NOTE 8 – DUE TO RELATED PARTY

During 2017, the Company received no advances from our CEO/director and incurred business expenses of $1,234,249 (comprised of operating expenses of $1,218,085, inventory purchases totaling $5,650, website development costs of $9,573, and purchased equipment of $940) and had repayments of $941,443. We have a balance owed to the related party of $721,434 and $440,747 at December 31, 2017 and 2016, respectively. During 2017, the Company incurred $180,000 of deferred compensation related to the CEO/director’s employment agreement and $80,000 of deferred compensation related to the Secretary’s employment agreement. As of December 31, 2017 and 2016, accrued compensation – related party was $1,036,000 and $776,000, respectively.

CCI had no employment agreement with its CEO and director during the eleven months ended November 30, 2016 but CCI still incurred compensation on behalf of the CEO and director. CCI incurred compensation expense of $79,288 in the eleven months ended November 30, 2016 (Predecessor), with no amounts due at November 30, 2016 (Predecessor). During the eleven months ended November 30, 2016 (Predecessor), the CEO and director received employee benefits totaling $43,947. In addition, the CEO/director incurred business expenses and had repayments for business expenses of $13,130 for the eleven months ended November 30, 2016 (Predecessor).