Annual report pursuant to Section 13 and 15(d)

NOTES PAYABLE

NOTES PAYABLE	12 Months Ended
Dec. 31, 2014
Notes to Financial Statements
NOTES PAYABLE	NOTE 5 – NOTES PAYABLE The Company has three non-collateral notes payable outstanding, that bear simple interest at 6% per annum. The first note is dated February 3, 2010 and is for $90,000. The second note is dated April 5, 2011 and is for $10,000. The third note is dated September 1, 2011 and is for $7,500. The notes principal and interest are due three years from the date of issuance. The Company also owed this individual $4,942 for expense reimbursement. The loan accrues interest at 6% and is due on demand. The interest expense has been recorded as additional paid in capital. On June 12, 2013, the first note payable for $90,000, plus $18,000 of accrued interest was forgiven by the note holder. As a result the Company recorded a $108,000 gain on forgiveness of debt for the year ended December 31, 2013. On December 29, 2014, the Company converted the two remaining notes along with the $4,942 and $3,788 of accrued interest into 104,920 shares of common stock, satisfying all amounts due in full. The value of the shares was determined using the average price of the most recent stock sales for cash, resulting a loss on conversion of debt of $7,030. During 2013 and 2014, a shareholder had advanced the Company a total of $100,000 for a short term loan. The loan accrues interest at 6% and is due on demand. On December 29, 2014, the Company converted the $100,000 into 400,000 shares of common stock. The value of the shares was determined using the average price of the most recent stock sales for cash, resulting a loss on conversion of debt of $21,171. $5,629 of accrued interest was credited to gain on forgiveness of the debt. During the year ended December 31, 2014, the Company executed multiple promissory notes with a creditor for total proceeds of $474,500. The loans are uncollateralized, bear interest at 3% and mature in six months. As of December 31, 2014, the Company converted all principal and interest into 2,680,158 shares of common stock. The value of the shares was determined using the average of the most recent stock sales for cash, resulting a loss on conversion of debt of $346,906. During 2013 and 2014, the Company executed multiple promissory notes with creditor for total proceeds of $112,200. The loans are uncollateralized, bear interest at 6% and mature in six months. On December 29, 2014, the Company converted all principal and interest into 540,000 shares of common stock. The value of the shares of was determined using the average of the most recent stock sales for cash, resulting a loss on conversion of debt of $49,215. The Company also has financing loans for its product liability and Director and Officer Insurance. As of December 31, 2014 and December 31, 2013 the loans have a balance of $7,442 and $7,369, respectively, they bear interest at 5.99% and 6.7% and are due within one year.

NOTES PAYABLE

12 Months Ended

Dec. 31, 2014

NOTE 5 – NOTES PAYABLE

The Company has three non-collateral notes payable outstanding, that bear simple interest at 6% per annum. The first note is dated February 3, 2010 and is for $90,000. The second note is dated April 5, 2011 and is for $10,000. The third note is dated September 1, 2011 and is for $7,500. The notes principal and interest are due three years from the date of issuance. The Company also owed this individual $4,942 for expense reimbursement. The loan accrues interest at 6% and is due on demand. The interest expense has been recorded as additional paid in capital. On June 12, 2013, the first note payable for $90,000, plus $18,000 of accrued interest was forgiven by the note holder. As a result the Company recorded a $108,000 gain on forgiveness of debt for the year ended December 31, 2013. On December 29, 2014, the Company converted the two remaining notes along with the $4,942 and $3,788 of accrued interest into 104,920 shares of common stock, satisfying all amounts due in full. The value of the shares was determined using the average price of the most recent stock sales for cash, resulting a loss on conversion of debt of $7,030.

During 2013 and 2014, a shareholder had advanced the Company a total of $100,000 for a short term loan. The loan accrues interest at 6% and is due on demand. On December 29, 2014, the Company converted the $100,000 into 400,000 shares of common stock. The value of the shares was determined using the average price of the most recent stock sales for cash, resulting a loss on conversion of debt of $21,171. $5,629 of accrued interest was credited to gain on forgiveness of the debt.

During the year ended December 31, 2014, the Company executed multiple promissory notes with a creditor for total proceeds of $474,500. The loans are uncollateralized, bear interest at 3% and mature in six months. As of December 31, 2014, the Company converted all principal and interest into 2,680,158 shares of common stock. The value of the shares was determined using the average of the most recent stock sales for cash, resulting a loss on conversion of debt of $346,906.

During 2013 and 2014, the Company executed multiple promissory notes with creditor for total proceeds of $112,200. The loans are uncollateralized, bear interest at 6% and mature in six months. On December 29, 2014, the Company converted all principal and interest into 540,000 shares of common stock. The value of the shares of was determined using the average of the most recent stock sales for cash, resulting a loss on conversion of debt of $49,215.

The Company also has financing loans for its product liability and Director and Officer Insurance. As of December 31, 2014 and December 31, 2013 the loans have a balance of $7,442 and $7,369, respectively, they bear interest at 5.99% and 6.7% and are due within one year.