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Re: None

Monday, 11/20/2017 10:37:49 PM

Monday, November 20, 2017 10:37:49 PM

Post# of 52915
These morons are failing badly! $38K in sales in the quarter that Nevada went legal??? They bragged about their smart inventorying of product to take advantage of a shortage, LMFAO.

They also defaulted on several debt issues. Mark Bradley should resign and take a job shining shoes or something more suited to his skills.

Item 3. Defaults Upon Senior Securities

On November 3, 2017, the SK L-58, LLC Note in the principal amount of $50,000 became due and payable and went into default. As a result, the Company is required issue to lender warrants to acquire one million shares at an exercise price of $0.05 per share every 30 days the note is unpaid. Each warrant is exercisable for the four (4) complete calendar month period beginning on the first day of the thirty second (32 nd ) month following the event of default. As of November 20, 2017, a total of $50,425, consisting of $50,000 of principal and $425 of interest, was outstanding under this Note.

On July 28, 2017, the First EJR Note in the principal amount of $35,000 that originated on July 28, 2016 went into default. The note is convertible into common stock, and the note holder has not yet demanded payment, or elected to convert the debt into stock. As of November 20, 2017, a total of $38,673, consisting of $35,000 of principal and $3,173 of interest, was outstanding under this Note.

On July 20, 2017, a promissory note went into default and the default provisions called for the automatic conversion into shares of common stock at a conversion rate of $0.04 per share, along with the issuance of the same number of warrants, exercisable at $0.08 per share. The warrants vest on April 30, 2019, and are exercisable for 4 months thereafter. Pursuant to the conversion, the note holders received an aggregate 632,706 shares in satisfaction of $25,000 of principal and $308 of interest on the debt.

On July 5, 2017, a promissory note went into default and the default provisions called for the automatic conversion into shares of common stock at a conversion rate of $0.04 per share, along with the issuance of the same number of warrants, exercisable at $0.08 per share. The warrants vest on April 30, 2019, and are exercisable for 4 months thereafter. Pursuant to the conversion, the note holder received 1,265,411 shares in satisfaction of $50,000 of principal and $616 of interest on the debt.

On October 24, 2014, LG Capital Funding submitted a conversion request to convert $10,000 of principal on the Second LG Note, which the Company has asserted is inconsistent with the conversion terms as stated in the convertible promissory note. The Company requested that the conversion notice be corrected and resubmitted, at which time the note holder contended the conversion terms were intended to be based on 55% of the lowest closing bid price over the preceding twelve trading days, as opposed to the stated 55% of the average of the lowest closing bid price of the Common Stock over the preceding twelve trading days. The conversion terms of this Note are the subject of a legal dispute between the Company and LG Capital Funding pending in the Supreme Court of the State of New York, Kings County. On October 31, 2014, the note holder sent demand for repayment on the Second LG Note, consisting of $35,000 of principal and $8,214 of accrued interest outstanding as of September 30, 2017. As a result, we are in default on this convertible promissory note. The note carries an 18% default interest rate and a penalty of $250 per day that the shares are not issued, beginning on the 4th day after the conversion notice was delivered to the Company. This penalty increased to $500 per day beginning on the 10th day after the conversion notice was delivered to the Company. As of November 20, 2017, a total of $44,964, consisting of $35,000 of principal and $9,964 of interest, was outstanding under this Note.


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