stock of Petrogress, Inc. (formerly known as 800 Commerce, Inc.) as settlement of the $282,947 owed to the Company.

194559520

3216925

13129683

7587824

10222352

10644310

10068073

4119414

7933377

4009701

3047219

4141387

2241490

3980431

4800354

4016471

5980387

4931912

4037878

4078598

5029369

2049467

3200997

2953523

5432725

2953523

12718484

8295680

3023338

4000000

5319149

6499359

6205674

4264903

8865248

5790541

28295680

5432726

4264903

3023338

6499359

46631979

6753817

6927943

5229334

6139276

6582115

4300002

5229334

4340042

5057830

6205674

6357188

4796452

13903322

5793378

3166816

5980387

8939991

6570945

3536715

7590362

114327117

4114879

4918624

4544241

Note 11 – Common and Preferred Stock     Common Stock   2017 Issuances   During the year ended December 31, 2017, the Company issued the following shares of common stock upon the conversions of portions of the convertible notes:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Date</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Principal Conversion</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Interest Conversion</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Total Conversion</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Conversion Price</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Shares Issued</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; border-bottom: Black 1pt solid">Issued to</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; text-align: center"> </td><td style="width: 10%; text-align: center">1/10/17</td><td style="width: 1%; text-align: center"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">73,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">5,664</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">78,664</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">0.01595</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">4,931,912</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 16%; padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">1/17/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">57,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,562</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">62,062</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.01537</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,037,878</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">1/27/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">48,129</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,914</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">52,043</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.01276</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,078,598</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">2/8/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">60,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">5,050</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">65,050</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.012934</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,029,369</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">2/27/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">26,120</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,171</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">28,291</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.013804</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,049,467</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">3/10/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">40,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,630</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">43,630</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.01363</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,200,997</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">3/27/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">34,775</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,255</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,030</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.012876</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,953,523</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">3/28/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">65,625</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,697</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">69,322</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.01276</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,432,725</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">4/25/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">76,081</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,752</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">80,833</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.009744</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,295,680</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">5/10/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,199</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">24,199</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.008</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,023,338</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">5/10/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">20,640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">9,360</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.0075</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,000,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">5/25/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">29,052</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">947</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,319,149</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">6/6/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">32,813</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,999</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,811</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">.00551</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,499,359</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">6/8/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">34,100</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">900</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,205,674</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">6/9/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">23,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00551</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,264,903</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">6/29/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">48,849</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,151</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">.00564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,865,248</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">6/30/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,625</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,960</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">33,585</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.0058</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,790,541</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">7/17/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">37,358</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">733</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,091</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,753,817</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">7/25/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,575</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,575</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005568</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,927,943</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">7/26/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">28,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,117</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">29,117</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005568</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,229,334</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">8/15/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,199</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">409</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,608</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.0058</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,139,276</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">8/29/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">558</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,558</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005858</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,582,115</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">9/19/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">34,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">665</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,165</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.008178</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,300,002</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">10/9/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">710</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,710</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.007076</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,340,042</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">10/23/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">802</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,802</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.006090</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,057,830</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">11/6/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">28,376</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6,624</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,205,674</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">11/6/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">19,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,218</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">20,718</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005858</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,536,715</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">11/13/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,240</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">37,240</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005858</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,357,118</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">11/14/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">26,624</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">428</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">27,052</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,796,452</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">11/15/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">75.000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,833</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">79,833</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005742</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,903,322</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">12/1/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">32,813</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">453</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">33,266</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005742</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,793,378</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">12/5/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">16,756</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,105</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">17,861</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,166,816</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">12/7/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">32,813</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,567</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,380</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005916</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,980,387</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">12/15/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">52,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">889</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">52,889</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005916</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,939,991</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">12/28/17</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">42,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">2,209</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">44,209</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left">$</td><td style="text-align: right">0.006728</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,570,945</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 12pt; text-align: center"> </td><td style="font-size: 12pt; text-align: center"> </td><td style="padding-bottom: 1pt; font-size: 12pt; text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,350,247</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">89,846</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,440,093</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-size: 12pt; padding-bottom: 1pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="padding-bottom: 1pt; font-size: 12pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">194,559,520</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-size: 12pt; padding-bottom: 1pt"> </td> <td style="font-size: 12pt; text-align: right; padding-bottom: 1pt; padding-left: 5.4pt"> </td></tr> </table>   In addition to the above, during the year ended December 31, 2017, the Company:   On January 16, 2017, the Company entered into a Business Consultant Agreement (the “BCA”). Pursuant to the BCA, the Company issued 5,000,000 shares of common stock for services to be provided to the Company related to business development, product marketing, helping identify mergers and acquisition candidates, and will consult with and advise the Company on matters pertaining to business modeling and strategic alliances. The Company valued the shares at $0.0267 per share (the market price of the common stock) and recorded stock compensation expense for the year ended December 31, 2017, of $133,500.   On January 27, 2017, the Company issued 1,000,000 shares of restricted common stock to Kopelowitz Ostrow P.A. (“KO”) pursuant to a Debt Settlement and Release Agreement (the “Debt Settlement”) by and between the Company and KO. Among the terms of the Debt Settlement was the forgiveness of $24,614 of debt the Company owed KO for legal services provided. The Company valued the shares at $0.0257 per share (the market price of the common stock) and recorded a loss on the settlement of accounts payable for the year ended December 31, 2017, of $1,086.   On January 30, 2017, the Company issued 1,000,000 shares of common stock to Venture Equity. The Company valued the shares at $0.03 per share (the market price of the common stock) and cancelled of $13,169 of accrued and unpaid fees owed Venture Equity and recorded a loss on the settlement of accounts payable for the year ended December 31, 2017, of $16,831.   Also, on January 30, 2017, the Company issued 10,000,000 shares of common stock to the Company’s CEO. The shares were issued for services performed as the sole Officer and director of the Company since November 2014. The Company valued the shares at $0.0301 per share (the market price of the common stock) and for the year ended December 31, 2017, recorded stock compensation expense, management, of $301,000.   On June 19, 2017, the Company issued 1,319,149 shares of common stock valued at $16,094 to St. George pursuant to the “true-up” terms and conditions of the St. George note.   On August 8, 2017, the Company issued 2,000,000 shares of common stock for compensation for services of the Company’s chief operating officer. The Company valued the shares at $0.0123 per share (the market price of the common stock) and for the year ended December 31, 2017, recorded stock compensation expense, management, of $24,600.   On August 8, 2017, the Company issued 5,000,000 shares of common stock for the property known as the "420 Style" resort and estate, located in Canada (see note 11). The Company valued the shares at $0.0123 per share (the market price of the common stock) and has included $61,500 in stock- based compensation expense for the year ended December 31, 2017.   During the year ended December 31, 2017, the Company issued 87,934,231 shares of common stock to St. George pursuant to Notices of Exercise of Warrant received. The shares were issued based upon the cashless exercise provision of the warrant.   During the year ended December 31, 2017, the Company recorded 15,000,000 shares of common stock to Mr. Braune (see Note 10) that have been included in the Company’s transfer agent’s records despite Mr. Braune’s request to the transfer agent of record at the time to cancel the shares. The Company had previously removed the shares from its records.   2016 Issuances   During the year ended December 31, 2016, the Company issued the following shares of common stock upon the conversions of portions of the 2014 Company Note and portions of the 2015 Convertible Notes:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Date</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Principal Conversion</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Interest Conversion</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Total Conversion</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Conversion Price</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Shares Issued</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid; padding-left: 0pt">Issued to</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; font-size: 10pt; text-align: center"> </td><td style="width: 10%; font-size: 10pt; text-align: center">12/28/16</td><td style="width: 1%; font-size: 10pt; text-align: center"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">45,000</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">3,511</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">48,511</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">0.015080</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 10%; font-size: 10pt; text-align: right">3,216,925</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 16%; font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">12/13/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">400</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,900</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000754</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">13,129,683</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">9/26/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,613</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">629</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,242</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001218</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">7,587,824</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">7/29/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">7,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">801</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,301</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000081</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,222,352</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">7/20/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">995</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">10,495</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000098</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,644,310</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">7/12/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">927</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,927</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000986</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,068,073</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">7/1/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">805</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,805</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001160</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">7,590,362</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/22/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">973</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,973</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001450</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,119,414</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">GW</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/20/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">10,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">1,003</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">11,503</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001450</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">7,933,377</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/20/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">967</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,967</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001450</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,114,879</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">GW</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/20/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">6,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">589</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">6,589</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001450</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,544,241</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/10/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">6,075</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">1,134</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">7,209</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001798</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,009,701</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">GW</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/9/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">479</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,479</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001798</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3,047,219</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/2/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">848</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,848</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.002378</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,141,387</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">5/23/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">460</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,460</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.002436</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2,241,490</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">3/17/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">696</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,696</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.002436</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3,980,431</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">3/17/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">3,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">138</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">3,138</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000638</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,918,624</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Service</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">3/8/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">7,425</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">928</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,353</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.00174</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,800,354</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">GW</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">3/7/16</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">6,500</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">489</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">6,989</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">0.00174</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,016,471</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center"> </td><td style="text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">174,613</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">16,772</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">191,385</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">114,327,117</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 10pt"> </td></tr> </table>   In addition to the above during the year ended December 31, 2016, the Company:   On November 7, 2016, the Company issued 5,000,000 shares of common stock and completed the stock purchase for the acquisition of Sterling Classic Compassion, LLC. (“Sterling”). The Company valued the shares at $0.081 per share (the market price of the common stock).   Preferred Stock   On June 26, 2015, the Company filed with the Delaware Secretary of State the Amended and Restated Designation Preferences and Rights (the “Certificate of Designation”) of Class B Preferred Stock (the “Series B Preferred Stock”). Pursuant to the Certificate of Designation, 1,000 shares constitute the Series B Preferred Stock. The Series B Preferred Stock and any accrued and unpaid dividends thereon shall, with respect to rights on liquidation, winding up and dissolution, rank senior to the Company’s issued and outstanding common stock and Series A preferred stock.   The Series B Preferred Stock has the right to vote in aggregate, on all shareholder matters equal to 51% of the total vote, no matter how many shares of common stock or other voting stock of the Company are issued or outstanding in the future. The Series B Preferred Stock has a right to vote on all matters presented or submitted to the Company’s stockholders for approval in pari passu with the common stockholders, and not as a separate class. The holders of Series B Preferred Stock have the right to cast votes for each share of Series B Preferred Stock held of record on all matters submitted to a vote of common stockholders, including the election of directors. There is no right to cumulative voting in the election of directors. The holders of Series B Preferred Stock vote together with all other classes and series of common stock of the Company as a single class on all actions to be taken by the common stockholders except to the extent that voting as a separate class or series is required by law. As of December 31, 2017, and 2016, there were 1,000 shares of Class B Preferred Stock outstanding.   Warrants and Options   On April 14, 2015, in connection with the appointment of Dr. Stephen Holt to the advisory board, the Company agreed the advisor shall receive a non-qualified stock option to purchase 1,000,000 shares (“Option Shares”) of the Company’s common stock at an exercise price equal to $0.05 per share and expiring April 14, 2018. Option Shares of 400,000 vested immediately and 50,000 Option Shares vested each month from April 2015 through March 2016. Accordingly, as of March 31, 2016, 1,000,000 Option Shares have vested and the Company recorded $2,317 as stock compensation expense for the year ended December 31, 2016, based on Black-Scholes.   On April 26, 2013 and in connection with the appointment of Mr. James Canton to the Company’s advisory board, the Company issued a warrant to Mr. Canton to purchase 300,000 shares of common stock. The warrant expired April 26, 2016.   On October 31, 2016, the Company granted (Warrant #1) to St. George the right to purchase at any time on or after November 10, 2016 (the “Issue Date”) until the date which is the last calendar day of the month in which the fifth anniversary of the Issue Date occurs (the “Expiration Date”), a number of fully paid and non-assessable shares (the “Warrant Shares”) of Company’s common stock, equal to $57,500 divided by the Market Price (defined below) as of the Issue Date, as such number may be adjusted from time to time pursuant to the terms and conditions of Warrant #1 to Purchase Shares of Common Stock. The Market Price is equal to the lowest intra-day trade price in the twenty (20) Trading Days immediately preceding the applicable date of exercise, multiplied by sixty percent (60%). The exercise price is the lower of $0.05 and is subject to price adjustments pursuant to the agreement and includes a cashless exercise provision. The Company also issued Warrant #’s 2-9, with each warrant only effective upon St. George funding of the secured notes they issued to the Company. Warrant #’s 2-9 give St. George the right to purchase Warrant Shares equal to $27,500 divided by the Market Price on the funded date. On December 14, 2016, the Company received a payment of $50,000, and accordingly, Warrant #2 became effective. During the year ended December 31, 2017, the Company received the funding on the remaining notes and Warrant #’s 3-9 became effective. During the year ended December 31, 2017, the company issued 87,934,231 shares of common stock to St. George pursuant to Notices of Exercise of 9,364,108 Warrants received. The shares were issued based upon the cashless exercise provision of the warrant.   The following table summarizes the activity related to warrants of the Company for the years ended December 31, 2017 and 2016:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-size: 12pt"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">Number of Warrants</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">Weighted-Average Exercise Price per share</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">Weighted-Average Remaining Life (Years)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 53%; padding-left: 5.4pt">Outstanding at January 1, 2016</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">1,300,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">0.05</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">3.00</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Warrants issued</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16,926,130</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00564</td><td style="text-align: left"> </td><td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="font-size: 12pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Warrants expired</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(300,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(0.05</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="font-size: 12pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 12pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 12pt; text-align: right"> </td><td style="padding-bottom: 1pt; font-size: 12pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Outstanding and exercisable at December 31, 2016</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">17,926,130</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.0811</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.88</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 5.4pt">Warrant issued</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">40,573,870</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00564</td><td style="text-align: left"> </td><td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="font-size: 12pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Warrants exercised</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(9,364,108</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0.00564</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-size: 12pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 12pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 12pt; text-align: right"> </td><td style="padding-bottom: 1pt; font-size: 12pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Outstanding and exercisable at December 31, 2017</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">49,135,892</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">0.00654</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">4.17</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Note 13 – Commitments and Contingencies   Office Space    In April 2014, the Company entered into a two-year sublease agreement for the use of up to 7,500 square feet with a Colorado based oncology clinical trial and drug testing company and facility presently doing cancer research and testing for established pharmaceutical companies seeking FDA approval for new drugs. Pursuant to the lease, as amended, the Company agreed to pay $3,500 per month for the space. The lease expired in April 2016, and the Company owes the landlord $48,750.   In December 2016, the Company signed a one-year lease for office space in San Juan, Puerto Rico. The lease requires monthly base rent of $800 for the months of December 2016 through February 2017, and $900 per month for the months of March 2017 through November 2017.   In January 2017, the Company signed a five (5) year lease, beginning February 1, 2107, for approximately 6,000 square feet of office space, comprised of two floors, in San Juan, Puerto Rico. Pursuant to the lease, the Company will pay $3,000 per month for the third floor of the building for the first year of the lease. The rent will increase 3% per year on February beginning in 2018 and an additional 3% per year on each successive February 1, during the term of the lease. The landlord has agreed that for the month of February 2017, the rent will be $1,500. The rent for second floor of the building will be $2,000 per month during the term of the lease and the Company does not have any rent payments for the first three months of the lease (February 2017 through April 2017). Through September 30, 2017, the Company calculated the total amount of the rent for the term lease and recorded straight line rent expense of $45,417 and had made payments of $20,516. As of December 31, 2017, the Company has a balance of $24,916 in deferred rent which is included in the consolidated balance sheet. The leases for the second and third floor were cancelled in September 2017 as a result of Hurricane Irma.   On December 1, 2016, the Company signed a one (1) year lease for a corporate apartment in Puerto Rico for $5,500 per month. This lease expired in November 30, 2017.   Rent expense was $101,279 and $40,303, respectively, and for the years ended December 31 2017, and 2016, respectively.   Leased Properties   On April 28, 2014, the Company executed and closed a ten-year lease agreement for 20 acres of an agricultural farming facility located in South Florida following the approval of the so-called “Charlotte’s Web” legislation, aimed at decriminalizing low grade marijuana specifically for the use of treating epilepsy and cancer patients.  Pursuant to the lease agreement, the Company maintains a first right of refusal to purchase the property for three years. The Company has recorded $38,244 of expense (included in leased property expenses) for the years ended December 31, 2017, and 2016, respectively. The Company is currently in default of the lease agreement, as rents have not been for the second year of the lease beginning May 2015.   On July 11, 2014, the Company signed a ten-year lease agreement for an additional 40 acres in Pueblo, Colorado. The lease requires monthly rent payments of $10,000 during the first year and is subject to a 2% annual increase over the life of the lease. The lease also provides rights to 50 acres of certain tenant water rights for $50,000 annually plus cost of approximately $2,400 annually. The Company paid the $50,000 in July 2014, and has not used the property and any water and has not paid for any water rights after September 30, 2015. The Company has recorded $-0- of expense for the year ended December 31, 2017, and $76,650 for the year ended December 31, 2016, (included in leased property expenses). The Company is currently in default of the lease agreement, as rents have not been paid since February 2015.   Agreements   On April 5, 2017, the Company executed a five (5) year operational and exclusive licensing agreement with a third party who leases a 25,000-sq. ft. approved cultivation facility located in San Juan, Puerto Rico. The Company will be the exclusive funding source, and supervise all infrastructure buildout, equipment lease/finance, security systems and personnel and provide access of seasoned Colorado and California cultivation crews to ensure the facility meets all standard operating procedures as set forth by the Department Of Health of Puerto Rico. Under the agreement, the Company receives $12,000 a month in consulting fees, licensing fees on all vaporizer and edible sales, equipment and lighting rental and financing fees along with equity interest in the property. For the year ended December 31, 2017, the Company received $48,000 in consulting fees. As of December 31, 2017, the Company has invested $110,000. On August 7, 2017, the Company signed a LOI with Green Acres, whereby in consideration of consulting fees, licensing fees on all vaporizer and edible brands, equipment and lighting rental and financing fees, the Company will provide up to $250,000 of working capital and potentially, up to $3,500,000 for the buyout of Green Acres existing mortgage on their Washington State facility. As of December 31, 2017, the Company has invested $100,000. Repayment terms are to be from thirty percent of Green Acres monthly EBITDA. If Green Acres does not have EBITDA in a month there will not be a payment for that month. On October 5, 2017, the Company agreed to lease from the Company’s CEO, a "420 Style" resort and estate property approximately one hour outside of Quebec City, Canada. The fifteen-acre estate consists of nine (9) guest suites, horse stables, and is within walking distance to a public golf course. A separate structure will serve as a small grow facility run by patient employees and caretakers on the property which may be toured by guests of the facility. On August 8, 2017, the Company issued 5,000,000 shares of common stock to the seller. The Company valued the shares at $0.0123 per share (the market price of the common stock) and has included $61,500 in stock compensation expense. The Company purchase from the seller furniture and fixtures for $96,000. Pursuant to the agreement, the Company will pay $8,000 per month in exchange for the Company being entitled to all rents and income generated from the property. The Company will be responsible for all costs of the property, including, but not limited to, renovations, repairs and maintenance, insurance and utilities. As of December 31, 2017, the Company has not made any monthly payments and also has not received any rental income from the property, as it is currently renovating the house.   Legal & Other   On March 2, 2015, the Company, the Company’s CEO and the Company’s CFO at the time were named in a civil complaint filed by Erick Rodriguez in the District Court in Clark County, Nevada (the “DCCC”). The complaint alleges that Mr. Rodriguez never received 250,000 shares of Series B preferred stock that were initially approved by the Board of Directors in 2012, subject to the completion of a merger of a company controlled by Mr. Rodriguez. Since the merger was never completed, the shares were never certificated to Mr. Rodriguez. On March 21, 2017, the DCC agreed to Set Aside the Entry of Default against the Defendants. Mr. Rodriguez resigned in June 2013. On April 12, 2018, the Arbitrator issued a final award to Rodriguez in the amount of $399,291. The Company and the Company’s counsel believe the Arbitrator denied a number of detailed objections to the award, which cited clear mistakes as to Nevada law and to the facts. The Company has retained a Nevada attorney who is an expert in fighting attempts to convert arbitration awards into judgments in Nevada courts, to work with our arbitration counsel. The Company recorded a loss on legal matter, included in other expenses for the year ended December 31, 2017.   On May 6, 2016, the Company, B. Michael Freidman and Barry Hollander (former CFO) were named as defendants in a Summons/Complaint filed by Justin Braune (the “Plaintiff”) in Palm Beach County Civil Court, Florida (the “PBCCC”). The complaint alleges that Mr. Braune was entitled to shares of common stock of the Company. On December 5, 2016, the PBCCC set aside a court default that had been previously issued. The defendants have answered the complaint, including the defenses that Mr. Braune advised the Company’s transfer agent and the Company in his letter of resignation dated November 4, 2015, clearly stating that he has relinquished all shares of common stock. The Company has filed a counterclaim suit against the Plaintiff, as well as sanctions against the Plaintiff and their counsel.

-6672693

Note 15 – Segment Reporting   During the year ended December 31, 2017 and 2016, the Company operated in one reportable segment, wholesale sales.

Note 16 – Subsequent Events   On January 2, 2018, the Company issued 2,631,579 shares of common stock upon the exercise of warrant #1 (see note 9).   On January 5, 2018, the Company issued 4,870,000 shares of common stock upon the exercise of warrant #1 (see note 9).   On January 9, 2018, the company received $50,000 pursuant to a Stock Purchase Agreement by and between the Company and St George.   On January 9, 2018, St. George funded $200,000 of the secured promissory notes issued to the Company, and the Company recorded $220,000 as convertible note payable, including $20,000 OID interest.   On January 10, 2018, the Company issued 7,500,000 shares of common stock upon the exercise of warrant #1 (see note 9).   On January 12, 2018, the Company paid $236,817 to Cerberus to redeem all of their remaining convertible notes with the Company.   On January 23, 2018, the Company issued 5,550,000 shares of common stock upon the exercise of warrant #1 (see note 9).   On January 23, 2018, the company received $100,000 pursuant to a Stock Purchase Agreement by and between the Company and St George.   On February 2, 2018, the Company issued 8,000,000 shares of common stock upon the exercise of warrant #1 (see note 9).   On February 2, 2018, the company received $100,000 pursuant to a Stock Purchase Agreement by and between the Company and St George.   On February 12, 2018, the Company issued 13,297,872 shares of common stock upon the conversion of $75,000 of principal and interest. The shares were issued at $0.00564 per share.   On February 27, 2018, the company received $90,000 pursuant to a Stock Purchase Agreement by and between the Company and St George.   On March 20, 2018, the company received $75,000 of the secured promissory notes issued to the Company by St George.   On March 28, 2018, the Company issued 8,865,248 shares of common stock upon the conversion of $50,000 of principal and interest. The shares were issued at $0.00564 per share.

0.08

.08

0.10

0.08

0.12

0.08

0.55

.015080

.000754

.001218

.000081

.000098

.000986

.001450

.001798

.002378

.002436

.00174

0.005916

0.05

0.01595

0.01537

0.01276

0.012934

0.013804

0.01363

0.012876

0.01276

0.01287

0.0057

0.009744

0.008

0.0075

0.00564

0.00551

.00564

.00551

0.00564

0.0097

0.01276

0.00551

0.008

0.00551

0.00564

0.005568

0.0058

0.005858

0.008178

0.0058

0.00818

0.00557

.007076

.006090

.005640

.005858

.005640

.005742

.005640

.005916

.006728

.005858

.001160

.001450

.000638

.001450

Advertising   The Company records advertising costs as incurred. For the years ending December 31, 2017, and 2016, advertising expenses was $54,927 and $8,321, respectively.

Note 6– Concentration of Credit Risk   Cash   Financial   instruments   that   potentially   subject   the   Company to concentrations of credit risk consist principally of cash. The Company maintains cash balances at one financial institution, which is insured by the Federal Deposit Insurance Corporation (“FDIC”). The FDIC insured institution insures up to $250,000 on account balances.

Long-Lived Assets   Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">December 31, 2017</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">December 31, 2016</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-left: 5.4pt; width: 62%">Furniture and equipment</td><td style="font-size: 10pt; width: 1%"> </td> <td style="font-size: 10pt; text-align: left; width: 1%">$</td><td style="font-size: 10pt; text-align: right; width: 15%">180,684</td><td style="font-size: 10pt; text-align: left; width: 1%"> </td><td style="font-size: 10pt; width: 3%"> </td> <td style="font-size: 10pt; text-align: left; width: 1%">$</td><td style="font-size: 10pt; text-align: right; width: 15%">34,587</td><td style="font-size: 10pt; text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-left: 5.4pt">Land</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">129,555</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Accumulated depreciation</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(23,824</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(8,307</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.5pt; padding-left: 5.4pt">Balance</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">286,415</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">26,280</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table>

Investment of Non-Marketable Securities   In 2014, the Company purchased an investment in non-marketable securities of a less than 10% interest in two privately held companies of $25,000 each, that provide merchant processing services. During the year ended December 31, 2017, due to recent losses, management wrote off the investment of $50,000, which is included in Other expenses on the consolidated statements of operations included herein. As of December 31, 2017, and 2016, the balance of the Investment of Non-Marketable Securities and Other was $-0- and $50,000, respectively

180684

34587

1440093

48511

9900

9242

8301

10495

9927

5973

11503

7209

5479

9848

5460

9696

8353

6989

78664

62062

52043

65050

28291

43630

38030

69322

80833

24199

30000

35811

35000

23500

50000

33585

38091

38575

29117

35608

38558

35165

30710

30802

35000

37240

27052

79833

33266

17861

35380

52889

44209

20718

8805

191385

5967

3138

6589

Note 14 – Going Concern   The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. As of December 31, 2017, the Company had an accumulated deficit of $25,578,077 and working capital deficit of $6,672,693, inclusive of a derivative liability of $5,416,830. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

494193

257034

865593

1824991

Derivative Financial Instruments   The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of it financial instruments, including stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income.    For option-based simple derivative financial instruments, the Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period.

Debt Issue Costs and Debt Discount   The Company may record debt issue costs and/or debt discounts in connection with raising funds through the issuance of debt. These costs may be paid in the form of cash, or equity (such as warrants). These costs are amortized to interest expense over the life of the debt. If a conversion of the underlying debt occurs prior to maturity a proportionate share of the unamortized amounts is immediately expensed.

Original Issue Discount   For certain convertible debt issued, the Company may provide the debt holder with an original issue discount. The original issue discount would be recorded to debt discount, reducing the initial carrying value of the note and is amortized to interest expense through the maturity of the debt. If a conversion of the underlying debt occurs prior to maturity a proportionate share of the unamortized amounts is immediately expensed.

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2017</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2016</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 5.4pt; width: 67%">Beginning Principal Balance</td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 12%">826,480</td><td style="text-align: left; width: 1%"> </td><td style="width: 3%"> </td> <td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 12%">472,515</td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Convertible notes-newly issued</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,813,210</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">521,731</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 5.4pt">Conversion of convertible notes (principal)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,350,247</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,848</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Principal payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(310,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(174,613</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Unamortized discount</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(494,193</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(257,033</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Ending Principal Balance, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">485,250</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">569,448</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

2017 Issuances   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Date</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Principal Conversion</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Interest Conversion</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Total Conversion</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Conversion Price</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Shares Issued</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; border-bottom: Black 1pt solid">Issued to</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; text-align: center"> </td><td style="width: 10%; text-align: center">1/10/17</td><td style="width: 1%; text-align: center"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">73,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">5,664</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">78,664</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">0.01595</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">4,931,912</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 16%; padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">1/17/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">57,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,562</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">62,062</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.01537</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,037,878</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">1/27/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">48,129</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,914</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">52,043</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.01276</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,078,598</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">2/8/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">60,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">5,050</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">65,050</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.012934</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,029,369</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">2/27/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">26,120</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,171</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">28,291</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.013804</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,049,467</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">3/10/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">40,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,630</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">43,630</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.01363</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,200,997</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">3/27/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">34,775</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,255</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,030</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.012876</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,953,523</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">3/28/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">65,625</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,697</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">69,322</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.01276</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,432,725</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">4/25/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">76,081</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,752</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">80,833</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.009744</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,295,680</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">5/10/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,199</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">24,199</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.008</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,023,338</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">5/10/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">20,640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">9,360</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.0075</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,000,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">5/25/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">29,052</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">947</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,319,149</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">6/6/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">32,813</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,999</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,811</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">.00551</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,499,359</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">6/8/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">34,100</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">900</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,205,674</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">6/9/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">23,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00551</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,264,903</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">6/29/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">48,849</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,151</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">.00564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,865,248</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">6/30/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,625</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,960</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">33,585</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.0058</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,790,541</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">7/17/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">37,358</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">733</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,091</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,753,817</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">7/25/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,575</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,575</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005568</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,927,943</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">7/26/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">28,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,117</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">29,117</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005568</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,229,334</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">8/15/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,199</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">409</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,608</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.0058</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,139,276</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">8/29/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">558</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,558</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005858</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,582,115</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">9/19/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">34,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">665</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,165</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.008178</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,300,002</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">10/9/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">710</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,710</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.007076</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,340,042</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">10/23/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">802</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,802</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.006090</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,057,830</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">11/6/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">28,376</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6,624</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,205,674</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">11/6/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">19,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,218</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">20,718</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005858</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,536,715</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">11/13/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,240</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">37,240</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005858</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,357,118</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">11/14/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">26,624</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">428</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">27,052</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,796,452</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">11/15/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">75.000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,833</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">79,833</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005742</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,903,322</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">12/1/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">32,813</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">453</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">33,266</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005742</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,793,378</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">12/5/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">16,756</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,105</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">17,861</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,166,816</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">12/7/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">32,813</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,567</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,380</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005916</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,980,387</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">12/15/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">52,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">889</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">52,889</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005916</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,939,991</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">12/28/17</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">42,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">2,209</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">44,209</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left">$</td><td style="text-align: right">0.006728</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,570,945</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 12pt; text-align: center"> </td><td style="font-size: 12pt; text-align: center"> </td><td style="padding-bottom: 1pt; font-size: 12pt; text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,350,247</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">89,846</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,440,093</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-size: 12pt; padding-bottom: 1pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="padding-bottom: 1pt; font-size: 12pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">194,559,520</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-size: 12pt; padding-bottom: 1pt"> </td> <td style="font-size: 12pt; text-align: right; padding-bottom: 1pt; padding-left: 5.4pt"> </td></tr> </table>     <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Date</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Principal Conversion</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Interest Conversion</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Total Conversion</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Conversion Price</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Shares Issued</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid; padding-left: 0pt">Issued to</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; font-size: 10pt; text-align: center"> </td><td style="width: 10%; font-size: 10pt; text-align: center">12/28/16</td><td style="width: 1%; font-size: 10pt; text-align: center"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">45,000</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">3,511</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">48,511</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">0.015080</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 10%; font-size: 10pt; text-align: right">3,216,925</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 16%; font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">12/13/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">400</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,900</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000754</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">13,129,683</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">9/26/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,613</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">629</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,242</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001218</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">7,587,824</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">7/29/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">7,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">801</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,301</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000081</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,222,352</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">7/20/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">995</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">10,495</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000098</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,644,310</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">7/12/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">927</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,927</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000986</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,068,073</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">7/1/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">805</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,805</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001160</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">7,590,362</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/22/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">973</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,973</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001450</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,119,414</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">GW</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/20/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">10,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">1,003</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">11,503</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001450</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">7,933,377</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/20/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">967</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,967</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001450</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,114,879</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">GW</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/20/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">6,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">589</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">6,589</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001450</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,544,241</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/10/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">6,075</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">1,134</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">7,209</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001798</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,009,701</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">GW</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/9/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">479</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,479</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001798</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3,047,219</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/2/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">848</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,848</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.002378</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,141,387</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">5/23/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">460</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,460</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.002436</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2,241,490</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">3/17/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">696</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,696</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.002436</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3,980,431</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">3/17/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">3,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">138</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">3,138</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000638</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,918,624</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Service</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">3/8/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">7,425</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">928</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,353</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.00174</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,800,354</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">GW</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">3/7/16</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">6,500</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">489</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">6,989</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">0.00174</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,016,471</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center"> </td><td style="text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">174,613</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">16,772</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">191,385</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">114,327,117</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 10pt"> </td></tr> </table>   49135392

138041561

1350247

45000

9500

8613

7500

9500

9000

5000

10500

6075

5000

9000

5000

9000

7425

6500

32813

73000

57500

48129

60000

26120

40000

34775

65625

34775

65625

76081

22000

20640

29052

32813

34100

22000

48849

30625

76080

65625

22000

32813

241756

37358

35000

28000

35199

38000

34500

28000

30000

28376

35000

26624

75000

32813

16756

32813

52000

42000

19500

8000

174613

5000

3000

6000

1410647

3608250

203023

1808580

1613670

5416830

167014

1613767

3183423

3633502

415313

4048815

4114649

3.20

1.99

2.03

2.43

3.31

3.61

3.84

3.20

2.68

2.46

P3M

P3Y10M13D

P1M

P12M

P4Y7M21D

P3Y10M2D

P12M

0.0151

0.0065

0.0172

0.0044

.0048

0.0179

0.0178

0.0205

0.0181

0.0068

.0085

1660000

311815

157500

147249

34775

65625

76080

65625

22000

32813

313244

170000

60000

35000

26000

17500

52000

42000

52000

128000

32813

1500000

500000

300000

200000

25000

800000

100000

21888

200000

340000

220000

1041

2496

3792

5833

2465

743

1271

569

1946

1933

117

76080

34775

22000

65625

32813

555000

94500

63000

140000

26000

17500

52000

65625

22000

42000

52000

128000

1105000

224466

166000

2317830 1808511

100000

150000

15000000

5000000

100000

0.02

1000000

0.05

2317

2371

282947

1000000

1000 1102462 -282947 10000000 5000000 10000000 2000000 5000000

3500

800

900

1500

3000

2000

101279

40303

38244

P10Y

10000

0.02 50

50000

2400

76650

62500

25000

20000

62500

30813

90000

60000

136500

24000

16000

49600

62500

20000

40000

49600

125000

470000

12500000 12500000

Marketable Securities and Other Comprehensive Income   The Company classifies its marketable securities as available-for-sale securities, which are carried at their fair value based on the quoted market prices of the securities with unrealized gains and losses, net of deferred income taxes, reported as accumulated other comprehensive income (loss), a separate component of stockholders’ equity. Realized gains and losses on available-for-sale securities are included in net earnings in the period earned or incurred.

P5Y

P7Y

157500 156749 157500 154315 2434 75000 75000 2017-01-19 2017-01-19

0.08

0.42 0.42 50000 115000 400000

15000000

300000

2018-04-14 48750

23824

8308

0.01

1000000

1000

0.0001

1000000000

500000000

723680348

400867449

723680348

400867449

15516

3566

304889

67260

11548

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Date</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Principal Conversion</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Interest Conversion</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Total Conversion</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Conversion Price</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Shares Issued</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; border-bottom: Black 1pt solid">Issued to</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; text-align: center"> </td><td style="width: 10%; text-align: center">1/10/17</td><td style="width: 1%; text-align: center"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">73,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">5,664</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">78,664</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">0.01595</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">4,931,912</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 16%; padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">1/17/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">57,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,562</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">62,062</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.01537</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,037,878</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">1/27/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">48,129</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,914</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">52,043</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.01276</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,078,598</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">2/8/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">60,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">5,050</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">65,050</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.012934</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,029,369</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">2/27/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">26,120</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,171</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">28,291</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.013804</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,049,467</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">3/10/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">40,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,630</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">43,630</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.01363</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,200,997</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">3/27/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">34,775</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,255</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,030</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.012876</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,953,523</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">3/28/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">65,625</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,697</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">69,322</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.01276</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,432,725</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">4/25/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">76,081</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,752</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">80,833</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.009744</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,295,680</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">5/10/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,199</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">24,199</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.008</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,023,338</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">5/10/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">20,640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">9,360</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.0075</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,000,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">5/25/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">29,052</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">947</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,319,149</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">6/6/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">32,813</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,999</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,811</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">.00551</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,499,359</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">6/8/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">34,100</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">900</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,205,674</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">6/9/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">23,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00551</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,264,903</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">6/29/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">48,849</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,151</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">.00564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,865,248</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">6/30/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,625</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,960</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">33,585</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.0058</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,790,541</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">7/17/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">37,358</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">733</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,091</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.00564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,753,817</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">7/25/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,575</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,575</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005568</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,927,943</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">7/26/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">28,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,117</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">29,117</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005568</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,229,334</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">8/15/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,199</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">409</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,608</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.0058</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,139,276</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">8/29/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">558</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,558</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005858</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,582,115</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">9/19/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">34,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">665</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,165</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.008178</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,300,002</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">10/9/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">710</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,710</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.007076</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,340,042</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">10/23/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">802</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">30,802</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.006090</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,057,830</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">11/6/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">28,376</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6,624</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,205,674</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">11/6/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">19,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,218</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">20,718</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005858</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,536,715</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">11/13/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,240</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">37,240</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005858</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,357,118</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">11/14/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">26,624</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">428</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">27,052</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,796,452</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">11/15/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">75.000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,833</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">79,833</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005742</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,903,322</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">12/1/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">32,813</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">453</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">33,266</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005742</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,793,378</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">12/5/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">16,756</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,105</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">17,861</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,166,816</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 5.4pt">St Georges</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">12/7/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">32,813</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,567</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">35,380</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005916</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,980,387</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center">12/15/17</td><td style="text-align: center"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">52,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">889</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">52,889</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.005916</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,939,991</td><td style="text-align: left"> </td><td> </td> <td style="padding-left: 5.4pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center">12/28/17</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">42,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">2,209</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">44,209</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left">$</td><td style="text-align: right">0.006728</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,570,945</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; padding-left: 5.4pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 12pt; text-align: center"> </td><td style="font-size: 12pt; text-align: center"> </td><td style="padding-bottom: 1pt; font-size: 12pt; text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,350,247</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">89,846</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,440,093</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-size: 12pt; padding-bottom: 1pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="padding-bottom: 1pt; font-size: 12pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">194,559,520</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-size: 12pt; padding-bottom: 1pt"> </td> <td style="font-size: 12pt; text-align: right; padding-bottom: 1pt; padding-left: 5.4pt"> </td></tr> </table>   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Date</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Principal Conversion</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Interest Conversion</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Total Conversion</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Conversion Price</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Shares Issued</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid; padding-left: 0pt">Issued to</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; font-size: 10pt; text-align: center"> </td><td style="width: 10%; font-size: 10pt; text-align: center">12/28/16</td><td style="width: 1%; font-size: 10pt; text-align: center"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">45,000</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">3,511</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">48,511</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">0.015080</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 10%; font-size: 10pt; text-align: right">3,216,925</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 16%; font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">12/13/16</td><td style="font-size: 10pt; text-align: center"></td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">400</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,900</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000754</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">13,129,683</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">9/26/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,613</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">629</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,242</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001218</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">7,587,824</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">7/29/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">7,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">801</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,301</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000081</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,222,352</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">7/20/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">995</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">10,495</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000098</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,644,310</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">7/12/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">927</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,927</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000986</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">10,068,073</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">7/1/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">805</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,805</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001160</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">7,590,362</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/22/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">973</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,973</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001450</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,119,414</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">GW</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/20/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">10,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">1,003</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">11,503</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001450</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">7,933,377</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/20/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">967</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,967</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001450</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,114,879</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">GW</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/20/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">6,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">589</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">6,589</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001450</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,544,241</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/10/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">6,075</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">1,134</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">7,209</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001798</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,009,701</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">GW</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/9/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">479</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,479</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.001798</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3,047,219</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">6/2/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">848</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,848</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.002378</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,141,387</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Cerberus</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">5/23/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">460</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">5,460</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.002436</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">2,241,490</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">3/17/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">696</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">9,696</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.002436</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3,980,431</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">3/17/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">3,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">138</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">3,138</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.000638</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,918,624</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Service</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">3/8/16</td><td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">7,425</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">928</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">8,353</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">0.00174</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,800,354</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">GW</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; text-align: center">3/7/16</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">6,500</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">489</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">6,989</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">0.00174</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,016,471</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 10pt">LG</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"> </td><td style="text-align: center"> </td><td style="text-align: center"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">174,613</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">16,772</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">191,385</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">114,327,117</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left; padding-left: 10pt"> </td></tr> </table>

129555

23824

8307

54927

8321

89846

3511

400

629

801

995

927

973

1003

1134

479

848

460

696

928

489

5664

4562

3914

5050

2171

3630

3255

3697

4752

2199

9360

947

2999

900

1500

1151

2960

733

3575

1117

409

558

665

710

802

6624

2240

428

4833

453

1105

2567

889

2209

1218

805

16772

967

138

589

LG Cerberus LG LG LG LG GW Cerberus GW LG Cerberus LG LG GW LG Cerberus LG Cerberus LG Cerberus LG Cerberus LG LG Cerberus St Georges St Georges LG St Georges Cerberus St Georges LG St Georges LG Cerberus LG LG LG LG LG St Georges Cerberus St Georges LG LG St Georges LG LG Cerberus LG LG GW Service LG

826480

485250

472515

569448

1813210

521731

-494193 -257033 500000 316723 2567 3255 6535 4752 3698 1500 2199 2999 21249 665 1117

150000

35479

54246

0.03 0.03 0.0123 0.0123 150000 16831 300000 24600 1000000 -24614 1000000 1319149 -13169 50000 -5416830

160000

5000

0.22 0.22

Note 7 – Note Payable   Note Payable Land   In February, 2017, the Company entered into a land purchase contract to acquire approximately 80 acres including water and mineral rights. The total cost of the land was $129,555. The Company paid $41,554 at closing and issued a note payable for $88,000. As of December 31, 2017, the Company is on the deed of trust of the property with a remaining note balance of $51,500 due the seller.

Note 9 - Derivative liabilities   As of December 31, 2017, the Company revalued the embedded conversion feature of the 2016 and 2017 Convertible Notes, and warrants (see note 11). The fair value of the 2016 and 2017 Convertible Notes and warrants was calculated at December 31, 2017 based on the Monte Carlo simulation method consistent with the terms of the related debt.   A summary of the derivative liability balance as of December 31, 2017, is as follows:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"> <tr> <td style="text-align: center; padding-left: 5.4pt; vertical-align: bottom"> </td><td style="text-align: center; vertical-align: bottom"> </td> <td colspan="2" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">Notes</td><td style="text-align: center; vertical-align: bottom"> </td><td style="text-align: center; vertical-align: bottom"> </td> <td colspan="2" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">Warrants</td><td style="text-align: center; vertical-align: bottom"> </td><td style="text-align: center; vertical-align: bottom"> </td> <td style="text-align: center; vertical-align: bottom"> </td><td style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">Total</td><td style="text-align: center; vertical-align: bottom"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left; padding-left: 5.4pt">Beginning Balance</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,410,647</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">203,023</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,613,670</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Initial Derivative Liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,633,502</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">415,313</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,048,815</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 5.4pt">Fair Value Change</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,571,986</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,190,244</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,762,230</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Reclassified to Additional paid- in capital</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,184,277</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,184,277</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Reduction for debt assignment</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(823,610</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(823,610</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 5.4pt">Ending Balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,608,250</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,808,580</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,416,830</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>   The embedded derivative within Warrant #’s 2 thru 9 (see Note 11) resulted in an initial derivative liability expense and an initial derivative liability of $415,313. The valuation of the embedded derivative within the effective warrants was recorded with an offsetting expense on derivative liabilities.   The fair value at the commitment date for the 2017 Convertible Notes and the re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of December 31, 2017:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Commitment date</td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Remeasurement date</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 43%; padding-left: 5.4pt; text-align: justify">Expected dividends</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 25%; text-align: right">-0-</td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 25%; text-align: right">-0-</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.4pt; text-align: justify">Expected volatility</td> <td> </td> <td> </td> <td style="text-align: right">199%-361%</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">320%-331%</td> <td></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 5.4pt; text-align: justify">Expected term</td> <td> </td> <td> </td> <td style="text-align: right">12 months</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">3-12 months</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.4pt; text-align: justify">Risk free interest</td> <td> </td> <td> </td> <td style="text-align: right">.65%-1.78%</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">1.51%-1.79%</td> <td> </td></tr> </table>   The Company evaluated all outstanding warrants to determine whether these instruments may be tainted. All warrants outstanding were considered tainted. The Company valued the embedded derivatives within the warrants using the Black-Scholes valuation model.   The fair value at the funding date for Warrant #’s 2-9 and the re-measurement dates for Warrant #’s 1-9 were based upon the following management assumptions: 	 <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Commitment date</td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Remeasurement date</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 43%; padding-left: 5.4pt; text-align: justify">Expected dividends</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 25%; text-align: right">-0-</td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 25%; text-align: right">-0-</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.4pt; text-align: justify">Expected volatility</td> <td> </td> <td> </td> <td style="text-align: right">203% - 384%</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">320%</td> <td></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 5.4pt; text-align: justify">Expected term</td> <td> </td> <td> </td> <td style="text-align: right">3.87 - 4.64 years</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">3.84 years</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.4pt; text-align: justify">Risk free interest</td> <td> </td> <td> </td> <td style="text-align: right">1.72% - 2.05% </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">1.81%</td> <td> </td></tr> </table>    The Company determined that the conversion feature of the 2016 Convertible Notes represent an embedded derivative since the Notes are convertible into a variable number of shares upon conversion. Accordingly, the 2016 Convertible Notes were not considered to be conventional debt under ASC 815-40 (formerly EITF 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock) and the embedded conversion feature was bifurcated from the debt host and accounted for as a derivative liability. Accordingly, the fair value of these derivative instruments being recorded as a liability on the consolidated balance sheet with the corresponding amount recorded as a discount to each Note. Such discount is being amortized from the date of issuance to the maturity dates of the Notes. The change in the fair value of the liability for derivative contracts are recorded in other income or expenses in the consolidated statements of operations at the end of each quarter, with the offset to the derivative liability on the balance sheet. The embedded feature included in the 2016 Convertible Notes resulted in an initial debt discount of $865,593, an initial derivative liability expense of $2,317,830 and an initial derivative liability of $3,183,423.   As of December 31, 2016, the Company revalued the embedded conversion feature of the 2015 and 2016 Convertible Notes. The fair value of the 2015 and 2016 Convertible Notes was calculated at December 31, 2016 based on the Black Scholes method consistent with the terms of the related debt.   A summary of the derivative liability balance as of December 31, 2016 is as follows:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 77%; text-align: left; padding-left: 5.4pt">Beginning Balance</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">167,014</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Initial Derivative Liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,114,649</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 5.4pt">Fair Value Change</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,791,988</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Debt extinguishment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(84,057</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Reduction for conversions</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(791,851</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 5.4pt">Ending Balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,613,767</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>   The fair value at the commitment date for the 2016 Convertible Notes and the re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of December 31, 2016:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Commitment date</td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Remeasurement date</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 43%; padding-left: 5.4pt; text-align: justify">Expected dividends</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 25%; text-align: right">-0-</td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 25%; text-align: right">-0-</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.4pt; text-align: justify">Expected volatility</td> <td> </td> <td> </td> <td style="text-align: right">243%-268%</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">246%</td> <td></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 5.4pt; text-align: justify">Expected term</td> <td> </td> <td> </td> <td style="text-align: right">12 months</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">1-12 months</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.4pt; text-align: justify">Risk free interest</td> <td> </td> <td> </td> <td style="text-align: right">.44%-.68%</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">.48%-.85%</td> <td> </td></tr> </table>

A summary of the derivative liability balance as of December 31, 2017, is as follows:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"> <tr> <td style="text-align: center; padding-left: 5.4pt; vertical-align: bottom"> </td><td style="text-align: center; vertical-align: bottom"> </td> <td colspan="2" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">Notes</td><td style="text-align: center; vertical-align: bottom"> </td><td style="text-align: center; vertical-align: bottom"> </td> <td colspan="2" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">Warrants</td><td style="text-align: center; vertical-align: bottom"> </td><td style="text-align: center; vertical-align: bottom"> </td> <td style="text-align: center; vertical-align: bottom"> </td><td style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid">Total</td><td style="text-align: center; vertical-align: bottom"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left; padding-left: 5.4pt">Beginning Balance</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,410,647</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">203,023</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,613,670</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Initial Derivative Liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,633,502</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">415,313</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,048,815</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 5.4pt">Fair Value Change</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,571,986</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,190,244</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,762,230</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Reclassified to Additional paid- in capital</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,184,277</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,184,277</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Reduction for debt assignment</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(823,610</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(823,610</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 5.4pt">Ending Balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,608,250</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,808,580</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,416,830</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>   A summary of the derivative liability balance as of December 31, 2016 is as follows:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 77%; text-align: left; padding-left: 5.4pt">Beginning Balance</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">167,014</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Initial Derivative Liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,114,649</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 5.4pt">Fair Value Change</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,791,988</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Debt extinguishment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(84,057</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Reduction for conversions</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(791,851</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 5.4pt">Ending Balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,613,767</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

The fair value at the commitment date for the 2017 Convertible Notes and the re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of December 31, 2017:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Commitment date</td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Remeasurement date</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 43%; padding-left: 5.4pt; text-align: justify">Expected dividends</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 25%; text-align: right">-0-</td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 25%; text-align: right">-0-</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.4pt; text-align: justify">Expected volatility</td> <td> </td> <td> </td> <td style="text-align: right">199%-361%</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">320%-331%</td> <td></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 5.4pt; text-align: justify">Expected term</td> <td> </td> <td> </td> <td style="text-align: right">12 months</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">3-12 months</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.4pt; text-align: justify">Risk free interest</td> <td> </td> <td> </td> <td style="text-align: right">.65%-1.78%</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">1.51%-1.79%</td> <td> </td></tr> </table>   The fair value at the commitment date for the 2016 Convertible Notes and the re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of December 31, 2016:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Commitment date</td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Remeasurement date</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 43%; padding-left: 5.4pt; text-align: justify">Expected dividends</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 25%; text-align: right">-0-</td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 25%; text-align: right">-0-</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.4pt; text-align: justify">Expected volatility</td> <td> </td> <td> </td> <td style="text-align: right">243%-268%</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">246%</td> <td></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 5.4pt; text-align: justify">Expected term</td> <td> </td> <td> </td> <td style="text-align: right">12 months</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">1-12 months</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.4pt; text-align: justify">Risk free interest</td> <td> </td> <td> </td> <td style="text-align: right">.44%-.68%</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">.48%-.85%</td> <td> </td></tr></table>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Commitment date</td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">Remeasurement date</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 5.4pt; text-align: justify; width: 43%">Expected dividends</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="text-align: right; width: 25%">-0-</td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="text-align: right; width: 25%">-0-</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.4pt; text-align: justify">Expected volatility</td> <td> </td> <td> </td> <td style="text-align: right">203% - 384%</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">320%</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 5.4pt; text-align: justify">Expected term</td> <td> </td> <td> </td> <td style="text-align: right">3.87 - 4.64 years</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">3.84 years</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 5.4pt; text-align: justify">Risk free interest</td> <td> </td> <td> </td> <td style="text-align: right">1.72% - 2.05% </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">1.81%</td> <td> </td></tr> </table>

94500 63000 26000 17500 52000 42000 52000 -823610 -823610 -791851 -2184277 -2184277 -84057

50000

8000 5000000 61500 87934231 5664173

915491

194134

-6162454

-2596613

-882575

28155

40087

72369

12536138

13764813

19312650

-13446878

-16424767

-25578077

5257

23244

25337

-25578077

-16424767

25337

23244

19312650

13764813

5257

72369

40087

7077944

2790747

51500

5416830

1613770

485250

569446

24916

2400

7715

54246

1089333

550885

915491

194134

13825

825

50000

286415

26280

210000

405251

117029

48500

10000

41862

39769

7077944

2790747

30000

-0.02

-0.01

-9151217

-2954645

2093

23244

2093

-9153310

-2977889

-9153310

7423327

2370035

1873198

742021

-50000

-255000

-114781

84057

-1729983

-607854

1715983

607921

338601

127724

41546

114894

101279

40303

730357

161150

83200 13850

421000

150000

-14000

64000

3161

50000

3228

2000

3228

48000

536650839

334772545

281540332

400867449

723680348

1000

52574335

114327117

194559519

1440095

191385

11432

19457

179953

1420638

2371

5000000

255000

500

254500

3007887

791851

3007887

1319149 16094 132 15962 2000000 55700 200 55500 5000000 61500 500 61000 10000000 301000 1000 300000

7000000

158100

700

157400

52574335 545000 539743 5257 15000000 1500 -1500 87934231 8793 8793 37784

3007887

791851

88000

2093

23244

16525 6398 1824892 865593

1275

237629

55711

1864115

521731

545000

36500

322879

1678494

521731

-397651

-20757

210000

187651

20757

-1228835

-445260

2400

24916

-46531

32935

685361

234234

-13000

-38500

-6667

-10000

2762231

-1791988

1587831

635780

2223824

3249056

17916

128220

16091

520600

2371

1440093 191386

Note 4 – Marketable Securities   The Company owns marketable securities (common stock) as outlined below:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">2017</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">2016</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 62%; font-size: 10pt">Balance January 1</td><td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 15%; font-size: 10pt; text-align: right">39,769</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 15%; font-size: 10pt; text-align: right">—  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Fair value of stock received</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">16,525</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Unrealized gain marked to fair value</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,093</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">23,244</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.5pt">Balance December 31</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">41,862</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">39,769</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table>   800 Commerce, Inc. (now known as Petrogress, Inc), was a commonly controlled entity until February 29, 2016, owed Agritek $282,947 as of February 29, 2016, as a result of advances received from or payments made by Agritek on behalf of 800 Commerce. These advances were non-interest bearing and were due on demand. Effective February 29, 2016, the Company received 1,102,462 shares of common stock of Petrogress, Inc. as settlement of the $282,947 owed to the Company. The market value on the date the Company received the shares of common stock was $16,525.

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">2017</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">2016</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 62%; font-size: 10pt">Balance January 1</td><td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 15%; font-size: 10pt; text-align: right">39,769</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 15%; font-size: 10pt; text-align: right">—  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Fair value of stock received</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">16,525</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Unrealized gain marked to fair value</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,093</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">23,244</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.5pt">Balance December 31</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">41,862</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">39,769</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table>

Note 5 - Prepaid Expenses   Prepaid expenses consisted of the following at December 31, 2017 and December 31, 2016:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">December 31, 2017</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">December 31, 2016</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3" style="text-align: right"> </td><td> </td> <td colspan="3" style="text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 62%; font-size: 10pt; text-align: left">Vendor deposits</td><td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 15%; font-size: 10pt; text-align: right">46,000</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 15%; font-size: 10pt; text-align: right">6,000</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Consulting fees</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,000</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Investor relations</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,500</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Total prepaid expenses</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">48,500</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">10,000</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table>

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 12pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">December 31, 2017</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">December 31, 2016</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3" style="text-align: right"> </td><td> </td> <td colspan="3" style="text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 62%; font-size: 10pt; text-align: left">Vendor deposits</td><td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 15%; font-size: 10pt; text-align: right">46,000</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 15%; font-size: 10pt; text-align: right">6,000</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Consulting fees</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">4,000</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Investor relations</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,500</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Total prepaid expenses</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">48,500</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">10,000</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table>

Note 12 – Income Taxes   The Company accounts for income taxes under standards issued by the FASB. Under those standards, deferred tax assets and liabilities are recognized for future tax benefits or consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided for significant deferred tax assets when it is more likely than not that such assets will not be realized through future operations.   No provision for federal income taxes has been recorded due to the available net operating loss carry forwards of approximately $491,107 will expire in various years through 2032. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the future tax loss carry forwards.   The actual income tax provisions differ from the expected amounts calculated by applying the statutory income tax rate to the Company's loss before income taxes.  The components of these differences are as follows at December 31, 2017, and 2016:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-size: 12pt; text-align: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2017</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2016</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 68%; text-align: justify; padding-left: 5.4pt">Net tax loss carry-forwards</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">7,878,733</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">5,836,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt">Statutory rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">37.6</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">37.6</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt">Expected tax recovery</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,962,404</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,194,336</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Change in valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,962,404</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,194,336</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Income tax provision</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>     <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt">Components of deferred tax asset:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 68%; text-align: justify; padding-left: 5.4pt">Non capital tax loss carry forwards</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">2,962,404</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">2,194,336</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,962,404</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,194,336</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Net deferred tax asset</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-size: 12pt; text-align: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2017</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2016</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 68%; text-align: justify; padding-left: 5.4pt">Net tax loss carry-forwards</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">7,878,733</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">5,836,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt">Statutory rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">37.6</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">37.6</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt">Expected tax recovery</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,962,404</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,194,336</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Change in valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,962,404</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,194,336</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Income tax provision</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>     <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt">Components of deferred tax asset:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 68%; text-align: justify; padding-left: 5.4pt">Non capital tax loss carry forwards</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">2,962,404</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">2,194,336</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Less: valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,962,404</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,194,336</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Net deferred tax asset</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Notes receivable   During the year ended December 31, 2017, the Company has recorded notes receivable the following:   <table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt/11.75pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">•</td><td style="text-align: justify">$110,000 pursuant to a five (5) year operational and exclusive licensing agreement with a third party who leases a 25,000-sq. ft. approved cultivation facility located in San Juan, Puerto Rico (see Note 10). </td></tr></table> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt/11.75pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">•</td><td style="text-align: justify">$100,000 pursuant to a five (5) year operational and exclusive licensing agreement with a third party who leases a 10,000-sq. ft. approved cultivation facility located in Washington State (see Note 10).</td></tr></table>

Deferred rent   The Company calculates the total cost of the lease for the entire lease period and divides that amount by the number of months of the lease. The result is the average monthly expense and is charged to rent expense with the offset to deferred rent, irrespective of the actual amount paid. The amounts paid are charged to the deferred rent account. Rent expense of $45,417 for the year ended December 31, 2017, was recorded for the office space in Puerto Rico and the Company made payments of $20,516. As of December 31, 2017, the Company has a balance of $24,916 in deferred rent which is included in the consolidated balance sheet.

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 70%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify; border-bottom: Black 1pt solid">  December 31, 2017</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Derivative Liabilities</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Total</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt; width: 46%">Level I</td><td style="font-size: 12pt; padding-bottom: 2.5pt; width: 5%"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 12pt; text-align: left; width: 1%">$</td><td style="border-bottom: Black 2.5pt double; font-size: 12pt; text-align: right; width: 20%">—  </td><td style="padding-bottom: 2.5pt; font-size: 12pt; text-align: left; width: 1%"> </td><td style="padding-bottom: 2.5pt; width: 5%"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left; width: 1%">$</td><td style="border-bottom: Black 2.5pt double; text-align: right; width: 20%">—  </td><td style="padding-bottom: 2.5pt; text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level II</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level III</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,416,830</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,416,830</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt; border-bottom: Black 1pt solid">December 31, 2016</td><td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="font-size: 12pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level I</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level II</td><td style="font-size: 12pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 12pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 12pt; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 12pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt; padding-left: 5.4pt">Level III</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,613,770</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,613,770</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-size: 12pt"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">Number of Warrants</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">Weighted-Average Exercise Price per share</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">Weighted-Average Remaining Life (Years)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 5.4pt; width: 53%">Outstanding at January 1, 2016</td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%">1,300,000</td><td style="text-align: left; width: 1%"> </td><td style="width: 3%"> </td> <td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 11%">0.05</td><td style="text-align: left; width: 1%"> </td><td style="width: 3%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 11%">3.00</td><td style="text-align: left; width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Warrants issued</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16,926,130</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00564</td><td style="text-align: left"> </td><td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="font-size: 12pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Warrants expired</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(300,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(0.05</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="font-size: 12pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 12pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 12pt; text-align: right"> </td><td style="padding-bottom: 1pt; font-size: 12pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Outstanding and exercisable at December 31, 2016</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">17,926,130</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.0811</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.88</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 5.4pt">Warrant issued</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">40,573,870</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00564</td><td style="text-align: left"> </td><td style="font-size: 12pt"> </td> <td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="font-size: 12pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Warrants exercised</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(9,364,108</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0.00564</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-size: 12pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 12pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 12pt; text-align: right"> </td><td style="padding-bottom: 1pt; font-size: 12pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Outstanding and exercisable at December 31, 2017</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">49,135,892</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">0.00654</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">4.17</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

5416830

1613770

5416830

1613770

110000 100000

24916

16525

48500

10000

46000

6000

4000

2500

129555 88000

41554

51500 29443 1982 18229 3170 34818 4706 5011 24137 474584

310000

174613

-1350247 6848

300000

0.05

0.00564

0.00654

0.0811

0.00564

P3Y

P4Y2M1D

P4Y10M17D

40573870

16926130

300000

17926130

49135892

9364108

0.05

0.376

2962404

2194336

-2962404

-2194336

2962404

2194336

2962404

2194336

7878733

5836000

491107

45417 20516 2631579 4870000 7500000 5550000 8000000 50000 100000 100000 90000 200000 75000 220000 20000 236817 13297872 8865248 75000 50000 0.00564 0.00564

-84057

419699 96864

399291

EX-101.SCH 5 agtk-20171231.xsd XBRL SCHEMA FILE 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - CONSOLIDATED BALANCE SHEETS link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - CONSOLIDATED BALANCE SHEETS (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - CONSOLIDATED STATEMENTS OF OPERATIONS link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000006 - Statement - CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT link:presentationLink link:calculationLink link:definitionLink 00000007 - Statement - CONSOLIDATED STATEMENTS OF CASH FLOWS link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - Organization link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - Summary of Significant Account Policies link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - Recent Accounting Pronouncements link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - Marketable Securities link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - Prepaid Expenses link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - Concentration of Credit Risk link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - Note Payable link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - Convertible Debt link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - Derivative liabilities link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - Related Party Transactions link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - Common and Preferred Stock link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - Income Taxes link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - Commitments and Contingencies link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - Going Concern link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - Segment Reporting link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - Subsequent Events link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - Summary of Significant Account Policies (Policies) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - Summary of Significant Account Policies (Tables) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - Marketable Securities (Tables) link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - Prepaid Expenses (Tables) link:presentationLink link:calculationLink link:definitionLink 00000028 - Disclosure - Convertible Debt (Tables) link:presentationLink link:calculationLink link:definitionLink 00000029 - Disclosure - Derivative liabilities (Tables) link:presentationLink link:calculationLink link:definitionLink 00000030 - Disclosure - Common and Preferred Stock (Tables) link:presentationLink link:calculationLink link:definitionLink 00000031 - Disclosure - Income Taxes (Tables) link:presentationLink link:calculationLink link:definitionLink 00000032 - Disclosure - Summary of Significant Account Policies - Property and equipment (Details) link:presentationLink link:calculationLink link:definitionLink 00000033 - Disclosure - Summary of Significant Accounting Policies - Financial instruments measured at fair value on a recurring basis (Details) link:presentationLink link:calculationLink link:definitionLink 00000034 - Disclosure - Summary of Significant Account Policies (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000035 - Disclosure - Marketable Securities - Marketable securities (Details) link:presentationLink link:calculationLink link:definitionLink 00000036 - Disclosure - Marketable Securities (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000037 - Disclosure - Prepaid Expenses - Prepaid expenses (Details) link:presentationLink link:calculationLink link:definitionLink 00000038 - Disclosure - Concentration of Credit Risk (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000039 - Disclosure - Note Payable (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000040 - Disclosure - Convertible Debt - Common stock issued upon conversions of portions of Convertible Notes (Details) link:presentationLink link:calculationLink link:definitionLink 00000041 - Disclosure - Convertible Debt - Summary of convertible notes payable balance (Details) link:presentationLink link:calculationLink link:definitionLink 00000042 - Disclosure - Convertible Debt - 2014 Convertible Note (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000043 - Disclosure - Convertible Debt - 2016 Convertible Notes (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000044 - Disclosure - Convertible Debt - 2017 Convertible Notes (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000045 - Disclosure - Derivative liabilities - Summary of derivative liability balance (Details) link:presentationLink link:calculationLink link:definitionLink 00000046 - Disclosure - Derivative liabilities - Fair value assumptions for derivative liabilities (Details) link:presentationLink link:calculationLink link:definitionLink 00000047 - Disclosure - Derivative liabilities - Fair value assumptions for warrants (Details) link:presentationLink link:calculationLink link:definitionLink 00000048 - Disclosure - Related Party Transactions (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000049 - Disclosure - Common and Preferred Stock - Common stock issuances upon conversion of portions of convertible notes (Details) link:presentationLink link:calculationLink link:definitionLink 00000050 - Disclosure - Common and Preferred Stock - Activity related to warrants (Details) link:presentationLink link:calculationLink link:definitionLink 00000051 - Disclosure - Common and Preferred Stock - Common Stock (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000052 - Disclosure - Common and Preferred Stock - Preferred Stock (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000053 - Disclosure - Common and Preferred Stock - Warrants (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000054 - Disclosure - Income Taxes - Components of income tax rate reconciliation (Details) link:presentationLink link:calculationLink link:definitionLink 00000055 - Disclosure - Income Taxes (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000056 - Disclosure - Commitments and Contingencies (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000057 - Disclosure - Going Concern (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000058 - Disclosure - Subsequent Events (Details Narrative) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 6 agtk-20171231_cal.xml XBRL CALCULATION FILE EX-101.DEF 7 agtk-20171231_def.xml XBRL DEFINITION FILE EX-101.LAB 8 agtk-20171231_lab.xml XBRL LABEL FILE Debt Instrument [Axis] 2014 Company Note Equity Components [Axis] Common stock Series B Preferred stock Additional Paid-in Capital Accumulated Deficit Debt Conversion Description [Axis] Conversions of portions of Convertible Notes Convertible notes payable balance summary Related Party [Axis] Mr. Braune, former CEO Property, Plant and Equipment, Type [Axis] Furniture and fixtures Conversions of portions of Convertible Notes LG DPA of Tonaquint 2014 Convertible Note Cerberus DPA of Tonaquint 2014 Convertible Note LG Purchase Agreement (1) Cerberus Purchase Agreement (1) Cerberus Purchase Agreement (2) LG Purchase Agreement (2) 2016 Convertible Notes LG Purchase Agreement (4) LG Purchase Agreement (5) St. George 2016 Notes (1) Mr. Friedman Dr. Holt Class of Stock [Axis] Dr. Holt Mr. Canton Other Commitments [Axis] Sublease agreement with Colorado research facility Office space in San Juan, Puerto Rico (1) First floor of San Juan, Puerto Rico office (2) Second floor of San Juan, Puerto Rico office (2) LG Purchase Agreement 2017 (1) Cerberus Purchase Agreement 2017 (1) Power Up Purchase Agreement 2017 (1) LG Purchase Agreement 2017 (2) Cerberus Purchase Agreement 2017 (2) LG Purchase Agreement 2017 (3) 2017 Convertible Notes Business Consultant Agreement issuances Kopelowitz Ostrow P.A. issuances Venture Equity issuances Company's CEO issuances Liability Class [Axis] Remeasurement date Manufacturing equipment Conversions of portions of Convertible Notes (2) LG Purchase Agreement Back End Note (1) Cerberus Purchase Agreement Back End Note (1) Cerberus Purchase Agreement Back End Note (1) Cerberus Purchase Agreement 2017 (3) LG Purchase Agreement 2017 (4) Notes Warrants Commitment date Totals Commitment date Remeasurement date St. George Note Issuances Company's COO issuances Property Rent Prepayment Power Up Purchase Agreement 2017 (2) Common stock to be issued Accumulated Comprehensive Gain Fair Value, Hierarchy [Axis] Level I Level II Level III St. George 2017 Notes (1) Conversions of portions of Convertible Notes (3) Convertible notes payable balance summary (2) Totals (2) Class of Warrant or Right [Axis] Outstanding Warrants issued Warrants expired Outstanding and exercisable Warrants exercised Document And Entity Information Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Amendment Flag Current Fiscal Year End Date Is Entity a Well-known Seasoned Issuer? Is Entity a Voluntary Filer? Is Entity's Reporting Status Current? Entity Filer Category Entity Public Float Entity Common Stock, Shares Outstanding Document Fiscal Period Focus Document Fiscal Year Focus Statement of Financial Position [Abstract] ASSETS Current Assets: Cash and cash equivalents Marketable Securities Inventory, net Prepaid assets and other Total current assets Note receivable Property and equipment, net of accumulated depreciation of $23,824 (2017) and $8,308 (2016) Investments in non-marketable securities Security deposit and other Total assets LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable and accrued expenses Due to related party Customer deposits Deferred rent Convertible note payable, net of discounts of $494,193 (2017) and $257,034 (2016) Derivative liabilities Note payable, current portion Total current liabilities Total liabilities Commitments and Contingencies Stockholders' Deficit: Series B convertible preferred stock, $0.01 par value; 1,000,000 shares authorized, and 1,000 shares issued and outstanding Common stock, $.0001 par value; 1,000,000,000 shares authorized; 723,680,348 (2017) and 400,867,449 (2016) shares issued and outstanding Common stock to be issued Additional paid-in capital Deferred expenses Accumulated comprehensive gain Accumulated deficit Total stockholders' deficit Total liabiities and stockholders' deficit Assets Accumulated depreciation of property and equipment Current Liabilities Discount on convertible notes payable Stockholders' Deficit Preferred stock Series B par value Preferred stock Series B authorized Preferred stock Series B issued Preferred stock Series B outstanding Common stock par value Common stock shares authorized Common stock shares issued Common stock shares outstanding Income Statement [Abstract] Consulting income Product revenue Total revenue Cost of revenue, includes $30,000 related party for 2017 Gross profit (loss) Operating Expenses: Management fees Administrative fees Professional and consulting fees Rent and other occupancy costs Leased property expense Other general and administartive expenses Total operating expenses Operating loss Other Income (Expense): Gain (loss) on debt settlement Loss on legal matter Impairment of investments Interest expense Derivative liability expense Total other expense, net Net loss Unrealized gain on marketable securities Net comprehensive loss Basic and diluted loss per share Weighted average number of common shares outstanding Basic and diluted Related party cost of revenue Statement [Table] Statement [Line Items] Beginning balance, shares Beginning balance, amount Common stock issued upon conversion of convertible debt and accrued interest, shares Common stock issued upon conversion of convertible debt and accrued interest, amount Common stock issued for additional interest on convertible notes, shares Common stock issued for additional interest on convertible notes, amount Common stock issued upon settlement of accounts payable, shares Common stock issued upon settlement of accounts payable, amount Issuance of common stock investment in Canadian property, shares Issuance of common stock investment in Canadian property, amount Common stock issued for services, related party, shares Common stock issued for services, related party, amount Amortization of deferred stock compensation Issuance of common stock for services, shares Issuance of common stock for services, amount Issuance of warrants for services Issuance of common stock for acquisition, shares Issuance of common stock for acquisition, amount Reclassification for conversions of convertible debt EX-101.PRE 9 agtk-20171231_pre.xml XBRL PRESENTATION FILE GRAPHIC 10 auditreportlogo.jpg GRAPHIC begin 644 auditreportlogo.jpg M_]C_X 02D9)1@ ! 0$ D "0 #_X1#R17AI9@ 34T *@ @ ! $[ ( M - (2H=I 0 ! (6)R= $ : 0T.H< < @, /@ M &UL;G,Z9&,](FAT=' Z M+R]P=7)L+F]R9R]D8R]E;&5M96YT#IX;7!M971A/@T*(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" * M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @(" \/WAP86-K970@ M96YD/2=W)S\^_]L 0P '!04&!00'!@4&" <'" H1"PH)"0H5#Q ,$1@5&AD8 M%1@7&QXG(1L=)1T7&"(N(B4H*2LL*QH@+S,O*C(G*BLJ_]L 0P$'" @*"0H4 M"PL4*AP8'"HJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ M*BHJ*BHJ*BHJ*BHJ_\ $0@ E )\ P$B (1 0,1 ?_$ !\ $% 0$! 0$! M ! @,$!08'" D*"__$ +40 (! P,"! ,%!00$ !?0$" P $ M$042(3%!!A-180'EZ@X2%AH>( MB8J2DY25EI>8F9JBHZ2EIJ>HJ:JRL[2UMK>XN;K"P\3%QL?(R;GZ.GJ\?+S]/7V]_CY^O_$ !\! ,! 0$! 0$! 0$ ! M @,$!08'" D*"__$ +41 (! @0$ P0'!00$ $"=P ! @,1! 4A,08205$' M87$3(C*!"!1"D:&QP0DC,U+P%6)RT0H6)#3A)?$7&!D:)BH*#A(6&AXB)BI*3E)66 MEYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&Q\C)RM+3U-76U]C9VN+CY.7F MY^CIZO+S]/7V]_CY^O_: P# 0 "$0,1 #\ ^D:*** "BBB@ HHHH **** " MBBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ** M** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHH MH ***,T %%1O<11_?D4?4U ^J6:=9U/T- %NBLYM(+4=%D/X4 M[,#5HK'/B*$=(7_.D_X2./\ Y]V_[Z_^M19BN;-%8O\ PDLSU\P?5:+,+FG15%-9LG_Y; ?6ITO; M:3[DZ'Z&D,GHI RD9!!_&ES0 4444 %%&:* "BBB@ HHHH **** "BBB@ HH MHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB M@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** M"BH9KN"W7,TJK69/XAB7/V>,N?4\"BP&S4'$08 ]D M&/UH31;V=LRD+GNYR:=A&K+K=G'D*S2'_9%4I?$3'(BA ]V-/B\.K_RVF)/H MHJY'HUE'_P L]Y_VCFGH&IBR:S>RGA]OLBU%F^N3_P MGKJ4MH8_N1(OT6I* M+A8Y5=(O7ZPX_P!XU,F@79ZF-?QKI:*5PL8"^'I#]^<#Z"I!X<7^*X;\%K;H MHNQF./#L7>9_RI?^$>@[RO6O11=@9'_".P?\]7I#X=A[3/\ E6Q11=@8I\.) M_#<-_P!\TP^'3_#'I^TJ'ZC%1-H-VO3RV^AKIJ*+L5CEO[, MU&(Y16'^XU.$VK6_7S?^!#-=/11<+'/1Z]=1G$\(;\,5;B\06S?ZU7C/TR*U M&17^^H/U%02:?:2?>@3ZA:- '0WMM.!Y4RM^-3UF2:%9OR@9#ZAJ:NFWEN?] M%O6Q_=D&11H,U:*SUN+^'_CXMA(!_%$>?R-3Q7L,G&2C?W7&*0%FBD!!''-+ M0 4444 %%%% !0:*0G% !14)NX 2#-&".OS"E^UV_P#SWC_[Z%/E9//'N2T5 M#]KM_P#GO'_WT*>DJ2C,;JV.NTYHLT"E%NR9)2444B@I:2FO*D:YD95'J3B@ M5[:CZ*@^V6__ #VC_P"^A2_:[?\ Y[1_]]"GRLGGCW)J2H?M=OG FC.?]H5- MUI6:W&I)[ *6DI:"@HHHH **** "BBB@ I*6HGN84;:\J*?0L!1KT$VEN249 MJ'[7;_\ /:/_ +Z%.2XAD;:DJ,>P#"GRL7/&]KDM%)FBD4+2&@G R>!47VNW M_P">\?\ WT*+-["T?_?0I\K["YX]R:EI M<]*6D4%!HHH *,TE&: %HI*"P% !2U!)>6T7^LGC3_><"H3K&G#K>V__ ']' M^-5RR[&;J06[+M(6"KDG [D\51;6+ K\E[;Y]Y!_C4 >RNF!FOTF_P!E9 !^ ME'*^P*K3>S1-<:Q;Q,4AW3OZ1C-5&?5K[[B"WC/KUK4@AMXU'V=$ ]5%34MB M]S%CT ,VZZG9S['^M7X=,M(?N0J3ZL,U99T3[S ?4U&;RW7K/&/^!BGJQV:DHHH **** "BBB@ J*Z?R[25_P"ZA/Z5 M+69XBN#;>'[R4<%8C505Y)&=67+!L\LG_ 'V:W_!^OMIFL+%/ M(QM[@A6W-G:W8UE>)--.D:C&B@B*>)9$_+G] :\M\:^(3J&IFSM9"(+(_[&TOR+=_]*N M2>;^?K7IY?A[_O)'S^LG_ 'V:7SW_ .>LG_?9J_H>CM?Z M9J.H2+^YMHL)[O\ YS6$LN57/I7K1<9-Q70^Y?2Y=)D;S9/E=3]\ M]C7N-D_FV,#_ -Z-3^E?/[2X4^PS7NGAR?[3X=LI/6(?RKR\RBDHM'T&13;G M.+9IT4&F2.L<99R JC))["O&/J;VW'YHS7#:K\18HIV@TF#[00<>8W0GV'>E M@F\:ZA&)4CM[=6Z!A@_E73]6FE>6GJ>?_:%)RY::?WVM^+=!02Z MA!!+#G&\#('U]*V?#GC*VUR7[-*GD76,A2>&^E$L-.,>=:KR*IX^E.I[.5U+ MS.GHI**YCO \UY%XRE9?%EV [@< M?Q]!7E.KZ_>ZY=&:^DXS\L2GY5^E>)AL'.MJ]$?68[,Z>&7+'61T?B+QM<:J MS6]@6M[7H3T:3_ 5S7GO_P ]9/\ OLU2\W\<]!ZUUGAWP-?:KLGU#=:6IY ( M^=Q_2O9:HX:&NA\O?$XZK=7;,BQM[[4KD06(FED/7#G"^Y/:O0_#_@J.Q*W& MI3/<7'4+O.U?\:W]-TFSTFV6"RA6-1U..3]35T5XV(QCJ:1T1]-@LKC0]ZH[ MR% Q@#H*6DI:X3V@HHH- "9Q6)K7BK3=%4K<3;YNT28-,TDA>1V=SR68Y)KT\+@G47//8\#,,V]A)TJ6YV^H?$ M74+@E;&)+=.S-RU8-SK^IW;9N+^4^P.W^58WF9P!R2< >IKO?#OP]-S"EUKC ML@8 K;J<8^M>C*-#"J[1X5.6,QT^5-O\CC6N&D;F61R>Q^W/\ZNK#&OW8U'T%<);R/M4/./ %K=7 MVIM=-<3?9[?C&\D,U>F5%!;0VRE;>)8U)R0HQS4M<%>K[6?-:Q[.#PWU:DH7 MN>6>.[F6/Q0Z+-(JB)>%<@5S)G<]9)#]7-;7Q"?'BZ0?],DKF/-KZ#"Q7L8G MQ6/G+ZS.SZEY#)*X2/S'<]%4DDU9&F:F1D6%V1_US:G>$I,^++ >KG^1KVL* MOH*Y\5B?8244CMR_+_K=-RY MM$C##(I'N,UQ?C[0M/71I-1C18+B(C!48W^Q%94<=&I)1E'L61'EWC.H_AD&0?ZUV&A?$""]F2VU1%MY6X5P?D8_T_&O+1+1YF1R: M[:N$I5%JK,\S#YCB*$KIW78^A@P89'2ES6!X+NYKWPK:2W!)?;C)[UNG@(_M^I?V;;OF"W/[P@_>?T_"N/\VOLG_ 'V:Z;X=:,-0O)[^X7=#$IC0$<$GK^AK"\3:8^B: M]/;$'RV.^)O4&NF-6$JKI);'#+#5HX=5[Z,?I&LS:3J<5VDCLJG#J6)RO>O9 M;*[BO;.*Y@8,DB[@17@/FUW/P[\2>3<'2+I_DD.8"3T/<5R8[#\T>>*U1Z.3 MXUTZGLIO1_F>FYHI*6O"/L1#6-K_ (EL] @!N#OF?[D2]6_PK9->+^-)ISXM MNQ0UG>;5W1KFRAUBW?55+VJM\X'/TKW_90I1]V)\9*O6KS7/+< M='%/9+,&G;DL>]3R6,HW]I<\*>.XA_UD,T7^\I%6-,DO;O4(;2QN9EEE8 ;9#\H M]:]K:WA?[T2-]5%01Z78Q78N8[6))L8#JO-)Y@G%^Z6LDE&::J:$ME ;:SBB M9VD** 6;J:GH%%>4W=W/I$DE9!1112&%%%% !1110 5R_P 0[G[-X-N^<&3" M#\ZZBO/OB]=B'PW;0YP9;@?R-=&&CS5HHX\;+EP\WY'E_F5);'S+RW0=6E0? MJ*R_M'O6AH#&X\2:=$.=UPGZ&OJ)Z0=SX2G%2G'U/7O'6@G4/"R3P+FXLT#C M'4J!R/RS7D FR*^CVC5XRCC*D8(/>O _&^BMX<\1RQ*#]FN/WD)^O4?GFO)R MZO>])GOYQA+6K+YC_#6NG0]>M[O/[DMLE'JI[_A7NDEY#'8F[=P(53>6SQBO MF8SY![UUEUXY>?X?P:,'/VG=YG*$OD M5=?UU]=UJ>];4+Z&SM5W2S,%4?UK)^T8'7I7K7PM\-&" MS.M7J8EG&( ?X4]?QKHK5(X:CI\CCP]"6-Q&OJSHYM&BTCP-/80#.R [B/XF M[FO$%E&T?2OH?5$\S2;I".L3?RKYJ\[9E2?NG%<>6R<^:YZ.K>1+ 1R68#'M7F]MH'B/QS*NH:B8K2$CY9"F"5]AWK(\0^$=5\/,9)HS<6 MH.1-&,@?4=J]>M"EB&HRE:2/F\-/$8.,I0A>#.O\6^/+"[L)=-TH?:7E&TR8 M^4#V]:K>!O"]^VIQ:G>QM;P1Y_I6)\/]:U_7]8=[R[+V5NOS_+CWUX+\1)MOCR_7TV_P A75EO\5^APYU_ M 7J9/F5:TW5I]*O!=69 F52H)Z#-8WVBK^AZ=/KVLQ:=:NJ22Y.YN@ ZU[L^ M51?-L?*4XRL_AIHMOH\EK.K7$T MBX:X;[P/^SZ5Y=XH\-W_ (5OMER#);.3Y5P!P1Z'T-0,>GNOH:QQF#=7WX[G3EN/CA_P!W-:=SZ HK-T/7K#Q! MIZW>FS"1#]Y>Z'T(K2S7@2BXNS/KHRC-;70_%";9XWD'_3%/ZUQ M_P!HKZK"_P ")\!CDOK,WYF]HNJKI6M6U])&TBPMDJ#R>,5Z!_PMNP_Y\)_S M_P#K5YAHMH=:UJWTY9?*,[;0Y&<<9KN_^%0WG;5D_P"_/_UZY\5'#N2]KN=F M EBXP:H+0MW'Q;4J1:::Q;L9),?TKD-=\5ZCX@D!O9 L2G*PQC"@^_K73Q_" M"XS^]U@ >T/_ ->KUO\ "*Q0@W6HW$H]%&W^M80J8.B[QW.JIA\QQ"Y9O0\S M,H'?%;?AWPQJ/B*X001M%:Y^>X9>,>WJ:]1T[P!X>TY@Z60F<=&F.XBND2-( MU"QJ%4= !4U'R2SYJK^1!I]E%IUA#:6XVQQ*%45A>-_$B^']$;RV' MVJ?Y(E_K70W$Z6UN\TS!(XU+,QZ 5\^^*O$[^(M>ENP2+=3L@7T7U_&N3!T' M7J7ELCTEPZ-I$%E#C]VOS'^\W<_G6) MX]\/C6=%:>W -W; NF.K#N*\=_X2[6_^@O>?]]F@^+M;/75KP^OS&O(A@JL: MG/S*Y]#4S*C.C[+D=AOF]B,$<$'M3H[EX94EA8I(AW*P[&LXW9=BSDDLA] ^$?$,?B'0XYP0)T^251V:M^OG[P9XI;P[KTIVU:4*L>2:NCQ+5O!&NZ4Q(MC=PCI M)!R<>X[5SLC-"^R:-XV'\+#%?1Y -5KK3;.]7;=VT4H]'4&O3IYE-:35SPJN M1TY:TY6/GA9RA#1LR'U5L5IVGBK6;( 6VI3!1_"QR*]7O/A]X9]T_C7BLDC13/%+P\;%6'H13?/XYYK:I@: M-1:*QA1S/$TGJ[^I].HZR(&C8,K#((/6G"O*_A-XBN9KJ?1IW,L*IYD6X\IZ MCZ5ZH*\"O2=&;@SZW"XB.(I*HA:*2EK$Z0HHHH ***2@ ->0?&Z\VSZ7; ]F MD(^G']:]?KA/&WPV_P"$QU:&\;4WMA%'L"*@/XUU82<:=53D<6.ISJT'"'4\ M'\\UT?P^4W7C[3(^H#LQ_!378_\ "B%_Z#DO_?H5M>$OA2GACQ%'JG]IR7)C M0J(VC ZC']:]BMCJ+IM1>I\_0RRM&K%R6AZ+7*?$+PU_PD7AF40+F[M@98#W M)'4?CC%=6.E!%>!3FX24ET/J*M.-6FX2V9\F&8JQ# JRD@@^O>CSZ]PU?X.Z M+JFK7%]]HN(#.V]HX_N@^U5/^%':+_S_ -W7T$WG=;(]W 8-86G;J]R.Y7?:RKZH1^E?*]^_E:I=Q=-D[C_ M ,>-?5C#*D'O7E&H_!..^U2ZNUUB6/[1*TFSRP0N3G%;8"O"BWSF&9X6IB(Q MY%L>1^?7K_P2O/,T_4K[== M0>Z6X4#:R 8([UU8O%4:M'EBSBP&!K4*ZG)'3ZS%-<:)>16AQ.\#K&1_>P<5 M\R^>]CJ&R\B;S(9?WL3\$X/(_&OJ>N:\2> =#\3DR7MMY=SCB>([6_''7\:X ML'B8T&U+9GH9A@I8FTH/5%WP]XATO7-,AFTVYC8;0#'D!E/H16LP5U(^.T4*/&+8_WW)_E42I46[PF:TZU= M1M.G]QK^*OAKI.HH]SI\L>FW'4XP(V/N/ZUYK9>*M9\$:G)90WL5Q%$<-$'+ M1'_=]*[3_A4FKZ@?^)YXKO)T/5%8D'\ZZ#1?A5X:TA*A]NOX8'F/WY6PJ+_=7WKWKP]HE MGH&D16=@ 4499^[GN2:X37?@KIM]=>=H]W)89.6B(WK]1GI6WX8\)^(O#C)$ MWB$WUF#S#/'D@>S=148FK3JP7)*R70UP6'J4*C=2-V^IV@KYV^)DI7XA:@/] MW_T$5]$UYOXH^$B^)/$=SJIU62 SX_=B,'& !U_"LL#6A2J.4WT-\RP\\124 M8+J>*>?76?#"7?\ $"R!_N/_ $KJ/^%$)_T')?\ OT*V/"OPF7PUXBAU0:K) M<>4I'EF,#.?>O4K8VC*FXIGBX?+:\*L9-;'HXJIJ6F6FK6$EG?PK-#(,%6&? MQJW17SR;3NCZR45)69\^>./ M[X4F-S;;KG3'/RR=3'[-_C7'^?[]:^KKBWA MN[=X+F-98I!M9&&0PKR_4O@?97.H2S6&IRVD#G*PA P3Z$U[>&S%9:%XEU#P[J"WFF3;#_'&3\L@]"/ZU[WX.\!_#NM$ MM?:9"7/5XUV,?Q%_!'19F)LKVZM1V&=_\Z]6.8T9*TT>)/**T'>#.0T[X MP>(;-56Z$%XJ]V&TG\16Y%\ZG_ J)/ SU>AM&.8PT3N:K?'*''R:1)GW>JDWQQNF!%MH\:GU> M8_X567X&:M_%J]L![*?\*MP? J3- MYO%UO=B^2..Y@G\C7;5Q?A#X;67A'4FO;>^N+B5TV,'X4_@*[05Y= M=TW-NGL>SAE55-*KN> _%J4IX^E'_3O'_6N)\\U[CXP^%B^*O$+ZH=3DMBT: MIY:H#T[YK#_X40O_ $')O^_0KVL/C:,*48MGSN*RZO4K2FEN<7X"F+>/-+'_ M $T/_H)KZ3%>8^'_ (/+H?B"TU,:O),;=MWEF, -QBO3J\_'5H5IIP/6RW#U M*%-QFNHM&***\\]42ES137!*D+P<<&@#RKXO>+_L\*Z!8R?O)1NN2IZ+V7\? MZ5Y%Y]>N:A\%Y=3U&>^O/$$TDT[EW;RA5?\ X42G_0AYA:I->WD5K:J7FF<(@'J:^C?#_ (0T[2=#MK.6TAFD1!YD MCH"6;N<_6N>\(_"BU\,ZX-3GOGO7C4B)70 (?6O0JX\;BU5:C3>AW9=@/8IR MJ+5E#^PM+_Z!]O\ ]^A1_86E?] ^W_[]"K]%>=SR[GK>SAV.&^('@JWU/PY) M)I=M'%=VN94\M<;P.J\>U>"^>1D-D$'!![$5]9GI7F&N_!BTU76[B^M-1DLX MYVWF%8P0K=\5ZF"QBIIPJ/0\7,,N]JU.DM3QKSNW:O9?A'XO^W6;:%?29N+9 MO0YL'A,3AJJDEIU/5:\D^(OQ%O]+\21V&@W"Q_9ES.2H8,Q[?AS7K M(!V -UQS7":S\(O#^K7DUTKW-O/,Q=W60MDGV)KR\+*E"=ZNJ/9QD*U2GRT7 M9G%6GQIUN''VNSMKCW!V?TK5B^.0_P"6^CL/]R3-%S\"DR?L>MR@=A)$*SW^ M!FJ9_=ZO;D?[2D?TKT;X"6K/*4I/4TZW\Z[G6&UB>>5CA409)->RZ?\$M#MW5KZYN;S M'4$[ ?RKM=(\,Z/H4>W2["& ]-X4;C^/6KGF5.*M!7,*>35).]1V.5^&?@JX M\/VTFH:J +VX CZ^6OI]:[\<4#@4M>)4J2JS\NX/];9EQZQMG]*C&NVN<2B2(^C*: -.BJB M:I9R?=G7\>*G6>)_N2HWT84 244"B@ HHHH **** "BBB@ HHHH **** "BB MB@ HHHH **** "BBB@ HHHSZ\4 %%1/H MK&E\11C_ %,+-[DXJH^MWL[8@4#V1MA>W9W7]R M44_\LX^*U(XHXEVQHJCV&*?0,KVUG;VJXAC"GUQR:L444@"BBB@ HHHH *** M* "BBB@ HHHH **** "BBB@ HHHH **** $) Y) IOF1_P#/1?SK*\0DK!%M M)'S=CBJFD:?%>PR-.SDJV!AC3MH(Z#S8_P#GHOYBG @\BLTZ%:GH9!]'-4KW M3Y]/C,]M10,Z"D) Y/ ]365I&IO=,89_OJ,AAWJQK!QI1R/45SFOLPU M 88CY.QK6THZI(5M\11] MR.WXT ;[,J]6 ^IIOGQ?\]4_[Z%9B:$&YN;F1V]CQ4@T&S[AS_P(T : EC/1 MU/T-/%9;:#;'[DDJ?1JT88Q#$L8).T8R3R: 'T444 %%%% !1BBB@ J.2"*4 M8DC5OJ*DHH S9M!LY22JF,_[)JE)X>E7F"?/L>*WZ*=P.8>RU2W^[YA _NMF MF?VAJ,!P\DB_[ZUU5-**W50?PHN(YM-=NUZ['^HJ9?$4O\<*'Z&M>33K27[\ M"GWQBJSZ%9M]T.GT-/0"LOB)?X[=A_P*I5\0VY^]'(/PS4;^'$_Y9SL/J,U M_AZK_RPS]# M19 ="-4LS_RW7\Z<-0M#_P O$?\ WU7,G3KL=;:3\J8;.Y'6WD_[YHL%SJOM M]K_S\1_]]"E^W6O_ #\1_P#?0KD_LTW_ #PD_P"^:/L\W_/&3_OFBP7.K^WV MG_/Q'_WU2'4;0=;B/_OJN5^S3G_EA)^5*+.Y/2WD_P"^:+(+G3'5K(?\MU/T MJ-M;LE_Y:,?HIK &G7;=+9_Q%2+I-Z>D&/J<4607-9O$%L/NH[?ABHF\1I_! M;L?JU4UT*];J$7\:E3P].?OS(OX9HT#45O$,O\,"CZU"^NWC=-B_05<7PXG\ M;S?\ +%@/5N*NQ>'I6YFE5/917044K@9L.A6D>"X: M0_[1J]'!%$,1(JCV%244AA1110 48HHH **** "BBB@ HHHH **** "BBB@ MHHHH **** "BBB@ HHHH **** ,;Q%_Q[P_[U5-)U&*RAD65'.YLY49JWXB_ MX]X?]ZCP\ ;:7(S\W>JZ")#KL/\ !#*WMMJK=7%[J2>5#:O'&3SN&,UN[1_= M'Y4M(9FZ5I?V+,DI!E88P.U2ZS_R"Y?P_G5VJ6L?\@J7\/YT=0,G0/\ C_;_ M '*Z,US6ANL=ZQ=@HV]2:Z'[3!_SU3_OJF]Q(EHJ+[3!_P ]4_[ZIZ2)(#Y; M!L=<&I&K:8;DBXM\%P.5_O"J>GZHUA_H]TC! >,CE:K=".CHJM%J%K,,I.OT)J;S M8S_&OYU(Q]%1-=0)]^9!]6J16#*"I!!Z$=Z %HHHH **** "BBB@ HHHH ** M** "BBB@ HHHH **** "BBB@ HQ110 8HQ110 8HHHH **** "BBB@ HHHH M**** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ H MHHH **** "BBB@ HHHH @NK.&\55G!(4Y'-%K9PV:E8%VACDU/10 4444 %1 MSP)B@"I*<8EC5_J*DHH SWT2Q?_ )9E?]TXIG]@ M6?\ TU_[[K3HH SET.R'5&;_ 'FS5^.-8D"(,*HP!3J* "BBB@ HHHH **** M "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH M**** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ H MHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BB 8B@ HHHH **** "BBB@ HHHH **** /_9 end GRAPHIC 11 auditreportlllogo.jpg GRAPHIC begin 644 auditreportlllogo.jpg M_]C_X 02D9)1@ ! 0$ D "0 #_X1#R17AI9@ 34T *@ @ ! $[ ( M - (2H=I 0 ! (6)R= $ : 0T.H< < @, /@ M &UL;G,Z9&,](FAT=' Z M+R]P=7)L+F]R9R]D8R]E;&5M96YT#IX;7!M971A/@T*(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" * M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @(" \/WAP86-K970@ M96YD/2=W)S\^_]L 0P '!04&!00'!@4&" <'" H1"PH)"0H5#Q ,$1@5&AD8 M%1@7&QXG(1L=)1T7&"(N(B4H*2LL*QH@+S,O*C(G*BLJ_]L 0P$'" @*"0H4 M"PL4*AP8'"HJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ M*BHJ*BHJ*BHJ*BHJ_\ $0@ B *9 P$B (1 0,1 ?_$ !\ $% 0$! 0$! M ! @,$!08'" D*"__$ +40 (! P,"! ,%!00$ !?0$" P $ M$042(3%!!A-180'EZ@X2%AH>( MB8J2DY25EI>8F9JBHZ2EIJ>HJ:JRL[2UMK>XN;K"P\3%QL?(R;GZ.GJ\?+S]/7V]_CY^O_$ !\! ,! 0$! 0$! 0$ ! M @,$!08'" D*"__$ +41 (! @0$ P0'!00$ $"=P ! @,1! 4A,08205$' M87$3(C*!"!1"D:&QP0DC,U+P%6)RT0H6)#3A)?$7&!D:)BH*#A(6&AXB)BI*3E)66 MEYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&Q\C)RM+3U-76U]C9VN+CY.7F MY^CIZO+S]/7V]_CY^O_: P# 0 "$0,1 #\ ^D:*** "BBB@ HHHH **** " MBBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ** M** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHH MH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ M HHHH **** "BBB@ HHHH ***R=2\4Z'H]U]FU35+>UFVAMDCX./6FDV[(3: M6YK45SO_ G_ (4_Z#UE_P!_*/\ A/\ PI_T'K+_ +^5?LY]F+GCW.BHKG?^ M$_\ "G_0>LO^_E'_ G_ (4_Z#UE_P!_*/9S[,.>/LO^_E'_ G_ (4_Z#UE M_P!_*/9S[,.>/2/\-/AN[LQ\:?>.?O+6U*BG?VEU\C*=1KX+/YGMG_"4:!_T'--_P# N/\ MQH_X2C0/^@YIO_@7'_C7B7_"LOAM_P!#I_X\M'_"LOAM_P!#I_X\M:_5Z/=_ M<9^VJ=E]Y[;_ ,)1H'_0)?\*R^&W_ M $.G_CRT?\*R^&W_ $.G_CRT?5Z/=_<'MJG9?>>V_P#"4:!_T'--_P# N/\ MQH_X2C0/^@YIO_@7'_C7B7_"LOAM_P!#I_X\M'_"LOAM_P!#I_X\M'U>CW?W M![:IV7WGMO\ PE&@?]!S3?\ P+C_ ,:/^$HT#_H.:;_X%Q_XUXE_PK+X;?\ M0Z?^/+1_PK+X;?\ 0Z?^/+1]7H]W]P>VJ=E]Y[;_ ,)1H'_0)?\*R^&W_ $.G_CRT?\*R^&W_ $.G_CRT?5Z/=_<' MMJG9?>>V_P#"4:!_T'--_P# N/\ QH_X2C0/^@YIO_@7'_C7B7_"LOAM_P!# MI_X\M'_"LOAM_P!#I_X\M'U>CW?W![:IV7WGMO\ PE&@?]!S3?\ P+C_ ,:/ M^$HT#_H.:;_X%Q_XUXE_PK+X;?\ 0Z?^/+1_PK+X;?\ 0Z?^/+1]7H]W]P>V MJ=E]Y[;_ ,)1H'_0)?\*R^&W_ $.G M_CRT?\*R^&W_ $.G_CRT?5Z/=_<'MJG9?>>V_P#"4:!_T'--_P# N/\ QK2A MFBN(5EMY$EC<95T8,K#U!%> ?\*R^&W_ $.G_CRUZEHGBGPAH>AVFF0>(K22 M.UC$:LT@R0*RJ48I?N[OY&D*C;]ZR^9V%%<[_P )_P"%/^@]9?\ ?RC_ (3_ M ,*?]!ZR_P"_E8^SGV9KSQ[G145SO_"?^%/^@]9?]_*/^$_\*?\ 0>LO^_E' MLY]F'/'N=%17._\ "?\ A3_H/67_ '\H_P"$_P#"G_0>LO\ OY1[.?9ASQ[G M145SO_"?^%/^@]9?]_*/^$_\*?\ 0>LO^_E'LY]F'/'N=%17._\ "?\ A3_H M/67_ '\H_P"$_P#"G_0>LO\ OY1[.?9ASQ[G145BV7C'P]J5XEK8:O:SSR'" M1H^2U;50XN.Z&FGL%%%%(84444 %%%% !1110 4444 %%%% !1110 4444 % M%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 44 M44 %?,_Q\@FD^(H,<3N/LL?*J37TQ7B?Q-^*FH>%O&LVEVVF6-S&D2,'GCRW M(KMP3DJMXJ^AS8I1=/WG8\$^R7/_ #[R_P#?!H^R7/\ S[R_]\&O3?\ A>VK M?] /2O\ OR*/^%[:M_T ]*_[\BO:YZW\GXGFVK?\ 0#TK_OR*.>M_)^(M_)^(M_)^(VK?\ 0#TK_OR*.>M_)^(< MM+^;\#S+[)<_\^\O_?!H^R7/_/O+_P!\&O3?^%[:M_T ]*_[\BK>F?&O4[V_ M2"31=+"MGD0BIE5K1BY.&WF.-.G)V4OP/)_LES_S[R_]\&C[)<_\^\O_ 'P: M]Y_X6;=_] C3O^_0H_X6;=_] C3O^_0KC_M+^[^)T_4O[QX-]DN?^?>7_O@T M?9+G_GWE_P"^#7O/_"S;O_H$:=_WZ%'_ LV[_Z!&G?]^A1_:7]W\0^I?WCP M;[)<_P#/O+_WP:/LES_S[R_]\&O>?^%FW?\ T"-._P"_0H_X6;=_] C3O^_0 MH_M+^[^(?4O[QX-]DN?^?>7_ +X-'V2Y_P"?>7_O@U[S_P +-N_^@1IW_?H4 M?\+-N_\ H$:=_P!^A1_:7]W\0^I?WCP;[)<_\^\O_?!H^R7/_/O+_P!\&O>? M^%FW?_0(T[_OT*/^%FW?_0(T[_OT*/[2_N_B'U+^\>#?9+G_ )]Y?^^#1]DN M?^?>7_O@U[S_ ,+-N_\ H$:=_P!^A1_PLV[_ .@1IW_?H4?VE_=_$/J7]X\& M^R7/_/O+_P!\&C[)<_\ /O+_ -\&O>?^%FW?_0(T[_OT*/\ A9MW_P! C3O^ M_0H_M+^[^(?4O[QX-]DN?^?>7_O@T?9+G_GWE_[X->\_\+-N_P#H$:=_WZ%' M_"S;O_H$:=_WZ%']I?W?Q#ZE_>/!OLES_P ^\O\ WP:/LES_ ,^\O_?!KWG_ M (6;=_\ 0(T[_OT*/^%FW?\ T"-._P"_0H_M+^[^(?4O[QX-]DN?^?>7_O@T M?9+G_GWE_P"^#7U18>(?M6GPSOIMD&D4$@1#_"K']M+_ - ZS_[]#_"C^TO[ MOXA]2_O'R?\ 9+G_ )]Y?^^#1]DN?^?>7_O@U]8?VTO_ $#K/_OT/\*/[:7_ M *!UG_WZ'^%']I?W?Q#ZE_>/D_[)<_\ /O+_ -\&C[)<_P#/O+_WP:^L/[:7 M_H'6?_?H?X4?VTO_ $#K/_OT/\*/[2_N_B'U+^\?)_V2Y_Y]Y?\ O@T?9+G_ M )]Y?^^#7UA_;2_] ZS_ ._0_P */[:7_H'6?_?H?X4?VE_=_$/J7]X\#^$E MM.GQ0TAGAD51*RC:X4445RFX4444 %%%% !1110 4444 %%%% !1110!Q&D^.-3OM?UBWOM( M-E;V5@+R&"3_ (^&!&1OP2%)'\.,@\&LOPW\1-9UJ_ALG_L1I]2M)I;%;>5V M-O(H)5+@9R,^V#P?PZ>W\.WD7CS5=;\^)(+RR2WBV$F1&7^(@C'ZFL7PSX'U M:R\3P:KKLFDYLTD6$Z=;>4UP[Y!DEPH&['''K^?;>C9NRV7WV_S.>U2Z)M'\ M0>+7UW4K75H='NK?3+;S+C^RTF9S(02L2[CRV!DX!Z@=35"T\?>(+"ZD'BC2 MK2*-M+DU*.&V\Q9854X"2ALX).!G P3^ Z/PWHFIZ'HFI><]K-JMYK6WB.?2)TU>*1;J^A,KW18C"8R H5>,* ! M@4)TFW>U@]]6L:/A3Q9K=]KT6F>);6QA>\T]=0M'LRW"$X*.&)^;GMQP>M=! MXHU2;1/"VHZE:K&\UK TB+("5)'K@@_K7/\ A3PGK=CKT6I^);JQF>ST]=/M M$LPW* Y+N6 ^;CMQR>E1^*_"WBC5-0U!-(U6U_LS5($AG@O6D/V?'!,2C(!( MZ].?SJ&J;JK56_ I.2@2R_$K3["WM%O;2]N9VLX;J\>QMB\=H'4'+G.5'.>_ M%5+WXG-:^)-1LH=$O;NUL[/STE@B+>8=NX.3G"QD9YB; M8V52@YXSLZL3C/?DZ6PZ5_(B]4-.^)MO)X?TVYOM+U&34;[=LL;.U+O(%&6D M12W,?. 2>>>.#BY/\2M%BTO3KV&&^NAJ#O%'#;P;I5E4#,;+D'=D@<9&>^.: MQ;#P7XLTRWTB]L[O1_[5TR%[(1R"4P2VYP02>*\\*V\6G7$\2VMW+(E MS,(^FU=W)/0=,FNX\*:%Q>42=J/MP#D#YN.<9'O7+M\+ M?M&C:IYS6D6L2:G+?6-]$"6C!(*(Y*@XSG(Y SD9J:?L5)WVT'+VC2L;-W\1 M+"RM; OIVHW5Y=627LEG8P><]O&P!R_(P,G&?Y9%37WC[3[;2;34K/3M6U2T MNHFE$MA9EUB4<'>20%.0>.V#FLZ[\.>+8M7CUS1[O2DU.YL5M;Z.YWM$&4Y$ MD9"YS[$8'O690N[IC\ MA0HZ7?\ 7];"^OI+VU^UHEK;&0Q1=-\@R,+G(.,]#[5 MH^"MX#EUA!"C#LHP"2>@]:Y2T\"^)='739]%O=,2[33?[ M.O!_K8G\;:[X@T2!9]%M=.%K'$TEQ=ZC+A M1]V-5#!BS'IVR0*BN?B!'IB:5;ZEHNJ-J>HVHN!9V< D=#_$I!(.1R>G '-3 M>+-#\17U]#=^&M1@C_T>2VN+.]=_(=6!^?:N?F&>X]/H:6B^!KO1];\/W"W< M4]OI=A);2EB0[NQ)RHP1MY]:(^RY%S;C?/S:%37_ (I1VVZ+1+"XE:.]6T:\ MN+[^'WB8VLFCV=[I9T8:E]NA,OF"?[V=C$ K@9/(Y) Z X'6>-_#EQXGT6WL MK9H!Y=Y%/(+@G:R+G(X!R3GI3:HJ4;;=2?WC3N-/$.G^#]7UF6\\,:BU MF(1$-+EDE4,TBJ?,^;T/&#UK;UCXB:3H^J7%D]MJ%V+39]LN;2V\R&TW=/,; M/''/ /IUXH\4^"[?4/!6HZ-X#D$]<>G'6B/L9ZO3^E_P1OVD=OZW-/5_ MB)I&E70@BMM0U-EMQ"O$&EW=R?"-]8"WO[&&SN5U!6W)Y4?EJZ M%1R=N>#QGU[7] \%2Z!XHLKN&XCELK71!IV6)$C2>=YA;&,!?QS_ #I\7\J^IJ^6?CM_R5*Y_Z]XOY5Z.7?QOD<>, M_A_,\YK57POKCQJZ:3>,CC*LL)((K*KW3]G;4[NXO]6M+FYEEC2%&17D/91Z4YS4%=A&+D[(XVBO4?"5]X,\3>(X- E\(K!%=,8XKF.9FE4 M]B:X?Q=HT/A_Q=J.EVTOFQ6LQ1'/4BHC4YI]S_UQ:LI6*,&4E6!R"#TKZ1^!^JW5W\.]1>ZN))GMY7VM M(Y8@;<]36>(JRHPYDKE4::J2Y6?/%]I5_IC(-1M)K8R#*B5"N152KVLZA=:A MJEQ)>7$LY\UMID$]/8"*._>4F5HAAEV].>HS79^%M3N/^%6M>/,S31128D8 MY.1TYH \D_X1G6O^@9<_]^S4%SHVI6:[KJQGB7U:,XJZ?&/B$MN.K7.?]ZNX M\!>.;S5M271]=*W2S*?+D=1G/H?6@#RRBNR^)6@6VA^(E:R01PW2>8$'13GG M%<;0 ^.*29PD2,['H%&33KBVFM)C%0?Z4 >7T444 %%%% !1110!Z;H MW_(&M?\ KF*O51T;_D#6O_7,52\0^)8O#D(GO+69X"0/,3& 3VJHQJZ@;'][:W?:&==I/TJW1J)-V MV(]I'N=%117-ZSXWTS1=32QN!(\I90Y1?E3/3)J8PE-VBKE2DHJ[.DHI%8.H M93D$9!]:6H*+NC?\AFV_WZ[ZN!T;_D,VW^_7?4F,****0!1110 4444 %%%% M !1110 4444 %%%% !1110 4444 0W=U'964]U.2(H(VD<@=%49/\JX2R\5> M-KVUL];M]#L)](O)E5+2%W-V(V.T.6SL Z$GL.N.2.[N[6.]LI[6<$Q3QM&X M!ZJPP?YUPEIX5\;6=C:Z%;:[86^D6LJE+R)'%V8U.X(1]ST!YY'7(R#T4N2S MO:_GV,I\U]#6U;XBZ1I&JSV4EOJ%REH4%Y=VML9(;0L?^6C9XQUX!].N12S_ M ! TZ+Q"VCV]CJ-Y*B1RM-:PJ\2QNH8.6W<+@C)(K)U;P5XA:]UJVT/4-/CT MK7I ]V;J-S- 3P_EX^5LCUQZ.EI?@^XTO7]7N8I8C9W5A!:6P9B9!Y<>S M+\8_*KY:*C?R_P O^"3>I<9HOQ-T?7-1L;2"RU.W%_O%O/<6X6)V7[RA@QR1 M[9'O5C2OB%I&K:Q%8P07T4=PSI:WLT&VWNF0X(C?/)X/4#IZX!R;'P'J-OIO MA*VGFM&.BRRO=;7;#JY. GR\]>^*S_"_PLGT+Q%;W%Q#I,UM:2%XKM7N/M+\ M_+E=XC!_ CCH>M4XX>SU_K7_ ( E*KH:?AWQ[6+ MRO,$LJLQ)+9&,C/ '')R3BG*-!MV?]:_\ $ZB6W]:?\ !.FT;QW9:[JAM;#3 M-7:#S'C6_-F?LSE3C[X)QT[@>^*Z>O/+'P+K4/CR/6SZ@S["\B[E1 ASTYR?IQCG O?A+>W?@.QTY;FUBU MBSDEQ,KL(Y(G(])UF;4_"-WIH>_MXH[V#4%?8'C7 M:KH4&>G&#]><\=,O87]VW7TZ?\$Q7M/M'1>&]1O]4T&WNM8TY]-O&RLL#GH0 M<9'< ]0#S]>IU*RO#>G:AI>@P6NL:D^I7HRTL[#').=H[X&<#/Z# &K7#.W, M['3&]E<*X#7/&?B73-8EEBTBW71X;Z*R N%D6XNF;JT7\)'IP>GY=_7 ZAX> M\97/CC^V4?0KBV@;990W;S'[.F>7"J /,(ZDY]!P*UH\MWS6^9%2]M"O)\0M M73QBUE]FTXV2ZK_9WV,._P!N(Q_KPO3R^^<=./>G_P#"P-7_ +8%U]BLO^$> M.K_V5O+.+C=T\S^[MSSC&>WO5>3X<:NWB=IUN=-^Q-JO]H?;RC_;U'7R@V,; M>W7W]JL?\*_U?^V!:_;;+_A'EU?^U=A5S<;NOE_W=N>,YSW]JZ?W'EM_7S,? MWA<7Q1XGB\<6VFWNEV*65W,ZQP1RE[J.%>D[[25"$_KQ[F:R\7ZG>?$-=$ET MHV-@]K)-&]Q_KI=K;=V <*I(. >2 #QG%4O^$+\13>(+1;[6(;G1K'4O[0MY M)2[W?3B(D\;!R.#SUQV&[/H%U+\1;77UDA%K#I[6K(6.\L7)R!C&/QK*7LO+ M8M<_XG0T445R&X5\L_';_DJ5S_U[Q?RKZFKY9^.W_)4KG_KWB_E7HY=_&^1Q MXS^'\SSFO9OVK>G\"]#*?Q,EM;6>]NH M[:TC:6:5@J(HR6)KW7P-HMEX4TR[\)^,]2MHI=>48LT.6B./XFZ"O.OA'>65 MC\2]-EU$JL98JK-T5R.#5GXNZ)JNE_$&^O;M9##=2>;;W SM([ 'MBN:M>I/ MV5[:7-Z?N0]IN:/B*\;X7ZO-I^A:&+.Z*D1ZG<-YCNI[IV%0?#7P_H/BZ\U& M;7VN[B\@@>YD)8",]>2>I-:'A3QA;>-M/A\)^-;.6])^2UOX4W2PGMGV]ZTM M:\'W_P .?!.HQZ"LFJ3:FYBFO(%SY$(_AX[FLG)Q7LWI-]>_]=C1*[YUK%=# MQFX""YE$7W-YV_3/%>^_ @X^'6O'T=O_ $6:^?RC+GAI2_B+U/6_A[I\>H^-+1)E#)'F4@]\5J M_%J]DF\4QVI)\N"$;1[GK61X U*/3/&5G+,=LZ>;T444 %>P>&#CX-W6/[DM>05[!X7R/@[:[GX<^&[F+5EUO4D-I9VJE@\OR[C^-8B_$#Q L2Q_:8V" MC +1 D"LW4O$>KZNNV_OI94[)G"_D* -?X@^(HO$/B(O:'=;VZ^7&W][U-8. MD:=)JNKVUE",M-(%^@[U2KOOA_:)I>FZCXHNU^6UC*09[M0!G_$"[\[6H]-M M5;[+IT8A0 <9[FNL\$RKXG\ WNA77,L"E8\]<'E?UKE9?B3K$KEOL]ADGO;* M:UO"OQ%O'\06\%_#:1P3MY;O%"$(STZ4 >?7$#VMS)!*-KQL58>XKJ_!7ANW MU.QU#5;V)KF.Q7*VZG_6-C//M5OXIZ%_9WB 7\*XAO!DX' <=:P/#/BN^\+W M3R6>V2*3B2)^C4 3?\)C?0R$6]G8P1@\1?9E./;FK&J^(=.U7PSB73;6+5#* M!YD*;?D]:VF\3>#=>/\ Q.]':SF;[TT'K^%5M>\!V::&VM>&K[[9:(,NC=5% M '"4444 >FZ-_P @:U_ZYBN;^*0!\#RY[31_SKI-&_Y UK_US%_M7#>)HDU7XF:9'I #S0X-Q)' MT7![GZ5T6D>%M-OM'L[F;S]\D*EMLS 'CTK>T[1[#2D*V%LD.[[S [N8[.SEN)CA(D+,3[5PZ^'#KO@O4+NY3_3+]S'[=B)=0D DP>5C'6KDU.(BE.\=GJBJ4FXV>Z+NC?\ (9MO]^N^K@=&_P"0S;?[]=]7,S8****0 M!1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110!P_C?7_ M !9X=N89],CT9]/N;B*UB%PLIE#OW;! VY!Z_\JU?&6@77B+3[""RDA1K;4(;IS,Q *IG(& >>:YCQ MA\-KK7/%DFKVD6EW:7$:++%J+SIY148RGE,,Y'8^E=E/V4DE/0PESIMQ-J/Q ME,WBC5+2.V^V6%II\5Y"+.(O/-OP< 9P>#P,"NIM9_M-I#/Y4D/FHK^7*NUT MR,X8=B.XKDK/PIJFCZ]?ZCI+V&&TR&SLXY3)M5XP!\PY.WC^\376VOG_ &2' M[;Y?VC8OF^5G9OQSMSSC/3-8U.33E+AS=26N&EUGQM;>+[#29AX?>.\=Y"(5 MF:2*W4C+MD@ \@#U/T-=S6#8:'=0^-]6UN\DCDCN((;>S56):-%!+@@C RYR M,$TJ;2O<\HASC*_+NSG[V.,9K/A\ :O'K,-J;VR/A MZ#5O[512K&X+]1&?X=H.1G.>_L(X_A/_ &?XAT:YTO6]2^Q6HKI?L/P?]>IC^].E\;>(+OPYHD-QI\=L9KB[BMA+=L5@@#G_6 M2$WWV&SC]T%92RC@'( /&/>E#V'*K]^O],*VSY*+(\83( _A(]!45'2V7,6LOLVG&R7 M5?[.^QAW^W$8_P!>%Z>7WSCIQ[U?F\4>)K;QM:Z?Y.OBCQ/% MXXMM-O=+L4LKN9UC@CE+W4<*])WVDJ$)_7CW-?0?'6K:]XEB6U@TMM)GFDC2 M 70%[&B<>:R%AE20> "0/IDK_P (7XBF\06BWVL0W.C6.I?VA;R2EWN^G$1) MXV#D<'GKCL*.E_#&^T_Q)9RB73$TZQO6NXKF*)A>2@\B-ST*C..O\\4OW-M; M7M_7SV#]Y<],HHHKA.D*^6?CM_R5*Y_Z]XOY5]35\L_';_DJ5S_U[Q?RKT#T9/K7LUJ;J MPY+V/-I35.7-8]=\9?#5]:\7:CJ=AK^D>3=3&15>Y (S61#\'[EVQ-XDT6(> MOV@-7G-%3&G4BK*?X%.<&[N/XGJ.O^&M*\!> [H0ZK9ZKJFH2K&)("#Y*#DX M[@^]8FG_ !8\26FFKI]V]MJ5LHPJ7L(D('U-<3135%6M/43JN_NZ'5WGQ&UN MXB>*R%KIB.,-]B@$;$>FXYT.N>+-7\67*Q77V=!*XQ%!"L:ENQXKW/X1VK/2+[X2W4E]/)#X@T9D>1F7-T! MP32V_P '9I&'VCQ/HT(_Z[AOY&O-J*KDJV^/\">:G_+^)Z'X^TG2O"?AG3=! MTR[M]0N99&N+JZAP7T5\T>T>B M:C\+Q,YF\/ZI;3P-RJ2.,C\:S1\.KBU._6=4L;*%?O-YH8X]@*Y*.XFB&(I9 M$'^RQ%-DEDE.979SZL(T9/K0!>U/1KO22GVP1@/]TI(&S^54*7-)0!?T MK2;C6+KR;;RQC!9I'"A1Z\UZ7XLT\0>!+31M#FMYEC.Z?;,N3@9SUYYKR;-& M3ZT '2K%A;3W=]'%:8\XG*Y8#!'N:K4M 'N.N6UOXC\#):7ES;)J"1AE!F7A MP/7/>O/M'\.:<]E?V.JWUM:ZHQ40>8V5 ZY!'K7'Y/K10!T7]Z?G$1RD0^O3ZTE '6>"_!\/B>*\FNKI[ M:*U )*J#GO7,7")'=2I"Q:-7(5CW&>M=G;ZY:Z!\.C9V$ZR:AJ3$R[#_ *M> MG/O7#T >FZ-_R!K7_KF*SO%'AN3Q+:BTDOF@MLABBQ@DD>]:.C?\@:U_ZYBK MU5&3@^9;DRBI*S,S1=,N=*LTM9KW[3#$@2,&,*0![CK6DY"[ K0C:%] .U=1113E.4[7%&*CL]='9Q3PVJ1W4_GR+P9-NW/X5/13E4E**B]D"BDVUU+ MNC?\AFV_WZ[ZN!T;_D,VW^_7?5DRPHHHI %%%% !1110 4444 %%%% !1110 M 4444 %%%% !1110 4444 %8?C/6KCP[X/O]5LDBDGME4HLP)4Y<#D @]_6M MRL/QGHMQXB\'W^E63Q1SW*J$:8D*,.#R0">WI5T[2>Z#<8&S)]Q]<5=L?B!97L>I#^RM7MKG3K?[3)9W- ML(YGC[LH+8/T)&>V:EN_",)M&O]0U.!]%CO[O3Q @@$B1I,''SME27RHW%CR6.,8YKI_=23>W8 MR]]61NZ;X^TW68;V;2+/4+Z.RMTFD:"$-N+#(B4;LE_4=!@\UT=K/]IM(9_* MDA\U%?RY5VNF1G##L1W%<5X6\(:[X-M=0L])O+.ZMIX5E@^UE\I=;0&R%'^K M.,]F:QJJ"?N;%P):X:76 M?&UMXOL-)F'A]X[QWD(A69I(K=2,NV2 #R /4_0UW-8-AH=U#XWU;6[R2.2. MX@AM[-58EHT4$N"",#+G(P32IM*]QR3=K'-0^/\ 5Y-9ANC960\/3ZM_92,6 M87 ?H)#_ [2T^W1[.1YXKFZ=3S+''O*(@U;^U44JQN"_41G^':#D9SGO["./X3_V?XAT M:YTO6]2^Q6HKI?L/P?]>IC^].B\<>);GPUI5I M)8I;>?>7:6J37K%8(-V27O;!R=-\?7]YX7OKB+3H=2U.RN6MF_L^3 M-L^%+"7>3Q'@'ZG [\6-0\ 6]CHMW!X-@L[.XNIHI+B.^5KB&Y5"3L221;5"D$.5VK&@Z[5'3C/-0O8JGW=RO M?YC&N?B%JB>#O#U]''ID%[K#LK37;,EK!M)Y/.1G'K72>"O$C^)] :[N%@6X M@G>VF-LVZ)V7^)#_ '2""*Q?^$/URW^'^DZ-:3:5+*-)'QD*%(^4!0!GTZ"G/V/*_7 MH$?:7^1FR_$74)?B%/H=K=:):VT5XMNJWJ3B67IOVLOR9SN SCG YJ;_ (6! MJ_\ ; NOL5E_PCQU?^RMY9Q<;NGF?W=N><8SV]Z=>^!M=O;]M/>[TM= ?4A? ML\=MY=UD<[/E 4G(QO.6/4D_=IO_ K_ %?^V!:_;;+_ (1Y=7_M785TCMH96-Y P)"M(I.-I(QP!U]L$ MLOAQK%OXHM[F2YTTVEOJ37_VU(W^W39R?+=NA4YP>??VJW:^!-7F\80ZAK-Q MI>=05X?\5O\ MA H/&K'Q/:ZE+?/"A+6TF%V]N*]PKP#XT>"_$>O^.A=Z-I%S>6_V=%\R-01D M=J[,';VNKM^!S8F_)HKG,?:?A-_SX:U_W^H^T_";_GPUK_O]6)_PJ_QK_P!" MY>_]\C_&C_A5_C7_ *%R]_[Y'^->S:G_ ,_/Q/.O/^3\#;^T_";_ )\-:_[_ M %'VGX3?\^&M?]_JQ/\ A5_C7_H7+W_OD?XT?\*O\:_]"Y>_]\C_ !HM3_Y^ M?B%Y_P GX&W]I^$W_/AK7_?ZC[3\)O\ GPUK_O\ 5B?\*O\ &O\ T+E[_P!\ MC_&C_A5_C7_H7+W_ +Y'^-%J?_/S\0O/^3\#;^T_";_GPUK_ +_4?:?A-_SX M:U_W^K$_X5?XU_Z%R]_[Y'^-'_"K_&O_ $+E[_WR/\:+4_\ GY^(7G_)^!M_ M:?A-_P ^&M?]_J/M/PF_Y\-:_P"_U8G_ J_QK_T+E[_ -\C_&C_ (5?XU_Z M%R]_[Y'^-%J?_/S\0O/^3\#;^T_";_GPUK_O]1]I^$W_ #X:U_W^K$_X5?XU M_P"A_P#?(_QH_P"%7^-?^A_P#?(_QH_P"%7^-?^A_]\C_&C_A5_C7_ *%R]_[Y'^-'U7"]_P 0]O7[?@=E_P )=\-?^?'5 MO^_E'_"7?#7_ )\=6_[^5QO_ J_QK_T+E[_ -\C_&C_ (5?XU_Z%R]_[Y'^ M-'U7"]_Q#V]?M^!V7_"7?#7_ )\=6_[^4?\ "7?#7_GQU;_OY7&_\*O\:_\ M0N7O_?(_QH_X5?XU_P"A_P#?(_QH_P"%7^-?^A\$?\^6H_F*\O_X5?XU_Z%R]_P"^1_C1_P *O\:_]"Y>_P#?(_QH M^JX7O^(>WK]OP/4/^%O>"/\ GRU'\Q1_PM[P1_SY:C^8KR__ (5?XU_Z%R]_ M[Y'^-'_"K_&O_0N7O_?(_P :/JN%[_B'MZ_;\#U#_A;W@C_GRU'\Q1_PM[P1 M_P ^6H_F*\O_ .%7^-?^A_]\C_&CZKA>_XA[>OV M_ ]0_P"%O>"/^?+4?S%'_"WO!'_/EJ/YBO+_ /A5_C7_ *%R]_[Y'^-'_"K_ M !K_ -"Y>_\ ?(_QH^JX7O\ B'MZ_;\#VCPI\1_"FN>)K/3]-M;U+F5\1M(? ME!]Z]9KYI^&?@'Q3I/Q#TR]U+1+JWMHI"7E=1A1CZU]+5YN+ITZ6/]K''ZUX8^H_&OS&V6\D9&#TJ'[);?\ /O%_WP*WI553O>*?J95*;GU:/"O[2^-O_/G) M_P!^E_QH_M+XV_\ /G)_WZ7_ !KW7[';?\^\7_? H^QVW_/O%_WP*V^M+^1? M<9^P?\S^\\*_M+XV_P#/G)_WZ7_&C^TOC;_SYR?]^E_QKW7[';?\^\7_ 'P* M/L=M_P ^\7_? H^M+^1?<'L'_,_O/"O[2^-O_/G)_P!^E_QH_M+XV_\ /G)_ MWZ7_ !KW7[';?\^\7_? H^QVW_/O%_WP*/K2_D7W![!_S/[SPK^TOC;_ ,^< MG_?I?\:/[2^-O_/G)_WZ7_&O=?L=M_S[Q?\ ? H^QVW_ #[Q?]\"CZTOY%]P M>P?\S^\\*_M+XV_\^P M?\S^\\*_M+XV_P#/G)_WZ7_&C^TOC;_SYR?]^E_QKW7[';?\^\7_ 'P*/L=M M_P ^\7_? H^M+^1?<'L'_,_O/"O[2^-O_/G)_P!^E_QKVCPX^H/X;L6UI2M^ M8AYX(QAN]7?L=M_S[Q?]\"I54*H50 !T '2LJM95%912]#2G3<'NV+1117.: MA1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 % M%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 44 M44 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !111 M0 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% M!1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 % M%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110!__ !V0$! end GRAPHIC 12 auditreportllfoot.jpg GRAPHIC begin 644 auditreportllfoot.jpg M_]C_X 02D9)1@ ! 0$ D "0 #_X1#R17AI9@ 34T *@ @ ! $[ ( M - (2H=I 0 ! (6)R= $ : 0T.H< < @, /@ M &UL;G,Z9&,](FAT=' Z M+R]P=7)L+F]R9R]D8R]E;&5M96YT#IX;7!M971A/@T*(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" * M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" *(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @( H@(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" *(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @( H@(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @"B @(" @(" @(" @(" @(" @(" @(" @(" @(" \/WAP86-K970@ M96YD/2=W)S\^_]L 0P '!04&!00'!@4&" <'" H1"PH)"0H5#Q ,$1@5&AD8 M%1@7&QXG(1L=)1T7&"(N(B4H*2LL*QH@+S,O*C(G*BLJ_]L 0P$'" @*"0H4 M"PL4*AP8'"HJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ*BHJ M*BHJ*BHJ*BHJ*BHJ_\ $0@ ,0*P P$B (1 0,1 ?_$ !\ $% 0$! 0$! M ! @,$!08'" D*"__$ +40 (! P,"! ,%!00$ !?0$" P $ M$042(3%!!A-180'EZ@X2%AH>( MB8J2DY25EI>8F9JBHZ2EIJ>HJ:JRL[2UMK>XN;K"P\3%QL?(R;GZ.GJ\?+S]/7V]_CY^O_$ !\! ,! 0$! 0$! 0$ ! M @,$!08'" D*"__$ +41 (! @0$ P0'!00$ $"=P ! @,1! 4A,08205$' M87$3(C*!"!1"D:&QP0DC,U+P%6)RT0H6)#3A)?$7&!D:)BH*#A(6&AXB)BI*3E)66 MEYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&Q\C)RM+3U-76U]C9VN+CY.7F MY^CIZO+S]/7V]_CY^O_: P# 0 "$0,1 #\ ^D:*R?%4TMOX-UJ>WD>*6.PG M=)$8JR,(V(((Z$'O7S-_PF/B;_H8M6_\#I?_ (JNNAA95TVG:QA5K*F[-'U? M17RA_P )CXF_Z&+5O_ Z7_XJC_A,?$W_ $,6K?\ @=+_ /%5T_V=/^8R^M1[ M'U?17RA_PF/B;_H8M6_\#I?_ (JC_A,?$W_0Q:M_X'2__%4?V=/^8/K4>Q]7 MT5\H?\)CXF_Z&+5O_ Z7_P"*H_X3'Q-_T,6K?^!TO_Q5']G3_F#ZU'L?5]%? M*'_"8^)O^ABU;_P.E_\ BJ/^$Q\3?]#%JW_@=+_\51_9T_Y@^M1['U?17RA_ MPF/B;_H8M6_\#I?_ (JC_A,?$W_0Q:M_X'2__%4?V=/^8/K4>Q]7T5\H?\)C MXF_Z&+5O_ Z7_P"*H_X3'Q-_T,6K?^!TO_Q5']G3_F#ZU'L?5]%?*'_"8^)O M^ABU;_P.E_\ BJ/^$Q\3?]#%JW_@=+_\51_9T_Y@^M1['U?17RA_PF/B;_H8 MM6_\#I?_ (JC_A,?$W_0Q:M_X'2__%4?V=/^8/K4>Q]7T5\H?\)CXF_Z&+5O M_ Z7_P"*H_X3'Q-_T,6K?^!TO_Q5']G3_F#ZU'L?5]%?*'_"8^)O^ABU;_P. ME_\ BJ/^$Q\3?]#%JW_@=+_\51_9T_Y@^M1['U?17RA_PF/B;_H8M6_\#I?_ M (JC_A,?$W_0Q:M_X'2__%4?V=/^8/K4>Q]7T5\H?\)CXF_Z&+5O_ Z7_P"* MH_X3'Q-_T,6K?^!TO_Q5']G3_F#ZU'L?5]%?*'_"8^)O^ABU;_P.E_\ BJ/^ M$Q\3?]#%JW_@=+_\51_9T_Y@^M1['U?17RA_PF/B;_H8M6_\#I?_ (JC_A,? M$W_0Q:M_X'2__%4?V=/^8/K4>Q]7T5\H?\)CXF_Z&+5O_ Z7_P"*H_X3'Q-_ MT,6K?^!TO_Q5']G3_F#ZU'L?5]%?*'_"8^)O^ABU;_P.E_\ BJ/^$Q\3?]#% MJW_@=+_\51_9T_Y@^M1['U?17RA_PF/B;_H8M6_\#I?_ (JC_A,?$W_0Q:M_ MX'2__%4?V=/^8/K4>Q]7T5\H?\)CXF_Z&+5O_ Z7_P"*H_X3'Q-_T,6K?^!T MO_Q5']G3_F#ZU'L?5]%?*'_"8^)O^ABU;_P.E_\ BJ/^$Q\3?]#%JW_@=+_\ M51_9T_Y@^M1['U?17RA_PF/B;_H8M6_\#I?_ (JC_A,?$W_0Q:M_X'2__%4? MV=/^8/K4>Q]7T5\H?\)CXF_Z&+5O_ Z7_P"*H_X3'Q-_T,6K?^!TO_Q5']G3 M_F#ZU'L?5]%?*'_"8^)O^ABU;_P.E_\ BJ/^$Q\3?]#%JW_@=+_\51_9T_Y@ M^M1['U?17RA_PF/B;_H8M6_\#I?_ (JC_A,?$W_0Q:M_X'2__%4?V=/^8/K4 M>Q]7T5\H?\)CXF_Z&+5O_ Z7_P"*H_X3'Q-_T,6K?^!TO_Q5']G3_F#ZU'L? M5]%?*'_"8^)O^ABU;_P.E_\ BJ/^$Q\3?]#%JW_@=+_\51_9T_Y@^M1['U?1 M7RA_PF/B;_H8M6_\#I?_ (JC_A,?$W_0Q:M_X'2__%4?V=/^8/K4>Q]7T5\H M?\)CXF_Z&+5O_ Z7_P"*H_X3'Q-_T,6K?^!TO_Q5']G3_F#ZU'L?5]%?*'_" M8^)O^ABU;_P.E_\ BJ/^$Q\3?]#%JW_@=+_\51_9T_Y@^M1['U?17RA_PF/B M;_H8M6_\#I?_ (JC_A,?$W_0Q:M_X'2__%4?V=/^8/K4>Q]7T5\H?\)CXF_Z M&+5O_ Z7_P"*H_X3'Q-_T,6K?^!TO_Q5']G3_F#ZU'L?5]%?*'_"8^)O^ABU M;_P.E_\ BJ/^$Q\3?]#%JW_@=+_\51_9T_Y@^M1['U?17RA_PF/B;_H8M6_\ M#I?_ (JC_A,?$W_0Q:M_X'2__%4?V=/^8/K4>Q]7T5\H?\)CXF_Z&+5O_ Z7 M_P"*H_X3'Q-_T,6K?^!TO_Q5']G3_F#ZU'L?5]%?*'_"8^)O^ABU;_P.E_\ MBJ/^$Q\3?]#%JW_@=+_\51_9T_Y@^M1['U?17RA_PF/B;_H8M6_\#I?_ (JC M_A,?$W_0Q:M_X'2__%4?V=/^8/K4>Q]7T5\H?\)CXF_Z&+5O_ Z7_P"*H_X3 M'Q-_T,6K?^!TO_Q5']G3_F#ZU'L?5]%?*'_"8^)O^ABU;_P.E_\ BJ/^$Q\3 M?]#%JW_@=+_\51_9T_Y@^M1['U?17RA_PF/B;_H8M6_\#I?_ (JC_A,?$W_0 MQ:M_X'2__%4?V=/^8/K4>Q]7T5\H?\)CXF_Z&+5O_ Z7_P"*H_X3'Q-_T,6K M?^!TO_Q5']G3_F#ZU'L?5]%?*'_"8^)O^ABU;_P.E_\ BJ/^$Q\3?]#%JW_@ M=+_\51_9T_Y@^M1['U?17RA_PF/B;_H8M6_\#I?_ (JC_A,?$W_0Q:M_X'2_ M_%4?V=/^8/K4>Q]7T5\H?\)CXF_Z&+5O_ Z7_P"*KZOKEQ&'="UW>YM2JJI> MR*&O6$NJ>&]2T^W9%EN[26!&)O\ MG^TG_O\ 2_\ QNC_ (45XF_Y_M)_[_2__&Z]]HH^O5@^K4SP+_A17B;_ )_M M)_[_ $O_ ,;KWVH[:Y@O+=+BTFCGAD&4DB<,K#U!'!J2L*U>=6W/T-:=.,/A M"BBBL#0**** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** M"BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH * M*** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HH MHH **** "BBB@ JCKEK<7N@WMO8S2074D#"&2)]C*^/E(/;G%7J*:=G<'J>8 MVNM:KK][;;9[J&U\1R)Y/E2LAMDMR/."D'*%L,/7FJXUK7V@4"YN/,Q_PCK? MO#Q=\YGZ_>Z?-TKU:BNCVZ_E,?9ON>8WFM:IH=]7GVG4+>XL6NM\N^0,TRDD\D@$AL>PXZ M5W=%+VRNG;;^O\Q^SWU/*='NX8HX(-:U.?2](9]0=9HKEKBCKGFJ]NFVVOZN+V;M:YY[<^(+@^-(C M;7L\+?VO):S1-?/*_EA&4?Z,%$:+D J>68\\G-7_ =K26^H217NJK>1BQ$L M]X-2>6%2KX#21R@&WD.[[@..#P-O'H-%2ZT7&W*-0:=[GFVJW-Y'=>)-0CU& M^673]5LX[>-;IQ$BN80RF/.T@[CP0?YU%97VJ7GB;[/>Z@+>]?4Y8;BU_M&? MS#;X("K;(FV,;-K"4,.>=V37IU%'ME:U@]GK>YROPU$2_#W3$BD+LL964&4O ML?/*\D[<>G:NJHHK& XML 13 R1.htm IDEA: XBRL DOCUMENT

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2017	Apr. 13, 2018	Jun. 30, 2017
Document And Entity Information
Entity Registrant Name	AGRITEK HOLDINGS, INC.
Entity Central Index Key	0001040850
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 5,664,173
Entity Common Stock, Shares Outstanding		779,245,512
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2017

XML 14 R2.htm IDEA: XBRL DOCUMENT

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 304,889	$ 67,260
Marketable Securities	41,862	39,769
Inventory, net	10,000
Prepaid assets and other	48,500	10,000
Total current assets	405,251	117,029
Note receivable	210,000
Property and equipment, net of accumulated depreciation of $23,824 (2017) and $8,308 (2016)	286,415	26,280
Investments in non-marketable securities		50,000
Security deposit and other	13,825	825
Total assets	915,491	194,134
Current Liabilities:
Accounts payable and accrued expenses	1,089,333	550,885
Due to related party	7,715	54,246
Customer deposits	2,400	2,400
Deferred rent	24,916
Convertible note payable, net of discounts of $494,193 (2017) and $257,034 (2016)	485,250	569,446
Derivative liabilities	5,416,830	1,613,770
Note payable, current portion	51,500
Total current liabilities	7,077,944	2,790,747
Total liabilities	7,077,944	2,790,747
Commitments and Contingencies
Stockholders' Deficit:
Series B convertible preferred stock, $0.01 par value; 1,000,000 shares authorized, and 1,000 shares issued and outstanding	10	10
Common stock, $.0001 par value; 1,000,000,000 shares authorized; 723,680,348 (2017) and 400,867,449 (2016) shares issued and outstanding	72,369	40,087
Common stock to be issued	5,257
Additional paid-in capital	19,312,650	13,764,813
Deferred expenses
Accumulated comprehensive gain	25,337	23,244
Accumulated deficit	(25,578,077)	(16,424,767)
Total stockholders' deficit	(6,162,454)	(2,596,613)
Total liabiities and stockholders' deficit	$ 915,491	$ 194,134

XML 15 R3.htm IDEA: XBRL DOCUMENT

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Assets
Accumulated depreciation of property and equipment	$ (23,824)	$ (8,308)
Current Liabilities
Discount on convertible notes payable	$ (494,193)	$ (257,034)
Stockholders' Deficit
Preferred stock Series B par value	$ 0.01	$ 0.01
Preferred stock Series B authorized	1,000,000	1,000,000
Preferred stock Series B issued	1,000	1,000
Preferred stock Series B outstanding	1,000	1,000
Common stock par value	$ 0.0001	$ 0.0001
Common stock shares authorized	1,000,000,000	500,000,000
Common stock shares issued	723,680,348	400,867,449
Common stock shares outstanding	723,680,348	400,867,449

XML 16 R4.htm IDEA: XBRL DOCUMENT

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Consulting income	$ 48,000
Product revenue	2,000	3,228
Total revenue	50,000	3,228
Cost of revenue, includes $30,000 related party for 2017	64,000	3,161
Gross profit (loss)	(14,000)	67
Operating Expenses:
Management fees	421,000	150,000
Administrative fees	83,200	13,850
Professional and consulting fees	730,357	161,150
Rent and other occupancy costs	101,279	40,303
Leased property expense	41,546	114,894
Other general and administartive expenses	338,601	127,724
Total operating expenses	1,715,983	607,921
Operating loss	(1,729,983)	(607,854)
Other Income (Expense):
Gain (loss) on debt settlement	(114,781)	84,057
Loss on legal matter	(399,291)
Impairment of investments	(50,000)	(255,000)
Interest expense	(1,873,198)	(742,021)
Derivative liability expense	(4,986,057)	(1,457,071)
Total other expense, net	(7,423,327)	(2,370,035)
Net loss	(9,153,310)	(2,977,889)
Unrealized gain on marketable securities	2,093	23,244
Net comprehensive loss	$ (9,151,217)	$ (2,954,645)
Basic and diluted loss per share	$ (0.02)	$ (0.01)
Weighted average number of common shares outstanding Basic and diluted	536,650,839	334,772,545

XML 17 R5.htm IDEA: XBRL DOCUMENT

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical)	12 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical)	Dec. 31, 2017 USD ($)
Income Statement [Abstract]
Related party cost of revenue	$ 30,000

XML 18 R6.htm IDEA: XBRL DOCUMENT

CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT - USD ($)	Common stock	Common stock to be issued	Series B Preferred stock	Additional Paid-in Capital	Accumulated Comprehensive Gain	Accumulated Deficit	Total
Beginning balance, shares at Dec. 31, 2015	281,540,332		1,000
Beginning balance, amount at Dec. 31, 2015	$ 28,155		$ 10	$ 12,536,138		$ (13,446,878)	$ (882,575)
Common stock issued upon conversion of convertible debt and accrued interest, shares	114,327,117
Common stock issued upon conversion of convertible debt and accrued interest, amount	$ 11,432			179,953			191,385
Issuance of warrants for services				2,371			2,371
Issuance of common stock for acquisition, shares	5,000,000
Issuance of common stock for acquisition, amount	$ 500			254,500			255,000
Reclassification for conversions of convertible debt				791,851			791,851
Common stock issued upon cashless warrant exercises, amount
Unrealized gain on marketable securities					23,244		23,244
Net loss						(2,977,889)	(2,977,889)
Ending balance, shares at Dec. 31, 2016	400,867,449		1,000
Ending balance, amount at Dec. 31, 2016	$ 40,087		$ 10	13,764,813	23,244	(16,424,767)	(2,596,613)
Common stock issued upon conversion of convertible debt and accrued interest, shares	194,559,519
Common stock issued upon conversion of convertible debt and accrued interest, amount	$ 19,457			1,420,638			1,440,095
Common stock issued for additional interest on convertible notes, shares	1,319,149
Common stock issued for additional interest on convertible notes, amount	$ 132			15,962			16,094
Common stock issued upon settlement of accounts payable, shares	2,000,000
Common stock issued upon settlement of accounts payable, amount	$ 200			55,500			55,700
Issuance of common stock investment in Canadian property, shares	5,000,000
Issuance of common stock investment in Canadian property, amount	$ 500			61,000			61,500
Common stock issued for services, related party, shares	10,000,000
Common stock issued for services, related party, amount	$ 1,000			300,000			301,000
Amortization of deferred stock compensation
Issuance of common stock for services, shares	7,000,000
Issuance of common stock for services, amount	$ 700			157,400			158,100
Reclassification for conversions of convertible debt				3,007,887			3,007,887
Common stock to be issued pursuant to Stock Purchase Agreements, shares		52,574,335
Common stock to be issued pursuant to Stock Purchase Agreements, amount		$ 5,257		539,743			545,000
Common stock previously cancelled on Company’s records, shares	15,000,000
Common stock previously cancelled on Company’s records, amount	$ 1,500			(1,500)
Common stock issued upon cashless warrant exercises, shares	87,934,231
Common stock issued upon cashless warrant exercises, amount	$ 8,793						8,793
Unrealized gain on marketable securities					2,093		2,093
Net loss						(9,153,310)	(9,153,310)
Ending balance, shares at Dec. 31, 2017	723,680,348	52,574,335	1,000
Ending balance, amount at Dec. 31, 2017	$ 72,369	$ 5,257	$ 10	$ 19,312,650	$ 25,337	$ (25,578,077)	$ (6,162,454)

XML 19 R7.htm IDEA: XBRL DOCUMENT

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities
Net loss	$ (9,153,310)	$ (2,977,889)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation	520,600	2,371
Common stock issued for additional interest to convertible noteholder	16,091
Amortization of deferred financing costs	128,220
Impairment of investments	50,000	255,000
Loss on settlement of accounts payable	17,916
Depreciation	15,516	3,566
Initial expense for fair value of derivative liabilities	2,223,824	3,249,056
Amortization of discounts on convertible notes	1,587,831	635,780
Change in fair values of derivative liabilities	2,762,231	(1,791,988)
Gain on debt settlement		(84,057)
Changes in operating assets and liabilities:
Decrease (increase) in Inventory	(10,000)
Decrease (increase) in Prepaid assets and other	(38,500)	(6,667)
Decrease (increase) in Security deposit	(13,000)
Increase (decrease) in Accounts payable and accrued expenses	685,361	234,234
Increase (decrease) in Due to related party	(46,531)	32,935
Increase (decrease) in Deferred rent	24,916
Increase (decrease) in Tenant deposits		2,400
Net cash used in operating activities	(1,228,835)	(445,260)
Cash flows from investing activities:
Purchase of property, equipment and furniture	(187,651)	(20,757)
Purchase of notes receivable	(210,000)
Net cash used in investing activities	(397,651)	(20,757)
Cash flows from financing activities:
Proceeds from issuance of convertible debt	1,678,494	521,731
Payments made of principal and accrued interest on convertible notes	(322,879)
Payments made on note payable	(36,500)
Proceeds from sale of common stock to be issued	545,000
Net cash provided by financing activities	1,864,115	521,731
Net increase in cash and cash equivalents	237,629	55,711
Cash and cash equivalents, Beginning	67,260	11,548
Cash and cash equivalents, Ending	304,889	67,260
Supplemental disclosure of cash flow information:
Cash paid for interest	1,275
Cash paid for income taxes
Schedule of non-cash financing activities:
Discount from derivatives	1,824,892	865,593
Accrued interest converted into convertible note	6,398
Conversion of notes payable and interest into common stock	1,440,093	191,386
Fair value of marketable securities issued in exchange for debt		16,525
Change in fair value for available for sale marketable securities	2,093	23,244
Issuance of note payable as part of land acquisition	88,000
Settlement of derivatives	3,007,887	791,851
Stock issued for settlement of accounts payable	37,784
Stock issued for cashless exercise	$ 8,793

XML 20 R8.htm IDEA: XBRL DOCUMENT

Organization

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Note 1 - Organization

Business

We provide key business services to the legal cannabis sector including:

	•	Funding and Financing Solutions for Agricultural Land and Properties zoned for the regulated Cannabis Industry.
	•	Dispensary and Retail Solutions
	•	Commercial Production and Equipment Build Out Solutions
	•	Multichannel Supply Chain Solutions
	•	Branding, Marketing and Sales Solutions of proprietary product lines
	•	Consumer Product Solutions

The Company intends to bring its’ array of services to each new state that legalizes the use of cannabis according to appropriate state and federal laws. Our primary objective is acquiring commercial properties to be utilized in the commercial marijuana industry as cultivation facilities in compliance with state laws. This is an essential aspect of our overall growth strategy because once acquired and re-zoned, the value of such real property is substantially higher than under the previous zoning and use.

XML 21 R9.htm IDEA: XBRL DOCUMENT

Summary of Significant Account Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Account Policies

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original term of three months or less to be cash equivalents.

Accounts Receivable

The Company records accounts receivable from amounts due from its customers upon the shipment of products. The allowance for losses is established through a provision for losses charged to expenses. Receivables are charged against the allowance for losses when management believes collectability is unlikely. The allowance is an amount that management believes will be adequate to absorb estimated losses on existing receivables, based on evaluation of the collectability of the accounts and prior loss experience. While management uses the best information available to make its evaluations, this estimate is susceptible to significant change in the near term. As of December 31, 2017 and 2016, based on the above criteria, the Company has a full allowance for doubtful accounts of $43,408.

Inventory

Notes receivable

During the year ended December 31, 2017, the Company has recorded notes receivable the following:

•

Deferred Financing Costs

The costs related to the issuance of debt are capitalized and amortized to interest expense using the straight-line method through the maturities of the related debt.

Derivative Financial Instruments

Debt Issue Costs and Debt Discount

Original Issue Discount

Marketable Securities and Other Comprehensive Income

Investment of Non-Marketable Securities

Property and Equipment

Furniture and equipment	5 years
Manufacturing equipment	7 years

The Company's property and equipment consisted of the following at December 31, 2017, and 2016:

	December 31, 2017			December 31, 2016
Furniture and equipment	$	180,684		$	34,587
Land		129,555			—
Accumulated depreciation		(23,824	)		(8,307	)
Balance	$	286,415		$	26,280

Depreciation expense of $15,516 and $3,566 was recorded for the years ended December 31, 2017, and 2016, respectively.

Long-Lived Assets

Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Deferred rent

Revenue Recognition

Fair Value of Financial Instruments

The following are the hierarchical levels of inputs to measure fair value:

	☐	Level 1 - Observable inputs that reflect quoted market prices in active markets for identical assets or liabilities.
	☐	Level 2 - Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.
	☐	Level 3 - Unobservable inputs reflecting the Company's assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis as of December 31, 2017, and 2016, for each fair value hierarchy level:

December 31, 2017	Derivative Liabilities		Total
Level I	$	—	$	—
Level II	$	—	$	—
Level III	$	5,416,830	$	5,416,830
December 31, 2016
Level I	$	—	$	—
Level II	$	—	$	—
Level III	$	1,613,770	$	1,613,770

Income Taxes

Earnings (Loss) Per Share

Accounting for Stock-Based Compensation

The Company accounts for stock awards issued to non-employees in accordance with ASC 505-50, Equity-Based Payments to Non-Employees. The measurement date is the earlier of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty's performance is complete. Stock awards granted to non-employees are valued at their respective measurement dates based on the trading price of the Company’s common stock and recognized as expense during the period in which services are provided. For the year ended December 31, 2017, and 2016 the Company recorded stock- based compensation of $520,600 and $2,371, respectively (See Notes 10 and 11).

Use of Estimates

Advertising

The Company records advertising costs as incurred. For the years ending December 31, 2017, and 2016, advertising expenses was $54,927 and $8,321, respectively.

XML 22 R10.htm IDEA: XBRL DOCUMENT

Recent Accounting Pronouncements

12 Months Ended

Dec. 31, 2017

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

Note 3 – Recent Accounting Pronouncements

XML 23 R11.htm IDEA: XBRL DOCUMENT

Marketable Securities

12 Months Ended

Dec. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

Note 4 – Marketable Securities

The Company owns marketable securities (common stock) as outlined below:

	2017		2016
Balance January 1	$	39,769	$	—
Fair value of stock received		—		16,525
Unrealized gain marked to fair value		2,093		23,244
Balance December 31	$	41,862	$	39,769

XML 24 R12.htm IDEA: XBRL DOCUMENT

Prepaid Expenses

12 Months Ended

Dec. 31, 2017

Other Income (Expense):

Prepaid Expenses

Note 5 - Prepaid Expenses

Prepaid expenses consisted of the following at December 31, 2017 and December 31, 2016:

	December 31, 2017		December 31, 2016

Vendor deposits	$	46,000	$	6,000
Consulting fees		—		4,000
Investor relations		2,500		—
Total prepaid expenses	$	48,500	$	10,000

XML 25 R13.htm IDEA: XBRL DOCUMENT

Concentration of Credit Risk

12 Months Ended

Dec. 31, 2017

Risks and Uncertainties [Abstract]

Concentration of Credit Risk

Note 6– Concentration of Credit Risk

Cash

XML 26 R14.htm IDEA: XBRL DOCUMENT

Note Payable

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Note Payable

Note 7 – Note Payable

Note Payable Land

XML 27 R15.htm IDEA: XBRL DOCUMENT

Convertible Debt

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Convertible Debt

Note 8 – Convertible Debt

2014 Convertible Note

As of December 31, 2015, $311,815 of principal and accrued interest of $1,041 is outstanding on the 2014 Company Note.

2016 Convertible Notes

Beginning on the date that is six (6) months after the later of (i) the Issuance Date, and (ii) the date the Initial Cash Purchase Price is paid to the Company (the “Initial Installment Date”), and on each applicable Installment Date thereafter, the Company is to pay the Holder, the applicable Installment Amount due on such date. Five Installment Amounts of $111,000 plus the sum of any accrued and unpaid interest, fees, costs or charges may be made (a) in cash (a “Company Redemption”), (b) by converting such Installment Amount into shares of Common Stock (a “Company Conversion”), or (c) by any combination of a Company Conversion and a Company Redemption so long as the entire amount of such Installment Amount due shall be converted and/or redeemed by the Company on the applicable Installment Date. The St. George 2016 Note matures fifteen months after the Issuance Date.

2017 Convertible Notes

The total amount paid to redeem convertible notes and accrued interest during the year ended December 31, 2017, was $419,699, including $96,864 of excess over principal and interest due.

Convertible Note Conversions

During the year ended December 31, 2017, the Company issued the following shares of common stock upon the conversions of portions of the Convertible Notes:

Date		Principal Conversion		Interest Conversion		Total Conversion		Conversion Price		Shares Issued		Issued to
	1/10/17	$	73,000	$	5,664	$	78,664	$	0.01595		4,931,912	Cerberus
	1/17/17	$	57,500	$	4,562	$	62,062	$	0.01537		4,037,878	LG
	1/27/17	$	48,129	$	3,914	$	52,043	$	0.01276		4,078,598	Cerberus
	2/8/17	$	60,000	$	5,050	$	65,050	$	0.012934		5,029,369	LG
	2/27/17	$	26,120	$	2,171	$	28,291	$	0.013804		2,049,467	Cerberus
	3/10/17	$	40,000	$	3,630	$	43,630	$	0.01363		3,200,997	LG
	3/27/17	$	34,775	$	3,255	$	38,030	$	0.012876		2,953,523	Cerberus
	3/28/17	$	65,625	$	3,697	$	69,322	$	0.01276		5,432,725	LG
	4/25/17	$	76,081	$	4,752	$	80,833	$	0.009744		8,295,680	LG
	5/10/17	$	22,000	$	2,199	$	24,199	$	0.008		3,023,338	Cerberus
	5/10/17	$	20,640	$	9,360	$	30,000	$	0.0075		4,000,000	St Georges
	5/25/17	$	29,052	$	947	$	30,000	$	0.00564		5,319,149	St Georges
	6/6/17	$	32,813	$	2,999	$	35,811	$	.00551		6,499,359	LG
	6/8/17	$	34,100	$	900	$	35,000	$	0.00564		6,205,674	St Georges
	6/9/17	$	22,000	$	1,500	$	23,500	$	0.00551		4,264,903	Cerberus
	6/29/17	$	48,849	$	1,151	$	50,000	$	.00564		8,865,248	St Georges
	6/30/17	$	30,625	$	2,960	$	33,585	$	0.0058		5,790,541	LG
	7/17/17	$	37,358	$	733	$	38,091	$	0.00564		6,753,817	St Georges
	7/25/17	$	35,000	$	3,575	$	38,575	$	0.005568		6,927,943	LG
	7/26/17	$	28,000	$	1,117	$	29,117	$	0.005568		5,229,334	Cerberus
	8/15/17	$	35,199	$	409	$	35,608	$	0.0058		6,139,276	LG
	8/29/17	$	38,000	$	558	$	38,558	$	0.005858		6,582,115	LG
	9/19/17	$	34,500	$	665	$	35,165	$	0.008178		4,300,002	LG
	10/9/17	$	30,000	$	710	$	30,710	$	0.007076		4,340,042	LG
	10/23/17	$	30,000	$	802	$	30,802	$	0.006090		5,057,830	LG
	11/6/17	$	28,376	$	6,624	$	35,000	$	0.005640		6,205,674	St Georges
	11/6/17	$	19,500	$	1,218	$	20,718	$	0.005858		3,536,715	LG
	11/13/17	$	35,000	$	2,240	$	37,240	$	0.005858		6,357,118	Cerberus
	11/14/17	$	26,624	$	428	$	27,052	$	0.005640		4,796,452	St Georges
	11/15/17	$	75.000	$	4,833	$	79,833	$	0.005742		13,903,322	LG
	12/1/17	$	32,813	$	453	$	33,266	$	0.005742		5,793,378	LG
	12/5/17	$	16,756	$	1,105	$	17,861	$	0.005640		3,166,816	St Georges
	12/7/17	$	32,813	$	2,567	$	35,380	$	0.005916		5,980,387	LG
	12/15/17	$	52,000	$	889	$	52,889	$	0.005916		8,939,991	LG
	12/28/17	$	42,000	$	2,209	$	44,209	$	0.006728		6,570,945	Cerberus
		$	1,350,247	$	89,846	$	1,440,093				194,559,520

During the year ended December 31, 2016, the Company issued the following shares of common stock upon the conversion of portions of the 2015 Convertible Notes and accrued interest thereon:

Date		Principal Conversion		Interest Conversion		Total Conversion		Conversion Price		Shares Issued		Issued to
	12/28/16	$	45,000	$	3,511	$	48,511	$	0.015080		3,216,925	LG
	12/13/16	$	9,500	$	400	$	9,900	$	0.000754		13,129,683	Cerberus
	9/26/16	$	8,613	$	629	$	9,242	$	0.001218		7,587,824	LG
	7/29/16	$	7,500	$	801	$	8,301	$	0.000081		10,222,352	LG
	7/20/16	$	9,500	$	995	$	10,495	$	0.000098		10,644,310	LG
	7/12/16	$	9,000	$	927	$	9,927	$	0.000986		10,068,073	LG
	7/1/16	$	8,000	$	805	$	8,805	$	0.001160		7,590,362	LG
	6/22/16	$	5,000	$	973	$	5,973	$	0.001450		4,119,414	GW
	6/20/16	$	10,500	$	1,003	$	11,503	$	0.001450		7,933,377	Cerberus
	6/20/16	$	5,000	$	967	$	5,967	$	0.001450		4,114,879	GW
	6/20/16	$	6,000	$	589	$	6,589	$	0.001450		4,544,241	LG
	6/10/16	$	6,075	$	1,134	$	7,209	$	0.001798		4,009,701	GW
	6/9/16	$	5,000	$	479	$	5,479	$	0.001798		3,047,219	LG
	6/2/16	$	9,000	$	848	$	9,848	$	0.002378		4,141,387	Cerberus
	5/23/16	$	5,000	$	460	$	5,460	$	0.002436		2,241,490	LG
	3/17/16	$	9,000	$	696	$	9,696	$	0.002436		3,980,431	LG
	3/17/16	$	3,000	$	138	$	3,138	$	0.000638		4,918,624	Service
	3/8/16	$	7,425	$	928	$	8,353	$	0.00174		4,800,354	GW
	3/7/16	$	6,500	$	489	$	6,989	$	0.00174		4,016,471	LG
		$	174,613	$	16,772	$	191,385				114,327,117

A summary of the convertible notes payable balance as of December 31, 2017, and 2016 is as follows:

	2017			2016
Beginning Principal Balance	$	826,480		$	472,515
Convertible notes-newly issued		1,813,210			521,731
Conversion of convertible notes (principal)		(1,350,247	)		6,848
Principal payments		(310,000	)		(174,613	)
Unamortized discount		(494,193	)		(257,033	)
Ending Principal Balance, net	$	485,250		$	569,448

XML 28 R16.htm IDEA: XBRL DOCUMENT

Derivative liabilities

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Derivative liabilities

Note 9 - Derivative liabilities

A summary of the derivative liability balance as of December 31, 2017, is as follows:

	Notes			Warrants			Total
Beginning Balance	$	1,410,647		$	203,023	$	1,613,670
Initial Derivative Liability		3,633,502			415,313		4,048,815
Fair Value Change		1,571,986			1,190,244		2,762,230
Reclassified to Additional paid- in capital		(2,184,277	)		—		(2,184,277	)
Reduction for debt assignment		(823,610	)		—		(823,610	)
Ending Balance	$	3,608,250		$	1,808,580	$	5,416,830

	Commitment date		Remeasurement date
Expected dividends		-0-		-0-
Expected volatility		199%-361%		320%-331%
Expected term		12 months		3-12 months
Risk free interest		.65%-1.78%		1.51%-1.79%

	Commitment date		Remeasurement date
Expected dividends		-0-		-0-
Expected volatility		203% - 384%		320%
Expected term		3.87 - 4.64 years		3.84 years
Risk free interest		1.72% - 2.05%		1.81%

A summary of the derivative liability balance as of December 31, 2016 is as follows:

Beginning Balance	$	167,014
Initial Derivative Liability		4,114,649
Fair Value Change		(1,791,988	)
Debt extinguishment		(84,057	)
Reduction for conversions		(791,851	)
Ending Balance	$	1,613,767

	Commitment date		Remeasurement date
Expected dividends		-0-		-0-
Expected volatility		243%-268%		246%
Expected term		12 months		1-12 months
Risk free interest		.44%-.68%		.48%-.85%

XML 29 R17.htm IDEA: XBRL DOCUMENT

Related Party Transactions

12 Months Ended

Dec. 31, 2017

Related Party Transactions

Note 10 – Related Party Transactions

Amounts Due from 800 Commerce, Inc.

XML 30 R18.htm IDEA: XBRL DOCUMENT

Common and Preferred Stock

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Common and Preferred Stock

Note 11 – Common and Preferred Stock

Common Stock

2017 Issuances

During the year ended December 31, 2017, the Company issued the following shares of common stock upon the conversions of portions of the convertible notes:

Date		Principal Conversion		Interest Conversion		Total Conversion		Conversion Price		Shares Issued		Issued to
	1/10/17	$	73,000	$	5,664	$	78,664	$	0.01595		4,931,912	Cerberus
	1/17/17	$	57,500	$	4,562	$	62,062	$	0.01537		4,037,878	LG
	1/27/17	$	48,129	$	3,914	$	52,043	$	0.01276		4,078,598	Cerberus
	2/8/17	$	60,000	$	5,050	$	65,050	$	0.012934		5,029,369	LG
	2/27/17	$	26,120	$	2,171	$	28,291	$	0.013804		2,049,467	Cerberus
	3/10/17	$	40,000	$	3,630	$	43,630	$	0.01363		3,200,997	LG
	3/27/17	$	34,775	$	3,255	$	38,030	$	0.012876		2,953,523	Cerberus
	3/28/17	$	65,625	$	3,697	$	69,322	$	0.01276		5,432,725	LG
	4/25/17	$	76,081	$	4,752	$	80,833	$	0.009744		8,295,680	LG
	5/10/17	$	22,000	$	2,199	$	24,199	$	0.008		3,023,338	Cerberus
	5/10/17	$	20,640	$	9,360	$	30,000	$	0.0075		4,000,000	St Georges
	5/25/17	$	29,052	$	947	$	30,000	$	0.00564		5,319,149	St Georges
	6/6/17	$	32,813	$	2,999	$	35,811	$	.00551		6,499,359	LG
	6/8/17	$	34,100	$	900	$	35,000	$	0.00564		6,205,674	St Georges
	6/9/17	$	22,000	$	1,500	$	23,500	$	0.00551		4,264,903	Cerberus
	6/29/17	$	48,849	$	1,151	$	50,000	$	.00564		8,865,248	St Georges
	6/30/17	$	30,625	$	2,960	$	33,585	$	0.0058		5,790,541	LG
	7/17/17	$	37,358	$	733	$	38,091	$	0.00564		6,753,817	St Georges
	7/25/17	$	35,000	$	3,575	$	38,575	$	0.005568		6,927,943	LG
	7/26/17	$	28,000	$	1,117	$	29,117	$	0.005568		5,229,334	Cerberus
	8/15/17	$	35,199	$	409	$	35,608	$	0.0058		6,139,276	LG
	8/29/17	$	38,000	$	558	$	38,558	$	0.005858		6,582,115	LG
	9/19/17	$	34,500	$	665	$	35,165	$	0.008178		4,300,002	LG
	10/9/17	$	30,000	$	710	$	30,710	$	0.007076		4,340,042	LG
	10/23/17	$	30,000	$	802	$	30,802	$	0.006090		5,057,830	LG
	11/6/17	$	28,376	$	6,624	$	35,000	$	0.005640		6,205,674	St Georges
	11/6/17	$	19,500	$	1,218	$	20,718	$	0.005858		3,536,715	LG
	11/13/17	$	35,000	$	2,240	$	37,240	$	0.005858		6,357,118	Cerberus
	11/14/17	$	26,624	$	428	$	27,052	$	0.005640		4,796,452	St Georges
	11/15/17	$	75.000	$	4,833	$	79,833	$	0.005742		13,903,322	LG
	12/1/17	$	32,813	$	453	$	33,266	$	0.005742		5,793,378	LG
	12/5/17	$	16,756	$	1,105	$	17,861	$	0.005640		3,166,816	St Georges
	12/7/17	$	32,813	$	2,567	$	35,380	$	0.005916		5,980,387	LG
	12/15/17	$	52,000	$	889	$	52,889	$	0.005916		8,939,991	LG
	12/28/17	$	42,000	$	2,209	$	44,209	$	0.006728		6,570,945	Cerberus
		$	1,350,247	$	89,846	$	1,440,093				194,559,520

In addition to the above, during the year ended December 31, 2017, the Company:

On January 30, 2017, the Company issued 1,000,000 shares of common stock to Venture Equity. The Company valued the shares at $0.03 per share (the market price of the common stock) and cancelled of $13,169 of accrued and unpaid fees owed Venture Equity and recorded a loss on the settlement of accounts payable for the year ended December 31, 2017, of $16,831.

On June 19, 2017, the Company issued 1,319,149 shares of common stock valued at $16,094 to St. George pursuant to the “true-up” terms and conditions of the St. George note.

2016 Issuances

During the year ended December 31, 2016, the Company issued the following shares of common stock upon the conversions of portions of the 2014 Company Note and portions of the 2015 Convertible Notes:

Date		Principal Conversion		Interest Conversion		Total Conversion		Conversion Price		Shares Issued		Issued to
	12/28/16	$	45,000	$	3,511	$	48,511	$	0.015080		3,216,925	LG
	12/13/16	$	9,500	$	400	$	9,900	$	0.000754		13,129,683	Cerberus
	9/26/16	$	8,613	$	629	$	9,242	$	0.001218		7,587,824	LG
	7/29/16	$	7,500	$	801	$	8,301	$	0.000081		10,222,352	LG
	7/20/16	$	9,500	$	995	$	10,495	$	0.000098		10,644,310	LG
	7/12/16	$	9,000	$	927	$	9,927	$	0.000986		10,068,073	LG
	7/1/16	$	8,000	$	805	$	8,805	$	0.001160		7,590,362	LG
	6/22/16	$	5,000	$	973	$	5,973	$	0.001450		4,119,414	GW
	6/20/16	$	10,500	$	1,003	$	11,503	$	0.001450		7,933,377	Cerberus
	6/20/16	$	5,000	$	967	$	5,967	$	0.001450		4,114,879	GW
	6/20/16	$	6,000	$	589	$	6,589	$	0.001450		4,544,241	LG
	6/10/16	$	6,075	$	1,134	$	7,209	$	0.001798		4,009,701	GW
	6/9/16	$	5,000	$	479	$	5,479	$	0.001798		3,047,219	LG
	6/2/16	$	9,000	$	848	$	9,848	$	0.002378		4,141,387	Cerberus
	5/23/16	$	5,000	$	460	$	5,460	$	0.002436		2,241,490	LG
	3/17/16	$	9,000	$	696	$	9,696	$	0.002436		3,980,431	LG
	3/17/16	$	3,000	$	138	$	3,138	$	0.000638		4,918,624	Service
	3/8/16	$	7,425	$	928	$	8,353	$	0.00174		4,800,354	GW
	3/7/16	$	6,500	$	489	$	6,989	$	0.00174		4,016,471	LG
		$	174,613	$	16,772	$	191,385				114,327,117

In addition to the above during the year ended December 31, 2016, the Company:

Preferred Stock

Warrants and Options

The following table summarizes the activity related to warrants of the Company for the years ended December 31, 2017 and 2016:

	Number of Warrants			Weighted-Average Exercise Price per share			Weighted-Average Remaining Life (Years)
Outstanding at January 1, 2016		1,300,000		$	0.05			3.00
Warrants issued		16,926,130			0.00564
Warrants expired		(300,000	)		(0.05	)
Outstanding and exercisable at December 31, 2016		17,926,130			0.0811			4.88
Warrant issued		40,573,870			0.00564
Warrants exercised		(9,364,108	)		0.00564
Outstanding and exercisable at December 31, 2017		49,135,892			0.00654			4.17

XML 31 R19.htm IDEA: XBRL DOCUMENT

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Note 12 – Income Taxes

	2017			2016
Net tax loss carry-forwards	$	7,878,733		$	5,836,000
Statutory rate		37.6	%		37.6	%
Expected tax recovery		2,962,404			2,194,336
Change in valuation allowance		(2,962,404	)		(2,194,336	)
Income tax provision	$	—		$	—

Components of deferred tax asset:
Non capital tax loss carry forwards	$	2,962,404		$	2,194,336
Less: valuation allowance		(2,962,404	)		(2,194,336	)
Net deferred tax asset	$	—		$	—

XML 32 R20.htm IDEA: XBRL DOCUMENT

Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 13 – Commitments and Contingencies

Office Space

On December 1, 2016, the Company signed a one (1) year lease for a corporate apartment in Puerto Rico for $5,500 per month. This lease expired in November 30, 2017.

Rent expense was $101,279 and $40,303, respectively, and for the years ended December 31 2017, and 2016, respectively.

Leased Properties

Agreements

On October 5, 2017, the Company agreed to lease from the Company’s CEO, a "420 Style" resort and estate property approximately one hour outside of Quebec City, Canada. The fifteen-acre estate consists of nine (9) guest suites, horse stables, and is within walking distance to a public golf course. A separate structure will serve as a small grow facility run by patient employees and caretakers on the property which may be toured by guests of the facility. On August 8, 2017, the Company issued 5,000,000 shares of common stock to the seller. The Company valued the shares at $0.0123 per share (the market price of the common stock) and has included $61,500 in stock compensation expense. The Company purchase from the seller furniture and fixtures for $96,000. Pursuant to the agreement, the Company will pay $8,000 per month in exchange for the Company being entitled to all rents and income generated from the property. The Company will be responsible for all costs of the property, including, but not limited to, renovations, repairs and maintenance, insurance and utilities. As of December 31, 2017, the Company has not made any monthly payments and also has not received any rental income from the property, as it is currently renovating the house.

Legal & Other

XML 33 R21.htm IDEA: XBRL DOCUMENT

Going Concern

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Going Concern

Note 14 – Going Concern

XML 34 R22.htm IDEA: XBRL DOCUMENT

Segment Reporting

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment Reporting

Note 15 – Segment Reporting

During the year ended December 31, 2017 and 2016, the Company operated in one reportable segment, wholesale sales.

XML 35 R23.htm IDEA: XBRL DOCUMENT

Subsequent Events

12 Months Ended

Dec. 31, 2017

Subsequent Events [Abstract]

Subsequent Events