On July 1, 2018, we signed a six-month agreement with a firm to provide consulting services. We issued 24,000 shares of restricted common stock at inception of contract. The stock’s fair value of $93,600 based on the trading stock price on contract date will be amortized to expense over 6 months in 2018.

On July 2, 2018, we received a 4% one-year, convertible loan of $125,000 from an accredited investor. The note is convertible on issuance date at $7.50 per share and after 180 days to be 60% of the lowest trading price for the common stock during the 15-trading day period prior to conversion. The loan includes $6,250 in fees. We issued the investor 1,500 shares of restricted common stock with a fair value of $5,850 recorded as a debt discount to be amortized over the one-year term.

On July 3, 2018, the Company entered into a Securities Purchase Agreement with several accredited investors pursuant to which the Company sold an aggregate of 148 shares of Series AA Convertible Preferred Stock, each preferred share convertible into 1,000 shares of the Company’s common stock, par value $0.01 per share, for an aggregate Purchase price of $370,000. We issued to the investors warrants to purchase an aggregate 148,000 shares of common stock with an exercise price of $3.50 per share.

On July 5, 2018, we paid off the entire outstanding balance on our December 29, 2017 5% one-year, convertible loan of $95,000.

On July 5, 2018, we signed a six-month agreement with a firm to provide consulting services. We are committed to pay the firm 24,000 shares of restricted common stock at inception of contract. The stock’s fair value of $79,920 based on the trading stock price on contract date will be amortized to expense over 6 months in 2018.

On July 10, 2018, we received a 5% one-year, convertible loan of $95,000 from an accredited investor. The loan can be converted into common stock after 180 calendar days at a discount of 40% of the lowest trading price for the common stock during the 20-trading day period prior to conversion. The loan includes $6,750 in fees.

On July 13, 2018, we paid off the entire outstanding balance on our June 12, 2018 5% one-month, convertible loan of $100,000.

On July 13, 2018, we received a 12% nine-month, convertible loan of $103,000 from an accredited investor. The loan can be converted into common stock after 180 calendar days at a discount of 42% of the average of the lowest two trading prices for the common stock during the 15-trading day period prior to conversion. The loan includes $3,000 in fees.

On July 16, 2018 we signed a Merchant Agreement with a lender. Under the agreement we received $180,000, of which approximately $103,450 was used to pay off the outstanding balance on a previous loan dated April 11, 2018 from this lender, in exchange for rights to all customer receipts until the lender is paid $246,600, which is collected at the rate of $1,790.00 per business day. The $66,600 imputed interest will be recorded as interest expense when paid each day. Fees of $3,600 were deducted from the initial advance. The payments were secured by second position rights to all customer receipts until the loan has been paid in full. We accounted for the Merchant Agreement as a secured loan under ASC 860 because while we provided rights to current and future receipts, we still had control over the receipts.

On July 17, 2018, we received a 15% three-month, convertible loan for $100,000 from an accredited investor. The loan can be converted at any time into common stock at a conversion price of $7.50. We agreed to issue the investor 2,000 shares monthly over three months for a total of 6,000 shares of restricted common stock with a fair value of $16,944 that was recorded as a debt discount to be amortized over the three-month term. We issued the first installment of 2,000 shares already on July 17, 2018.

On July 18, 2018, we paid $13,125 that was recorded as interest expense to a lender to postpone the loan conversion option to August 31, 2018 on the January 16, 2018 convertible note with face value of $131,250.

On July 18, 2018, the Board of Directors approved the immediate termination of outstanding stock options (approximately 247,000 shares) held by current officers, employees and board members and the issuance of new stock options to the same holders with an exercise price of $3.40 per share equal to the closing market price on July 18, 2018 and an expiration date of July 18, 2028. The new stock options for board members will vest 1/12th per month for 12 months. The new stock options for officers and employees will vest 1/36th per month for 36 months. The compensation value created by the termination and issuance of new stock options, as determined under the Black Scholes method, was approximately $58,000 and under current accounting rules results in a non-cash expense in current and future periods not to exceed the vesting periods of the stock options. The Board of Directors also awarded 126,267 to officers, employees and board members separately based on the annual compensation committee recommendation.

On July 19, 2018, we refinanced the January 19, 2018 10% one-year, convertible loan of $150,000 with an accredited investor. The refinanced loan will now be due on January 19, 2019. We paid $36,000 in interest and fees on the January 19, 2018 loan in connection with the refinancing. We agreed to issue the investor 4,500 shares of restricted common stock with a fair value of $15,350 recorded as a debt discount to be amortized over the one-year term.

On July 26, 2018, we issued the monthly installment of 2,000 shares of restricted common stock to the lender for the June 26, 2018 loan.

On July 27, 2018, we issued the monthly installment of 667 shares of restricted common stock to the lender for the June 27, 2018 loan.

On July 30, 2018, we received a 6% one-year, convertible loan of $80,000 from an accredited investor. The note is convertible on issuance date at $7.50 per share and after 180 days to be 60% of the lowest trading price for the common stock during the 15-trading day period prior to conversion. The loan includes $4,000 in fees.

On July 31, 2018, we refinanced the May 30, 2018 8% two-month, convertible loan of $150,000 with an accredited investor. The refinanced loan will now be due on October 31, 2018 and has 12% guaranteed interest. We paid $12,000 in interest and fees on the May 30, 2018 loan in connection with the refinancing. We issued the investor 2,000 shares of restricted common stock with a fair value of $6,578 recorded as a debt discount to be amortized over the three-month term.

On August 2, 2018, we issued 3,154 shares of common stock based on the 10-day VWAP prior to quarter end to holders of the Debentures in payment of quarterly interest.

On August 8, 2018, we refinanced the February 9, 2018 15% six-month, convertible loan of $100,000 with an accredited investor. The refinanced loan will now be due on February 8, 2019. The refinanced loan will now be due on February 8, 2019 and has a 5% monthly guaranteed interest rate. We paid $23,500 in interest and fees on the February 9, 2018 loan in connection with the refinancing. We agreed to issue the investor 1,300 shares of restricted common stock per month over the six-month term. The shares have a total fair value of $21,590 that will be recorded as a debt discount to be amortized over the six-month term.

On August 8, 2018, the Company entered into a Securities Purchase Agreement with several accredited investors pursuant to which the Company sold an aggregate of 52 shares of Series AA Convertible Preferred Stock, each preferred share convertible into 1,000 shares of the Company’s common stock, par value $0.01 per share, for an aggregate Purchase price of $130,000. We issued to the investors warrants to purchase an aggregate 52,000 shares of common stock with an exercise price of $3.50 per share.