NOTE 7 – CONVERTIBLE NOTES PAYABLE On June 15, 2012 the Company issued a convertible promissory note 27,685,715 shares at a price of $0.00035 per share On August 13, 2012 the Company issued a convertible promissory note 56,614,286 shares at a price of $0.00034 per share On April 15, 2013 the Company issued a convertible promissory note 137,800,000 shares at a price of $0.0004 per share On April 15, 2013 the Company issued a convertible promissory note 40,300,000 shares at a price of $0.0004 per share On May 14, 2013 the Company issued a convertible promissory note 75,111,111 shares at a price of $0.00045 per share On June 24, 2013 the Company issued a convertible promissory note 17,333,333 shares at a price of $0.00045 per share On September 19, 2013 the Company issued a convertible promissory note 38,395,133 shares at a price of $0.00045 per shares 2014 Common Stock Issuances During the six months ended June 30, 2014, the Company issued 507,608,091 shares of common stock upon conversion of $210,716 in principal and interest payable on convertible notes representing a value of $0.00042 per share. In addition, we incurred loss on conversion of the shares totaling $572,866 for a total cost to the Company of $783,582. We had a net loss of $771,566 for the six months ended June 30, 2014 as compared to a loss of $60,853 for the six months ended June 30, 2013. Total operating expenses were $370,338 for the six months ended June 30, 2014 versus $218,992 for the six months ended June 30, 2013 resulting in loss from operations of $229,306 and $60,853 in the 2014 and 2013 periods, respectively. Other expenses were $542,260 for the six months ended June 30, 2014 as compared to $0 for the six months ended June 30, 2013. We had a net loss of $161,312 for the three months ended June 30, 2014 as compared to a loss of $26,270 for the three months ended June 30, 2013. Total operating expenses were $162,990 for the three months ended June 30, 2014 versus $109,139 for the three months ended June 30, 2013 resulting in loss from operations of $96,707 and $26,270 in the 2014 and 2013 periods, respectively. Other expenses were $64,605 for the three months ended June 30, 2014 as compared to $0 for the three months ended June 30, 2013. This is due to the addition of convertible promissory notes in the 2014 period with the combination of Carmela’s and the Company, as Carmela’s had no convertible debt prior to the transaction in October 2013. NOTE 2 – GOING CONCERN As of June 30, 2014 and December 31, 2013, the Company had a working capital deficit and has incurred significant losses since inception. Further losses are anticipated raising substantial doubt as to the Company’s ability to continue as a going concern. The accompanying financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. The Company plans to acquire sufficient capital from its investors with which to pursue its business plan. There can be no assurance that the future operations will be significant and profitable, or that the Company will have sufficient resources to meet its objectives. There is no assurance that the Company will be successful in raising additional funds.