NOTE 8 – DUE TO RELATED PARTY

Successor

During 2016, the Company received advances from its CEO/director totaling $256,606, incurred business expenses of $551,724 (comprised of operating expenses of $334,627, inventory purchases totaling $213,815, and purchased equipment of $3,282) and had repayments of $817,527. The Company has a balance owed to the related party of $440,747 at December 31, 2016 (Successor). During 2016, 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, 2016 (Successor), accrued compensation-related party was $776,000.

Predecessor

CCI had no employment agreement with its CEO and director but CCI still incurred compensation on behalf of the CEO and director. CCI incurred compensation expense of $79,288 and $72,000 in the eleven months ended November 30, 2016 (Predecessor) and the year ended December 31, 2015 (Predecessor), respectively, with no amounts due at November 30, 2016 (Predecessor) and December 31, 2015 (Predecessor), respectively. During the eleven months ended November 30, 2016 (Predecessor) and for the year ended December 31, 2015 (Predecessor), the CEO and director received employee benefits totaling $43,947 and $31,588, respectively. In addition, the CEO and director incurred business expenses and had repayments for business expenses of $13,130 and $360 for the eleven months ended November 30, 2016 (Predecessor) and for the year ended December 31, 2015 (Predecessor), respectively.