NOTE 7 – DUE TO RELATED PARTY

Successor

During the three months ended March 31, 2017, the Company received no advances from its CEO/director, incurred business expenses that were paid by the CEO/director of $351,098 (comprised of operating expenses of $346,977, inventory purchases totaling $1,250, website development costs of $2,401, and purchased equipment of $470) and had repayments of $262,552. The Company has a balance owed to the related party of $531,670 at March 31, 2017 (Successor). During the three months ended March 31, 2017 (Successor), the Company incurred $45,000 of deferred compensation related to the CEO/director’s employment agreement and $20,000 of deferred compensation related to the Secretary’s employment agreement. As of March 31, 2017 (Successor), accrued compensation-related party was $841,000.

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 $28,981 in the three months ended March 31, 2016 (Predecessor). There were no amounts due to the CEO and director for unpaid amounts related to business expenses paid by the CEO on behalf of CCI. During the three months ended March 31, 2016 (Predecessor), the CEO and director received employee benefits totaling $6,815. In addition, the CEO/director incurred business expenses of $320 and had repayments for business expenses of $180 for the three months ended March 31, 2016 (Predecessor).