NOTE 9 – NOTES PAYBALE

Predecessor

CCI borrows funds from third parties from time to time for working capital purposes. For the three months ended March 31, 2016 (Predecessor), CCI had borrowings of $181,500 (including $31,500 of debt discount), repayments of $64,047, and accretion of debt discount of $31,500 for a balance of $134,067 at March 31, 2016.

CCI issued notes payable to Menno Holterman (“Holterman Notes”), a director of CCI. During the year ended December 31, 2015, CCI borrowed an additional $278,273 bearing no interest and had no repayments for a balance of $459,681 at December 31, 2015 (“2015 Note”). During the three months ended March 31, 2016, CCI had no borrowings and had no repayments. For the 2015 Note, we imputed interest on the principal amount of the borrowings at 10% per annum. The terms of the December 2014 Note call for interest only payments payable for the first three months of the December 2014 Note and beginning April 2015, payment of principal amortized over the remaining term of the note plus interest. The December 2014 Note was due June 1, 2016. As CCI is in default, the Holterman Notes were reclassed to short term notes payable – related party. CCI recognized interest expense of $11,620 under Other expense in the accompanying consolidated Statements of Operations for the three months ended March 31, 2016 (Predecessor).