Note

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses included the following:

	December 31,		December 31,
	2015		2016
Accounts payable	$	174,539	$	22,231
Payroll tax liability		137,500		137,500
Officer bonus		—		80,000
Accrued interest		12,944		40,372

Total Accounts Payable and Accrued Expenses	$	324,983	$	280,103

The payroll tax liability is our estimate of payroll taxes due on the past services of independent contractors. We are currently attempting to reduce the liability to approximately

$5,000

through the IRS Voluntary Classification Settlement Program.

September

27,

2016,

the board approved a

60,000

bonus for each of our Chief Executive and Chief Science Officers. As of

December

31,

2016,

$80,000

of this bonus remains to be paid. In

January

2017,

40,000

was paid to each of our Chief Executive and Chief Science Officer.

Issuance of Common Stock in exchange for payment of payables

Payment of Officer Salaries

During

2015

we issued

738,837

shares of our common stock at a range of

$0.35

$0.36

per share in lieu of

$309,975

of accrued and unpaid obligations to our officers. During

2016

we did not issue stock for service to our officers as their salaries were paid in cash.

Payment of Consultant Fees and Accrued Interest

During

2016,

we issued

2,342,264

shares of our common stock at a range of

$0.25

$0.83

per share in lieu of

$993,078

of accrued interest and accrued and unpaid obligations to consultants.

During

2015

we issued

631,643

shares of our common stock at a range of

$0.35

$0.36

per share in lieu of

$360,364

of accrued interest and accrued and unpaid obligations to consultants.

All of these offerings and sales were made in reliance on the exemption from registration contained in Section

4(2)

of the Securities Exchange Act and/or Regulation D promulgated thereunder as not involving a public offering of securities.