NOTE 12 - SUBSEQUENT EVENTS

In April 2017, the Company settled $370,816 in deferred payroll and fees owed to its former employees and CEO, which included the issuance of 1,530,128 total shares of common stock, payment of $54,053 in cash, and forfeiture by the Company’s CEO of $87,243. The Company’s CEO also forfeited a $25,553 deferred bonus payment from 2014. These forfeited amounts will be recorded to additional paid in capital as previously contributed services, and may result in a gain in the period ended June 30, 2017. Another former employee settled a $16,791 deferred bonus payment plus $2,113 in un-reimbursed expenses for $4,500 in cash and forfeited the balance of $14,404. Finally, a consultant of the Company settled $15,600 in unpaid fees for $7,800 in cash and 52,000 shares of common stock. All these settlements were effective upon the issuance of common stock and cash payment completed after the closing of the Bridge Offering in April 2017. The settlements are expected to result in a decrease in accounts payable and accrued expenses from the balance at March 31, 2017.

In May 2017, two notes held by third parties in the total principal amount of $22,000 plus an additional $1,756 in interest were converted into the Bridge Offering.

In May 2017, the Company settled past due invoices to a former contractor in the total amount of $36,903 for $13,500 in cash and 156,022 shares of common stock.

As of June 1, 2017, the Company closed an addition $400,000 in new investments in its Bridge Offering, not inclusive of notes converted into the offering, discussed above.