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IDS Solar Technologies, Inc.
0001533455
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<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif"><u>Nature of Business and Basis of Presentation</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">IDS
Solar Technologies, Inc. (“IDS Solar” or the “Company”) is a GIIRS-rated “green” energy company
that designs, manufactures and distributes portable solar power generators and other solar-based products for consumer, business,
government, and disaster relief applications. We intend to develop a business focused on the design, manufacturing, and distribution
of solar-based portable power stations. We plan to offer a line of portable solar power generators under the brand name MySolarGenerators.
Ô </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company was formed as Step Out, Inc., a Nevada corporation on May 2, 2011. On July 18, 2011 Step Out issued 10,000,000 common
shares to acquire 100% membership interest in SOI Nevada, LLC, a Nevada limited liability corporation from the sole shareholder
of Step Out, Inc. The membership interest was acquired at book value from the shareholder. SOI Nevada, LLC became a wholly-owned
subsidiary of Step Out, Inc.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
September 19, 2012, the Company entered into an Agreement of Conveyance, Transfer and Assignment of Membership Interests and Assumption
of Obligations (the “Agreement”) with our sole officer and director, Sterling Hamilton. Pursuant to the Agreement, the
Company transferred all membership interests in our operating subsidiary, SOI Nevada, LLC, to Mr. Hamilton. In exchange for this
assignment of membership interests, Mr. Hamilton agreed to assume and cancel all liabilities relating to our former business of
developing a chain of flotation tank therapy spas. In addition, Mr. Hamilton agreed to release all liability under a promissory
note due and owing to him in the amount of $2,000.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
a result of the Agreement, we are no longer pursuing our former business plan. Under the direction of our newly appointed officers
and directors, as set forth below, we intend to develop a business focused on the design, manufacturing, and distribution solar-based
portable power stations. We plan to offer a line of portable solar power generators under the brand name MySolarGenerators. Ô
Our planned new product line product line will be available initially in four models based on customer needs. As our plans and
our new business develop, we will make appropriate additional disclosures.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Effective
October 12, 2012, our board of directors approved a merger with our wholly-owned subsidiary, IDS Acquisition, Inc., pursuant to
NRS 92A.180. IDS Acquisition was incorporated in the state of Nevada on September 25, 2012. As part of the merger with our wholly-owned
subsidiary, our board authorized a change in the name of the company to “IDS Solar” Technologies, Inc.”</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the United States
Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared
in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant
to such rules and regulations. In the opinion of management, all adjustments and disclosures necessary for a fair presentation
of these financial statements have been included. Such adjustments consist of normal recurring adjustments. These interim financial
statements should be read in conjunction with the audited financial statements of the Company for the fiscal period ended August
31, 2012.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; color: black">The
Company is in the development stage as defined under Statement on Financial Accounting Standards Accounting Standards Codification
FASB ASC 915-205 "Development-Stage Entities.” </font>A development stage activity is one in which all efforts are devoted
substantially to establishing a new business; and even if planned principal operations have commenced, revenues are insignificant.
The Company’s fiscal year end is August 31. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Use
of Estimates</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from these estimates.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><u>Cash
and Cash Equivalents</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company considers all highly liquid investments with maturities of three months or less to be cash equivalents. There were no
cash equivalents as of November 30, 2012.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Basic
Loss per Share</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Basic
income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted
average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net
income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted
weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt
or equity. There were no such common stock equivalents outstanding as of November 30, 2012.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><u>Concentrations
of Credit Risk</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company
continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes
it is not exposed to any significant credit risk on cash and cash equivalents.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Property
and Equipment</u></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Property
and equipment are stated at cost. Depreciation and amortization are provided utilizing the straight-line method over the related
asset’s estimated useful life. As of November 30, 2012 no property or equipment has been pledged as collateral or is restricted
in any way.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Maintenance
and repairs are charged to expense as incurred; renewals and improvements that extend the useful life of the assets are capitalized.
Upon retirement or disposal, the asset cost and the related accumulated depreciation and amortization are eliminated from the
respective accounts and a resulting gain or loss, if any, is included in the results of operations.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Inventories</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Inventories
are stated at the lower of cost or market. Cost is computed on a weighted-average basis, which approximates the first-in, first-out
method; market is based upon estimated replacement costs.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Fair
Value of Financial Instruments</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
certain of the Company’s non-derivative financial instruments, including cash and cash equivalents, receivables, accounts
payable, and other accrued liabilities, the carrying amount approximates fair value due to the short-term maturities of these
instruments. The estimated fair value of long-term debt is based primarily on borrowing rates currently available to the Company
for similar debt issues. The fair value approximates the carrying value of long-term debt.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">ASC
Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments
held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation
hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying
amounts reported in the balance sheets for receivables and current liabilities each qualify as financial instruments and are a
reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their
expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="margin-top: 0px; font-size: 10pt; margin-bottom: 0px; color: #2a2a2a; width: 100%">
<tr style="vertical-align: top">
<td style="width: 22.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 13.5pt; font-family: Symbol"><font style="font: 10pt Times New Roman, Times, Serif">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level 1. Observable inputs such as
quoted prices in active markets;</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="margin-top: 0px; font-size: 10pt; margin-bottom: 0px; color: #2a2a2a; width: 100%">
<tr style="vertical-align: top">
<td style="width: 22.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 13.5pt; font-family: Symbol"><font style="font: 10pt Times New Roman, Times, Serif">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level 2. Inputs, other than the quoted
prices in active markets, that are observable either directly or indirectly;</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="margin-top: 0px; font-size: 10pt; margin-bottom: 0px; width: 100%">
<tr style="vertical-align: top">
<td style="width: 22.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 13.5pt; font-family: Symbol"><font style="font: 10pt Times New Roman, Times, Serif">·</font></td>
<td style="text-align: justify; color: #2a2a2a"><font style="font: 10pt Times New Roman, Times, Serif">Level 3. Unobservable
inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.</font></td></tr>
</table>
<p style="color: rgb(42,42,42); font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><font style="font: 10pt Times New Roman, Times, Serif; color: #2a2a2a">The
following presents the gross value of assets and liabilities that were measured and recognized at fair value, as of </font><font style="color: black">November
</font><font style="color: #2a2a2a">30, 2012.</font></p>
<p style="color: rgb(42,42,42); font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="background-color: white; margin-top: 0px; font-size: 10pt; margin-bottom: 0px; color: #2a2a2a; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 0.25in; font-family: Symbol"><font style="font: 10pt Times New Roman, Times, Serif">·</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">Level 1: none</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="background-color: white; margin-top: 0px; font-size: 10pt; margin-bottom: 0px; color: #2a2a2a; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 0.25in; font-family: Symbol"><font style="font: 10pt Times New Roman, Times, Serif">·</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">Level 1: none</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="background-color: white; margin-top: 0px; font-size: 10pt; margin-bottom: 0px; color: #2a2a2a; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 0.25in; font-family: Symbol"><font style="font: 10pt Times New Roman, Times, Serif">·</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">Level 1: none</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 10pt"><br /></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Stock-Based
Compensation</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">We
account for equity instruments issued in exchange for the receipt of goods or services from non-employees. Costs are measured
at the fair market value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably
measurable. The value of equity instruments issued for consideration other than employee services is determined on the earlier
of the date on which there first exists a firm commitment for performance by the provider of goods or services or on the date
performance is complete. The Company recognizes the fair value of the equity instruments issued that result in an asset or expense
being recorded by the company, in the same period(s) and in the same manner, as if the Company has paid cash for the goods or
services.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718,<i> Compensation
- Stock Compensation</i> which requires all share-based payments to employees, including grants of employee stock options, to
be recognized in the financial statements based on their fair values. The fair value of the equity instrument is charged directly
to compensation expense and credited to additional paid-in capital over the period during which services are rendered. There has
been no stock-based compensation issued to employees.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company follows ASC Topic 505-50, formerly EITF 96-18, “<i>Accounting for Equity Instruments that are Issued to Other than
Employees for Acquiring, or in Conjunction with Selling Goods and Services</i> ,” for stock options and warrants issued to
consultants and other non-employees. In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation
for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair
market value of the option or warrant, whichever can be more clearly determined. There has been no stock-based compensation issued
to non-employees.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Income
Taxes</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Income
taxes are computed using the asset and liability method of accounting. Under the asset and liability method, a deferred tax asset
or liability is recognized for estimated future tax effects attributable to temporary differences and carryforwards. The measurement
of deferred income tax assets is adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the
extent, based on available evidence; it is more likely than not such benefits will be realized. The Company’s deferred tax
assets were fully reserved at June 30, 2012.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company accounts for its income taxes using the Income Tax topic of the FASB ASC 740, which requires the recognition of deferred
tax liabilities and assets for expected future tax consequences of events that have been included in the financial statements
or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial
statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are
expected to reverse. It is the Company’s policy to classify interest and penalties on income taxes as interest expense or
penalties expense. As of November 30, 2012, there have been no interest or penalties incurred on income taxes.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Revenue
Recognition</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Sales of
products and related costs of products sold are recognized when (i) persuasive evidence of an arrangement exists, (ii) delivery
has occurred, (iii) the price is fixed or determinable, and (iv) collectability is reasonably assured. These terms are typically
met upon the prepayment or invoicing, and shipment of products.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><u>Reclassification</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Certain
reclassifications have been made to the August 31, 2012 financial information to conform to the presentation used in the (unaudited)
November 30, 2012 financial information.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Nature of Business and Basis of Presentation</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">IDS Solar Technologies, Inc. (“IDS Solar”
or the “Company”) is a GIIRS-rated “green” energy company that designs, manufactures and distributes portable
solar power generators and other solar-based products for consumer, business, government, and disaster relief applications. We
intend to develop a business focused on the design, manufacturing, and distribution of solar-based portable power stations. We
plan to offer a line of portable solar power generators under the brand name MySolarGenerators. <font style="font-family: Symbol">Ô
</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company was formed as Step Out, Inc., a
Nevada corporation on May 2, 2011. On July 18, 2011 Step Out issued 10,000,000 common shares to acquire 100% membership interest
in SOI Nevada, LLC, a Nevada limited liability corporation from the sole shareholder of Step Out, Inc. The membership interest
was acquired at book value from the shareholder. SOI Nevada, LLC became a wholly-owned subsidiary of Step Out, Inc.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 19, 2012, the Company entered
into an Agreement of Conveyance, Transfer and Assignment of Membership Interests and Assumption of Obligations (the “Agreement”)
with our sole officer and director, Sterling Hamilton. Pursuant to the Agreement, the Company transferred all membership interests
in our operating subsidiary, SOI Nevada, LLC, to Mr. Hamilton. In exchange for this assignment of membership interests, Mr. Hamilton
agreed to assume and cancel all liabilities relating to our former business of developing a chain of flotation tank therapy spas.
In addition, Mr. Hamilton agreed to release all liability under a promissory note due and owing to him in the amount of $2,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of the Agreement, we are no longer
pursuing our former business plan. Under the direction of our newly appointed officers and directors, as set forth below, we intend
to develop a business focused on the design, manufacturing, and distribution solar-based portable power stations. We plan to offer
a line of portable solar power generators under the brand name MySolarGenerators. <font style="font-family: Symbol">Ô </font>Our
planned new product line product line will be available initially in four models based on customer needs. As our plans and our
new business develop, we will make appropriate additional disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Effective October 12, 2012, our board of directors
approved a merger with our wholly-owned subsidiary, IDS Acquisition, Inc., pursuant to NRS 92A.180. IDS Acquisition was incorporated
in the state of Nevada on September 25, 2012. As part of the merger with our wholly-owned subsidiary, our board authorized a change
in the name of the company to “IDS Solar” Technologies, Inc.”</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited interim financial
statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission. Certain
information and disclosures normally included in annual financial statements prepared in accordance with accounting principles
generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the
opinion of management, all adjustments and disclosures necessary for a fair presentation of these financial statements have been
included. Such adjustments consist of normal recurring adjustments. These interim financial statements should be read in conjunction
with the audited financial statements of the Company for the fiscal period ended August 31, 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="color: black">The Company is in
the development stage as defined under Statement on Financial Accounting Standards Accounting Standards Codification FASB ASC 915-205
"Development-Stage Entities.” </font>A development stage activity is one in which all efforts are devoted substantially to
establishing a new business; and even if planned principal operations have commenced, revenues are insignificant. The Company’s
fiscal year end is August 31.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Use of Estimates</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The presentation of financial statements in
conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Cash and Cash Equivalents</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid investments
with maturities of three months or less to be cash equivalents. There were no cash equivalents as of November 30, 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Basic Loss per Share</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic income (loss) per share is calculated
by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during
the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders
by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding
is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There were no such common stock equivalents
outstanding as of November 30, 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Concentrations of Credit Risk</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company maintains its cash in bank deposit
accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships
and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit
risk on cash and cash equivalents.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Property and Equipment</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment are stated at cost.
Depreciation and amortization are provided utilizing the straight-line method over the related asset’s estimated useful life.
As of November 30, 2012 no property or equipment has been pledged as collateral or is restricted in any way.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Maintenance and repairs are charged to expense
as incurred; renewals and improvements that extend the useful life of the assets are capitalized. Upon retirement or disposal,
the asset cost and the related accumulated depreciation and amortization are eliminated from the respective accounts and a resulting
gain or loss, if any, is included in the results of operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Inventories</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventories are stated at the lower of cost
or market. Cost is computed on a weighted-average basis, which approximates the first-in, first-out method; market is based upon
estimated replacement costs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair Value of Financial Instruments</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For certain of the Company’s non-derivative
financial instruments, including cash and cash equivalents, receivables, accounts payable, and other accrued liabilities, the carrying
amount approximates fair value due to the short-term maturities of these instruments. The estimated fair value of long-term debt
is based primarily on borrowing rates currently available to the Company for similar debt issues. The fair value approximates the
carrying value of long-term debt.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC Topic 820, “Fair Value Measurements
and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial
Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement
that enhances disclosure requirements for fair value measures. The carrying amounts reported in the balance sheets for receivables
and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the
short period of time between the origination of such instruments and their expected realization and their current market rate of
interest. The three levels of valuation hierarchy are defined as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="margin-top: 0px; font-size: 10pt; margin-bottom: 0px; color: #2a2a2a; width: 100%">
<tr style="vertical-align: top">
<td style="width: 22.5pt"> </td>
<td style="width: 13.5pt; font-family: Symbol">·</td>
<td style="text-align: justify">Level 1. Observable inputs such as quoted prices in active markets;</td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="margin-top: 0px; font-size: 10pt; margin-bottom: 0px; color: #2a2a2a; width: 100%">
<tr style="vertical-align: top">
<td style="width: 22.5pt"> </td>
<td style="width: 13.5pt; font-family: Symbol">·</td>
<td style="text-align: justify">Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;</td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="margin-top: 0px; font-size: 10pt; margin-bottom: 0px; width: 100%">
<tr style="vertical-align: top">
<td style="width: 22.5pt"> </td>
<td style="width: 13.5pt; font-family: Symbol">·</td>
<td style="text-align: justify; color: #2a2a2a">Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.</td></tr>
</table>
<p style="color: rgb(42,42,42); font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><font style="color: #2a2a2a">The following
presents the gross value of assets and liabilities that were measured and recognized at fair value, as of </font><font style="color: black">November
</font><font style="color: #2a2a2a">30, 2012.</font></p>
<p style="color: rgb(42,42,42); font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"> </p>
<table cellspacing="0" cellpadding="0" style="background-color: white; margin-top: 0px; font-size: 10pt; margin-bottom: 0px; color: #2a2a2a; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in"> </td>
<td style="width: 0.25in; font-family: Symbol">·</td>
<td>Level 1: none</td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="background-color: white; margin-top: 0px; font-size: 10pt; margin-bottom: 0px; color: #2a2a2a; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in"> </td>
<td style="width: 0.25in; font-family: Symbol">·</td>
<td>Level 1: none</td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="background-color: white; margin-top: 0px; font-size: 10pt; margin-bottom: 0px; color: #2a2a2a; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in"> </td>
<td style="width: 0.25in; font-family: Symbol">·</td>
<td>Level 1: none</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Stock-Based Compensation</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We account for equity instruments issued in
exchange for the receipt of goods or services from non-employees. Costs are measured at the fair market value of the consideration
received or the fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments
issued for consideration other than employee services is determined on the earlier of the date on which there first exists a firm
commitment for performance by the provider of goods or services or on the date performance is complete. The Company recognizes
the fair value of the equity instruments issued that result in an asset or expense being recorded by the company, in the same period(s)
and in the same manner, as if the Company has paid cash for the goods or services.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for employee stock-based
compensation in accordance with the guidance of FASB ASC Topic 718,<i> Compensation - Stock Compensation</i> which requires all
share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based
on their fair values. The fair value of the equity instrument is charged directly to compensation expense and credited to additional
paid-in capital over the period during which services are rendered. There has been no stock-based compensation issued to employees.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows ASC Topic 505-50, formerly
EITF 96-18, “<i>Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction
with Selling Goods and Services</i> ,” for stock options and warrants issued to consultants and other non-employees. In accordance
with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted
for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can
be more clearly determined. There has been no stock-based compensation issued to non-employees.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income Taxes</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Income taxes are computed using the asset and
liability method of accounting. Under the asset and liability method, a deferred tax asset or liability is recognized for estimated
future tax effects attributable to temporary differences and carryforwards. The measurement of deferred income tax assets is adjusted
by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence; it is
more likely than not such benefits will be realized. The Company’s deferred tax assets were fully reserved at June 30, 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for its income taxes using
the Income Tax topic of the FASB ASC 740, which requires the recognition of deferred tax liabilities and assets for expected future
tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax
liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities
using enacted tax rates in effect for the year in which the differences are expected to reverse. It is the Company’s policy
to classify interest and penalties on income taxes as interest expense or penalties expense. As of November 30, 2012, there have
been no interest or penalties incurred on income taxes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Sales of products and related costs of products sold are recognized
when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the price is fixed or determinable, and
(iv) collectability is reasonably assured. These terms are typically met upon the prepayment or invoicing, and shipment of products.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Reclassification</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Certain reclassifications have been made to the August 31, 2012
financial information to conform to the presentation used in the (unaudited) November 30, 2012 financial information.</p>
1
2000
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">In October 2012, the Financial Accounting Standards
Board (FASB) issued Accounting Standards Update (ASU) 2012-04, ''Technical Corrections and Improvements" in Accounting Standards
Update No. 2012-04. The amendments in this update cover a wide range of Topics in the Accounting Standards Codification. These
amendments include technical corrections and improvements to the Accounting Standards Codification and conforming amendments related
to fair value measurements. The amendments in this update will be effective for fiscal periods beginning after December 15, 2012.
The adoption of ASU 2012-04 is not expected to have a material impact on our financial position or results of operations.</font></p>
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0"><font style="font: 10pt Times New Roman, Times, Serif">In
August 2012, the FASB issued ASU 2012-03, "Technical Amendments and Corrections to SEC Sections: Amendments to SEC Paragraphs
Pursuant to SEC Staff Accounting Bulletin (SAB) No. 114, Technical Amendments Pursuant to SEC Release No. 33-9250, and Corrections
Related to FASB Accounting Standards Update 2010-22 (SEC Update)" in Accounting Standards Update No. 2012-03. This update amends
various SEC paragraphs pursuant to the issuance of SAB No. 114. The adoption of ASU 2012-03 is not expected to have a material
impact on our financial position or results of operations.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0"><font style="font: 10pt Times New Roman, Times, Serif">In
May 2011, FASB issued Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common
Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. This ASU clarifies the board's intent of current guidance,
modifies and changes certain guidance and principles, and adds additional disclosure requirements concerning the 3 levels of fair
value measurements. Specific amendments are applied to FASB ASC 820-10-35, Subsequent Measurement and FASB ASC 820-10-50, Disclosures.
This ASU is effective for interim and annual periods beginning after December 15, 2011.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0"><font style="font: 10pt Times New Roman, Times, Serif">In
December 2010, the FASB Accounting Standards Update 2010-29 Business Combinations Topic 805, which requires a public entity to
disclose pro forma information for business combinations that occurred in the current reporting period. The disclosures include
pro forma revenue and earnings of the combined entity for the current reporting period as though the acquisition date for all
business combinations that occurred during the year had been as of the beginning of the annual reporting period. If comparative
financial statements are presented, the pro forma revenue and earnings of the combined entity for the comparable prior reporting
period should be reported as though the acquisition date for all business combinations that occurred during the current year had
been as of the beginning of the comparable prior annual reporting period. Effective for business combinations for which the acquisition
date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact
on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting
pronouncements that have been issued, that might have a material impact on its financial position or results of operations.</font></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"><font style="font-size: 10pt">The provision for Federal income tax consists of the following:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">November 30,<br />2012</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">November 30,<br />2011</td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-left: 5.5pt">Federal income tax benefit attributable to:</td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 13.2pt; width: 54%">Current operations</td>
<td style="text-align: left; width: 1%">$</td>
<td style="text-align: right; width: 20%">48,762</td>
<td style="text-align: left; width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="text-align: left; width: 1%">$</td>
<td style="text-align: right; width: 20%">535</td>
<td style="text-align: left; width: 1%"> </td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 13.2pt">Less: valuation allowance</td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(48,762</td>
<td style="text-align: left; padding-bottom: 1pt">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(535</td>
<td style="text-align: left; padding-bottom: 1pt">)</td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.5pt">Net provision for Federal income taxes</td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">—</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left"> </td>
<td style="border-bottom: black 2.5pt double; text-align: right">$</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The cumulative tax effect at the expected rate of 34% of significant
items comprising our net deferred tax amount is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">November 30,<br />2012</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">August 31,<br />2012</td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-left: 5.5pt">Deferred tax asset attributable to:</td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 13.2pt; width: 54%">Net operating loss carryover</td>
<td style="text-align: left; width: 1%">$</td>
<td style="text-align: right; width: 20%">143,419</td>
<td style="text-align: left; width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="text-align: left; width: 1%">$</td>
<td style="text-align: right; width: 20%">26,731</td>
<td style="text-align: left; width: 1%"> </td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 13.2pt">Less: valuation allowance</td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(143,419</td>
<td style="text-align: left; padding-bottom: 1pt">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(26,731</td>
<td style="text-align: left; padding-bottom: 1pt">)</td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.5pt">Net deferred tax asset</td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">—</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">—</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0; margin-bottom: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0; margin-bottom: 0">At November 30, 2012, IDS
Solar had an unused net operating loss carryover of $143,419 that is available to offset future taxable income; it begins to expire
in 2031. Due to the change in ownership provisions of the Tax Reform Act of 1986, the use of net operating loss carry forwards
for tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards
may be limited as to use in future years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">November 30,<br />2012</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">November 30,<br />2011</td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-left: 5.5pt">Federal income tax benefit attributable to:</td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 13.2pt; width: 54%">Current operations</td>
<td style="text-align: left; width: 1%">$</td>
<td style="text-align: right; width: 20%">48,762</td>
<td style="text-align: left; width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="text-align: left; width: 1%">$</td>
<td style="text-align: right; width: 20%">535</td>
<td style="text-align: left; width: 1%"> </td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 13.2pt">Less: valuation allowance</td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(48,762</td>
<td style="text-align: left; padding-bottom: 1pt">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(535</td>
<td style="text-align: left; padding-bottom: 1pt">)</td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.5pt">Net provision for Federal income taxes</td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">—</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left"> </td>
<td style="border-bottom: black 2.5pt double; text-align: right">$</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">November 30,<br />2012</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">August 31,<br />2012</td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-left: 5.5pt">Deferred tax asset attributable to:</td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 13.2pt; width: 54%">Net operating loss carryover</td>
<td style="text-align: left; width: 1%">$</td>
<td style="text-align: right; width: 20%">143,419</td>
<td style="text-align: left; width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="text-align: left; width: 1%">$</td>
<td style="text-align: right; width: 20%">26,731</td>
<td style="text-align: left; width: 1%"> </td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 13.2pt">Less: valuation allowance</td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(143,419</td>
<td style="text-align: left; padding-bottom: 1pt">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">(26,731</td>
<td style="text-align: left; padding-bottom: 1pt">)</td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.5pt">Net deferred tax asset</td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">—</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">—</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
48762
535
48762
535
0
0
143419
26731
143419
26731
0
0
.34
143419
2031-01-01
<p style="margin: 0pt"><font style="font-size: 10pt">Property and equipment consisted of the following:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">November 30, 2012</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">August 31, 2012</td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; width: 54%">Property and equipment</td>
<td style="text-align: left; width: 1%">$</td>
<td style="text-align: right; width: 20%">—</td>
<td style="text-align: left; width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="text-align: left; width: 1%">$</td>
<td style="text-align: right; width: 20%">10,080</td>
<td style="text-align: left; width: 1%"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Less: accumulated depreciation</td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—</td>
<td style="text-align: left; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—</td>
<td style="text-align: left; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt">Property and equipment, net</td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">—</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">10,080</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">No depreciation expense was taken for the year
ended August 31, 2012 or the period ended November 30, 2012 as the asset acquired had not yet been placed into service. The asset
as of August 31, 2012 was owned by the Company’s prior subsidiary, SOI Nevada, LLC, of which full ownership was transferred
to the sole officer and director on September 19, 2012; therefore, the asset is no longer owned by the company.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">November 30, 2012</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">August 31, 2012</td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; width: 54%">Property and equipment</td>
<td style="text-align: left; width: 1%">$</td>
<td style="text-align: right; width: 20%">—</td>
<td style="text-align: left; width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="text-align: left; width: 1%">$</td>
<td style="text-align: right; width: 20%">10,080</td>
<td style="text-align: left; width: 1%"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Less: accumulated depreciation</td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—</td>
<td style="text-align: left; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—</td>
<td style="text-align: left; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt">Property and equipment, net</td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">—</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">10,080</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
10080
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">On September 30, 2012, the Company executed a promissory
note with an individual for $1,900. The note bears interest at 10% and is due on or before December 29, 2012. Accrued interest
on the note as of November 30, 2012 is $32.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
October 12, 2012, the Company executed a promissory note with Argent Offset, LLC for $20,000. The note bears interest at 18% and
is due on or before January 10, 2013. Accrued interest on the note as of November 30, 2012 is $483.</font></p>
.10
.18
1900
20000
32
483
2012-12-29
2013-01-10
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the period ended August 31, 2012
a Director made advances to the company totaling $2,000. These advances bear interest at 6% and were due October 4, 2013. Interest
of $110 was accrued as of August 31, 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.2pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 19, 2012, the Company entered
into an Agreement of Conveyance, Transfer and Assignment of Membership Interests and Assumption of Obligations (the “Agreement”)
with our former sole officer and director, Sterling Hamilton. Pursuant to the Agreement, the Company transferred all membership
interests in our operating subsidiary, SOI Nevada, LLC, to Mr. Hamilton. In exchange for this assignment of membership interests,
Mr. Hamilton agreed to assume and cancel all liabilities relating to our former business of developing a chain of flotation tank
therapy spas. In addition, Mr. Hamilton agreed to release all liability under a promissory note due and owing to him in the amount
of $2,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Also on September 19, 2012, Mr. Hamilton
agreed to transfer 583,333 of his shares of common stock to a group of four purchasers for a total purchase price of $20,000. The
source of the consideration paid to Mr. Hamilton was the existing funds of the purchasers. The sale of these shares was exempt
from registration under Section 4(2) of the Securities Act. Also, in connection with the sale of these shares, Mr. Hamilton cancelled
9,416,667 of his shares and returned them to treasury.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the period ended November 30, 2012,
the Company loaned $26,679 to another Company owned and operated by the CEO, Bruce Knoblich. The loan is due on demand and is currently
noninterest bearing.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the period ended November 30, 2012,
the Company’s CEO, Bruce Knoblich, advanced $14,298 to the Company to for operating expenses. The loan is due on demand and
is currently noninterest bearing.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 27, 2012, the Company’s
CEO, Bruce Knoblich and the Company executed a promissory note for $51,800. The note bears interest at 5% and is due on or before
May 27, 2013. Accrued interest on the note as of November 30, 2012 is $21.</p>
<p style="margin: 0pt"></p>
2013-05-27
2013-10-04
21
110
2000
51800
583333
20000
9416667
14298
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has 10,000,000 preferred shares
authorized at par value of $0.001 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has 90,000,000 common shares
authorized as a par value of $0.001 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 18, 2011 Step Out issued 10,000,000
common shares to acquire 100% membership interest in SOI Nevada, LLC, a Nevada limited liability corporation from the sole shareholder
of Step Out, Inc. The transaction was recorded at $15,000, the book value of the membership interests.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 25, 2012, the Company issued
2,000,000 common shares for cash of $20,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Also on September 19, 2012, Mr. Hamilton,
the Company’s former CEO and Director, cancelled 9,416,667 of his shares and returned them to treasury. The shares have been
recorded as treasury stock at par value.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the quarter ended November 30, 2012,
the Company issued 10,000 shares of common stock for services. The shares were valued using the closing stock price on the day
of issuance of $2.50, for a total expense of $25,000.</p>
<p style="margin: 0pt"></p>
10000000
2000000
20000
10000
100000
2.50
25000
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of November 30, 2012, the Company has
limited working capital, little revenue and has a deficit accumulated during the Development stage of $171,356. The financial statements
are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization
of assets and liquidation of liabilities in the normal course of business. Without realization of additional capital, it would
be unlikely for the Company to continue as a going concern. the Company’s management plans on raising cash from public or
private debt or equity financing, on an as needed basis and in the longer term, upon achieving profitable operations through its
business activities.</p>
<p style="margin: 0pt"></p>
171356
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has performed an evaluation
of subsequent events in accordance with ASC Topic 855, noting no additional subsequent events other than those noted below.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 4, 2013, the Company authorized
the issuance of 100,000 shares of common stock for investor relation services.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subsequent to November 30, 2012, the Company
entered into a convertible promissory note for $125,000. The note provides for one warrant giving the holder the right to purchase
15,625 shares of common stock at a price of $2.00 per share for a period of five years.</p>
<p style="margin: 0pt"></p>
125000
15625
2.00
P5Y
.05
.06