NOTE 15 – SUBSEQUENT EVENTS

Successor

In October 2017, the Company issued 2,175,012 restricted common shares for services of $433,754 (based on our stock price on the measurement date).

In October 2017, the Company issued a total of 62,000 restricted common shares to an employee, valued at $11,160 (based on our stock price on the measurement date) as compensation pursuant to the Company’s 2015 Equity Incentive Plan.

On December 23, 2015, the Company entered into a Purchase Agreement with respect to the sale and issuance to certain institutional investors (“Purchasers”) of convertible notes payable. The terms of the Purchase Agreement provided that until two years after the Initial Trading Day (as defined in the Purchase Agreement), but not later than three years after the Initial Closing Date (December 23, 2015), the Purchasers may require a closing for up to an additional Subscription Amount equal to the Subscription Amount paid on the Initial Closing Date on the same terms and conditions as the Initial Closing.

On November 10, 2017, pursuant to a partial exercise of the subsequent closing provision of the Purchase Agreement, the Company entered into a subsequent Securities Purchase Agreement with respect to the sale and issuance to certain institutional investors of (i) 833,354 shares of the Company’s common stock; (ii) $287,502 aggregate principal amount of secured convertible notes and (iii) common stock purchase warrants to purchase up to an aggregate of 3,593,775 shares of the Company’s common stock as defined in the Securities Purchase Agreement. The aggregate cash subscription amount received by the Company from the purchasers for the issuance of the incentive shares, notes and warrants was $250,005, which was issued at a $37,497 original issue discount from the face value of the note. The notes mature on May 10, 2019, eighteen (18) months after the Original Issue Date, and provide for interest to accrue at an interest rate equal to the lesser of 15% per annum or the maximum rate permitted under applicable law after the occurrence of any event of default as provided in the notes.

There were no other events subsequent to September 30, 2017, and up to the date of this filing that would require disclosure.