NOTE 13 – SUBSEQUENT EVENTS

On May 28, 2020, the Company entered into a six-month office lease extension commencing on September 1, 2020. The lease extension is for the office where the Company is currently located in Laguna Hills, California. The term of the new lease expires on February 28, 2021 and requires monthly lease payments of approximately $1,300.

From May 1, 2020 through August 11, 2020, the Company sold approximately 687 million shares of common stock using the Second S-3 structured as a Block Trade. The issuance of these shares resulted in gross proceeds to the Company of approximately $5 million. Pursuant to the Aeon Agreement, the Company is required to pay Aeon a fee of approximately $281,000 and provide warrant coverage of 5% of the number of shares of commons stock sold in the Block Trade with a five-year term for approximately 34 million warrant shares. The Company incurred additional fees of approximately $191,000 to an unrelated party.

From May 1, 2020 through August 13, 2020, the Company sold 5,339,232 shares of common stock using the Second S-3 “at-the-market” trades. The net proceeds from these sales were $131,547.