NOTE 5 – PREPAID STOCK BASED COMPENSATION

Prepaid expenses amounted to $121,096 at March 31, 2017 and $171,164 at December 31, 2016. Prepaid expenses include prepayments in cash for professional fees, prepayments in equity instruments which are being amortized over the terms of their respective agreements. Amortization of the prepaid expense is included professional fees. For the three months ended March 31, 2017 and 2016, amortization expense was $40,068 and $173,009, respectively. The current portion consists primarily of costs paid for future services which will occur within a year. Prepaid expense current portion and long-term portion were $121,096 and $0, as of March 31, 2017. For the year ended December 31, 2016, prepaid expense current portion and long-term portion were $171,164 and $0, respectively.