0001683168-17-002099.txt : 20170814 0001683168-17-002099.hdr.sgml : 20170814 20170814151230 ACCESSION NUMBER: 0001683168-17-002099 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 43 CONFORMED PERIOD OF REPORT: 20170630 FILED AS OF DATE: 20170814 DATE AS OF CHANGE: 20170814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Ocean Thermal Energy Corp CENTRAL INDEX KEY: 0000827099 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 205081381 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 033-19411-C FILM NUMBER: 171029612 BUSINESS ADDRESS: STREET 1: 800 SOUTH QUEEN STREET CITY: LANCASTER STATE: PA ZIP: 17603 BUSINESS PHONE: (717) 299-1344 MAIL ADDRESS: STREET 1: 800 SOUTH QUEEN STREET CITY: LANCASTER STATE: PA ZIP: 17603 FORMER COMPANY: FORMER CONFORMED NAME: TETRIDYN SOLUTIONS INC DATE OF NAME CHANGE: 20060607 FORMER COMPANY: FORMER CONFORMED NAME: CREATIVE VENDING CORP DATE OF NAME CHANGE: 19960408 FORMER COMPANY: FORMER CONFORMED NAME: HWS MAI CORP DATE OF NAME CHANGE: 19890426 10-Q 1 ocean_10q-063017.htm FORM 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2017

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

Commission File Number 033-19411-C

OCEAN THERMAL ENERGY CORPORATION

(Exact name of registrant as specified in its charter)

Nevada	20-5081381
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

800 South Queen Street, Lancaster, PA 17603

(Address of principal executive offices, including zip code)

(717) 299-1344

(Registrant’s telephone number, including area code)

TetriDyn Solutions, Inc.

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (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 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

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

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

	Large accelerated filer o	Accelerated filer o
	Non-accelerated filer o	Smaller reporting company x
	Emerging growth company o

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. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of August 14, 2017, issuer had 112,652,340 outstanding shares of common stock, par value $0.001.

TABLE OF CONTENTS

	Description	Page

	PART I—FINANCIAL INFORMATION
Item 1	Financial Statements
	Condensed Consolidated Balance Sheets (Unaudited)	3
	Condensed Consolidated Statements of Operations (Unaudited)	4
	Condensed Consolidated Statements of Cash Flows (Unaudited)	5
	Notes to the Condensed Consolidated Financial Statements (Unaudited)	6
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3	Quantitative and Qualitative Disclosures about Market Risk	19
Item 4	Controls and Procedures	19

	PART II—OTHER INFORMATION
Item 1	Legal Proceedings	22
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3	Defaults upon Senior Securities	22
Item 6	Exhibits	23
	Signature	24

PART I–FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

OCEAN THERMAL ENERGY CORPORATION

(FORMERLY KNOWN AS TETRIDYN SOLUTIONS, INC.)

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

	June 30, 2017			December 31, 2016
	(unaudited)
ASSETS
Current Assets
Cash	$	26,583		$	7,495
Prepaid expenses		–			30,549
Total Current Assets		26,583			38,044

Property and Equipment
Property and equipment, net		1,693			2,366
Assets under construction		889,138			846,285
Property and Equipment, net		890,831			848,651

Total Assets	$	917,414		$	886,695

LIABILITIES AND STOCKHOLDERS' DEFICIENCY

Current Liabilities
Accounts payables and accrued expense	$	6,757,865		$	5,631,270
Due to related party		52,000			36,822
Notes payable - related party, net		3,567,880			1,886,000
Convertible notes payable -related party- net		137,500			–
Notes payable, net		594,352			300,000
Convertible notes payable - net		50,000			49,129
Total Current Liabilities		11,159,597			7,903,221

Notes payable - related party, net		50,000			1,045,644
Notes payable, net		641,800			602,067
Total Liabilities		11,851,397			9,550,932

Commitments and Contingencies (See Note 10)

Stockholders' deficiency
Preferred Stock, $0.001 par value; 20,000,000 shares authorized, 0 and 0 shares issued and outstanding, respectively		–			–
Common stock, $0.001 par value; 200,000,000 shares authorized, 112,625,870 and 94,343,776 shares issued and outstanding, respectively		11,263			9,435
Additional paid-in capital		50,529,474			44,437,871
Accumulated deficit		(61,474,720	)		(53,111,543	)
Total Stockholders' Deficiency		(10,933,983	)		(8,664,237	)

Total Liabilities and Stockholders' Deficiency	$	917,414		$	886,695

The accompanying notes are an integral part of these condensed consolidated financial statements.

OCEAN THERMAL ENERGY CORPORATION

(FORMERLY KNOWN AS TETRIDYN SOLUTIONS, INC.)

AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited)

	For the 3 months ended June 30, 2017			For the 3 months ended June 30, 2016			For the 6 months ended June 30, 2017			For the 6 months ended June 30, 2016
Operating Expenses
Salaries and wages	$	296,339		$	292,668		$	553,827		$	624,779
Professional fees		150,977			206,427			503,773			461,678
General and administrative		174,609			115,299			252,955			222,271
Warrant Expense		–			–			6,769,562			–
Total Operating Expenses		621,925			614,394			8,080,117			1,308,728
Loss from Operations		(621,925	)		(614,394	)		(8,080,117	)		(1,308,728	)

Other Expenses
Interest Expense and amortization of debt discount		(175,577	)		(384,082	)		(283,094	)		(706,280	)
Interest Income		34			–			34			–
Total Other expense		(175,543	)		(384,082	)		(283,060	)		(706,280	)

Loss Before Income Taxes		(797,468	)		(998,476	)		(8,363,177	)		(2,015,008	)

Provision for Income Taxes		–			–			–			–

Net Loss	$	(797,468	)	$	(998,476	)	$	(8,363,177	)	$	(2,015,008	)

Net Loss per Common Share Basic and Diluted	$	(0.01	)	$	(0.01	)	$	(0.08	)	$	(0.02	)

Weighted Average Number of Common Shares Outstanding		111,149,698			82,977,921			107,689,883			82,816,924

The accompanying notes are an integral part of these condensed consolidated financial statements.

OCEAN THERMAL ENERGY CORPORATION

(FORMERLY KNOWN AS TETRIDYN SOLUTIONS, INC.)

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	For Six Month Ended
	June 30,
	2017			2016
Cash Flows From Operating Activities:
Net loss	$	(8,363,177	)	$	(2,015,008	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation		673			3,057
Stock issued for services		244,800			179,000
Warrant Expense		6,769,562			–
Amortization of debt discounts		44,960			419,478
Changes in assets and liabilities:
Prepaid expenses		30,549			(18,632	)
Accounts payable and accrued expenses		509,562			611,905
Net Cash Used In Operating Activities		(763,071	)		(820,200	)

Cash Flow From Investing Activities:
Cash acquired from TetriDyn Solutions, Inc.		4,512			–
Assets under construction		(42,853	)		(37,500	)
Cash paid to TetriDyn Solutions, Inc.		(49,773	)		–
Net Cash Used In Investing Activities		(88,114	)		(37,500	)

Cash Flows From Financing Activities:
Repayment of due to related party		(36,822	)		–
Repayment of notes payable - related party		(25,000	)		(5,000	)
Proceeds from notes payable - related party		200,000			609,500
Proceeds from due to related party		50,000			–
Proceeds from issuance of common stock for cash		45,000			165,000
Proceeds from stock issued for exercise of warrants		748,535			–
Repayment of capital lease		–			(2,530	)
Stock repurchased from related parties		(111,440	)		–
Net Cash Provided by Financing Activities		870,273			766,970

Net increase (decrease) in cash and cash equivalents		19,088			(90,730	)
Cash and cash equivalents at beginning of year		7,495			125,029
Cash and Cash Equivalents at End of Period	$	26,583		$	34,299

Supplemental disclosure of cash flow information
Cash paid for interest expense	$	13,160		$	2,732
Cash paid for income taxes	$	–		$	–

Supplemental disclosure of non-cash investing and financing activities:
Convertible note payable -related party converted to common stock	$	25,000		$	–
Debt discount on related-party note payable and extension of warrants	$	–		$	619,084

On May 9, 2017, the company issued 534.555 shares of common stock to the former shareholders of TetriDyn Solutions Inc. for the assumption of $617,032 of accrued expenses and $1,015,506 of convertible notes and notes payable from related and unrelated parties. The company recorded a debit of $1,628,026 to the additional paid in capital.

The accompanying notes are an integral part of these condensed consolidated financial statements.

OCEAN THERMAL ENERGY CORPORATION

(FORMERLY KNOWN AS TETRIDYN SOLUTIONS, INC.)

AND SUBSIDIARIES

Notes to Condensed Consolidated June 30, 2017 Financial Statements

(Unaudited)

Note 1: Source of Business and Basis of Presentation

Ocean Thermal Energy Corporation (“Ocean Thermal”, the “Company”, “we”, and “us”) is currently in the business of designing Ocean Thermal Energy Conversion (“OTEC”) power plants and Seawater Air Conditioning (“SWAC”) plants for large commercial properties, utilities and municipalities. These technologies provide practical solutions to mankind’s three oldest and most fundamental needs: clean drinking water, plentiful food, and sustainable, affordable energy without the use of fossil fuels. OTEC is a clean technology that continuously extracts energy from the temperature difference between warm surface ocean water and cold deep seawater. In addition to producing electricity, some of the seawater running through an OTEC plant can be efficiently desalinated using the power generated by the OTEC technology, producing thousands of cubic meters of fresh water every day for the communities served by its plants for use in agriculture and human consumption. This cold deep nutrient-rich water can also be used to cool buildings (SWAC) and for fish farming/ aquaculture. In short, it’s a technology with many benefits, and its versatility makes OTEC unique.

The Company previously operated under the corporate name of TetriDyn Solutions, Inc. (“TetriDyn”). On March 10, 2017, TetriDyn entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Ocean Thermal Energy Corporation, a Delaware corporation (“OTE”). On May 9, 2017, TetriDyn consummated the acquisition of all outstanding equity interests of OTE pursuant to the terms of the Merger Agreement, with a newly-created Delaware corporation that is wholly-owned by TetriDyn (“TetriDyn Merger Sub”), merging with and into OTE (the “Merger”) and OTE continuing as the surviving corporation and a wholly-owned subsidiary of TetriDyn. Effective upon the consummation of the Merger (the “Closing”), the OTE Stock issued and outstanding or existing immediately prior to the Closing of the Merger was converted at the Closing into the right to receive newly issued shares of TetriDyn common stock. As a result of the Merger, TetriDyn succeeded to the business and operations of OTE. In connection with the consummation of the Merger and upon the consent of the holders of a majority of the outstanding common shares, TetriDyn filed with the Nevada Secretary of State an amendment to its articles of incorporation changing its name to “Ocean Thermal Energy Corporation”.

On April 13, 2017, the Company filed a Schedule 14C Information Statement with the Securities and Exchange Commission (the “Commission”) to notify stockholders that the following actions were approved without a meeting of the stockholders:

An amendment to our Articles of Incorporation, as amended, to effect a change in the Company’s name from TetriDyn Solutions, Inc. to Ocean Thermal Energy Corporation;

An amendment to our Articles of Incorporation, as amended, to effect an increase in our authorized shares of common stock from 400,000 to 200,000,000; and

An amendment to our Articles of Incorporation, as amended, to effect a forward stock split of the issued and outstanding shares of common stock of the Company on an approximately 2.1676-for-1 basis.

On May 25, 2017, the Company received approval from the Financial Industry Regulatory Authority (“FINRA”) to change the trading symbol for the Company’s common stock to “CPWR” from “TDYS.” The Company’s common stock began formally trading under the symbol “CPWR” on June 21, 2017.

For accounting purposes, this transaction is being accounted for as a merger of entities under common control and has been treated as a recapitalization of Tetridyn Solutions, Inc. with Ocean Thermal Energy Corporation. as the accounting acquirer. The historical financial statements of the accounting acquirer became the financial statements of the Company. The Company did not recognize goodwill or any intangible assets in connection with the transaction. The 110,273,767 shares issued to the shareholder of OTE in conjunction with the share exchange transaction has been presented as outstanding for all periods. The historical financial statements include the operations of the accounting acquirer for all periods presented and the accounting acquiree for the period from May 9, 2017 through June 30, 2017. The Company’s accounting year end is December 31, which was the year end of Ocean Thermal Energy Corporation.

The condensed consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, our financial statements reflect all adjustments that are of a normal recurring nature necessary for presentation of financial statements for interim periods in accordance with U.S. generally accepted accounting principles (GAAP) and with the instructions to Form 10-Q in Article 10 of SEC Regulation S-X. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.

We condensed or omitted certain information and footnote disclosures normally included in our annual audited financial statements, which we prepared in accordance with GAAP. The operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results to be expected for the year. Our interim financial statements should be read in conjunction with our Audit Report and the 8-K filing on July 19, 2017.

Note 2: Going Concern

The accompanying unaudited condensed consolidated financial statements have been prepared on the assumption that we will continue as a going concern. As reflected in the accompanying condensed consolidated financial statements, we had a net loss of $8,363,177 and used $763,071 of cash in operating activities for the six months ended June 30, 2017. We had a working capital deficiency of $11,133,014 and a stockholders’ deficiency of $10,933,983 as of June 30, 2017. These factors raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent on our ability to increase sales and obtain external funding for our project development. The financial statements do not include any adjustments that may result from the outcome of this uncertainty.

Note 3: Income Taxes

No income tax expense was recognized for the six-month periods ended June 30, 2017 and 2016, due to net losses being incurred in these periods. We are subject to audit by the Internal Revenue Service, various states, and foreign jurisdictions for the prior three years. There has not been a change in our unrecognized tax positions since December 31, 2016, and we do not believe there will be any material changes in our unrecognized tax positions over the next 12 months. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. We do not have any accrued interest or penalties associated with any unrecognized tax benefits, and no interest expense related to unrecognized tax benefits was recognized during the six months ended June 30, 2017.

The Company’s ability to use its NOL carryforwards may be substantially limited due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the Code), as well as similar state provisions. These ownership changes may limit the amount of NOL that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50.0% of the outstanding stock of a company by certain stockholders or public groups.

The Company has not completed a study to assess whether an ownership change has occurred or whether there have been multiple ownership changes since the Company became a “loss corporation” under the definition of Section 382. If the Company has experienced an ownership change, utilization of the NOL carryforwards would be subject to an annual limitation under Section 382 of the Code, which is determined by first multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term, tax-exempt rate, and then could be subject to additional adjustments, as required. Any limitation may result in expiration of a portion of the NOL carryforwards before utilization. Further, until a study is completed and any limitation known, no positions related to limitations are being considered as an uncertain tax position or disclosed as an unrecognized tax benefit. Any carryforwards that expire prior to utilization as a result of such limitations will be removed from deferred tax assets with a corresponding reduction of the valuation allowance. Due to the existence of the valuation allowance, it is not expected that any possible limitation will have an impact on the results of operations or financial position of the Company.

Note 4: Fair Value of Financial Instruments

The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The accounting standard establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required as well as the assets and liabilities that we value using those levels of inputs.

Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.

Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.

Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.

A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. We did not have any significant nonfinancial assets or nonfinancial liabilities that would be recognized or disclosed at fair value on a recurring basis as of June 30, 2017, nor did we have any assets or liabilities measured at fair value on a nonrecurring basis to report in the first six months of 2017.

Note 5: Net Loss per Common Share

Basic earnings per share are computed by dividing the net income (loss) applicable to common shares by the weighted average number of common shares outstanding. We recorded a net loss for the six-month periods ended June 30, 2017 and 2016, so there are no diluted earnings per share calculated for those periods. Basic and diluted earnings per share were the same for all periods presented.

We had 0 and 25,517,876 shares issuable upon the exercise of warrants and options and 5,322,274 and 205,667 shares issuable upon the conversion of green energy bonds and convertible notes payable that were not included in the computation of dilutive loss per share because their inclusion is antidilutive for the interim periods ended June 30, 2017 and 2016, respectively.

Note 6: Recent Accounting Pronouncements

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. Historically, there has been a diversity in practice in how certain cash receipts/payments are presented and classified in the statement of cash flows under Topic 230. The purpose of the Update is to reduce the existing diversity in practice by clarifying the presentation of certain types of transactions. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company notes that this guidance applies to its reporting requirements and will implement the new guidance accordingly.

We have reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our consolidated results of operations, financial position, and cash flows. Based on that review, we believe that none of these pronouncements will have a significant effect on current or future earnings or operations.

Note 7: Business Segments

We conduct operations in various foreign jurisdictions that use our technology. Our segments are based on the location of their operations. The U.S. territories segment consists of operations in the U.S. Virgin Islands and Guam; the Bahamas segment consists of operations specific to the Bahamas; and the other segment currently consists of operations in the Cayman Islands. Direct revenues and costs, depreciation, depletion, and amortization costs, general and administrative costs (“G&A”), and other income directly associated with their respective segments are detailed within the following discussion. Identifiable net property and equipment are reported by business segment for management reporting and reportable business segment disclosure purposes. Current assets, other assets, current liabilities, and long-term debt are not allocated to business segments for management reporting or business segment disclosure purposes.

Reportable business segment information for the six months ended June 30, 2017, and June 30, 2016, is as follows:

June 30, 2017
	Headquarters			US Territories		Bahamas		Other		Total
Revenue	$	–		$	–	$	–	$	–	$	–
Assets		28,276			840,140		–		48,998		917,414
Net loss		(8,363,177	)		–		–		–		(8,363,177	)
Property and equipment		1,693			–		–		–		1,693
Assets under construction		–			840,140		–		48,998		889,138
Depreciation		673			–		–		–		673
Additions to assets under construction		–			42,853		–		–		42,853

June 30, 2016
	Headquarters			US Territories		Bahamas		Other		Total
Revenue	$	–		$	–	$	–	$	–	$	–
Assets		90,212			715,064		244,285		48,998		1,098,559
Net loss		(2,015,008	)		–		–		–		(2,015,008	)
Property and equipment		3,516			–		–		–		3,516
Assets under construction		–			715,064		244,285		48,998		1,008,347
Depreciation		3,057			–		–		–		3,057
Additions to assets under construction		–			37,500		–		–		37,500

Note 8: Convertible notes and notes payable

On March 12, 2015, the Company exchanged convertible notes issued in 2010, 2011, and 2012, payable to its officers and directors in the aggregate principal amount of $320,246, plus accrued but unpaid interest of $74,134, into a single, $394,380 consolidated convertible note (the “Consolidated Note”). The Consolidated Note was assigned to JPF Venture Group, Inc. (“JPF”), an investment entity that is majority-owned by Jeremy Feakins, the Company’s director, chief executive officer, and chief financial officer. The Consolidated Note was convertible to common stock at $0.025 per share, the approximate market price of the Company’s common stock as of the date of the issuance. On February 24, 2017 the Company completed an amendment with JPF to eliminate the conversion feature of the Consolidated Note. The Consolidated Note bears interest at 6% per annum and is due and payable within 90 days after demand. As of June 30, 2017, accrued but unpaid interest on the Consolidated Note was $58,667.

On March 12, 2015, the Company assigned the liabilities for unpaid salaries of two of its former officers in the amount of $213,436 to JPF. The assignment was evidenced by a consolidated promissory note dated December 31, 2014. The note does not bear any interest. On December 31, 2016, the $213,436 was reclassified to accrued expenses.

On June 23, 2015, the Company borrowed $50,000 from JPF pursuant to a promissory note. The Company received $25,000 on July 31, 2015, and the remaining $25,000 on August 18, 2015. The terms of the note are as follows: (i) interest is payable at 6% per annum; (ii) the note is payable 90 days after demand; and (iii) payee is authorized to convert part or all of the note balance and accrued interest, if any, into shares of the Company’s common stock at the rate of one share each for $0.03 of principal amount of the note. As of June 30, 2017, the outstanding balance was $50,000, plus accrued interest of $5,783.

On November 23, 2015, the Company borrowed $50,000 from JPF pursuant to a promissory note. The Company received $37,500 before December 31, 2015, and the remaining $12,500 was received after the year-end. The terms of the note are as follows: (i) interest is payable at 6% per annum; (ii) the note is payable 90 days after demand; and (iii) payee is authorized to convert part or all of the note balance and accrued interest, if any, into shares of the Company’s common stock at the rate of one share each for $0.03 of principal amount of the note. As of June 30, 2017, the outstanding balance was $50,000, plus accrued interest of $4,515.

On February 25, 2016, the Company borrowed $50,000 from JPF pursuant to a promissory note. The terms of the note are as follows: (i) interest is payable at 6% per annum; (ii) the note is payable 90 days after demand; and (iii) payee is authorized to convert part or all of the note balance and accrued interest, if any, into shares of our common stock at the rate of one share for each $0.03 of principal amount of the note. This conversion price is not required to adjust for the reverse stock split as per the note agreement. On February 24, 2017 the Company completed an amendment with JPF to eliminate the conversion feature of the note. As of June 30, 2017, the outstanding balance was $50,000, plus accrued interest of $4,103.

On May 20, 2016, the Company borrowed $50,000 from JPF pursuant to a promissory note. The terms of the note are as follows: (i) interest is payable at 6% per annum; (ii) the note is payable 90 days after demand; and (iii) the payee is authorized to convert part or all of the note balance and accrued interest, if any, into shares of our common stock at the rate of one share for each $0.03 of principal amount of the note. This conversion price is not required to adjust for the reverse stock split as per the note agreement. On February 24, 2017 the Company completed an amendment with JPF to eliminate the conversion feature of the note. As of June 30, 2017, the outstanding balance was $50,000, plus accrued interest of $3,255.

On October 20, 2016, the Company borrowed $12,500 from JPF pursuant to a promissory note. The terms of the note are as follows: (i) interest is payable at 6% per annum; (ii) the note is payable 90 days after demand; and (iii) the payee is authorized to convert part or all of the note balance and accrued interest, if any, into shares of our common stock at the rate of one share for each $0.03 of principal amount of the note. This conversion price is not required to adjust for the reverse stock split as per the note agreement. On February 24, 2017 the Company completed an amendment with JPF to eliminate the conversion feature of the note. As of June 30, 2017, the outstanding balance was $12,500, plus accrued interest of $1,047.

On October 20, 2016, the Company borrowed $12,500 from an independent director pursuant to a promissory note. The terms of the note are as follows: (i) interest is payable at 6% per annum; (ii) the note is payable 90 days after demand; and (iii) the payee is authorized to convert part or all of the note balance and accrued interest, if any, into shares of our common stock at the rate of one share for each $0.03 of principal amount of the note. This conversion price is not required to adjust for the reverse stock split as per the note agreement. As of June 30, 2017, the outstanding balance was $12,500, plus accrued interest of $904.

On October 20, 2016, the Company borrowed $25,000 from a stockholder pursuant to a promissory note. The terms of the note are as follows: (i) interest is payable at 6% per annum; (ii) the note is payable 90 days after demand; and (iii) the payee is authorized to convert part or all of the note balance and accrued interest, if any, into shares of our common stock at the rate of one share for each $0.03 of principal amount of the note. This conversion price is not required to adjust for the reverse stock split as per the note agreement. As of June 5, 2017 the noteholder converted the note principal into 1,806,298 shares common stock. As of June 30, 2017, there was an outstanding balance of accrued interest of $610.

On December 21, 2016, the Company borrowed $25,000 from JPF pursuant to a promissory note. The terms of the note are as follows: (i) interest is payable at 6% per annum; (ii) the note is payable 90 days after demand; and (iii) the payee is authorized to convert part or all of the note balance and accrued interest, if any, into shares of our common stock at the rate of one share for each $0.03 of principal amount of the note. This conversion price is not required to adjust for the reverse stock split as per the note agreement. As of June 30, 2017, the outstanding balance was $25,000, plus accrued interest of $796.

As of October 25, 2011, a loan from one economic development entity was in default. The loan principal was $50,000 with accrued interest of $16,928 as of June 30, 2017.

As of June 30, 2017, the Company was delinquent in payments on two loans to a second economic development entity. The Company owed this economic entity $94,480 in late payments, with an outstanding balance of $94,480 and accrued interest of $30,253 as of June 30, 2017. Both loans were guaranteed by two of the Company’s former officers. One loan is secured by liens on intangible software assets, and the other loan is secured by the officers’ personal property. The Company is working with this entity to bring the payments current as soon as cash flow permits.

As of June 30, 2017, the Company was delinquent in payments on a loan to a third economic development entity. The Company owed the third economic entity $85,821 in late payments, with an outstanding balance of $85,821 and accrued interest of $30,253 as of June 30, 2017. This loan is secured by a junior lien on all the Company’s assets and shares of a founder’s common stock. The Company is working with this entity to bring the payments current as soon as cash flow permits.

During 2012, we issued a note payable for $1,000,000 and three-year warrants to purchase 3,295,761 shares of common stock with an exercise price of $0.50 per share. The note had an interest rate of 10% per annum, was secured by a first lien in all of our assets and was due on February 3, 2015. We determined the warrants had a fair value of $378,500 based on the Black-Scholes option-pricing model. The fair value was recorded as a discount on the note payable and was being amortized over the life of the note. We repriced the warrants during 2013 and took an additional charge to earnings of $1,269,380 related to the repricing. The warrants were exercised upon the repricing. On February 16, 2017, the noteholder agreed to amend the note to extend the due date of the note to February 3, 2018. As of June 30, 2017, the outstanding balance was $1,000,000, plus accrued interest of $484,448.

During 2013, we issued Series B units. Each unit is comprised of a note agreement, a $50,000 promissory note that matures on September 30, 2023, and bears interest at 10% per annum payable annually in arrears, a security agreement, and a warrant to purchase 10,000 shares of common stock at an exercise price to be determined pursuant to a specified formula. During 2013, we issued $525,000 of 10% promissory notes and warrants to purchase 105,000 shares of common stock. The warrants have an expiration date of September 30, 2023. We determined the warrants had a fair value of $60,068 based on the Black-Scholes option-pricing model. As part of our agreement with the Memphis Investors, the Board repriced the warrants to $0.00 and exercised the warrants and issued shares of common stock. Accrued interest on the notes was $192,111 on June 30, 2017 and $168,934 at December 31, 2016. During 2015, one of the original noteholders transferred its ownership of the note in the amount of $50,000 to Jeremy P. Feakins & Associates LLC through the JPF Venture Fund 1, LP. During the six months ended June 30, 2017, we amortized $44,089 of debt discount.

Unsecured Debentures

During 2013, we paid cash of $10,000 and issued a note payable for $290,000 in connection with the reverse merger transaction. We repurchased and retired 7,546,464 shares of common stock simultaneously with the closing of the merger with Broad Band Network Associates. The note is unsecured and due the earlier of December 31, 2015, or upon our receiving $50,000 of proceeds from the exercise of the Class A warrants, $50,000 from the exercise of the Class B warrants, $60,000 from the exercise of the Class C warrants, $60,000 from the exercise of Class D warrants, and $70,000 from the exercise of the Class E warrants. During 2014, we paid $100,000 and during 2015, we paid $60,000, leaving a balance of $130,000. Accrued interest totaled $34,997 at June 30, 2017 and $29,769 at December 31, 2016. We have determined that no further payment of principal or interest on this note should be made because the noteholder failed to perform his underlying obligations giving rise to this note. As such, we are confident that if the not holder were to seek legal redress, a court would decide in our favor by either voiding the note or awarding damages sufficient to offset the note value.

During 2014, we issued a note payable for $2,265,000 and warrants to purchase 12,912,500 shares of common stock, with an exercise price equal to the greater of a 50% discount of the stock price when our shares are listed on a public exchange or $0.425 per share, to an entity owned by our chief executive officer, together our principal stockholders. The warrants expire one year after our shares are listed on a recognized public exchange. The unsecured note has an interest rate of 10% per annum and the balance was due on January 31, 2015. We determined the warrants had a fair value of $2,265,000 based on the Black-Scholes option-pricing model. The fair value was recorded as a discount on the note payable and is being amortized over the life of the note. As part of our agreement with the Memphis Investors, the Board repriced the warrants to $0.00 and exercised the warrants and issued shares of common stock. As of December 31, 2015, principal of $152,500 has been repaid and principal of $351,500 has been converted into 468,667 shares of common stock, leaving a note balance of $1,761,000. During 2016, a principal payment of $5,000 was made leaving a note balance of $1,756,000 at June 30, 2017. Accrued interest totaled $541,381 as of June 30, 2017 and $453,093 as of December 31, 2016. On February 16, 2017, the note holder agreed to extend the due date for the repayment of the loan and interest to the earlier of December 31, 2017, or the date of the financial closings of its Baha Mar Project (or any other project of $25 million or more), whichever occurs first.

During 2014, we issued Secured Convertible Promissory Notes (Bonds) totaling $166,800 through September 30, 2014. The bonds carry an interest rate ranging from 7.86% to 9.86% and mature on April 30, 2019 and December 31, 2019. In addition, the bondholders are entitled to convert each $1,200 bond into 1,000 shares of common stock at a price of $1.20 per share. Should our shares trade for 10 consecutive days at $1.80 per share or higher, the bonds are automatically called and converted to shares at $1.20 per share. There was no beneficial conversion on the date of grant. Accrued interest totaled $46,783 as of June 30, 2017 and $41,398 as of December 31, 2016.

During 2014, we issued a note payable of $100,000 to a related party and $200,000 to a third party, for a total of $300,000, and warrants to purchase 300,000 shares of common stock with an exercise price of $1.00 per share. As part of our agreement with the Memphis Investors, the Board repriced the warrants to $0.00 and exercised the warrants and issued shares of common stock. These unsecured notes have an interest rate of 12% per annum. The $100,000 note with a related party is due the earlier of December 26, 2015; the completion by us of an equity financing resulting in our receipt of gross proceeds of at least $2,000,000; or the financial close of the Baha Mar project and release of funds by the bank. The balance on the $200,000 note is due the earlier of March 31, 2015; the completion by us of an equity financing resulting in our receipt of gross proceeds of at least $2,000,000; or the financial close of the Baha Mar project and release of project financing funds by the bank. As of December 31, 2016, the notes are in default. Due to the delay in opening of the Baha Mar Resort, our Baha Mar SWAC Project’s financial closing was delayed causing us to default on the notes. We determined the warrants had a fair value of $85,304 based on the Black-Scholes option-pricing model. The fair value was recorded as a discount on the notes payable and is being amortized over the life of the note. We have accrued the interest at a default rate of 22%. We intend to repay the notes and accrued interest upon the project’s financial closing. Accrued interest totaled $146,395 as of June 30, 2017 and $113,119 as of December 31, 2016.

On April 7, 2015, we issued an unsecured convertible promissory note in the principal amount of $50,000 to an unrelated party. The note bears interest of 10% and is due on April 17, 2017. The note and accrued interest can be converted into our common stock at a conversion rate of $0.75 per share at any time prior to the repayment. We recorded a debt discount of $6,667 for the fair value of the beneficial conversion feature. During the six months ended June 30, 2017, we amortized $871 of debt discount. Accrued interest totaled $11,292 as of June 30, 2017 and $10,159 as of December 31, 2016.

On March 9, 2017, a private venture fund, in which our chief executive officer is an officer and director, agreed to provide up to $200,000 in working capital. The note bears interest of 10% and is due and payable with 90 days of demand. On June 30, 2017, the balance of the loan outstanding was $175,000 and the accrued interest as of that date was $5,910.

The following convertible note and notes payable were outstanding at June 30, 2017:

												Related Party				Non Related Party
Date of Issuance	Maturity Date	Interest Rate		Original Principal		Principal at June 30, 2017		Discount at June 30, 2017		Carrying Amount at June 30, 2017		Current		Long-Term		Current		Long-Term
12/12/2006	1/5/2013		6.25%		58,670		16,813		–		16,813		–		–		16,813		–
12/1/2007	9/1/2015		7.00%		125,000		85,821		–		85,821		–		–		85,821		–
9/25/2009	10/25/2011		5.00%		50,000		50,000		–		50,000		–		–		50,000		–
12/23/2009	12/23/2019		7.00%		100,000		94,480		–		94,480		–		–		94,480		–
12/23/2009	12/23/2019		7.00%		25,000		23,619		–		23,619		–		–		23,619		–
12/23/2009	12/23/2019		7.00%		25,000		23,619		–		23,619		–		–		23,619		–
02/03/12	02/03/18		10.00%		1,000,000		1,000,000		–		1,000,000		1,000,000		–		–		–
08/15/13	10/31/23		10.00%		525,000		525,000		–		525,000		–		50,000		–		475,000
12/31/13	12/31/15		8.00%		290,000		130,000		–		130,000		130,000		–		–		–
04/01/14	12/31/17		10.00%		2,265,000		1,756,000		–		1,756,000		1,756,000		–		–		–
04/16/14	04/30/19		9.86%		6,000		6,000		–		6,000		–		–		–		6,000
05/09/14	04/30/19		9.86%		50,400		50,400		–		50,400		–		–		–		50,400
05/28/14	04/30/19		9.86%		25,200		25,200		–		25,200		–		–		–		25,200
07/21/14	12/31/19		9.86%		78,000		78,000		–		78,000		–		–		–		78,000
08/18/14	12/31/19		7.86%		7,200		7,200		–		7,200		–		–		–		7,200
12/22/14	03/31/15		12.00%		200,000		200,000		–		200,000		–		–		200,000		–
12/26/14	12/26/15		12.00%		100,000		100,000		–		100,000		–		–		100,000		–
2/25/2015	90 days after demand		6.00%		50,000		50,000		–		50,000		50,000		–		–		–
3/19/2015	90 days after demand		6.00%		394,380		394,380		–		394,380		394,380		–		–		–
04/07/15	04/17/17		10.00%		50,000		50,000		–		50,000		–		–		50,000		–
6/23/2015	90 days after demand		6.00%		50,000		50,000		–		50,000		50,000		–		–		–
11/23/2015	90 days after demand		6.00%		50,000		50,000		–		50,000		50,000		–		–		–
5/20/2016	90 days after demand		6.00%		50,000		50,000		–		50,000		50,000		–		–		–
10/20/2016	90 days after demand		6.00%		50,000		25,000		–		25,000		25,000		–		–		–
12/21/2016	90 days after demand		6.00%		25,000		25,000		–		25,000		25,000		–		–		–
3/9/2017	90 days after demand		10.00%		200,000		175,000		–		175,000		175,000		–		–		–
	Totals						5,041,532		–		5,041,532		3,705,380		50,000		644,352		641,800

The following convertible note and notes payable were outstanding at December 31, 2016:

												Related Party				Non Related Party
Date of Issuance	Maturity Date	Interest Rate		Original Principal		Principal at December 31, 2016		Discount at December 31, 2016		Carrying Amount at December 31, 2016		Current		Long-Term		Current		Long-Term
02/03/12	02/03/18		10.00%		1,000,000		1,000,000		–		1,000,000		–		1,000,000		–		–
08/15/13	10/31/23		10.00%		525,000		525,000		44,089		480,911		–		45,644		–		435,267
12/31/13	12/31/15		8.00%		290,000		130,000		–		130,000		130,000		–		–		–
04/01/14	12/31/17		10.00%		2,265,000		1,756,000		–		1,756,000		1,756,000		–		–		–
04/16/14	04/30/19		9.86%		6,000		6,000		–		6,000		–		–		–		6,000
05/09/14	04/30/19		9.86%		50,400		50,400		–		50,400		–		–		–		50,400
05/28/14	04/30/19		9.86%		25,200		25,200		–		25,200		–		–		–		25,200
07/21/14	12/31/19		9.86%		78,000		78,000		–		78,000		–		–		–		78,000
08/18/14	12/31/19		7.86%		7,200		7,200		–		7,200		–		–		–		7,200
12/22/14	03/31/15		12.00%		200,000		200,000		–		200,000		–		–		200,000		–
12/26/14	12/26/15		12.00%		100,000		100,000		–		100,000		–		–		100,000		–
04/07/15	04/17/17		10.00%		50,000		50,000		871		49,129		–		–		49,129		–
	Totals						3,927,800		44,960		3,882,840		1,886,000		1,045,644		349,129		602,067

Note 9: Stockholders’ Equity

Common Stock

For the six months ended June 30, 2017, we issued 288,000 shares of common stock for services performed with a fair value of $244,800 ($0.85 per share).

For the six months ended June 30, 2017, we issued 11,250 shares of common stock pursuant to our Private Placement Memorandum with a fair value of $45,000 ($4.00 per share).

As part of the reverse merger on May 9, 2017, 94,343,776 shares of common stock were issued to the shareholders of OTE in exchange for common stock in the merged company.

As a part of our agreement with the Memphis Investors, the Board re-priced 14,692,500 warrants and 100,000 options to $0.00 and exercised the warrants and options and issued 14,792,500 shares of common stock. These warrants had a fair value of $6,769,562. Per ASC Topic 718, this exchange is treated as a modification. The incremental value of $6,769,562 measured as the excess of the fair value of the modified award over the fair value of the original award immediately before the modification using the Black-Scoles option pricing model was expensed fully when they were exercised.

We used the following assumptions for warrants and options during the period ended June 30, 2017:

Expected volatility:	77%
Expected lives:	Various (30 days – 7 years)
Risk-free interest rate:	Various (0.50%-2.27%)
Expected dividend yield:	None

On May 8, 2017, we repurchased 148,588 shares of common stock from JPF Venture Group, Inc. (“JPF”), an investment entity that is majority-owned by Jeremy Feakins, the Company’s director, chief executive officer, and chief financial officer, for $111,440.

On May 9, 2017, the company issued 534,555 shares of common stock to the former shareholders of TetriDyn Solutions, Inc. for the assumption of $617,032 of accrued expenses and $1,015,506 of convertible notes and notes payable from related and unrelated parties. The company recorded a debit of $1,628,026 to the additional paid in capital as part of the recapitalization.

On June 5, 2017, a noteholder elected to convert a $25,000 convertible note payable for 1,806,298 shares of common stock ($0.014 per share).

Warrants and Options

The following table summarizes all warrants outstanding and exercisable for the period ended June 30, 2017:

	Number of			Weighted Average
Warrants	Warrants			Exercise Price
Balance at December 31, 2016		15,912,210		$0.76
Granted		–		$0.00
Exercised		(998,079	)	$0.75
Exercised (re-priced to $0.00)		(14,692,500	)	$0.00
Forfeited		(221,631	)
Balance at June 30, 2017		–

The following table summarizes all options outstanding and exercisable for the period ended June 30, 2017:

	Number of			Weighted Average
Options	Options			Exercise Price
Balance at December 31, 2016		100,000		$0.75
Exercised		(100,000	)	$0.75
Balance at June 30, 2017		–

Note 10: Commitments and Contingencies

Litigation

From time to time, we are involved in legal proceedings and regulatory proceedings arising from operations. We establish reserves for specific liabilities in connection with legal actions that management deems to be probable and estimable.

In late 2016, we entered into a binding agreement with an investor group from Memphis, Tennessee to invest a substantial amount of capital into our company (the “Memphis Investors”). As part of the agreement, we were restricted from making changes to our capital structure and, consequently, suffered significant financial damages when the investors did not honor their commitment and defaulted on the agreement. On May 16, 2017, we filed a civil suit in the United States District Court in the Western District of Tennessee (Case No. 2:17 –cv-02343).

Note 11: Related-Party Transactions

For the six months ended June 30, 2017, we paid rent of $35,000 to a company controlled by our chief executive officer under an operating lease agreement.

On February 16, 2017, the due date of the related party note payable in the amount of $2,265,000 issued on January 31, 2015, was extended to December 31, 2017.

On February 16, 2017, the due date of the related party note payable in the amount of $1,000,000 issued on February 3, 2012, was extended to February 3, 2018.

On March 9, 2017, we issued a promissory note payable of $200,000 to a related party in which our chief executive officer is an officer and director. The note bears interest of 10% and is due and payable within 90 days after demand. The balance outstanding on June 30, 2017, is $177,000.

On March 9, 2017, we made a repayment of due to a related party in the amount of $36,822.

On March 31, 2017, we made a repayment of note payable to a related party in the amount of $25,000.

On May 8, 2017, we repurchased shares of common stock from a related party for $111,440.

As of June 30, 2017, the Company borrowed $52,000 from JPF on a temporary basis. The loan is non-interest bearing, unsecured and due on demand.

Note 12: Subsequent Events

The company launched a Private Placement Offering for up to $2 million of convertible promissory notes with a 6% interest rate. All principal and interest on each Note shall automatically convert on the Conversion Maturity Date into shares of the Company’s common stock at a conversion price of USD $4.00 per share, as long as the closing share price of the Company’s common stock on the trading day immediately preceding the Conversion Maturity Date is at least USD $4.00, as adjusted for stock splits, stock dividends, reclassification, and the like. If the price of the Company’s shares on such date is less than USD $4.00 per share, the Note (principal and interest) will be repaid in full. As of July 28, 2017 the Company has raised $115,000.

On August 3, 2017, we entered into a compensation agreement with our former legal counsel wherein we agreed to pay an outstanding legal bill in the amount of $195,474.35 by issuance of shares covered by a Form S-8 Registration Statement. The former legal counsel may, at any time and from time to time following the filing of the Form S-8, elect to call for the issuance of shares as payment for the outstanding legal bill.

On July 18, 2017, we issued 26,470 shares of common stock to our investor relations firm pursuant to the terms of a consulting agreement dated April 3, 2017.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the unaudited condensed financial statements and notes to our financial statements included elsewhere in this report. This discussion contains forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors discussed elsewhere in this report.

Certain information included herein contains statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as statements relating to our anticipated revenues, gross margins and operating results, estimates used in the preparation of our financial statements, future performance and operations, plans for future expansion, capital spending, sources of liquidity, and financing sources. Forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ from those expressed in any forward-looking statements made herein. These risks and uncertainties include those relating to our liquidity requirements; the continued growth of our industry; the success of marketing and sales activity; the dependence on existing management; the availability and cost of substantial amounts of project capital; leverage and debt service (including sensitivity to fluctuations in interest rates); domestic and global economic conditions; the inherent uncertainty and costs of prolonged arbitration or litigation; and changes in federal or state tax laws or the administration of such laws.

Overview

We develop projects for renewable power generation, desalinated water production, and air conditioning using our proprietary technologies designed to extract energy from the temperature differences between warm surface water and cold deep water. In addition, our projects provide ancillary products such as potable/bottle water and high-profit aquaculture, mariculture, and agriculture opportunities.

We currently have no source of revenue, so as we continue to incur costs we are dependent on external funding in order to continue. We cannot assure that such funding will be available or, if available, can be obtained on acceptable or favorable terms.

Our operating expenses consist principally of expenses associated with the development of our projects until we determine that a particular project is feasible. Salaries and wages consist primarily of employee salaries and wages, payroll taxes, and health insurance. Our professional fees are related to consulting, engineering, legal, investor relations, outside accounting, and auditing expenses. General and administrative expenses include travel, insurance, rent, marketing, and miscellaneous office expenses. The interest expense includes interest and discounts related to our loans and notes payable.

Results of Operations

Comparison of Three Months Ended June 30, 2017 and 2016

We had no revenue in the three months ended June 30, 2017 or 2016.

During the three months ended June 30, 2017, we had salaries and wages of $296,339, compared to salaries and wages of $292,668 during the same three-month period for 2016, an increase of 1% and can be attributed to increasing our staff.

During the three months ended June 30, 2017 and 2016, we recorded professional fees of $150,977 and $206,427 respectively, a decrease of 28%. This decrease was due primarily to our decreased use of outside consultants.

General and administrative expenses of $174,609 during the three months ended June 30, 2017, is a 51% increase compared to the same three-month period of the previous year.

Our interest expense was $175,577 for the three months ended June 30, 2017, compared to $384,082 for the same period of the previous year. Interest expense for the 2017 period decreased due to the conversion notes payable into common stock and repayment made to the noteholders.

Comparison of Six Months Ended June 30, 2017 and 2016

We had no revenue in the six months ended June 30, 2017 or 2016.

During the six months ended June 30, 2017, we had salaries and wages and professional fees of $553,827 and $503,773, respectively, for a total of $1,057,600, as compared to salaries and wages and professional fees of $624,779 and $461,678, respectively, for a total of $1,086,457, during the same six-month period for 2016. This 3% decrease as compared to the prior year is due principally to our reduced spending on salaries.

General and administrative expenses of $252,925 during the six months ended June 30, 2017, as compared to $222,271 during the six months ended June 30, 2016, is a 13% compared to the same six-month period of the previous year.

During the six months ended June 30, 2017, we re-priced 14,692,500 warrants and 100,000 options to $0.00 and exercised the warrants and options and issued 14,792,500 shares of common stock. These warrants had a fair value of $6,769,562, which we recognized as an expense in operations.

The above factors resulted in an operating loss of $8,080,117 during the six months ended June 30, 2017, as compared to $1,308,728 during the same period of 2016, an increase of $6,771,389, or 517%. Had our expenses not included a write-off of $6,769,562 related to the exercising of warrant and options during the six months ended June 30, 2017, our loss from operations would have been $1,310,555 for that period as compared to $1,308,728 for the same period in 2016.

Our interest expense of $283,094 for the six months ended June 30, 2017, as compared to $706,280, was decreased by 60% due to reduced amortization of debt discount.

Liquidity and Capital Resources

At June 30, 2017, our principal source of liquidity consisted of $26,583 of cash, as compared to $7,495 of cash at June 30, 2016. In addition, our stockholders’ deficiency was $10,933,983 at June 30, 2017, compared to stockholders’ deficit of $8,664,237 at December 31, 2016, an increase in the deficit of $2,269,746. Our operating loss and retained earnings for the six-month period was impacted greatly by the $6,769,562 warrant expense we incurred when we repriced 14,692,500 warrants and 100,000 options at $0.00.

Our operations used net cash of $763,071 during the six months ended June 30, 2017, as compared to using net cash of $820,200 during the six months ended June 30, 2016. Some of the change was due to a reduction in the amortization of debt discount.

Investing activities for the six months ended June 30, 2017 and 2016, used cash of $88,114 and $37,500 respectively. Of the amount of cash used, $49,773 reflects the cash paid to TetriDyn Solutions at the time of the merger with Ocean Thermal Energy Corporation. The remaining amount was an increase in our assets under construction.

Financing activities provided cash of $870,273 for our operations during the six months ended June 30, 2017 due to the proceeds we received from issuing common stock and notes payable to a related party.

Our Capital Resources and Anticipated Requirements

As noted above, at June 30, 2017, we had negative working capital (current assets minus current liabilities) of $11,133,014. We are now focusing our efforts on promoting and marketing the OTE technology by developing and executing contracts. We are exploring external funding alternatives, as our current cash is insufficient to fund operations for the next 12 months. Upon the consummation of the merger with TetriDyn Solutions, Inc., which was consummated on May 9, 2017, we will have access to the public markets. In addition, we have launched a $2 million Private Placement Memorandum. If we obtain external funding, we would like to devote the funding to our projects and supporting operations, and related administrative and project sales and development activities, during the next 12 months. We may also want to incur additional costs if we increase the nature and scope of our project development activities due to successful marketing and development efforts, and increased available capital. This increased amount would include funding for the U.S. Virgin Islands project development expenses, such as the environmental impact assessment, bathymetry, and permitting and engineering fees associated with the design of the OTEC plant.

We are advised that the Baha Mar project has been acquired by a new owner that is re-mobilizing to pay or otherwise resolve claims of creditors and move toward funding and re-commencing construction. If and when the resort opens for business, we estimate that we would need about $130.0 million additionally for construction costs associated with completing the construction of that project during the next 18 months. We will need external funding for all of these requirements. As the project proceeds toward completion, we expect to accelerate our efforts to arrange required project financing for our plant. Once the project financing has been arranged and closed, we anticipate receiving a project development fee and reimbursement of approximately $6.0 million. As of today, we have not had any discussions with the new owners and have not entered into discussions regarding the completion of the Baha Mar project.

As in the past, we expect that we will seek external funding from the sale of secured or unsecured convertible promissory notes and the issuance of preferred or common stock. Secured promissory notes would likely be secured by a lien on our assets, particularly including our interest in the Baha Mar project, which would enable the holders of such notes to foreclose or execute on such assets and obtain possession and ownership of the encumbered assets to the exclusion of our shareholders. If we issue preferred stock, the holders of preferred stock would likely seek preferences on dividends and distributions on liquidation over the holders of common stock and other preferences and rights that would be superior to the rights of the holders of our common stock.

Without revenue, we expect that our operating losses will continue during the next 12 months and thereafter until we develop, finance, and construct a project, which will likely be years in the future. We cannot assure that we will be able to obtain sufficient capital from external sources to continue. We may be forced, due to insufficient capital to continue a project, to sell all or a portion of one or more projects under development in an effort to salvage some financial recovery, notwithstanding the fact that we believe the projects long-term potential is greater.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed by us, in the reports that we file or submit to the SEC under the Exchange Act, is recorded, processed, summarized, and reported within the periods specified by the SEC’s rules and forms and that information is accumulated and communicated to our management, including our principal executive and principal financial officer (whom we refer to in this periodic report as our Certifying Officer), as appropriate to allow timely decisions regarding required disclosure. Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our management evaluated, with the participation of our Certifying Officer, the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of June 30, 2017, pursuant to Rule 13a-15(b) under the Exchange Act. Based upon that evaluation, our Certifying Officer concluded that, as of June 30, 2017, our disclosure controls and procedures were not effective to provide reasonable assurance as of June 30, 2017, because certain deficiencies involving internal controls constituted material weaknesses, as discussed below.

Limitations on Effectiveness of Controls

A system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the system will meet its objectives. The design of a control system is based, in part, upon the benefits of the control system relative to its costs. Control systems can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. In addition, over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. In addition, the design of any control system is based in part upon assumptions about the likelihood of future events.

Management’s Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control of over financial reporting as defined in Rule 13a-15(f) under the Exchange Act. We have assessed the effectiveness of those internal controls as of June 30, 2017, using the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) Internal Control—Integrated Framework (2013) as a basis for our assessment.

Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance respecting financial statement preparation and presentation. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs.

A material weakness in internal controls is a deficiency in internal control, or combination of control deficiencies, that adversely affects our ability to initiate, authorize, record, process, or report external financial data reliably in accordance with accounting principles generally accepted in the United States of America such that there is more than a remote likelihood that a material misstatement of our annual or interim financial statements that is more than inconsequential will not be prevented or detected.

Based on our evaluation of internal control over financial reporting, our management concluded that our internal control over financial reporting was not effective as of June 30, 2017.

General Operating Activities

As of June 30, 2017, management identified the following material weaknesses:

Control Environment—We did not maintain an effective control environment for internal control over financial reporting.

Segregation of Duties—As a result of limited resources and staff, we did not maintain proper segregation of incompatible duties. The effect of the lack of segregation of duties potentially affects multiple processes and procedures.

Entity Level Controls—We failed to maintain certain entity-level controls as defined by the framework issued by COSO. Specifically, our lack of staff does not allow us to effectively maintain a sufficient number of adequately trained personnel necessary to anticipate and identify risks critical to financial reporting. There is a risk that a material misstatement of the financial statements could be caused, or at least not be detected in a timely manner, due to lack of adequate staff with such expertise.

Access to Cash—One executive had the ability to transfer from our bank accounts.

The material weaknesses identified did not result in the restatement of any previously reported financial statements or any other related financial disclosure, and management does not believe that the material weaknesses had any effect on the accuracy of our financial statements for the current reporting period.

These weaknesses are continuing. Management and the board of directors are aware of these weaknesses that result because of limited resources and staff. Management has begun the process of formally documenting our key processes as a starting point for improved internal control over financial reporting. Efforts to fully implement the processes we have designed have been put on hold due to limited resources, but we anticipate a renewed focus on this effort in the near future. Due to our limited financial and managerial resources, we cannot assure when we will be able to implement effective internal controls over financial reporting.

Changes in Internal Control over Financial Reporting

There has been no change in our internal control over financial reporting during the three months ended June 30, 2017, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II–OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See Note 10 “Commitments and Contingencies” for our discussion of ongoing litigation with the Memphis Investors which disclosure is incorporated by reference herein.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

For the six months ended June 30, 2017, individuals exercised Series D warrants to purchase 998,079 shares of common stock at a price of $0.75 per share for cash totaling $748,535. These warrants were related to the Series D warrants that had been issued by pre-merger BBNA under Section 1145 of the Bankruptcy Code as part of a plan of reorganization implemented under Chapter 11 of the Bankruptcy Code.

For the six months ended June 30, 2017, we issued 288,000 shares of common stock to consultants for services performed with a fair value of $244,800 ($0.85 per share).

For the six months ended June 30, 2017, we converted 14,692,500 warrants and 100,000 options at an exercise price of $0.00 and issued 14,792,500 shares of common stock.

For the six months ended June 30, 2017, we issued 11,250 shares of common stock pursuant to our Private Placement Memorandum with a fair value of $45,000 ($4.00 per share).

Except as otherwise noted, the securities in these transactions were sold in reliance on the exemption from registration provided in Section 4(a)(2) of the Securities Act for transactions not involving any public offering. Each of the persons acquiring the foregoing securities was an accredited investor (as defined in Rule 501(a) of Regulation D) and confirmed the foregoing and acknowledged, in writing, that the securities must be acquired and held for investment. All certificates evidencing the shares sold bore a restrictive legend. No underwriter participated in the offer and sale of these securities, and no commission or other remuneration was paid or given directly or indirectly in connection therewith.

The proceeds from these sales were used for general corporate purposes.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

During 2013, we issued a note payable for $290,000 in connection with a reverse merger transaction. The outstanding balance for this note at June 30, 2017, was $130,000. We have determined that no further payment of principal or interest on this note should be made because the noteholder failed to perform his underlying obligations giving rise to this note. As such, we are confident that if the noteholder were to seek legal redress, his unlawful conduct would be revealed and a court would decide in our favor by either voiding the note or awarding damages sufficient to offset the note value.

During 2014, we issued note payables of $300,000. Accrued interest totaled $146,395 as of June 30, 2017 and $113,119 as of December 31, 2016. As of June 30, 2017, the notes are in default. Due to the delay in opening of the Baha Mar Resort, our Baha Mar SWAC project’s financial closing was delayed causing us to default on the notes. We intend to repay the notes and accrued interest upon the project’s financial closing.

As of October 25, 2011, a loan from one economic development entity was in default. The loan principal was $50,000 with accrued interest of $16,928 as of June 30, 2017.

As of June 30, 2017, the Company was delinquent in payments on two loans to a second economic development entity. The Company owed this economic entity $94,480 in late payments, with an outstanding balance of $94,480 and accrued interest of $30,253 as of June 30, 2017. Both loans were guaranteed by two of the Company's former officers. One loan is secured by liens on intangible software assets, and the other loan is secured by the officers' personal property. The Company is working with this entity to bring the payments current as soon as cash flow permits.

As of June 30, 2017, the Company was delinquent in payments on a loan to a third economic development entity. The Company owed the third economic entity $85,821 in late payments, with an outstanding balance of $85,821 and accrued interest of $30,253 as of June 30, 2017. This loan is secured by a junior lien on all the Company's assets and shares of a founder's common stock. The Company is working with this entity to bring the payments current as soon as cash flow permits.

ITEM 6. EXHIBITS

The following exhibits are filed as a part of this report:

Exhibit No.		Description of Exhibit
3.1 (1)		Certificate of Amendment to the Company’s Articles of Incorporation of Ocean Thermal Energy Corporation, dated May 8, 2017

31.1*		Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Rule 13a-14
32.1*		Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101 INS		XBRL Instance Document**
101 SCH		XBRL Schema Document**
101 CAL		XBRL Calculation Linkbase Document**
101 LAB		XBRL Labels Linkbase Document**
101 PRE		XBRL Presentation Linkbase Document**
101 DEF		XBRL Definition Linkbase Document**

_______________

Filed herewith.

The XBRL related information in Exhibit 101 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

(1)

Incorporated by reference to the Company’s Current Report on Form 8-K filed with the Commission on May 12, 2017.

SIGNATURE

Pursuant to the requirements 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.

	OCEAN THERMAL ENERGY CORPORATION


Date: August 14, 2017	By:	/s/ Jeremy P. Feakins
		Jeremy P. Feakins
		Chief Executive Officer and
		Chief Financial Officer (Principal Executive and Financial Officer)

EX-31.1 2 ocean_10q-ex3101.htm CERTIFICATION

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO

SECURITIES EXCHANGE ACT RULES 13a-14(a) AND 15(d)-14(a), AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jeremy P. Feakins, Jr., Chief Executive Officer and Chief Financial Officer of Ocean Thermal Energy Corporation (the “Company”) certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of the Company;

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 registrant as of, and for, the periods presented 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant’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

(d)

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

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’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 reasonably likely to adversely affect the registrant’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 registrant’s internal control over financial reporting.


Dated: August 14, 2017	By:	/s/ Jeremy P. Feakins
		Jeremy P. Feakins
		Chief Executive Officer and Chief Financial Officer
		(Principal Executive Office and Principal Financial Officer)

EX-32.1 3 ocean_10q-ex3201.htm CERTIFICATION

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 Quarterly Report of Ocean Thermal Energy Corporation (the “Company”), on Form 10-Q for the quarter ended June 30, 2017, as filed with the Securities and Exchange Commission (the “Report”), I, Jeremy P. Feakins, Chief Executive Officer and Chief Financial Officer of the Company, do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

(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.

/s/ Jeremy P. Feakins

Jeremy P. Feakins

Chief Executive Officer

Chief Financial Officer

August 14, 2017

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-101.INS 4 cpwr-20170630.xml XBRL INSTANCE FILE 0000827099 2017-01-01 2017-06-30 0000827099 2017-08-14 0000827099 2017-06-30 0000827099 2016-12-31 0000827099 2017-04-01 2017-06-30 0000827099 2016-04-01 2016-06-30 0000827099 2016-01-01 2016-06-30 0000827099 CPWR:WarrantsAndOptionsMember 2016-01-01 2016-06-30 0000827099 CPWR:WarrantsAndOptionsMember 2017-01-01 2017-06-30 0000827099 CPWR:GreenEnergyBondsAndNotesMember 2017-01-01 2017-06-30 0000827099 2015-12-31 0000827099 2016-06-30 0000827099 CPWR:GreenEnergyBondsAndNotesMember 2016-01-01 2016-06-30 0000827099 CPWR:HeadquartersMember 2017-01-01 2017-06-30 0000827099 CPWR:HeadquartersMember 2016-01-01 2016-06-30 0000827099 CPWR:HeadquartersMember 2017-06-30 0000827099 CPWR:HeadquartersMember 2016-06-30 0000827099 CPWR:UsTerritoriesMember 2017-01-01 2017-06-30 0000827099 CPWR:UsTerritoriesMember 2016-01-01 2016-06-30 0000827099 CPWR:UsTerritoriesMember 2017-06-30 0000827099 CPWR:UsTerritoriesMember 2016-06-30 0000827099 CPWR:BahamasMember 2017-01-01 2017-06-30 0000827099 CPWR:BahamasMember 2016-01-01 2016-06-30 0000827099 CPWR:BahamasMember 2017-06-30 0000827099 CPWR:BahamasMember 2016-06-30 0000827099 CPWR:OtherMember 2017-01-01 2017-06-30 0000827099 CPWR:OtherMember 2016-01-01 2016-06-30 0000827099 CPWR:OtherMember 2017-06-30 0000827099 CPWR:OtherMember 2016-06-30 0000827099 CPWR:NotePayable1Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable1Member 2017-06-30 0000827099 CPWR:NotePayable2Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable2Member 2017-06-30 0000827099 CPWR:NotePayable3Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable3Member 2017-06-30 0000827099 CPWR:NotePayable4Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable4Member 2017-06-30 0000827099 CPWR:NotePayable5Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable5Member 2017-06-30 0000827099 CPWR:NotePayable6Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable6Member 2017-06-30 0000827099 CPWR:NotePayable7Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable7Member 2016-01-01 2016-12-31 0000827099 CPWR:NotePayable7Member 2016-12-31 0000827099 CPWR:NotePayable7Member 2017-06-30 0000827099 CPWR:NotePayable8Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable8Member 2016-01-01 2016-12-31 0000827099 CPWR:NotePayable8Member 2016-12-31 0000827099 CPWR:NotePayable8Member 2017-06-30 0000827099 CPWR:NotePayable9Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable9Member 2016-01-01 2016-12-31 0000827099 CPWR:NotePayable9Member 2016-12-31 0000827099 CPWR:NotePayable9Member 2017-06-30 0000827099 CPWR:NotePayable10Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable10Member 2016-01-01 2016-12-31 0000827099 CPWR:NotePayable10Member 2016-12-31 0000827099 CPWR:NotePayable10Member 2017-06-30 0000827099 CPWR:NotePayable11Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable11Member 2016-01-01 2016-12-31 0000827099 CPWR:NotePayable11Member 2016-12-31 0000827099 CPWR:NotePayable11Member 2017-06-30 0000827099 CPWR:NotePayable12Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable12Member 2016-01-01 2016-12-31 0000827099 CPWR:NotePayable12Member 2016-12-31 0000827099 CPWR:NotePayable12Member 2017-06-30 0000827099 CPWR:NotePayable13Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable13Member 2016-01-01 2016-12-31 0000827099 CPWR:NotePayable13Member 2016-12-31 0000827099 CPWR:NotePayable13Member 2017-06-30 0000827099 CPWR:NotePayable14Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable14Member 2016-01-01 2016-12-31 0000827099 CPWR:NotePayable14Member 2016-12-31 0000827099 CPWR:NotePayable14Member 2017-06-30 0000827099 CPWR:NotePayable15Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable15Member 2016-01-01 2016-12-31 0000827099 CPWR:NotePayable15Member 2016-12-31 0000827099 CPWR:NotePayable15Member 2017-06-30 0000827099 CPWR:NotePayable16Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable16Member 2016-01-01 2016-12-31 0000827099 CPWR:NotePayable16Member 2016-12-31 0000827099 CPWR:NotePayable16Member 2017-06-30 0000827099 CPWR:NotePayable17Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable17Member 2016-01-01 2016-12-31 0000827099 CPWR:NotePayable17Member 2016-12-31 0000827099 CPWR:NotePayable17Member 2017-06-30 0000827099 CPWR:NotePayable18Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable18Member 2017-06-30 0000827099 CPWR:NotePayable19Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable19Member 2017-06-30 0000827099 CPWR:NotePayable20Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable20Member 2016-01-01 2016-12-31 0000827099 CPWR:NotePayable20Member 2016-12-31 0000827099 CPWR:NotePayable20Member 2017-06-30 0000827099 CPWR:NotePayable21Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable21Member 2017-06-30 0000827099 CPWR:NotePayable22Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable22Member 2017-06-30 0000827099 CPWR:NotePayable23Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable23Member 2017-06-30 0000827099 CPWR:NotePayable24Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable24Member 2017-06-30 0000827099 CPWR:NotePayable25Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable25Member 2017-06-30 0000827099 CPWR:NotePayable26Member 2017-01-01 2017-06-30 0000827099 CPWR:NotePayable26Member 2017-06-30 0000827099 CPWR:IndividualsMember 2017-01-01 2017-06-30 0000827099 CPWR:StockForServicesMember 2017-01-01 2017-06-30 0000827099 CPWR:PrivatePlacementMemoMember 2017-01-01 2017-06-30 0000827099 CPWR:MergerMember 2017-01-01 2017-06-30 0000827099 CPWR:JPFVentureGroupMember 2017-01-01 2017-06-30 0000827099 CPWR:TetridynShareholdersMember 2017-01-01 2017-06-30 0000827099 CPWR:TetridynShareholdersMember 2017-05-09 0000827099 us-gaap:WarrantMember 2017-01-01 2017-06-30 0000827099 us-gaap:WarrantMember 2016-12-31 0000827099 us-gaap:WarrantMember 2017-06-30 0000827099 CPWR:ConvNoteMember 2017-01-01 2017-06-30 0000827099 us-gaap:StockOptionMember 2017-01-01 2017-06-30 0000827099 us-gaap:StockOptionMember 2016-12-31 0000827099 us-gaap:StockOptionMember 2017-06-30 0000827099 CPWR:CompanyCEOMember 2017-01-01 2017-06-30 0000827099 us-gaap:ChiefExecutiveOfficerMember 2017-06-30 xbrli:pure iso4217:USD xbrli:shares iso4217:USD xbrli:shares 10-Q 2017-06-30 false Ocean Thermal Energy Corp 0000827099 cpwr --12-31 112652340 Smaller Reporting Company Yes No No 2017 Q2

0.0001

200000000

112625870

94343776

112625870

94343776

0.0001

20000000

26583

7495

125029

34299

25517876

5322274

205667

Note 2: Going Concern   The accompanying unaudited condensed consolidated financial statements have been prepared on the assumption that we will continue as a going concern. As reflected in the accompanying condensed consolidated financial statements, we had a net loss of $8,363,177 and used $763,071 of cash in operating activities for the six months ended June 30, 2017. We had a working capital deficiency of $11,133,014 and a stockholders’ deficiency of $10,933,983 as of June 30, 2017. These factors raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent on our ability to increase sales and obtain external funding for our project development. The financial statements do not include any adjustments that may result from the outcome of this uncertainty.

Note 3: Income Taxes   No income tax expense was recognized for the six-month periods ended June 30, 2017 and 2016, due to net losses being incurred in these periods. We are subject to audit by the Internal Revenue Service, various states, and foreign jurisdictions for the prior three years. There has not been a change in our unrecognized tax positions since December 31, 2016, and we do not believe there will be any material changes in our unrecognized tax positions over the next 12 months. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. We do not have any accrued interest or penalties associated with any unrecognized tax benefits, and no interest expense related to unrecognized tax benefits was recognized during the six months ended June 30, 2017.   The Company’s ability to use its NOL carryforwards may be substantially limited due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the Code), as well as similar state provisions. These ownership changes may limit the amount of NOL that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50.0% of the outstanding stock of a company by certain stockholders or public groups.   The Company has not completed a study to assess whether an ownership change has occurred or whether there have been multiple ownership changes since the Company became a “loss corporation” under the definition of Section 382. If the Company has experienced an ownership change, utilization of the NOL carryforwards would be subject to an annual limitation under Section 382 of the Code, which is determined by first multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term, tax-exempt rate, and then could be subject to additional adjustments, as required. Any limitation may result in expiration of a portion of the NOL carryforwards before utilization. Further, until a study is completed and any limitation known, no positions related to limitations are being considered as an uncertain tax position or disclosed as an unrecognized tax benefit. Any carryforwards that expire prior to utilization as a result of such limitations will be removed from deferred tax assets with a corresponding reduction of the valuation allowance. Due to the existence of the valuation allowance, it is not expected that any possible limitation will have an impact on the results of operations or financial position of the Company.

Note 4: Fair Value of Financial Instruments   The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The accounting standard establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required as well as the assets and liabilities that we value using those levels of inputs.   <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 48px"> </td> <td style="width: 24px; font: 12pt Times New Roman, Times, Serif">·</td> <td style="font: 12pt Times New Roman, Times, Serif; text-align: justify">Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 48px"> </td> <td style="width: 24px; font: 12pt Times New Roman, Times, Serif">·</td> <td style="font: 12pt Times New Roman, Times, Serif; text-align: justify">Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 48px"> </td> <td style="width: 24px; font: 12pt Times New Roman, Times, Serif">·</td> <td style="font: 12pt Times New Roman, Times, Serif; text-align: justify">Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.</td></tr> </table>   A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. We did not have any significant nonfinancial assets or nonfinancial liabilities that would be recognized or disclosed at fair value on a recurring basis as of June 30, 2017, nor did we have any assets or liabilities measured at fair value on a nonrecurring basis to report in the first six months of 2017.

Note 6: Recent Accounting Pronouncements   In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. Historically, there has been a diversity in practice in how certain cash receipts/payments are presented and classified in the statement of cash flows under Topic 230. The purpose of the Update is to reduce the existing diversity in practice by clarifying the presentation of certain types of transactions. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company notes that this guidance applies to its reporting requirements and will implement the new guidance accordingly.   We have reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our consolidated results of operations, financial position, and cash flows. Based on that review, we believe that none of these pronouncements will have a significant effect on current or future earnings or operations.

Note 7: Business Segments   We conduct operations in various foreign jurisdictions that use our technology. Our segments are based on the location of their operations. The U.S. territories segment consists of operations in the U.S. Virgin Islands and Guam; the Bahamas segment consists of operations specific to the Bahamas; and the other segment currently consists of operations in the Cayman Islands. Direct revenues and costs, depreciation, depletion, and amortization costs, general and administrative costs (“G&A”), and other income directly associated with their respective segments are detailed within the following discussion. Identifiable net property and equipment are reported by business segment for management reporting and reportable business segment disclosure purposes. Current assets, other assets, current liabilities, and long-term debt are not allocated to business segments for management reporting or business segment disclosure purposes.   Reportable business segment information for the six months ended June 30, 2017, and June 30, 2016, is as follows:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td colspan="21" style="border-bottom: black 1pt solid; text-align: center">June 30, 2017</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Headquarters</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">US Territories</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Bahamas</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Other</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Total</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td>Revenue</td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 40%; padding-left: 10pt">Assets</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">28,276</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">840,140</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">–</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">48,998</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">917,414</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="padding-left: 10pt">Net loss</td> <td> </td> <td> </td> <td style="text-align: right">(8,363,177</td> <td>)</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">(8,363,177</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt">Property and equipment</td> <td> </td> <td> </td> <td style="text-align: right">1,693</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">1,693</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="padding-left: 10pt">Assets under construction</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">840,140</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">48,998</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">889,138</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt">Depreciation</td> <td> </td> <td> </td> <td style="text-align: right">673</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">673</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="padding-left: 10pt">Additions to assets under construction</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">42,853</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">42,853</td> <td> </td></tr> </table>     <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td colspan="21" style="border-bottom: black 1pt solid; text-align: center">June 30, 2016</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Headquarters</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">US Territories</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Bahamas</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Other</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Total</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td>Revenue</td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 40%; padding-left: 10pt">Assets</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">90,212</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">715,064</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">244,285</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">48,998</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">1,098,559</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="padding-left: 10pt">Net loss</td> <td> </td> <td> </td> <td style="text-align: right">(2,015,008</td> <td>)</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">(2,015,008</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt">Property and equipment</td> <td> </td> <td> </td> <td style="text-align: right">3,516</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">3,516</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="padding-left: 10pt">Assets under construction</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">715,064</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">244,285</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">48,998</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">1,008,347</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt">Depreciation</td> <td> </td> <td> </td> <td style="text-align: right">3,057</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">3,057</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="padding-left: 10pt">Additions to assets under construction</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">37,500</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">37,500</td> <td> </td></tr> </table>

Note 10: Commitments and Contingencies   Litigation   From time to time, we are involved in legal proceedings and regulatory proceedings arising from operations. We establish reserves for specific liabilities in connection with legal actions that management deems to be probable and estimable.   In late 2016, we entered into a binding agreement with an investor group from Memphis, Tennessee to invest a substantial amount of capital into our company (the “Memphis Investors”). As part of the agreement, we were restricted from making changes to our capital structure and, consequently, suffered significant financial damages when the investors did not honor their commitment and defaulted on the agreement. On May 16, 2017, we filed a civil suit in the United States District Court in the Western District of Tennessee (Case No. 2:17 –cv-02343).

Note 12: Subsequent Events   The company launched a Private Placement Offering for up to $2 million of convertible promissory notes with a 6% interest rate. All principal and interest on each Note shall automatically convert on the Conversion Maturity Date into shares of the Company’s common stock at a conversion price of USD $4.00 per share, as long as the closing share price of the Company’s common stock on the trading day immediately preceding the Conversion Maturity Date is at least USD $4.00, as adjusted for stock splits, stock dividends, reclassification, and the like. If the price of the Company’s shares on such date is less than USD $4.00 per share, the Note (principal and interest) will be repaid in full. As of July 28, 2017 the Company has raised $115,000.   On August 3, 2017, we entered into a compensation agreement with our former legal counsel wherein we agreed to pay an outstanding legal bill in the amount of $195,474.35 by issuance of shares covered by a Form S-8 Registration Statement. The former legal counsel may, at any time and from time to time following the filing of the Form S-8, elect to call for the issuance of shares as payment for the outstanding legal bill.   On July 18, 2017, we issued 26,470 shares of common stock to our investor relations firm pursuant to the terms of a consulting agreement dated April 3, 2017.

Reportable business segment information for the six months ended June 30, 2017, and June 30, 2016, is as follows:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td colspan="21" style="border-bottom: black 1pt solid; text-align: center">June 30, 2017</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Headquarters</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">US Territories</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Bahamas</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Other</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Total</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td>Revenue</td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 40%; padding-left: 10pt">Assets</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">28,276</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">840,140</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">–</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">48,998</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">917,414</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="padding-left: 10pt">Net loss</td> <td> </td> <td> </td> <td style="text-align: right">(8,363,177</td> <td>)</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">(8,363,177</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt">Property and equipment</td> <td> </td> <td> </td> <td style="text-align: right">1,693</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">1,693</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="padding-left: 10pt">Assets under construction</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">840,140</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">48,998</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">889,138</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt">Depreciation</td> <td> </td> <td> </td> <td style="text-align: right">673</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">673</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="padding-left: 10pt">Additions to assets under construction</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">42,853</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">42,853</td> <td> </td></tr> </table>     <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td colspan="21" style="border-bottom: black 1pt solid; text-align: center">June 30, 2016</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Headquarters</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">US Territories</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Bahamas</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Other</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Total</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td>Revenue</td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td>$</td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 40%; padding-left: 10pt">Assets</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">90,212</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">715,064</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">244,285</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">48,998</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right">1,098,559</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="padding-left: 10pt">Net loss</td> <td> </td> <td> </td> <td style="text-align: right">(2,015,008</td> <td>)</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">(2,015,008</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt">Property and equipment</td> <td> </td> <td> </td> <td style="text-align: right">3,516</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">3,516</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="padding-left: 10pt">Assets under construction</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">715,064</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">244,285</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">48,998</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">1,008,347</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt">Depreciation</td> <td> </td> <td> </td> <td style="text-align: right">3,057</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">3,057</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="padding-left: 10pt">Additions to assets under construction</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">37,500</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">37,500</td> <td> </td></tr> </table>

The following convertible note and notes payable were outstanding at June 30, 2017:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="5" style="border-bottom: black 1pt solid; text-align: center">Related Party</td> <td style="padding-bottom: 1pt"> </td> <td colspan="5" style="border-bottom: black 1pt solid; text-align: center">Non Related Party</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; text-align: center">Date of Issuance</td> <td style="border-bottom: black 1pt solid; text-align: center">Maturity Date</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Interest Rate</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Original Principal</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Principal at June 30, 2017</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Discount at June 30, 2017</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Carrying Amount at June 30, 2017</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Current</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Long-Term</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Current</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Long-Term</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 10%; text-align: center">12/12/2006</td> <td style="width: 9%; text-align: right">1/5/2013</td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">6.25%</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">58,670</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">16,813</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">–</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">16,813</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">–</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">–</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">16,813</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">–</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">12/1/2007</td> <td style="text-align: right">9/1/2015</td> <td> </td> <td style="text-align: right">7.00%</td> <td> </td> <td> </td> <td style="text-align: right">125,000</td> <td> </td> <td> </td> <td style="text-align: right">85,821</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">85,821</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">85,821</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">9/25/2009</td> <td style="text-align: right">10/25/2011</td> <td> </td> <td style="text-align: right">5.00%</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">12/23/2009</td> <td style="text-align: right">12/23/2019</td> <td> </td> <td style="text-align: right">7.00%</td> <td> </td> <td> </td> <td style="text-align: right">100,000</td> <td> </td> <td> </td> <td style="text-align: right">94,480</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">94,480</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">94,480</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">12/23/2009</td> <td style="text-align: right">12/23/2019</td> <td> </td> <td style="text-align: right">7.00%</td> <td> </td> <td> </td> <td style="text-align: right">25,000</td> <td> </td> <td> </td> <td style="text-align: right">23,619</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">23,619</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">23,619</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">12/23/2009</td> <td style="text-align: right">12/23/2019</td> <td> </td> <td style="text-align: right">7.00%</td> <td> </td> <td> </td> <td style="text-align: right">25,000</td> <td> </td> <td> </td> <td style="text-align: right">23,619</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">23,619</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">23,619</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">02/03/12</td> <td style="text-align: right">02/03/18</td> <td> </td> <td style="text-align: right">10.00%</td> <td> </td> <td> </td> <td style="text-align: right">1,000,000</td> <td> </td> <td> </td> <td style="text-align: right">1,000,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">1,000,000</td> <td> </td> <td> </td> <td style="text-align: right">1,000,000</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">08/15/13</td> <td style="text-align: right">10/31/23</td> <td> </td> <td style="text-align: right">10.00%</td> <td> </td> <td> </td> <td style="text-align: right">525,000</td> <td> </td> <td> </td> <td style="text-align: right">525,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">525,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">475,000</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">12/31/13</td> <td style="text-align: right">12/31/15</td> <td> </td> <td style="text-align: right">8.00%</td> <td> </td> <td> </td> <td style="text-align: right">290,000</td> <td> </td> <td> </td> <td style="text-align: right">130,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">130,000</td> <td> </td> <td> </td> <td style="text-align: right">130,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">04/01/14</td> <td style="text-align: right">12/31/17</td> <td> </td> <td style="text-align: right">10.00%</td> <td> </td> <td> </td> <td style="text-align: right">2,265,000</td> <td> </td> <td> </td> <td style="text-align: right">1,756,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">1,756,000</td> <td> </td> <td> </td> <td style="text-align: right">1,756,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">04/16/14</td> <td style="text-align: right">04/30/19</td> <td> </td> <td style="text-align: right">9.86%</td> <td> </td> <td> </td> <td style="text-align: right">6,000</td> <td> </td> <td> </td> <td style="text-align: right">6,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">6,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">6,000</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">05/09/14</td> <td style="text-align: right">04/30/19</td> <td> </td> <td style="text-align: right">9.86%</td> <td> </td> <td> </td> <td style="text-align: right">50,400</td> <td> </td> <td> </td> <td style="text-align: right">50,400</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">50,400</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">50,400</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">05/28/14</td> <td style="text-align: right">04/30/19</td> <td> </td> <td style="text-align: right">9.86%</td> <td> </td> <td> </td> <td style="text-align: right">25,200</td> <td> </td> <td> </td> <td style="text-align: right">25,200</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">25,200</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">25,200</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">07/21/14</td> <td style="text-align: right">12/31/19</td> <td> </td> <td style="text-align: right">9.86%</td> <td> </td> <td> </td> <td style="text-align: right">78,000</td> <td> </td> <td> </td> <td style="text-align: right">78,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">78,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">78,000</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">08/18/14</td> <td style="text-align: right">12/31/19</td> <td> </td> <td style="text-align: right">7.86%</td> <td> </td> <td> </td> <td style="text-align: right">7,200</td> <td> </td> <td> </td> <td style="text-align: right">7,200</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">7,200</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">7,200</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">12/22/14</td> <td style="text-align: right">03/31/15</td> <td> </td> <td style="text-align: right">12.00%</td> <td> </td> <td> </td> <td style="text-align: right">200,000</td> <td> </td> <td> </td> <td style="text-align: right">200,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">200,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">200,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">12/26/14</td> <td style="text-align: right">12/26/15</td> <td> </td> <td style="text-align: right">12.00%</td> <td> </td> <td> </td> <td style="text-align: right">100,000</td> <td> </td> <td> </td> <td style="text-align: right">100,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">100,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">100,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">2/25/2015</td> <td style="text-align: right">90 days after demand</td> <td> </td> <td style="text-align: right">6.00%</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">3/19/2015</td> <td style="text-align: right">90 days after demand</td> <td> </td> <td style="text-align: right">6.00%</td> <td> </td> <td> </td> <td style="text-align: right">394,380</td> <td> </td> <td> </td> <td style="text-align: right">394,380</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">394,380</td> <td> </td> <td> </td> <td style="text-align: right">394,380</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">04/07/15</td> <td style="text-align: right">04/17/17</td> <td> </td> <td style="text-align: right">10.00%</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">6/23/2015</td> <td style="text-align: right">90 days after demand</td> <td> </td> <td style="text-align: right">6.00%</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">11/23/2015</td> <td style="text-align: right">90 days after demand</td> <td> </td> <td style="text-align: right">6.00%</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">5/20/2016</td> <td style="text-align: right">90 days after demand</td> <td> </td> <td style="text-align: right">6.00%</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">10/20/2016</td> <td style="text-align: right">90 days after demand</td> <td> </td> <td style="text-align: right">6.00%</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="text-align: right">25,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">25,000</td> <td> </td> <td> </td> <td style="text-align: right">25,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">12/21/2016</td> <td style="text-align: right">90 days after demand</td> <td> </td> <td style="text-align: right">6.00%</td> <td> </td> <td> </td> <td style="text-align: right">25,000</td> <td> </td> <td> </td> <td style="text-align: right">25,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">25,000</td> <td> </td> <td> </td> <td style="text-align: right">25,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">3/9/2017</td> <td style="text-align: right">90 days after demand</td> <td> </td> <td style="text-align: right">10.00%</td> <td> </td> <td> </td> <td style="text-align: right">200,000</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: right">175,000</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">–</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">175,000</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">175,000</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">–</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">–</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; text-align: center"> </td> <td style="padding-bottom: 2.5pt">Totals</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: right"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: right"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">5,041,532</td> <td style="border-bottom: black 2.25pt double; padding-bottom: 1pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">–</td> <td style="border-bottom: black 2.25pt double; padding-bottom: 1pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">5,041,532</td> <td style="border-bottom: black 2.25pt double; padding-bottom: 1pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">3,705,380</td> <td style="border-bottom: black 2.25pt double; padding-bottom: 1pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">50,000</td> <td style="border-bottom: black 2.25pt double; padding-bottom: 1pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">644,352</td> <td style="border-bottom: black 2.25pt double; padding-bottom: 1pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">641,800</td> <td style="border-bottom: black 2.25pt double; padding-bottom: 1pt"> </td></tr> </table>   The following convertible note and notes payable were outstanding at December 31, 2016:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="5" style="border-bottom: black 1pt solid; text-align: center">Related Party</td> <td style="padding-bottom: 1pt"> </td> <td colspan="5" style="border-bottom: black 1pt solid; text-align: center">Non Related Party</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; text-align: center">Date of Issuance</td> <td style="border-bottom: black 1pt solid; text-align: center">Maturity Date</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Interest Rate</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Original Principal</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Principal at December 31, 2016</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Discount at December 31, 2016</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Carrying Amount at December 31, 2016</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Current</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Long-Term</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Current</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Long-Term</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 10%; text-align: center">02/03/12</td> <td style="width: 9%; text-align: right">02/03/18</td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">10.00%</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">1,000,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">1,000,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">–</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">1,000,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">–</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">1,000,000</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">–</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 7%; text-align: right">–</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">08/15/13</td> <td style="text-align: right">10/31/23</td> <td> </td> <td style="text-align: right">10.00%</td> <td> </td> <td> </td> <td style="text-align: right">525,000</td> <td> </td> <td> </td> <td style="text-align: right">525,000</td> <td> </td> <td> </td> <td style="text-align: right">44,089</td> <td> </td> <td> </td> <td style="text-align: right">480,911</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">45,644</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">435,267</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">12/31/13</td> <td style="text-align: right">12/31/15</td> <td> </td> <td style="text-align: right">8.00%</td> <td> </td> <td> </td> <td style="text-align: right">290,000</td> <td> </td> <td> </td> <td style="text-align: right">130,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">130,000</td> <td> </td> <td> </td> <td style="text-align: right">130,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">04/01/14</td> <td style="text-align: right">12/31/17</td> <td> </td> <td style="text-align: right">10.00%</td> <td> </td> <td> </td> <td style="text-align: right">2,265,000</td> <td> </td> <td> </td> <td style="text-align: right">1,756,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">1,756,000</td> <td> </td> <td> </td> <td style="text-align: right">1,756,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">04/16/14</td> <td style="text-align: right">04/30/19</td> <td> </td> <td style="text-align: right">9.86%</td> <td> </td> <td> </td> <td style="text-align: right">6,000</td> <td> </td> <td> </td> <td style="text-align: right">6,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">6,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">6,000</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">05/09/14</td> <td style="text-align: right">04/30/19</td> <td> </td> <td style="text-align: right">9.86%</td> <td> </td> <td> </td> <td style="text-align: right">50,400</td> <td> </td> <td> </td> <td style="text-align: right">50,400</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">50,400</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">50,400</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">05/28/14</td> <td style="text-align: right">04/30/19</td> <td> </td> <td style="text-align: right">9.86%</td> <td> </td> <td> </td> <td style="text-align: right">25,200</td> <td> </td> <td> </td> <td style="text-align: right">25,200</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">25,200</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">25,200</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">07/21/14</td> <td style="text-align: right">12/31/19</td> <td> </td> <td style="text-align: right">9.86%</td> <td> </td> <td> </td> <td style="text-align: right">78,000</td> <td> </td> <td> </td> <td style="text-align: right">78,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">78,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">78,000</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">08/18/14</td> <td style="text-align: right">12/31/19</td> <td> </td> <td style="text-align: right">7.86%</td> <td> </td> <td> </td> <td style="text-align: right">7,200</td> <td> </td> <td> </td> <td style="text-align: right">7,200</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">7,200</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">7,200</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">12/22/14</td> <td style="text-align: right">03/31/15</td> <td> </td> <td style="text-align: right">12.00%</td> <td> </td> <td> </td> <td style="text-align: right">200,000</td> <td> </td> <td> </td> <td style="text-align: right">200,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">200,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">200,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: center">12/26/14</td> <td style="text-align: right">12/26/15</td> <td> </td> <td style="text-align: right">12.00%</td> <td> </td> <td> </td> <td style="text-align: right">100,000</td> <td> </td> <td> </td> <td style="text-align: right">100,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">100,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: right">100,000</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center">04/07/15</td> <td style="text-align: right">04/17/17</td> <td> </td> <td style="text-align: right">10.00%</td> <td> </td> <td> </td> <td style="text-align: right">50,000</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: right">50,000</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">871</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">49,129</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">–</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">–</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">49,129</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; text-align: center"> </td> <td style="padding-bottom: 2.5pt">Totals</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: right"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: right"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">3,927,800</td> <td style="border-bottom: black 2.25pt double; padding-bottom: 1pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">44,960</td> <td style="border-bottom: black 2.25pt double; padding-bottom: 1pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">3,882,840</td> <td style="border-bottom: black 2.25pt double; padding-bottom: 1pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">1,886,000</td> <td style="border-bottom: black 2.25pt double; padding-bottom: 1pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">1,045,644</td> <td style="border-bottom: black 2.25pt double; padding-bottom: 1pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">349,129</td> <td style="border-bottom: black 2.25pt double; padding-bottom: 1pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">602,067</td> <td style="border-bottom: black 2.25pt double; padding-bottom: 1pt"> </td></tr> </table>

The following table summarizes all warrants outstanding and exercisable for the period ended June 30, 2017:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: center">Number of</td> <td> </td> <td> </td> <td style="text-align: center">Weighted Average</td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; text-align: center">Warrants</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Warrants</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Exercise Price</td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 58%; text-align: justify">Balance at December 31, 2016</td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 18%; text-align: right">15,912,210</td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 18%; text-align: center">$0.76</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify">Granted</td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td> <td> </td> <td style="text-align: center">$0.00</td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: justify">Exercised</td> <td> </td> <td> </td> <td style="text-align: right">(998,079</td> <td>)</td> <td> </td> <td style="text-align: center">$0.75</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify">Exercised (re-priced to $0.00)</td> <td> </td> <td> </td> <td style="text-align: right">(14,692,500</td> <td>)</td> <td> </td> <td style="text-align: center">$0.00</td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="padding-bottom: 1pt; text-align: justify">Forfeited</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(221,631</td> <td style="padding-bottom: 1pt">)</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; text-align: justify">Balance at June 30, 2017</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">–</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: center"> </td></tr> </table>

The following table summarizes all options outstanding and exercisable for the period ended June 30, 2017:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: center">Number of</td> <td> </td> <td> </td> <td style="text-align: center">Weighted Average</td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; text-align: center">Options</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Options</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Exercise Price</td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 58%">Balance at December 31, 2016</td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 18%; text-align: right">100,000</td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 18%; text-align: center">$0.75</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt">Exercised</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(100,000</td> <td style="padding-bottom: 1pt">)</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: center">$0.75</td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="padding-bottom: 2.5pt">Balance at June 30, 2017</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">–</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: center"> </td></tr> </table>

917414

886695

-61474720

-53111543

50529474

44437871

11263

9435

11851397

9550932

641800

602067

11159597

7903221

50000

49129

594352

300000

137500

52000

36822

6757865

5631270

917414

886695

1098559

28276

90212

840140

715064

244285

48998

1693

2366

3516

1693

3516

26583

38044

30549

673

3057

244800

179000

6769562

44960

419478

30549

-18632

509562

611905

4512

-88114

-37500

200000

609500

52000

50000 0

45000

165000

748535

2530

870273

766970

19088

-90730

13160

2732

25000 0 0 619084

553827

296339

292668

624779

503773

150977

206427

461678

252955

174609

115299

222271

6769562

-8080117

-621925

-614394

-1308728

283060

175543

384082

706280

-8363177

-797468

-998476

-2015008

-0.08

-0.01

-0.02

107689883

111149698

82977921

82816924

-10933983

-8664237

-763071

-820200

-8363177

-2015008

-8363177

-2015008

-11133014

890831

848651

889138

846285

1008347

840140

715064

244285

48998

42853

37500

-8363177

-797468

-998476

-2015008

50000

1045644

3567880

1886000

283094

175577

384082

706280

8080117

621925

614394

1308728

We used the following assumptions for warrants and options during the period ended June 30, 2017: <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 40%; text-align: justify">Expected volatility:</td> <td style="width: 60%; text-align: justify">77%</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify">Expected lives:</td> <td style="text-align: justify">Various (30 days – 7 years)</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify">Risk-free interest rate:</td> <td style="text-align: justify">Various (0.50%-2.27%)</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify">Expected dividend yield:</td> <td style="text-align: justify">None</td></tr> </table>

49773

Note 1: Source of Business and Basis of Presentation   Ocean Thermal Energy Corporation (“Ocean Thermal”, the “Company”, “we”, and “us”) is currently in the business of designing Ocean Thermal Energy Conversion (“OTEC”) power plants and Seawater Air Conditioning (“SWAC”) plants for large commercial properties, utilities and municipalities. These technologies provide practical solutions to mankind’s three oldest and most fundamental needs: clean drinking water, plentiful food, and sustainable, affordable energy without the use of fossil fuels. OTEC is a clean technology that continuously extracts energy from the temperature difference between warm surface ocean water and cold deep seawater. In addition to producing electricity, some of the seawater running through an OTEC plant can be efficiently desalinated using the power generated by the OTEC technology, producing thousands of cubic meters of fresh water every day for the communities served by its plants for use in agriculture and human consumption. This cold deep nutrient-rich water can also be used to cool buildings (SWAC) and for fish farming/ aquaculture. In short, it’s a technology with many benefits, and its versatility makes OTEC unique.   The Company previously operated under the corporate name of TetriDyn Solutions, Inc. (“TetriDyn”). On March 10, 2017, TetriDyn entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Ocean Thermal Energy Corporation, a Delaware corporation (“OTE”). On May 9, 2017, TetriDyn consummated the acquisition of all outstanding equity interests of OTE pursuant to the terms of the Merger Agreement, with a newly-created Delaware corporation that is wholly-owned by TetriDyn (“TetriDyn Merger Sub”), merging with and into OTE (the “Merger”) and OTE continuing as the surviving corporation and a wholly-owned subsidiary of TetriDyn. Effective upon the consummation of the Merger (the “Closing”), the OTE Stock issued and outstanding or existing immediately prior to the Closing of the Merger was converted at the Closing into the right to receive newly issued shares of TetriDyn common stock. As a result of the Merger, TetriDyn succeeded to the business and operations of OTE. In connection with the consummation of the Merger and upon the consent of the holders of a majority of the outstanding common shares, TetriDyn filed with the Nevada Secretary of State an amendment to its articles of incorporation changing its name to “Ocean Thermal Energy Corporation”.   On April 13, 2017, the Company filed a Schedule 14C Information Statement with the Securities and Exchange Commission (the “Commission”) to notify stockholders that the following actions were approved without a meeting of the stockholders:   <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 48px"> </td> <td style="width: 24px; font: 12pt Times New Roman, Times, Serif">·</td> <td style="font: 12pt Times New Roman, Times, Serif; text-align: justify">An amendment to our Articles of Incorporation, as amended, to effect a change in the Company’s name from TetriDyn Solutions, Inc. to Ocean Thermal Energy Corporation;</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 48px"> </td> <td style="width: 24px; font: 12pt Times New Roman, Times, Serif">·</td> <td style="font: 12pt Times New Roman, Times, Serif; text-align: justify">An amendment to our Articles of Incorporation, as amended, to effect an increase in our authorized shares of common stock from 400,000 to 200,000,000; and</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 48px"> </td> <td style="width: 24px; font: 12pt Times New Roman, Times, Serif">·</td> <td style="font: 12pt Times New Roman, Times, Serif; text-align: justify">An amendment to our Articles of Incorporation, as amended, to effect a forward stock split of the issued and outstanding shares of common stock of the Company on an approximately 2.1676-for-1 basis.</td></tr> </table>   On May 25, 2017, the Company received approval from the Financial Industry Regulatory Authority (“FINRA”) to change the trading symbol for the Company’s common stock to “CPWR” from “TDYS.” The Company’s common stock began formally trading under the symbol “CPWR” on June 21, 2017.   For accounting purposes, this transaction is being accounted for as a merger of entities under common control and has been treated as a recapitalization of Tetridyn Solutions, Inc. with Ocean Thermal Energy Corporation. as the accounting acquirer. The historical financial statements of the accounting acquirer became the financial statements of the Company. The Company did not recognize goodwill or any intangible assets in connection with the transaction. The 110,273,767 shares issued to the shareholder of OTE in conjunction with the share exchange transaction has been presented as outstanding for all periods. The historical financial statements include the operations of the accounting acquirer for all periods presented and the accounting acquiree for the period from May 9, 2017 through June 30, 2014. The Company’s accounting year end is December 31, which was the year end of Ocean Thermal Energy Corporation.   The condensed consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, our financial statements reflect all adjustments that are of a normal recurring nature necessary for presentation of financial statements for interim periods in accordance with U.S. generally accepted accounting principles (GAAP) and with the instructions to Form 10-Q in Article 10 of SEC Regulation S-X. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.   We condensed or omitted certain information and footnote disclosures normally included in our annual audited financial statements, which we prepared in accordance with GAAP. The operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results to be expected for the year. Our interim financial statements should be read in conjunction with our Audit Report and the 8-K filing on July 19, 2017.

Note 5: Net Loss per Common Share   Basic earnings per share are computed by dividing the net income (loss) applicable to common shares by the weighted average number of common shares outstanding. We recorded a net loss for the six-month periods ended June 30, 2017 and 2016, so there are no diluted earnings per share calculated for those periods. Basic and diluted earnings per share were the same for all periods presented.   We had 0 and 25,517,876 shares issuable upon the exercise of warrants and options and 5,322,274 and 205,667 shares issuable upon the conversion of green energy bonds and convertible notes payable that were not included in the computation of dilutive loss per share because their inclusion is antidilutive for the interim periods ended June 30, 2017 and 2016, respectively.

42853 37500 0 0 42853 37500 0 0 0 0

2006-12-12

2007-12-01

2009-09-25

2009-12-23

2012-02-03

2013-08-15

2013-12-31

2014-04-01

2014-04-16

2014-05-09

2014-05-28

2014-07-21

2014-08-18

2014-12-22

2014-12-26

2015-02-25

2015-03-19

2015-04-07

2015-06-23

2015-11-23

2016-05-20

2016-10-20

2016-12-21

2017-03-09

2013-01-05

2015-09-01

2011-10-25

2019-12-23

2018-02-03

2023-10-31

2015-12-31

2017-12-31

2019-04-30

2019-12-31

2015-03-31

2015-12-26

2017-04-17

.0625

.07

.05

.07

.10

.08

.10

.0986

.0786

.12

.06

.10

.06

0.06

.06

0.06

.10

58670

125000

50000

100000

25000

1000000

525000

290000

2265000

6000

50400

25200

78000

7200

200000

100000

50000

394380

50000

25000

200000

16813

85821

50000

94480

23619

1000000

525000

130000

1756000

6000

50400

25200

78000

7200

200000

100000

50000

394380

50000

25000

175000

44089

871

16813

85821

50000

94480

23619

1000000

480911

525000

130000

1756000

6000

50400

25200

78000

7200

200000

100000

50000

394380

49129

50000

25000

175000

0 0 0 0 0 0 0 1000000 0 0 130000 130000 1756000 1756000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 50000 394380 0 0 50000 50000 50000 25000 25000 175000 0 0 0 0 0 0 1000000 0 45644 50000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

16813

85821

50000

94480

23619

200000

100000

49129

50000

435267

475000

6000

50400

25200

78000

7200

90 days after demand

998079

288000

244800

11250

45000

94343776

6769562

148588

111440

534555

617032

1015506

-1628026

15912210

998079

14692500

221631

.76

0.00

.75 0.00

1806298

25000

100000

.75

35000

177000

25000

5000

-36822

On March 12, 2015, the Company exchanged convertible notes issued in 2010, 2011, and 2012, payable to its officers and directors in the aggregate principal amount of $320,246, plus accrued but unpaid interest of $74,134, into a single, $394,380 consolidated convertible note (the “Consolidated Note”). The Consolidated Note was assigned to JPF Venture Group, Inc. (“JPF”), an investment entity that is majority-owned by Jeremy Feakins, the Company’s director, chief executive officer, and chief financial officer. The Consolidated Note was convertible to common stock at $0.025 per share, the approximate market price of the Company’s common stock as of the date of the issuance. On February 24, 2017 the Company completed an amendment with JPF to eliminate the conversion feature of the Consolidated Note. The Consolidated Note bears interest at 6% per annum and is due and payable within 90 days after demand. As of June 30, 2017, accrued but unpaid interest on the Consolidated Note was $58,667.   On March 12, 2015, the Company assigned the liabilities for unpaid salaries of two of its former officers in the amount of $213,436 to JPF. The assignment was evidenced by a consolidated promissory note dated December 31, 2014. The note does not bear any interest. On December 31, 2016, the $213,436 was reclassified to accrued expenses.   On June 23, 2015, the Company borrowed $50,000 from JPF pursuant to a promissory note. The Company received $25,000 on July 31, 2015, and the remaining $25,000 on August 18, 2015. The terms of the note are as follows: (i) interest is payable at 6% per annum; (ii) the note is payable 90 days after demand; and (iii) payee is authorized to convert part or all of the note balance and accrued interest, if any, into shares of the Company’s common stock at the rate of one share each for $0.03 of principal amount of the note. As of June 30, 2017, the outstanding balance was $50,000, plus accrued interest of $5,783.   On November 23, 2015, the Company borrowed $50,000 from JPF pursuant to a promissory note. The Company received $37,500 before December 31, 2015, and the remaining $12,500 was received after the year-end. The terms of the note are as follows: (i) interest is payable at 6% per annum; (ii) the note is payable 90 days after demand; and (iii) payee is authorized to convert part or all of the note balance and accrued interest, if any, into shares of the Company’s common stock at the rate of one share each for $0.03 of principal amount of the note. As of June 30, 2017, the outstanding balance was $50,000, plus accrued interest of $4,515.   On February 25, 2016, the Company borrowed $50,000 from JPF pursuant to a promissory note. The terms of the note are as follows: (i) interest is payable at 6% per annum; (ii) the note is payable 90 days after demand; and (iii) payee is authorized to convert part or all of the note balance and accrued interest, if any, into shares of our common stock at the rate of one share for each $0.03 of principal amount of the note. This conversion price is not required to adjust for the reverse stock split as per the note agreement. On February 24, 2017 the Company completed an amendment with JPF to eliminate the conversion feature of the note. As of June 30, 2017, the outstanding balance was $50,000, plus accrued interest of $4,103.   On May 20, 2016, the Company borrowed $50,000 from JPF pursuant to a promissory note. The terms of the note are as follows: (i) interest is payable at 6% per annum; (ii) the note is payable 90 days after demand; and (iii) the payee is authorized to convert part or all of the note balance and accrued interest, if any, into shares of our common stock at the rate of one share for each $0.03 of principal amount of the note. This conversion price is not required to adjust for the reverse stock split as per the note agreement. On February 24, 2017 the Company completed an amendment with JPF to eliminate the conversion feature of the note. As of June 30, 2017, the outstanding balance was $50,000, plus accrued interest of $3,255.   On October 20, 2016, the Company borrowed $12,500 from JPF pursuant to a promissory note. The terms of the note are as follows: (i) interest is payable at 6% per annum; (ii) the note is payable 90 days after demand; and (iii) the payee is authorized to convert part or all of the note balance and accrued interest, if any, into shares of our common stock at the rate of one share for each $0.03 of principal amount of the note. This conversion price is not required to adjust for the reverse stock split as per the note agreement. On February 24, 2017 the Company completed an amendment with JPF to eliminate the conversion feature of the note. As of June 30, 2017, the outstanding balance was $12,500, plus accrued interest of $1,047.    On October 20, 2016, the Company borrowed $12,500 from an independent director pursuant to a promissory note. The terms of the note are as follows: (i) interest is payable at 6% per annum; (ii) the note is payable 90 days after demand; and (iii) the payee is authorized to convert part or all of the note balance and accrued interest, if any, into shares of our common stock at the rate of one share for each $0.03 of principal amount of the note. This conversion price is not required to adjust for the reverse stock split as per the note agreement. As of June 30, 2017, the outstanding balance was $12,500, plus accrued interest of $904.   On October 20, 2016, the Company borrowed $25,000 from a stockholder pursuant to a promissory note. The terms of the note are as follows: (i) interest is payable at 6% per annum; (ii) the note is payable 90 days after demand; and (iii) the payee is authorized to convert part or all of the note balance and accrued interest, if any, into shares of our common stock at the rate of one share for each $0.03 of principal amount of the note. This conversion price is not required to adjust for the reverse stock split as per the note agreement. As of June 5, 2017 the noteholder converted the note principal into 1,806,298 shares common stock. As of June 30, 2017, there was an outstanding balance of accrued interest of $610.   On December 21, 2016, the Company borrowed $25,000 from JPF pursuant to a promissory note. The terms of the note are as follows: (i) interest is payable at 6% per annum; (ii) the note is payable 90 days after demand; and (iii) the payee is authorized to convert part or all of the note balance and accrued interest, if any, into shares of our common stock at the rate of one share for each $0.03 of principal amount of the note. This conversion price is not required to adjust for the reverse stock split as per the note agreement. As of June 30, 2017, the outstanding balance was $25,000, plus accrued interest of $796.   As of October 25, 2011, a loan from one economic development entity was in default. The loan principal was $50,000 with accrued interest of $16,928 as of June 30, 2017.   As of June 30, 2017, the Company was delinquent in payments on two loans to a second economic development entity. The Company owed this economic entity $94,480 in late payments, with an outstanding balance of $94,480 and accrued interest of $30,253 as of June 30, 2017. Both loans were guaranteed by two of the Company’s former officers. One loan is secured by liens on intangible software assets, and the other loan is secured by the officers’ personal property. The Company is working with this entity to bring the payments current as soon as cash flow permits.   As of June 30, 2017, the Company was delinquent in payments on a loan to a third economic development entity. The Company owed the third economic entity $85,821 in late payments, with an outstanding balance of $85,821 and accrued interest of $30,253 as of June 30, 2017. This loan is secured by a junior lien on all the Company’s assets and shares of a founder’s common stock. The Company is working with this entity to bring the payments current as soon as cash flow permits.   During 2012, we issued a note payable for $1,000,000 and three-year warrants to purchase 3,295,761 shares of common stock with an exercise price of $0.50 per share. The note had an interest rate of 10% per annum, was secured by a first lien in all of our assets and was due on February 3, 2015. We determined the warrants had a fair value of $378,500 based on the Black-Scholes option-pricing model. The fair value was recorded as a discount on the note payable and was being amortized over the life of the note. We repriced the warrants during 2013 and took an additional charge to earnings of $1,269,380 related to the repricing. The warrants were exercised upon the repricing. On February 16, 2017, the noteholder agreed to amend the note to extend the due date of the note to February 3, 2018. As of June 30, 2017, the outstanding balance was $1,000,000, plus accrued interest of $484,448.   During 2013, we issued Series B units. Each unit is comprised of a note agreement, a $50,000 promissory note that matures on September 30, 2023, and bears interest at 10% per annum payable annually in arrears, a security agreement, and a warrant to purchase 10,000 shares of common stock at an exercise price to be determined pursuant to a specified formula. During 2013, we issued $525,000 of 10% promissory notes and warrants to purchase 105,000 shares of common stock. The warrants have an expiration date of September 30, 2023. We determined the warrants had a fair value of $60,068 based on the Black-Scholes option-pricing model. As part of our agreement with the Memphis Investors, the Board repriced the warrants to $0.00 and exercised the warrants and issued shares of common stock. Accrued interest on the notes was $192,111 on June 30, 2017 and $168,934 at December 31, 2016. During 2015, one of the original noteholders transferred its ownership of the note in the amount of $50,000 to Jeremy P. Feakins & Associates LLC through the JPF Venture Fund 1, LP. During the six months ended June 30, 2017, we amortized $44,089 of debt discount.   Unsecured Debentures   During 2013, we paid cash of $10,000 and issued a note payable for $290,000 in connection with the reverse merger transaction. We repurchased and retired 7,546,464 shares of common stock simultaneously with the closing of the merger with Broad Band Network Associates. The note is unsecured and due the earlier of December 31, 2015, or upon our receiving $50,000 of proceeds from the exercise of the Class A warrants, $50,000 from the exercise of the Class B warrants, $60,000 from the exercise of the Class C warrants, $60,000 from the exercise of Class D warrants, and $70,000 from the exercise of the Class E warrants. During 2014, we paid $100,000 and during 2015, we paid $60,000, leaving a balance of $130,000. Accrued interest totaled $34,997 at June 30, 2017 and $29,769 at December 31, 2016. We have determined that no further payment of principal or interest on this note should be made because the noteholder failed to perform his underlying obligations giving rise to this note. As such, we are confident that if the not holder were to seek legal redress, a court would decide in our favor by either voiding the note or awarding damages sufficient to offset the note value.   During 2014, we issued a note payable for $2,265,000 and warrants to purchase 12,912,500 shares of common stock, with an exercise price equal to the greater of a 50% discount of the stock price when our shares are listed on a public exchange or $0.425 per share, to an entity owned by our chief executive officer, together our principal stockholders. The warrants expire one year after our shares are listed on a recognized public exchange. The unsecured note has an interest rate of 10% per annum and the balance was due on January 31, 2015. We determined the warrants had a fair value of $2,265,000 based on the Black-Scholes option-pricing model. The fair value was recorded as a discount on the note payable and is being amortized over the life of the note. As part of our agreement with the Memphis Investors, the Board repriced the warrants to $0.00 and exercised the warrants and issued shares of common stock. As of December 31, 2015, principal of $152,500 has been repaid and principal of $351,500 has been converted into 468,667 shares of common stock, leaving a note balance of $1,761,000. During 2016, a principal payment of $5,000 was made leaving a note balance of $1,756,000 at June 30, 2017. Accrued interest totaled $541,381 as of June 30, 2017 and $453,093 as of December 31, 2016. On February 16, 2017, the note holder agreed to extend the due date for the repayment of the loan and interest to the earlier of December 31, 2017, or the date of the financial closings of its Baha Mar Project (or any other project of $25 million or more), whichever occurs first.   During 2014, we issued Secured Convertible Promissory Notes (Bonds) totaling $166,800 through September 30, 2014. The bonds carry an interest rate ranging from 7.86% to 9.86% and mature on April 30, 2019 and December 31, 2019. In addition, the bondholders are entitled to convert each $1,200 bond into 1,000 shares of common stock at a price of $1.20 per share. Should our shares trade for 10 consecutive days at $1.80 per share or higher, the bonds are automatically called and converted to shares at $1.20 per share. There was no beneficial conversion on the date of grant. Accrued interest totaled $46,783 as of June 30, 2017 and $41,398 as of December 31, 2016.   During 2014, we issued a note payable of $100,000 to a related party and $200,000 to a third party, for a total of $300,000, and warrants to purchase 300,000 shares of common stock with an exercise price of $1.00 per share. As part of our agreement with the Memphis Investors, the Board repriced the warrants to $0.00 and exercised the warrants and issued shares of common stock. These unsecured notes have an interest rate of 12% per annum. The $100,000 note with a related party is due the earlier of December 26, 2015; the completion by us of an equity financing resulting in our receipt of gross proceeds of at least $2,000,000; or the financial close of the Baha Mar project and release of funds by the bank. The balance on the $200,000 note is due the earlier of March 31, 2015; the completion by us of an equity financing resulting in our receipt of gross proceeds of at least $2,000,000; or the financial close of the Baha Mar project and release of project financing funds by the bank. As of December 31, 2016, the notes are in default. Due to the delay in opening of the Baha Mar Resort, our Baha Mar SWAC Project’s financial closing was delayed causing us to default on the notes. We determined the warrants had a fair value of $85,304 based on the Black-Scholes option-pricing model. The fair value was recorded as a discount on the notes payable and is being amortized over the life of the note. We have accrued the interest at a default rate of 22%. We intend to repay the notes and accrued interest upon the project’s financial closing. Accrued interest totaled $146,395 as of June 30, 2017 and $113,119 as of December 31, 2016.   On April 7, 2015, we issued an unsecured convertible promissory note in the principal amount of $50,000 to an unrelated party. The note bears interest of 10% and is due on April 17, 2017. The note and accrued interest can be converted into our common stock at a conversion rate of $0.75 per share at any time prior to the repayment. We recorded a debt discount of $6,667 for the fair value of the beneficial conversion feature. During the six months ended June 30, 2017, we amortized $871 of debt discount. Accrued interest totaled $11,292 as of June 30, 2017 and $10,159 as of December 31, 2016.   On March 9, 2017, a private venture fund, in which our chief executive officer is an officer and director, agreed to provide up to $200,000 in working capital. The note bears interest of 10% and is due and payable with 90 days of demand. On June 30, 2017, the balance of the loan outstanding was $175,000 and the accrued interest as of that date was $5,910.   The following convertible note and notes payable were outstanding at June 30, 2017:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="5" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Related Party</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="5" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Non Related Party</td><td style="font-weight: bold; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Date of Issuance</td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Maturity Date</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Interest Rate</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Original Principal</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Principal at June 30, 2017</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Discount at June 30, 2017</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Carrying Amount at June 30, 2017</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Current</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Long-Term</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Current</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Long-Term</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 10%; text-align: center">12/12/2006</td> <td style="width: 9%; text-align: right">1/5/2013</td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">6.25%</td><td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">58,670</td><td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">16,813</td><td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">–</td><td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">16,813</td><td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">–</td><td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">–</td><td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">16,813</td><td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">–</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">12/1/2007</td> <td style="text-align: right">9/1/2015</td> <td style="text-align: left"> </td><td style="text-align: right">7.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">125,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">85,821</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">85,821</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">85,821</td><td style="text-align: left"> </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: rgb(238,238,238)"> <td style="text-align: center">9/25/2009</td> <td style="text-align: right">10/25/2011</td> <td style="text-align: left"> </td><td style="text-align: right">5.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </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="text-align: center">12/23/2009</td> <td style="text-align: right">12/23/2019</td> <td style="text-align: left"> </td><td style="text-align: right">7.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">94,480</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">94,480</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">94,480</td><td style="text-align: left"> </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: rgb(238,238,238)"> <td style="text-align: center">12/23/2009</td> <td style="text-align: right">12/23/2019</td> <td style="text-align: left"> </td><td style="text-align: right">7.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">23,619</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">23,619</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">23,619</td><td style="text-align: left"> </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="text-align: center">12/23/2009</td> <td style="text-align: right">12/23/2019</td> <td style="text-align: left"> </td><td style="text-align: right">7.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">23,619</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">23,619</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">23,619</td><td style="text-align: left"> </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: rgb(238,238,238)"> <td style="text-align: center">02/03/12</td> <td style="text-align: right">02/03/18</td> <td style="text-align: left"> </td><td style="text-align: right">10.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">1,000,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">1,000,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">1,000,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">1,000,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </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="text-align: center">08/15/13</td> <td style="text-align: right">10/31/23</td> <td style="text-align: left"> </td><td style="text-align: right">10.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">525,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">525,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">525,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">475,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: center">12/31/13</td> <td style="text-align: right">12/31/15</td> <td style="text-align: left"> </td><td style="text-align: right">8.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">290,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">130,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">130,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">130,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </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="text-align: center">04/01/14</td> <td style="text-align: right">12/31/17</td> <td style="text-align: left"> </td><td style="text-align: right">10.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">2,265,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">1,756,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">1,756,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">1,756,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </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: rgb(238,238,238)"> <td style="text-align: center">04/16/14</td> <td style="text-align: right">04/30/19</td> <td style="text-align: left"> </td><td style="text-align: right">9.86%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">6,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">6,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">6,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">6,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">05/09/14</td> <td style="text-align: right">04/30/19</td> <td style="text-align: left"> </td><td style="text-align: right">9.86%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,400</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,400</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,400</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,400</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: center">05/28/14</td> <td style="text-align: right">04/30/19</td> <td style="text-align: left"> </td><td style="text-align: right">9.86%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,200</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,200</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,200</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,200</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">07/21/14</td> <td style="text-align: right">12/31/19</td> <td style="text-align: left"> </td><td style="text-align: right">9.86%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">78,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">78,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">78,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">78,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: center">08/18/14</td> <td style="text-align: right">12/31/19</td> <td style="text-align: left"> </td><td style="text-align: right">7.86%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">7,200</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">7,200</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">7,200</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">7,200</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">12/22/14</td> <td style="text-align: right">03/31/15</td> <td style="text-align: left"> </td><td style="text-align: right">12.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">200,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">200,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">200,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">200,000</td><td style="text-align: left"> </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: rgb(238,238,238)"> <td style="text-align: center">12/26/14</td> <td style="text-align: right">12/26/15</td> <td style="text-align: left"> </td><td style="text-align: right">12.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </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="text-align: center">2/25/2015</td> <td style="text-align: right">90 days after demand</td> <td style="text-align: left"> </td><td style="text-align: right">6.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </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: rgb(238,238,238)"> <td style="text-align: center">3/19/2015</td> <td style="text-align: right">90 days after demand</td> <td style="text-align: left"> </td><td style="text-align: right">6.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">394,380</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">394,380</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">394,380</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">394,380</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </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="text-align: center">04/07/15</td> <td style="text-align: right">04/17/17</td> <td style="text-align: left"> </td><td style="text-align: right">10.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </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: rgb(238,238,238)"> <td style="text-align: center">6/23/2015</td> <td style="text-align: right">90 days after demand</td> <td style="text-align: left"> </td><td style="text-align: right">6.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </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="text-align: center">11/23/2015</td> <td style="text-align: right">90 days after demand</td> <td style="text-align: left"> </td><td style="text-align: right">6.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </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: rgb(238,238,238)"> <td style="text-align: center">5/20/2016</td> <td style="text-align: right">90 days after demand</td> <td style="text-align: left"> </td><td style="text-align: right">6.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </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="text-align: center">10/20/2016</td> <td style="text-align: right">90 days after demand</td> <td style="text-align: left"> </td><td style="text-align: right">6.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </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: rgb(238,238,238)"> <td style="text-align: center">12/21/2016</td> <td style="text-align: right">90 days after demand</td> <td style="text-align: left"> </td><td style="text-align: right">6.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </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="text-align: center">3/9/2017</td> <td style="text-align: right">90 days after demand</td> <td style="text-align: left"> </td><td style="text-align: right">10.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">200,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right; border-bottom: Black 1pt solid">175,000</td><td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">–</td><td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">175,000</td><td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">175,000</td><td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">–</td><td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">–</td><td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 2.5pt"> </td> <td style="font-weight: bold; padding-bottom: 2.5pt">Totals</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">5,041,532</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">–</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">5,041,532</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,705,380</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">50,000</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">644,352</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">641,800</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"> </td></tr> </table>   The following convertible note and notes payable were outstanding at December 31, 2016:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="5" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Related Party</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="5" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Non Related Party</td><td style="font-weight: bold; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Date of Issuance</td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Maturity Date</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Interest Rate</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Original Principal</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Principal at December 31, 2016</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Discount at December 31, 2016</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Carrying Amount at December 31, 2016</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Current</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Long-Term</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Current</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Long-Term</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 10%; text-align: center">02/03/12</td> <td style="width: 9%; text-align: right">02/03/18</td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">10.00%</td><td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">1,000,000</td><td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">1,000,000</td><td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">–</td><td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">1,000,000</td><td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">–</td><td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">1,000,000</td><td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">–</td><td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 7%; text-align: right">–</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">08/15/13</td> <td style="text-align: right">10/31/23</td> <td style="text-align: left"> </td><td style="text-align: right">10.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">525,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">525,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">44,089</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">480,911</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">45,644</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">435,267</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: center">12/31/13</td> <td style="text-align: right">12/31/15</td> <td style="text-align: left"> </td><td style="text-align: right">8.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">290,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">130,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">130,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">130,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </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="text-align: center">04/01/14</td> <td style="text-align: right">12/31/17</td> <td style="text-align: left"> </td><td style="text-align: right">10.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">2,265,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">1,756,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">1,756,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">1,756,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </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: rgb(238,238,238)"> <td style="text-align: center">04/16/14</td> <td style="text-align: right">04/30/19</td> <td style="text-align: left"> </td><td style="text-align: right">9.86%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">6,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">6,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">6,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">6,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">05/09/14</td> <td style="text-align: right">04/30/19</td> <td style="text-align: left"> </td><td style="text-align: right">9.86%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,400</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,400</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,400</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,400</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: center">05/28/14</td> <td style="text-align: right">04/30/19</td> <td style="text-align: left"> </td><td style="text-align: right">9.86%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,200</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,200</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,200</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">25,200</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">07/21/14</td> <td style="text-align: right">12/31/19</td> <td style="text-align: left"> </td><td style="text-align: right">9.86%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">78,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">78,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">78,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">78,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: center">08/18/14</td> <td style="text-align: right">12/31/19</td> <td style="text-align: left"> </td><td style="text-align: right">7.86%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">7,200</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">7,200</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">7,200</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">7,200</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center">12/22/14</td> <td style="text-align: right">03/31/15</td> <td style="text-align: left"> </td><td style="text-align: right">12.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">200,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">200,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">200,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">200,000</td><td style="text-align: left"> </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: rgb(238,238,238)"> <td style="text-align: center">12/26/14</td> <td style="text-align: right">12/26/15</td> <td style="text-align: left"> </td><td style="text-align: right">12.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </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="text-align: center">04/07/15</td> <td style="text-align: right">04/17/17</td> <td style="text-align: left"> </td><td style="text-align: right">10.00%</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td> <td style="text-align: left"> </td><td style="text-align: right; border-bottom: Black 1pt solid">50,000</td><td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">871</td><td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">49,129</td><td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">–</td><td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">–</td><td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">49,129</td><td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 2.5pt"> </td> <td style="font-weight: bold; padding-bottom: 2.5pt">Totals</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,927,800</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">44,960</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,882,840</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,886,000</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,045,644</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">349,129</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">602,067</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double"> </td></tr> </table>

Common Stock   For the six months ended June 30, 2017, individuals exercised Series D warrants to purchase 998,079 shares of common stock at a price of $0.75 per share for cash totaling $748,535. These warrants were related to BBNA merger.   For the six months ended June 30, 2017, we issued 288,000 shares of common stock for services performed with a fair value of $244,800 ($0.85 per share).   For the six months ended June 30, 2017, we issued 11,250 shares of common stock pursuant to our Private Placement Memorandum with a fair value of $45,000 ($4.00 per share).   As part of the reverse merger on May 9, 2017, 94,343,776 shares of common stock were issued to the shareholders of OTE in exchange for common stock in the merged company.   As a part of our agreement with the Memphis Investors, the Board re-priced 14,692,500 warrants and 100,000 options to $0.00 and exercised the warrants and options and issued 14,792,500 shares of common stock. These warrants had a fair value of $6,769,562. Per ASC Topic 718, this exchange is treated as a modification. The incremental value of $6,769,562 measured as the excess of the fair value of the modified award over the fair value of the original award immediately before the modification using the Black-Scoles option pricing model was expensed fully when they were exercised.   We used the following assumptions for warrants and options during the period ended June 30, 2017: <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 40%; text-align: justify">Expected volatility:</td> <td style="width: 60%; text-align: justify">77%</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify">Expected lives:</td> <td style="text-align: justify">Various (30 days – 7 years)</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify">Risk-free interest rate:</td> <td style="text-align: justify">Various (0.50%-2.27%)</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify">Expected dividend yield:</td> <td style="text-align: justify">None</td></tr> </table>     On May 8, 2017, we repurchased 148,588 shares of common stock from JPF Venture Group, Inc. (“JPF”), an investment entity that is majority-owned by Jeremy Feakins, the Company’s director, chief executive officer, and chief financial officer, for $111,440.   On May 9, 2017, the company issued 534,555 shares of common stock to the former shareholders of TetriDyn Solutions, Inc. for the assumption of $617,032 of accrued expenses and $1,015,506 of convertible notes and notes payable from related and unrelated parties. The company recorded a debit of $1,628,026 to the additional paid in capital as part of the recapitalization.   On June 5, 2017, a noteholder elected to convert a $25,000 convertible note payable for 1,806,298 shares of common stock ($0.014 per share).   Warrants and Options   The following table summarizes all warrants outstanding and exercisable for the period ended June 30, 2017:   <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 70%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center">Weighted Average</td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Warrants</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Warrants</td><td style="font-weight: bold; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Exercise Price</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 38%; text-align: justify">Balance at December 31, 2016</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: right">15,912,210</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 13%; text-align: center">$0.76</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Granted</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: center">$0.00</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify">Exercised</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(998,079</td><td style="text-align: left">)</td><td> </td> <td style="text-align: center">$0.75</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Exercised (re-priced to $0.00)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(14,692,500</td><td style="text-align: left">)</td><td> </td> <td style="text-align: center">$0.00</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt">Forfeited</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">(221,631</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Balance at June 30, 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">–</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: center; padding-bottom: 2.5pt"> </td></tr> </table>    The following table summarizes all options outstanding and exercisable for the period ended June 30, 2017:   <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 70%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center">Weighted Average</td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Options</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Options</td><td style="font-weight: bold; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Exercise Price</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 38%">Balance at December 31, 2016</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: right">100,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 13%; text-align: center">$0.75</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">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">(100,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt">$0.75</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 2.5pt">Balance at June 30, 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">–</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: center; padding-bottom: 2.5pt"> </td></tr> </table>

For the six months ended June 30, 2017, we paid rent of $35,000 to a company controlled by our chief executive officer under an operating lease agreement.   On February 16, 2017, the due date of the related party note payable in the amount of $2,265,000 issued on January 31, 2015, was extended to December 31, 2017.   On February 16, 2017, the due date of the related party note payable in the amount of $1,000,000 issued on February 3, 2012, was extended to February 3, 2018.   On March 9, 2017, we issued a promissory note payable of $200,000 to a related party in which our chief executive officer is an officer and director. The note bears interest of 10% and is due and payable within 90 days after demand. The balance outstanding on June 30, 2017, is $177,000.   On March 9, 2017, we made a repayment of due to a related party in the amount of $36,822.   On March 31, 2017, we made a repayment of note payable to a related party in the amount of $25,000. . On May 8, 2017, we repurchased shares of common stock from a related party for $111,440.   As of June 30, 2017, the Company borrowed $52,000 from JPF on a temporary basis. The loan is non-interest bearing, unsecured and due on demand.

111440

EX-101.SCH 5 cpwr-20170630.xsd XBRL SCHEMA FILE 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - Condensed Consolidated Balance Sheets (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - Condensed Consolidated Balance Sheets (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - Condensed Consolidated Statements of Operations (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - Condensed Consolidated Statements of Cash Flows (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000006 - Disclosure - 1. Source of Business and Basis of Presentation link:presentationLink link:calculationLink link:definitionLink 00000007 - Disclosure - 2. Going Concern link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - 3. Income Taxes link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - 4. Fair Value of Financial Instruments link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - 5. Net Loss Per Common Share link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - 6. Recent Accounting Pronouncements link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - 7. Business Segments link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - 8. Convertible notes and notes payable link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - 9. Stockholders' Equity link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - 10. Commitments and Contingencies link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - 12. Subsequent Events link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - 7. Business Segments (Tables) link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - 8. Notes Payable (Tables) link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - 9. Stockholders' Equity (Tables) link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - 2. Going Concern (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - 3. Income Taxes (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - 5. Net Loss Per Common Share (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - 7. Business Segments (Details) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - 8. Convertible notes and notes payable (Details) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - 9. Stockholders' Equity (Details - Warrants) link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - 9. Stockholders' Equity (Details - Options) link:presentationLink link:calculationLink link:definitionLink 00000028 - Disclosure - 9. Stockholders' Equity (Details Narrative) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 6 cpwr-20170630_cal.xml XBRL CALCULATION FILE EX-101.DEF 7 cpwr-20170630_def.xml XBRL DEFINITION FILE EX-101.LAB 8 cpwr-20170630_lab.xml XBRL LABEL FILE Antidilutive Securities [Axis] Warrants and Options Green Energy Bonds and Notes Segments [Axis] Headquarters [Member] US Territories [Member] Bahamas [Member] Other [Member] Long-term Debt, Type [Axis] Notes payable 1 [Member] Notes payable 2 [Member] Notes payable 3 [Member] Notes payable 4 [Member] Notes payable 5 [Member] Notes payable 6 [Member] Notes payable 7 [Member] Notes payable 8 [Member] Notes payable 9 [Member] Notes payable 10 [Member] Notes payable 11 [Member] Notes payable 12 [Member] Notes payable 13 [Member] Notes payable 14 [Member] Notes payable 15 [Member] Notes payable 16 [Member] Notes payable 17 [Member] Notes payable 18 [Member] Notes payable 19 [Member] Notes payable 20 [Member] Notes payable 21 [Member] Notes payable 22 [Member] Notes payable 23 [Member] Notes payable 24 [Member] Notes payable 25 [Member] Notes payable 26 [Member] Counterparty Name [Axis] Individuals [Member] Transaction Type [Axis] Stock for Services [Member] Private Placement [Member] Merger [Member] Related Party [Axis] JPF Venture Group [Member] Former Shareholders of TetriDyn [Member] Award Type [Axis] Warrants [Member] Debt Conversion Description [Axis] Convertible Note [Member] Options [Member] Company controlled by the CEO [Member] Chief Executive Officer Document and Entity Information: Entity Registrant Name Document Type Document Period End Date Trading Symbol Amendment Flag Entity Central Index Key Current Fiscal Year End Date Entity Common Stock, Shares Outstanding Entity Filer Category Entity Current Reporting Status Entity Voluntary Filers Entity Well-known Seasoned Issuer Document Fiscal Year Focus Document Fiscal Period Focus Date Formed Statement of Financial Position [Abstract] ASSETS Current Assets Cash Prepaid expenses Total Current Assets Property and Equipment Property and equipment, net Assets under construction Property and Equipment, Gross Total Assets LIABILITIES AND STOCKHOLDERS' DEFICIENCY Current Liabilities Accounts payables and accrued expense Due to related party Notes payable - related party, net Convertible notes payable -related party- net Notes payable, net Convertible notes payable - net Total Current Liabilities Notes payable - related party, net Notes payable, net Total Liabilities Commitments and Contingencies (see Note 10) Stockholders' deficiency Preferred Stock, $0.001 par value; 20,000,000 shares authorized, 0 and 0 shares issued and outstanding, respectively Common stock, $0.001 par value; 200,000,000 shares authorized, 112,625,870 and 94,343,776 shares issued and outstanding, respectively Additional paid-in capital Accumulated deficit Total Stockholders' Deficiency Total Liabilities and Stockholders' Deficit Common stock, par value Common stock, shares authorized Common stock, shares issued Common stock, shares outstanding Preferred stock, par value Preferred stock, shares authorized Preferred stock, shares issued Preferred stock, shares outstanding Income Statement [Abstract] Operating Expenses Salaries and wages Professional fees General and administrative Warrant Expense Total Operating Expenses Loss from Operations Other Expenses Interest Expense and amortization of debt discount Interest Income Total Other Expense Loss Before Income Taxes Provision for Income Taxes Net Loss Net Loss per Common Share Basic and Diluted Weighted Average Number of Common Shares Outstanding Statement of Cash Flows [Abstract] Cash Flows From Operating Activities: Net loss Adjustments to reconcile net loss to net cash used in operating activities: Depreciation Stock issued for services Warrant Expense Amortization of debt discounts Changes in assets and liabilities: Prepaid expenses Accounts payable and accrued expenses Net Cash Used In Operating Activities Cash Flow From Investing Activities: Cash acquired from TetriDyn Solutions, Inc. Assets under construction Cash paid to TetriDyn Solutions, Inc. Net Cash Used In Investing Activities Cash Flows From Financing Activities: Repayment of due to related party Repayment of notes payable - related party Proceeds from notes payable - related party Proceeds from due to related party Proceeds from issuance of common stock for cash Proceeds from stock issued for exercise of warrants Repayment of capital lease Stock repurchased from related parties Net Cash Provided by Financing Activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and Cash Equivalents at End of Period Supplemental disclosure of cash flow information Cash paid for interest expense Cash paid for income taxes Supplemental disclosure of non-cash investing and financing activities: Convertible note payable -related party converted to common stock Debt discount on related-party note payable and extension of warrants Organization, Consolidation and Presentation of Financial Statements [Abstract] Source of Business and Basis of Presentation Going Concern Income Tax Disclosure [Abstract] Income Taxes Fair Value Disclosures [Abstract] Fair Value of Financial Instruments Earnings Per Share [Abstract] Net Loss Per Common Share New Accounting Pronouncements and Changes in Accounting Principles [Abstract] Recent Accounting Pronouncements Segment Reporting [Abstract] Business Segments Debt Disclosure [Abstract] Notes Payable Disclosure Text Block [Abstract] Stockholders' Equity Commitments and Contingencies Related-party Transactions Subsequent Events Schedule of Segment Reporting Information, by Segment Schedule of Convertible Note and Notes Payable Table Text Block Supplement [Abstract] Assumptions used Schedule of Warrants Schedule of Stock Options Net Cash Used In Operating Activities Working capital (deficit) Total Stockholders' Deficiency Income Tax Expense (Benefit) Statement [Table] Statement [Line Items] Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount Revenue Assets EX-101.PRE 9 cpwr-20170630_pre.xml XBRL PRESENTATION FILE XML 10 R1.htm IDEA: XBRL DOCUMENT

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2017	Aug. 14, 2017
Document and Entity Information:
Entity Registrant Name	Ocean Thermal Energy Corp
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Trading Symbol	cpwr
Amendment Flag	false
Entity Central Index Key	0000827099
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		112,652,340
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2

XML 11 R2.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current Assets
Cash	$ 26,583	$ 7,495
Prepaid expenses	0	30,549
Total Current Assets	26,583	38,044
Property and Equipment
Property and equipment, net	1,693	2,366
Assets under construction	889,138	846,285
Property and Equipment, Gross	890,831	848,651
Total Assets	917,414	886,695
Current Liabilities
Accounts payables and accrued expense	6,757,865	5,631,270
Due to related party	52,000	36,822
Notes payable - related party, net	3,567,880	1,886,000
Convertible notes payable -related party- net	137,500	0
Notes payable, net	594,352	300,000
Convertible notes payable - net	50,000	49,129
Total Current Liabilities	11,159,597	7,903,221
Notes payable - related party, net	50,000	1,045,644
Notes payable, net	641,800	602,067
Total Liabilities	11,851,397	9,550,932
Stockholders' deficiency
Preferred Stock, $0.001 par value; 20,000,000 shares authorized, 0 and 0 shares issued and outstanding, respectively	0	0
Common stock, $0.001 par value; 200,000,000 shares authorized, 112,625,870 and 94,343,776 shares issued and outstanding, respectively	11,263	9,435
Additional paid-in capital	50,529,474	44,437,871
Accumulated deficit	(61,474,720)	(53,111,543)
Total Stockholders' Deficiency	(10,933,983)	(8,664,237)
Total Liabilities and Stockholders' Deficit	$ 917,414	$ 886,695

XML 12 R3.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	112,625,870	94,343,776
Common stock, shares outstanding	112,625,870	94,343,776
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

XML 13 R4.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Operating Expenses
Salaries and wages	$ 296,339	$ 292,668	$ 553,827	$ 624,779
Professional fees	150,977	206,427	503,773	461,678
General and administrative	174,609	115,299	252,955	222,271
Warrant Expense	0	0	6,769,562	0
Total Operating Expenses	621,925	614,394	8,080,117	1,308,728
Loss from Operations	(621,925)	(614,394)	(8,080,117)	(1,308,728)
Other Expenses
Interest Expense and amortization of debt discount	(175,577)	(384,082)	(283,094)	(706,280)
Interest Income	34	0	34	0
Total Other Expense	(175,543)	(384,082)	(283,060)	(706,280)
Loss Before Income Taxes	(797,468)	(998,476)	(8,363,177)	(2,015,008)
Provision for Income Taxes	0	0	0	0
Net Loss	$ (797,468)	$ (998,476)	$ (8,363,177)	$ (2,015,008)
Net Loss per Common Share Basic and Diluted	$ (0.01)	$ (0.01)	$ (0.08)	$ (0.02)
Weighted Average Number of Common Shares Outstanding	111,149,698	82,977,921	107,689,883	82,816,924

XML 14 R5.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash Flows From Operating Activities:
Net loss	$ (8,363,177)	$ (2,015,008)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	673	3,057
Stock issued for services	244,800	179,000
Warrant Expense	6,769,562	0
Amortization of debt discounts	44,960	419,478
Changes in assets and liabilities:
Prepaid expenses	30,549	(18,632)
Accounts payable and accrued expenses	509,562	611,905
Net Cash Used In Operating Activities	(763,071)	(820,200)
Cash Flow From Investing Activities:
Cash acquired from TetriDyn Solutions, Inc.	4,512	0
Assets under construction	(42,853)	(37,500)
Cash paid to TetriDyn Solutions, Inc.	(49,773)	0
Net Cash Used In Investing Activities	(88,114)	(37,500)
Cash Flows From Financing Activities:
Repayment of due to related party	(36,822)	0
Repayment of notes payable - related party	(25,000)	(5,000)
Proceeds from notes payable - related party	200,000	609,500
Proceeds from due to related party	50,000	0
Proceeds from issuance of common stock for cash	45,000	165,000
Proceeds from stock issued for exercise of warrants	748,535	0
Repayment of capital lease	0	(2,530)
Stock repurchased from related parties	(111,440)	0
Net Cash Provided by Financing Activities	870,273	766,970
Net increase (decrease) in cash and cash equivalents	19,088	(90,730)
Cash and cash equivalents at beginning of year	7,495	125,029
Cash and Cash Equivalents at End of Period	26,583	34,299
Supplemental disclosure of cash flow information
Cash paid for interest expense	13,160	2,732
Cash paid for income taxes	0	0
Supplemental disclosure of non-cash investing and financing activities:
Convertible note payable -related party converted to common stock	25,000	0
Debt discount on related-party note payable and extension of warrants	$ 0	$ 619,084

XML 15 R6.htm IDEA: XBRL DOCUMENT

1. Source of Business and Basis of Presentation

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Source of Business and Basis of Presentation

Note 1: Source of Business and Basis of Presentation

An amendment to our Articles of Incorporation, as amended, to effect a change in the Company’s name from TetriDyn Solutions, Inc. to Ocean Thermal Energy Corporation;

An amendment to our Articles of Incorporation, as amended, to effect an increase in our authorized shares of common stock from 400,000 to 200,000,000; and

An amendment to our Articles of Incorporation, as amended, to effect a forward stock split of the issued and outstanding shares of common stock of the Company on an approximately 2.1676-for-1 basis.

For accounting purposes, this transaction is being accounted for as a merger of entities under common control and has been treated as a recapitalization of Tetridyn Solutions, Inc. with Ocean Thermal Energy Corporation. as the accounting acquirer. The historical financial statements of the accounting acquirer became the financial statements of the Company. The Company did not recognize goodwill or any intangible assets in connection with the transaction. The 110,273,767 shares issued to the shareholder of OTE in conjunction with the share exchange transaction has been presented as outstanding for all periods. The historical financial statements include the operations of the accounting acquirer for all periods presented and the accounting acquiree for the period from May 9, 2017 through June 30, 2014. The Company’s accounting year end is December 31, which was the year end of Ocean Thermal Energy Corporation.

XML 16 R7.htm IDEA: XBRL DOCUMENT

2. Going Concern

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Going Concern

Note 2: Going Concern

XML 17 R8.htm IDEA: XBRL DOCUMENT

3. Income Taxes

6 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Note 3: Income Taxes

XML 18 R9.htm IDEA: XBRL DOCUMENT

4. Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note 4: Fair Value of Financial Instruments

Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.

Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

XML 19 R10.htm IDEA: XBRL DOCUMENT

5. Net Loss Per Common Share

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Net Loss Per Common Share

Note 5: Net Loss per Common Share

XML 20 R11.htm IDEA: XBRL DOCUMENT

6. Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2017

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent Accounting Pronouncements

Note 6: Recent Accounting Pronouncements

XML 21 R12.htm IDEA: XBRL DOCUMENT

7. Business Segments

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Business Segments

Note 7: Business Segments

Reportable business segment information for the six months ended June 30, 2017, and June 30, 2016, is as follows:

June 30, 2017
	Headquarters			US Territories		Bahamas		Other		Total
Revenue	$	–		$	–	$	–	$	–	$	–
Assets		28,276			840,140		–		48,998		917,414
Net loss		(8,363,177	)		–		–		–		(8,363,177	)
Property and equipment		1,693			–		–		–		1,693
Assets under construction		–			840,140		–		48,998		889,138
Depreciation		673			–		–		–		673
Additions to assets under construction		–			42,853		–		–		42,853

June 30, 2016
	Headquarters			US Territories		Bahamas		Other		Total
Revenue	$	–		$	–	$	–	$	–	$	–
Assets		90,212			715,064		244,285		48,998		1,098,559
Net loss		(2,015,008	)		–		–		–		(2,015,008	)
Property and equipment		3,516			–		–		–		3,516
Assets under construction		–			715,064		244,285		48,998		1,008,347
Depreciation		3,057			–		–		–		3,057
Additions to assets under construction		–			37,500		–		–		37,500

XML 22 R13.htm IDEA: XBRL DOCUMENT

8. Convertible notes and notes payable

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Notes Payable

As of October 25, 2011, a loan from one economic development entity was in default. The loan principal was $50,000 with accrued interest of $16,928 as of June 30, 2017.

Unsecured Debentures

The following convertible note and notes payable were outstanding at June 30, 2017:

												Related Party				Non Related Party
Date of Issuance	Maturity Date	Interest Rate		Original Principal		Principal at June 30, 2017		Discount at June 30, 2017		Carrying Amount at June 30, 2017		Current		Long-Term		Current		Long-Term
12/12/2006	1/5/2013		6.25%		58,670		16,813		–		16,813		–		–		16,813		–
12/1/2007	9/1/2015		7.00%		125,000		85,821		–		85,821		–		–		85,821		–
9/25/2009	10/25/2011		5.00%		50,000		50,000		–		50,000		–		–		50,000		–
12/23/2009	12/23/2019		7.00%		100,000		94,480		–		94,480		–		–		94,480		–
12/23/2009	12/23/2019		7.00%		25,000		23,619		–		23,619		–		–		23,619		–
12/23/2009	12/23/2019		7.00%		25,000		23,619		–		23,619		–		–		23,619		–
02/03/12	02/03/18		10.00%		1,000,000		1,000,000		–		1,000,000		1,000,000		–		–		–
08/15/13	10/31/23		10.00%		525,000		525,000		–		525,000		–		50,000		–		475,000
12/31/13	12/31/15		8.00%		290,000		130,000		–		130,000		130,000		–		–		–
04/01/14	12/31/17		10.00%		2,265,000		1,756,000		–		1,756,000		1,756,000		–		–		–
04/16/14	04/30/19		9.86%		6,000		6,000		–		6,000		–		–		–		6,000
05/09/14	04/30/19		9.86%		50,400		50,400		–		50,400		–		–		–		50,400
05/28/14	04/30/19		9.86%		25,200		25,200		–		25,200		–		–		–		25,200
07/21/14	12/31/19		9.86%		78,000		78,000		–		78,000		–		–		–		78,000
08/18/14	12/31/19		7.86%		7,200		7,200		–		7,200		–		–		–		7,200
12/22/14	03/31/15		12.00%		200,000		200,000		–		200,000		–		–		200,000		–
12/26/14	12/26/15		12.00%		100,000		100,000		–		100,000		–		–		100,000		–
2/25/2015	90 days after demand		6.00%		50,000		50,000		–		50,000		50,000		–		–		–
3/19/2015	90 days after demand		6.00%		394,380		394,380		–		394,380		394,380		–		–		–
04/07/15	04/17/17		10.00%		50,000		50,000		–		50,000		–		–		50,000		–
6/23/2015	90 days after demand		6.00%		50,000		50,000		–		50,000		50,000		–		–		–
11/23/2015	90 days after demand		6.00%		50,000		50,000		–		50,000		50,000		–		–		–
5/20/2016	90 days after demand		6.00%		50,000		50,000		–		50,000		50,000		–		–		–
10/20/2016	90 days after demand		6.00%		50,000		25,000		–		25,000		25,000		–		–		–
12/21/2016	90 days after demand		6.00%		25,000		25,000		–		25,000		25,000		–		–		–
3/9/2017	90 days after demand		10.00%		200,000		175,000		–		175,000		175,000		–		–		–
	Totals						5,041,532		–		5,041,532		3,705,380		50,000		644,352		641,800

The following convertible note and notes payable were outstanding at December 31, 2016:

												Related Party				Non Related Party
Date of Issuance	Maturity Date	Interest Rate		Original Principal		Principal at December 31, 2016		Discount at December 31, 2016		Carrying Amount at December 31, 2016		Current		Long-Term		Current		Long-Term
02/03/12	02/03/18		10.00%		1,000,000		1,000,000		–		1,000,000		–		1,000,000		–		–
08/15/13	10/31/23		10.00%		525,000		525,000		44,089		480,911		–		45,644		–		435,267
12/31/13	12/31/15		8.00%		290,000		130,000		–		130,000		130,000		–		–		–
04/01/14	12/31/17		10.00%		2,265,000		1,756,000		–		1,756,000		1,756,000		–		–		–
04/16/14	04/30/19		9.86%		6,000		6,000		–		6,000		–		–		–		6,000
05/09/14	04/30/19		9.86%		50,400		50,400		–		50,400		–		–		–		50,400
05/28/14	04/30/19		9.86%		25,200		25,200		–		25,200		–		–		–		25,200
07/21/14	12/31/19		9.86%		78,000		78,000		–		78,000		–		–		–		78,000
08/18/14	12/31/19		7.86%		7,200		7,200		–		7,200		–		–		–		7,200
12/22/14	03/31/15		12.00%		200,000		200,000		–		200,000		–		–		200,000		–
12/26/14	12/26/15		12.00%		100,000		100,000		–		100,000		–		–		100,000		–
04/07/15	04/17/17		10.00%		50,000		50,000		871		49,129		–		–		49,129		–
	Totals						3,927,800		44,960		3,882,840		1,886,000		1,045,644		349,129		602,067

XML 23 R14.htm IDEA: XBRL DOCUMENT

9. Stockholders' Equity

6 Months Ended

Jun. 30, 2017

Disclosure Text Block [Abstract]

Stockholders' Equity

Common Stock

For the six months ended June 30, 2017, we issued 288,000 shares of common stock for services performed with a fair value of $244,800 ($0.85 per share).

For the six months ended June 30, 2017, we issued 11,250 shares of common stock pursuant to our Private Placement Memorandum with a fair value of $45,000 ($4.00 per share).

As part of the reverse merger on May 9, 2017, 94,343,776 shares of common stock were issued to the shareholders of OTE in exchange for common stock in the merged company.

We used the following assumptions for warrants and options during the period ended June 30, 2017:

Expected volatility:	77%
Expected lives:	Various (30 days – 7 years)
Risk-free interest rate:	Various (0.50%-2.27%)
Expected dividend yield:	None

On June 5, 2017, a noteholder elected to convert a $25,000 convertible note payable for 1,806,298 shares of common stock ($0.014 per share).

Warrants and Options

The following table summarizes all warrants outstanding and exercisable for the period ended June 30, 2017:

	Number of			Weighted Average
Warrants	Warrants			Exercise Price
Balance at December 31, 2016		15,912,210		$0.76
Granted		–		$0.00
Exercised		(998,079	)	$0.75
Exercised (re-priced to $0.00)		(14,692,500	)	$0.00
Forfeited		(221,631	)
Balance at June 30, 2017		–

The following table summarizes all options outstanding and exercisable for the period ended June 30, 2017:

	Number of			Weighted Average
Options	Options			Exercise Price
Balance at December 31, 2016		100,000		$0.75
Exercised		(100,000	)	$0.75
Balance at June 30, 2017		–

XML 24 R15.htm IDEA: XBRL DOCUMENT

10. Commitments and Contingencies

6 Months Ended

Jun. 30, 2017

Disclosure Text Block [Abstract]

Commitments and Contingencies

Note 10: Commitments and Contingencies

Litigation

XML 25 R16.htm IDEA: XBRL DOCUMENT

11. Related-party Transactions

6 Months Ended

Jun. 30, 2017

Disclosure Text Block [Abstract]

Related-party Transactions

For the six months ended June 30, 2017, we paid rent of $35,000 to a company controlled by our chief executive officer under an operating lease agreement.

On February 16, 2017, the due date of the related party note payable in the amount of $2,265,000 issued on January 31, 2015, was extended to December 31, 2017.

On February 16, 2017, the due date of the related party note payable in the amount of $1,000,000 issued on February 3, 2012, was extended to February 3, 2018.

On March 9, 2017, we made a repayment of due to a related party in the amount of $36,822.

On March 31, 2017, we made a repayment of note payable to a related party in the amount of $25,000.

On May 8, 2017, we repurchased shares of common stock from a related party for $111,440.

As of June 30, 2017, the Company borrowed $52,000 from JPF on a temporary basis. The loan is non-interest bearing, unsecured and due on demand.

XML 26 R17.htm IDEA: XBRL DOCUMENT

12. Subsequent Events

6 Months Ended

Jun. 30, 2017

Disclosure Text Block [Abstract]

Subsequent Events

Note 12: Subsequent Events

On July 18, 2017, we issued 26,470 shares of common stock to our investor relations firm pursuant to the terms of a consulting agreement dated April 3, 2017.

XML 27 R18.htm IDEA: XBRL DOCUMENT

7. Business Segments (Tables)

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Reportable business segment information for the six months ended June 30, 2017, and June 30, 2016, is as follows:

June 30, 2017
	Headquarters			US Territories		Bahamas		Other		Total
Revenue	$	–		$	–	$	–	$	–	$	–
Assets		28,276			840,140		–		48,998		917,414
Net loss		(8,363,177	)		–		–		–		(8,363,177	)
Property and equipment		1,693			–		–		–		1,693
Assets under construction		–			840,140		–		48,998		889,138
Depreciation		673			–		–		–		673
Additions to assets under construction		–			42,853		–		–		42,853

June 30, 2016
	Headquarters			US Territories		Bahamas		Other		Total
Revenue	$	–		$	–	$	–	$	–	$	–
Assets		90,212			715,064		244,285		48,998		1,098,559
Net loss		(2,015,008	)		–		–		–		(2,015,008	)
Property and equipment		3,516			–		–		–		3,516
Assets under construction		–			715,064		244,285		48,998		1,008,347
Depreciation		3,057			–		–		–		3,057
Additions to assets under construction		–			37,500		–		–		37,500

XML 28 R19.htm IDEA: XBRL DOCUMENT

8. Notes Payable (Tables)

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Schedule of Convertible Note and Notes Payable

The following convertible note and notes payable were outstanding at June 30, 2017:

												Related Party				Non Related Party
Date of Issuance	Maturity Date	Interest Rate		Original Principal		Principal at June 30, 2017		Discount at June 30, 2017		Carrying Amount at June 30, 2017		Current		Long-Term		Current		Long-Term
12/12/2006	1/5/2013		6.25%		58,670		16,813		–		16,813		–		–		16,813		–
12/1/2007	9/1/2015		7.00%		125,000		85,821		–		85,821		–		–		85,821		–
9/25/2009	10/25/2011		5.00%		50,000		50,000		–		50,000		–		–		50,000		–
12/23/2009	12/23/2019		7.00%		100,000		94,480		–		94,480		–		–		94,480		–
12/23/2009	12/23/2019		7.00%		25,000		23,619		–		23,619		–		–		23,619		–
12/23/2009	12/23/2019		7.00%		25,000		23,619		–		23,619		–		–		23,619		–
02/03/12	02/03/18		10.00%		1,000,000		1,000,000		–		1,000,000		1,000,000				–		–
08/15/13	10/31/23		10.00%		525,000		525,000		–		525,000		–		50,000		–		475,000
12/31/13	12/31/15		8.00%		290,000		130,000		–		130,000		130,000		–		–		–
04/01/14	12/31/17		10.00%		2,265,000		1,756,000		–		1,756,000		1,756,000		–		–		–
04/16/14	04/30/19		9.86%		6,000		6,000		–		6,000		–		–		–		6,000
05/09/14	04/30/19		9.86%		50,400		50,400		–		50,400		–		–		–		50,400
05/28/14	04/30/19		9.86%		25,200		25,200		–		25,200		–		–		–		25,200
07/21/14	12/31/19		9.86%		78,000		78,000		–		78,000		–		–		–		78,000
08/18/14	12/31/19		7.86%		7,200		7,200		–		7,200		–		–		–		7,200
12/22/14	03/31/15		12.00%		200,000		200,000		–		200,000		–		–		200,000		–
12/26/14	12/26/15		12.00%		100,000		100,000		–		100,000		–		–		100,000		–
2/25/2015	90 days after demand		6.00%		50,000		50,000		–		50,000		50,000		–		–		–
3/19/2015	90 days after demand		6.00%		394,380		394,380		–		394,380		394,380		–		–		–
04/07/15	04/17/17		10.00%		50,000		50,000		–		50,000		–		–		50,000		–
6/23/2015	90 days after demand		6.00%		50,000		50,000		–		50,000		50,000		–		–		–
11/23/2015	90 days after demand		6.00%		50,000		50,000		–		50,000		50,000		–		–		–
5/20/2016	90 days after demand		6.00%		50,000		50,000		–		50,000		50,000		–		–		–
10/20/2016	90 days after demand		6.00%		50,000		25,000		–		25,000		25,000		–		–		–
12/21/2016	90 days after demand		6.00%		25,000		25,000		–		25,000		25,000		–		–		–
3/9/2017	90 days after demand		10.00%		200,000		175,000		–		175,000		175,000		–		–		–
	Totals						5,041,532		–		5,041,532		3,705,380		50,000		644,352		641,800

The following convertible note and notes payable were outstanding at December 31, 2016:

												Related Party				Non Related Party
Date of Issuance	Maturity Date	Interest Rate		Original Principal		Principal at December 31, 2016		Discount at December 31, 2016		Carrying Amount at December 31, 2016		Current		Long-Term		Current		Long-Term
02/03/12	02/03/18		10.00%		1,000,000		1,000,000		–		1,000,000		–		1,000,000		–		–
08/15/13	10/31/23		10.00%		525,000		525,000		44,089		480,911		–		45,644		–		435,267
12/31/13	12/31/15		8.00%		290,000		130,000		–		130,000		130,000		–		–		–
04/01/14	12/31/17		10.00%		2,265,000		1,756,000		–		1,756,000		1,756,000		–		–		–
04/16/14	04/30/19		9.86%		6,000		6,000		–		6,000		–		–		–		6,000
05/09/14	04/30/19		9.86%		50,400		50,400		–		50,400		–		–		–		50,400
05/28/14	04/30/19		9.86%		25,200		25,200		–		25,200		–		–		–		25,200
07/21/14	12/31/19		9.86%		78,000		78,000		–		78,000		–		–		–		78,000
08/18/14	12/31/19		7.86%		7,200		7,200		–		7,200		–		–		–		7,200
12/22/14	03/31/15		12.00%		200,000		200,000		–		200,000		–		–		200,000		–
12/26/14	12/26/15		12.00%		100,000		100,000		–		100,000		–		–		100,000		–
04/07/15	04/17/17		10.00%		50,000		50,000		871		49,129		–		–		49,129		–
	Totals						3,927,800		44,960		3,882,840		1,886,000		1,045,644		349,129		602,067

XML 29 R20.htm IDEA: XBRL DOCUMENT

9. Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2017

Table Text Block Supplement [Abstract]

Assumptions used

We used the following assumptions for warrants and options during the period ended June 30, 2017:

Expected volatility:	77%
Expected lives:	Various (30 days – 7 years)
Risk-free interest rate:	Various (0.50%-2.27%)
Expected dividend yield:	None

Schedule of Warrants

The following table summarizes all warrants outstanding and exercisable for the period ended June 30, 2017:

	Number of			Weighted Average
Warrants	Warrants			Exercise Price
Balance at December 31, 2016		15,912,210		$0.76
Granted		–		$0.00
Exercised		(998,079	)	$0.75
Exercised (re-priced to $0.00)		(14,692,500	)	$0.00
Forfeited		(221,631	)
Balance at June 30, 2017		–

Schedule of Stock Options

The following table summarizes all options outstanding and exercisable for the period ended June 30, 2017:

	Number of			Weighted Average
Options	Options			Exercise Price
Balance at December 31, 2016		100,000		$0.75
Exercised		(100,000	)	$0.75
Balance at June 30, 2017		–

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

XML 30 R21.htm IDEA: XBRL DOCUMENT

2. Going Concern (Details Narrative) - USD ($)	6 Months Ended
2. Going Concern (Details Narrative) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ (8,363,177)	$ (2,015,008)
Net Cash Used In Operating Activities	(763,071)	$ (820,200)
Working capital (deficit)	(11,133,014)
Total Stockholders' Deficiency	$ (10,933,983)		$ (8,664,237)

XML 31 R22.htm IDEA: XBRL DOCUMENT

3. Income Taxes (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
3. Income Taxes (Details Narrative) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Tax Expense (Benefit)	$ 0	$ 0	$ 0	$ 0

XML 32 R23.htm IDEA: XBRL DOCUMENT

5. Net Loss Per Common Share (Details Narrative) - shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Warrants and Options
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	25,517,876
Green Energy Bonds and Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	5,322,274	205,667

XML 33 R24.htm IDEA: XBRL DOCUMENT

7. Business Segments (Details) - USD ($)	6 Months Ended
7. Business Segments (Details) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Revenue	$ 0	$ 0
Assets	917,414	1,098,559	$ 886,695
Net loss	(8,363,177)	(2,015,008)
Property and equipment	1,693	3,516	2,366
Assets under construction	889,138	1,008,347	$ 846,285
Depreciation	673	3,057
Additions to assets under construction	42,853	37,500
Headquarters [Member]
Revenue	0	0
Assets	28,276	90,212
Net loss	(8,363,177)	(2,015,008)
Property and equipment	1,693	3,516
Assets under construction	0	0
Depreciation	0	3,057
Additions to assets under construction	0	0
US Territories [Member]
Revenue	0	0
Assets	840,140	715,064
Net loss	0	0
Property and equipment	0	0
Assets under construction	840,140	715,064
Depreciation	0	0
Additions to assets under construction	42,853	37,500
Bahamas [Member]
Revenue	0	0
Assets	0	244,285
Net loss	0	0
Property and equipment	0	0
Assets under construction	0	244,285
Depreciation	0	0
Additions to assets under construction	0	0
Other [Member]
Revenue	0	0
Assets	48,998	48,998
Net loss	0	0
Property and equipment	0	0
Assets under construction	48,998	48,998
Depreciation	0	0
Additions to assets under construction	$ 0	$ 0

XML 34 R25.htm IDEA: XBRL DOCUMENT

8. Convertible notes and notes payable (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Notes payable 1 [Member]
Debt issuance date	Dec. 12, 2006
Debt maturity date	Jan. 05, 2013
Debt stated interest rate	6.25%
Debt original principal	$ 58,670
Debt amount at period end	16,813
Unamortized discount	0
Carrying amount at period end	16,813
Debt related party current	0
Debt related party noncurrent	0
Debt current	16,813
Debt noncurrent	$ 0
Notes payable 2 [Member]
Debt issuance date	Dec. 01, 2007
Debt maturity date	Sep. 01, 2015
Debt stated interest rate	7.00%
Debt original principal	$ 125,000
Debt amount at period end	85,821
Unamortized discount	0
Carrying amount at period end	85,821
Debt related party current	0
Debt related party noncurrent	0
Debt current	85,821
Debt noncurrent	$ 0
Notes payable 3 [Member]
Debt issuance date	Sep. 25, 2009
Debt maturity date	Oct. 25, 2011
Debt stated interest rate	5.00%
Debt original principal	$ 50,000
Debt amount at period end	50,000
Unamortized discount	0
Carrying amount at period end	50,000
Debt related party current	0
Debt related party noncurrent	0
Debt current	50,000
Debt noncurrent	$ 0
Notes payable 4 [Member]
Debt issuance date	Dec. 23, 2009
Debt maturity date	Dec. 23, 2019
Debt stated interest rate	7.00%
Debt original principal	$ 100,000
Debt amount at period end	94,480
Unamortized discount	0
Carrying amount at period end	94,480
Debt related party current	0
Debt related party noncurrent	0
Debt current	94,480
Debt noncurrent	$ 0
Notes payable 5 [Member]
Debt issuance date	Dec. 23, 2009
Debt maturity date	Dec. 23, 2019
Debt stated interest rate	7.00%
Debt original principal	$ 25,000
Debt amount at period end	23,619
Unamortized discount	0
Carrying amount at period end	23,619
Debt related party current	0
Debt related party noncurrent	0
Debt current	23,619
Debt noncurrent	$ 0
Notes payable 6 [Member]
Debt issuance date	Dec. 23, 2009
Debt maturity date	Dec. 23, 2019
Debt stated interest rate	7.00%
Debt original principal	$ 25,000
Debt amount at period end	23,619
Unamortized discount	0
Carrying amount at period end	23,619
Debt related party current	0
Debt related party noncurrent	0
Debt current	23,619
Debt noncurrent	$ 0
Notes payable 7 [Member]
Debt issuance date	Feb. 03, 2012	Feb. 03, 2012
Debt maturity date	Feb. 03, 2018	Feb. 03, 2018
Debt stated interest rate	10.00%	10.00%
Debt original principal	$ 1,000,000	$ 1,000,000
Debt amount at period end	1,000,000	1,000,000
Unamortized discount	0	0
Carrying amount at period end	1,000,000	1,000,000
Debt related party current	1,000,000	0
Debt related party noncurrent	0	1,000,000
Debt current	0	0
Debt noncurrent	$ 0	$ 0
Notes payable 8 [Member]
Debt issuance date	Aug. 15, 2013	Aug. 15, 2013
Debt maturity date	Oct. 31, 2023	Oct. 31, 2023
Debt stated interest rate	10.00%	10.00%
Debt original principal	$ 525,000	$ 525,000
Debt amount at period end	525,000	525,000
Unamortized discount	0	44,089
Carrying amount at period end	525,000	480,911
Debt related party current	0	0
Debt related party noncurrent	50,000	45,644
Debt current	0	0
Debt noncurrent	$ 475,000	$ 435,267
Notes payable 9 [Member]
Debt issuance date	Dec. 31, 2013	Dec. 31, 2013
Debt maturity date	Dec. 31, 2015	Dec. 31, 2015
Debt stated interest rate	8.00%	8.00%
Debt original principal	$ 290,000	$ 290,000
Debt amount at period end	130,000	130,000
Unamortized discount	0	0
Carrying amount at period end	130,000	130,000
Debt related party current	130,000	130,000
Debt related party noncurrent	0	0
Debt current	0	0
Debt noncurrent	$ 0	$ 0
Notes payable 10 [Member]
Debt issuance date	Apr. 01, 2014	Apr. 01, 2014
Debt maturity date	Dec. 31, 2017	Dec. 31, 2017
Debt stated interest rate	10.00%	10.00%
Debt original principal	$ 2,265,000	$ 2,265,000
Debt amount at period end	1,756,000	1,756,000
Unamortized discount	0	0
Carrying amount at period end	1,756,000	1,756,000
Debt related party current	1,756,000	1,756,000
Debt related party noncurrent	0	0
Debt current	0	0
Debt noncurrent	$ 0	$ 0
Notes payable 11 [Member]
Debt issuance date	Apr. 16, 2014	Apr. 16, 2014
Debt maturity date	Apr. 30, 2019	Apr. 30, 2019
Debt stated interest rate	9.86%	9.86%
Debt original principal	$ 6,000	$ 6,000
Debt amount at period end	6,000	6,000
Unamortized discount	0	0
Carrying amount at period end	6,000	6,000
Debt related party current	0	0
Debt related party noncurrent	0	0
Debt current	0	0
Debt noncurrent	$ 6,000	$ 6,000
Notes payable 12 [Member]
Debt issuance date	May 09, 2014	May 09, 2014
Debt maturity date	Apr. 30, 2019	Apr. 30, 2019
Debt stated interest rate	9.86%	9.86%
Debt original principal	$ 50,400	$ 50,400
Debt amount at period end	50,400	50,400
Unamortized discount	0	0
Carrying amount at period end	50,400	50,400
Debt related party current	0	0
Debt related party noncurrent	0	0
Debt current	0	0
Debt noncurrent	$ 50,400	$ 50,400
Notes payable 13 [Member]
Debt issuance date	May 28, 2014	May 28, 2014
Debt maturity date	Apr. 30, 2019	Apr. 30, 2019
Debt stated interest rate	9.86%	9.86%
Debt original principal	$ 25,200	$ 25,200
Debt amount at period end	25,200	25,200
Unamortized discount	0	0
Carrying amount at period end	25,200	25,200
Debt related party current	0	0
Debt related party noncurrent	0	0
Debt current	0	0
Debt noncurrent	$ 25,200	$ 25,200
Notes payable 14 [Member]
Debt issuance date	Jul. 21, 2014	Jul. 21, 2014
Debt maturity date	Dec. 31, 2019	Dec. 31, 2019
Debt stated interest rate	9.86%	9.86%
Debt original principal	$ 78,000	$ 78,000
Debt amount at period end	78,000	78,000
Unamortized discount	0	0
Carrying amount at period end	78,000	78,000
Debt related party current	0	0
Debt related party noncurrent	0	0
Debt current	0	0
Debt noncurrent	$ 78,000	$ 78,000
Notes payable 15 [Member]
Debt issuance date	Aug. 18, 2014	Aug. 18, 2014
Debt maturity date	Dec. 31, 2019	Dec. 31, 2019
Debt stated interest rate	7.86%	7.86%
Debt original principal	$ 7,200	$ 7,200
Debt amount at period end	7,200	7,200
Unamortized discount	0	0
Carrying amount at period end	7,200	7,200
Debt related party current	0	0
Debt related party noncurrent	0	0
Debt current	0	0
Debt noncurrent	$ 7,200	$ 7,200
Notes payable 16 [Member]
Debt issuance date	Dec. 22, 2014	Dec. 22, 2014
Debt maturity date	Mar. 31, 2015	Mar. 31, 2015
Debt stated interest rate	12.00%	12.00%
Debt original principal	$ 200,000	$ 200,000
Debt amount at period end	200,000	200,000
Unamortized discount	0	0
Carrying amount at period end	200,000	200,000
Debt related party current	0	0
Debt related party noncurrent	0	0
Debt current	200,000	200,000
Debt noncurrent	$ 0	$ 0
Notes payable 17 [Member]
Debt issuance date	Dec. 26, 2014	Dec. 26, 2014
Debt maturity date	Dec. 26, 2015	Dec. 26, 2015
Debt stated interest rate	12.00%	12.00%
Debt original principal	$ 100,000	$ 100,000
Debt amount at period end	100,000	100,000
Unamortized discount	0	0
Carrying amount at period end	100,000	100,000
Debt related party current	0	0
Debt related party noncurrent	0	0
Debt current	100,000	100,000
Debt noncurrent	$ 0	$ 0
Notes payable 18 [Member]
Debt issuance date	Feb. 25, 2015
Debt maturity date	90 days after demand
Debt stated interest rate	6.00%
Debt original principal	$ 50,000
Debt amount at period end	50,000
Unamortized discount	0
Carrying amount at period end	50,000
Debt related party current	50,000
Debt related party noncurrent	0
Debt current	0
Debt noncurrent	$ 0
Notes payable 19 [Member]
Debt issuance date	Mar. 19, 2015
Debt maturity date	90 days after demand
Debt stated interest rate	6.00%
Debt original principal	$ 394,380
Debt amount at period end	394,380
Unamortized discount	0
Carrying amount at period end	394,380
Debt related party current	394,380
Debt related party noncurrent	0
Debt current	0
Debt noncurrent	$ 0
Notes payable 20 [Member]
Debt issuance date	Apr. 07, 2015	Apr. 07, 2015
Debt maturity date	Apr. 17, 2017	Apr. 17, 2017
Debt stated interest rate	10.00%	10.00%
Debt original principal	$ 50,000	$ 50,000
Debt amount at period end	50,000	50,000
Unamortized discount	0	871
Carrying amount at period end	50,000	49,129
Debt related party current	0	0
Debt related party noncurrent	0	0
Debt current	50,000	49,129
Debt noncurrent	$ 0	$ 0
Notes payable 21 [Member]
Debt issuance date	Jun. 23, 2015
Debt maturity date	90 days after demand
Debt stated interest rate	6.00%
Debt original principal	$ 50,000
Debt amount at period end	50,000
Unamortized discount	0
Carrying amount at period end	50,000
Debt related party current	50,000
Debt related party noncurrent	0
Debt current	0
Debt noncurrent	$ 0
Notes payable 22 [Member]
Debt issuance date	Nov. 23, 2015
Debt maturity date	90 days after demand
Debt stated interest rate	6.00%
Debt original principal	$ 50,000
Debt amount at period end	50,000
Unamortized discount	0
Carrying amount at period end	50,000
Debt related party current	50,000
Debt related party noncurrent	0
Debt current	0
Debt noncurrent	$ 0
Notes payable 23 [Member]
Debt issuance date	May 20, 2016
Debt maturity date	90 days after demand
Debt stated interest rate	6.00%
Debt original principal	$ 50,000
Debt amount at period end	50,000
Unamortized discount	0
Carrying amount at period end	50,000
Debt related party current	50,000
Debt related party noncurrent	0
Debt current	0
Debt noncurrent	$ 0
Notes payable 24 [Member]
Debt issuance date	Oct. 20, 2016
Debt maturity date	90 days after demand
Debt stated interest rate	6.00%
Debt original principal	$ 50,000
Debt amount at period end	25,000
Unamortized discount	0
Carrying amount at period end	25,000
Debt related party current	25,000
Debt related party noncurrent	0
Debt current	0
Debt noncurrent	$ 0
Notes payable 25 [Member]
Debt issuance date	Dec. 21, 2016
Debt maturity date	90 days after demand
Debt stated interest rate	6.00%
Debt original principal	$ 25,000
Debt amount at period end	25,000
Unamortized discount	0
Carrying amount at period end	25,000
Debt related party current	25,000
Debt related party noncurrent	0
Debt current	0
Debt noncurrent	$ 0
Notes payable 26 [Member]
Debt issuance date	Mar. 09, 2017
Debt maturity date	90 days after demand
Debt stated interest rate	10.00%
Debt original principal	$ 200,000
Debt amount at period end	175,000
Unamortized discount	0
Carrying amount at period end	175,000
Debt related party current	175,000
Debt related party noncurrent	0
Debt current	0
Debt noncurrent	$ 0

XML 35 R26.htm IDEA: XBRL DOCUMENT

9. Stockholders' Equity (Details - Warrants) - Warrants [Member]	6 Months Ended
	Jun. 30, 2017 $ / shares shares
Number of Warrants
Warrants outstanding, beginning balance	15,912,210
Warrants granted	0
Warrants exercised	(998,079)
Warrants exercised, repriced	(14,692,500)
Warrants forfeited	(221,631)
Warrants outstanding, ending balance	0
Weighted Average Exercise Price
Warrants outstanding, beginning balance \| $ / shares	$ .76
Warrants granted \| $ / shares	0.00
Warrants exercised \| $ / shares	.75
Warrants exercised, repriced \| $ / shares	0.00
Warrants outstanding, ending balance \| $ / shares	$ 0.00

XML 36 R27.htm IDEA: XBRL DOCUMENT

9. Stockholders' Equity (Details - Options) - Options [Member]	6 Months Ended
	Jun. 30, 2017 $ / shares shares
Number of Options
Options outstanding, beginning balance	100,000
Options exercised	(100,000)
Options outstanding, ending balance	0
Weighted Average Exercise Price, beginning balance \| $ / shares	$ .75
Weighted average exercise price, beginning balance \| $ / shares	$ .75

XML 37 R28.htm IDEA: XBRL DOCUMENT

9. Stockholders' Equity (Details Narrative) - USD ($)	6 Months Ended
9. Stockholders' Equity (Details Narrative) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	May 09, 2017
Proceeds from exercise of warrants	$ 748,535	$ 0
Adjustment to warrants	$ 6,769,562
Convertible Note [Member]
Debt converted, shares issued	1,806,298
Debt converted, amount converted	$ 25,000
JPF Venture Group [Member]
Stock repurchased, shares	148,588
Payment for repurchase of shares	$ 111,440
Stock for Services [Member]
Stock issued for services, shares	288,000
Stock issued for services, value	$ 244,800
Private Placement [Member]
Stock issued new, shares	11,250
Stock issued new, value	$ 45,000
Merger [Member]
Stock issued for reverse merger, shares	94,343,776
Individuals [Member]
Warrants exercised, shares issued	998,079
Proceeds from exercise of warrants	$ 748,535
Former Shareholders of TetriDyn [Member]
Stock issued for acquisition, shares	534,555
Assumption of accrued expenses			$ 617,032
Assumption of convertible notes			$ 1,015,506
Adjustment to paid-in-capital	$ (1,628,026)

XML 38 R29.htm IDEA: XBRL DOCUMENT

11. Related-party Transactions (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Repayment of due to related party	$ (36,822)	$ 0
Repayment of notes payable - related party	(25,000)	(5,000)
Proceeds from related party	200,000	$ 609,500
Company controlled by the CEO [Member]
Rent expense	35,000
Chief Executive Officer
Debt face value	$ 200,000
Debt interest rate	10.00%
Debt balance	$ 177,000
JPF Venture Group [Member]
Payments for repurchase of stock	111,440
Proceeds from related party	$ 52,000