NOTE 5 – DEBT

During the six months ended June 30, 2018, the Company received additional capital of approximately $1,998,000 from the existing mortgage on the cannabis cultivation and processing facility it is currently developing in the state of Massachusetts.

During the six months ended June 30, 2017, the Company raised $400,000 from the issuance of a promissory note with an interest rate of 10% and a term of 6 months. No promissory notes were issued during the six months ended June 30, 2018.

During the six months ended June 30, 2018, the Company repaid $700,000 of promissory notes, and converted $1,275,000 of promissory notes into 1,679,486 shares of common stock. The conversions resulted in the recording of non-cash losses totaling $818,000, based on the market value of the common stock on the conversion dates. No repayments or conversions of debt occurred during the same period in 2017.