NOTE 9: GAIN ON SETTLEMENT OF LITIGATION, EXTINGUISHMENT OF ACCOUNTS PAYABLE AND DEBT

On August 1, 2017 a Florida judge overruled a jury verdict and found the Company not guilty of any wrongdoing in the case of Soffin v's Clean Coal Technologies Inc., including the $121,000 previously issued award. As such, the previously accrued estimated settlement of $121,000 was recorded as a gain on litigation settlement during the nine months ended September 30, 2017.

During the three months ended September 30, 2017, the Company was able to negotiate balance reductions on two  vendors, one for $51,835 and one for $5,531 and following lengthy discussions with another vendor, a mutual release was signed that released the Company from paying $471,765 that was previously recorded in the Company's accrued expenses balance. The total amount of $529,132 amount was recorded as a gain on settlement of accounts payable during the nine months ended September 30, 2017.