NOTE 9 - RELATED PARTY TRANSACTIONS

The Company has received financing from the Company’s Chief Executive Officer. No formal repayment terms or arrangements existed prior to February 19, 2015, when as part of the Share Exchange Agreement, the Company entered into a note with David Phipps where the stockholder loans bear no interest and are due February 19, 2016. On February 19, 2016, the note was extended an additional year to February 19, 2017 and on January 9, 2017 the note was extended another additional year to February 19, 2018. The balance of the related party note payable was $16,864 as of March 31, 2017. The accounts payable due to related party includes advances for inventory due to David Phipps of $66,563 and wages of $30,000. Total payments due to David Phipps as of March 31, 2017 and December 31, 2016 are $113,428 and $67,453, respectively.

Also, as part of the Share Exchange Agreement entered into on February 19, 2015, Mr. Phipps received a payment of $25,000 as compensation for transition services that he provided.

The Company employs two individuals who are related to Mr. Phipps, of which earned gross wages totaled $15,006 for the three months ended March 31, 2017. For the three months ended March 31, 2016, the Company employed three individuals who were related to Mr. Phipps of which earned gross wages of $15,299.