NOTE 4: RELATED PARTY TRANSACTIONS

Accruals for salary and bonuses to officers and directors are included in accrued liabilities in the balance sheets and totaled $1,712,465 and $2,660,697 as of June 30, 2017 and December 31, 2016, respectively. During the six months ended June 30, 2017, officers and directors elected to convert $1,000,000 in accrued wages into 8,000,000 shares of the Company’s common stock.

During the six months ended June 30, 2017, officers of the company advanced $130,010 to the Company to cover short-term financing needs and the Company repaid an officer $30,000.  The short-term loans are due on demand, do not accrue interest and are unsecured. During the six months ended June 30, 2016, an officers and director elected to forgive a total amount of $99,970 short-term loans and receive 1,000,000 shares of the Company’s common stock with a fair value of $127,400. As a result, a total of $27,430 loss on settlement of related party loans was recognized in current period.