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 $1,800,826 and $2,660,697 as of September 30, 2017 and December 31, 2016, respectively. During the nine months ended September 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 nine months ended September 30, 2017, officers of the company advanced $130,010 to the Company to cover short-term financing needs and the Company repaid an officer $40,000.  The short-term loans are due on demand, do not accrue interest and are unsecured. Also during the nine months ended September 30, 2017, 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. Notes payable to related parties total $8,090 and $18,050 as of September 30, 2017 and December 31, 2016, respectively.

During the nine months ended September 30, 2017, the Company issued a total of 1,500,000 shares of common stock for a signing bonus to two officers and directors valued at $194,700.