10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the Quarterly period ended:   September 30, 2015

[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Commission File No. 333-184832

NEXUS ENTERPRISE SOLUTIONS, INC.

 (Exact Name of Small Business Issuer as specified in its charter)

Wyoming	45-2477894
(State or other jurisdiction)	(IRS Employer File Number)
5340 N. Federal Highway Suite 206 Lighthouse Point, FL	33064
(Address of principal executive offices)	(zip code)

 (561)-767-4346

 (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.      Yes þ  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T(Section 232.405 of this chapter) during the preceding 12 months(or such shorter period that the registrant was required to submit and post such files.      Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “small reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer  o  (Do not check if a smaller reporting company)	Smaller reporting company  þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)      Yes o    No þ

As of November 10, 2015, registrant had outstanding 19,007,144 shares of the registrant's common stock.

FORM 10-Q

NEXUS ENTERPRISE SOLUTIONS, INC.

TABLE OF CONTENTS

PART I  FINANCIAL INFORMATION		Page
Item 1.	Financial Statements for the three and nine months ended September 30, 2015
	Balance Sheets (Unaudited)	3
	Statements of Operations (Unaudited)	4
	Statements of Cash Flows (Unaudited)	5
	Notes to Unaudited  Financial Statements	6
Item 2.	Management’s Discussion and Analysis and Plan of Operation	8
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	11
Item 4.	Controls and Procedures	11
Item 4T.	Controls and Procedures	11
PART II  OTHER INFORMATION
Item 1.	Legal Proceedings	12
Item 1A.	Risk Factors	12
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	12
Item 3.	Defaults Upon Senior Securities	12
Item 4.	Mine Safety Disclosures	12
Item 5.	Other Information	12
Item 6.	Exhibits	13
Signatures		14

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PART I FINANCIAL INFORMATION

References in this document to "us," "we," or "Company" refer to Nexus Enterprise Solutions, Inc.

ITEM 1. FINANCIAL STATEMENTS

NEXUS ENTERPRISE SOLUTIONS, INC.
Balance Sheets
(Unaudited)
	September 30,			December 31,
	2015			2014
ASSETS
CURRENT ASSETS
Cash	$	4,675		$	31,575
Accounts receivable, net of allowance for doubtful accounts		162,406			295,423
Total Current Assets		167,081			326,998
Property and equipment, net of accumulated depreciation		784			784
Intangible assets		275,000			275,000
TOTAL ASSETS	$	442,865		$	602,782
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	217,204		$	333,216
Accrued expenses to related parties		118,000			118,000
Notes payable		-			30,500
Short-term portion of convertible note payable		150,000			-
Interest payable to related parties		82,668			63,076
Notes payable to related parties		127,485			127,485
Total Current Liabilities		695,357			672,277
Long-term portion of convertible note payable		60,000			-
Long-term portion of notes payable		-			387,000
TOTAL LIABILITIES		755,357			1,059,277
STOCKHOLDERS' DEFICIT
Preferred stock, 10,000,000 shares authorized,
no par value, no shares issued and outstanding		-			-
Common stock, 500,000,000 shares authorized; $.001 par
value, 19,007,144 and 18,807,144 shares issued and
outstanding, respectively		19,007			18,807
Additional paid-in capital		1,542,270			1,498,751
Accumulated deficit		(1,873,769	)		(1,974,053	)
Total Stockholders' Deficit		(312,492	)		(456,495	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	442,865		$	602,782
The accompanying notes are an integral part of these unaudited financial statements.

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NEXUS ENTERPRISE SOLUTIONS, INC.
Statements of Operations
(Unaudited)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
REVENUES	$	312,409		$	328,845		$	1,374,577		$	956,034
COST OF SALES		187,394			204,504			786,220			593,268
GROSS PROFIT		125,015			124,341			588,357			362,766
OPERATING EXPENSES
General and administrative		21,187			23,781			75,720			104,762
Consulting and professional fees		117,439			121,473			392,761			372,421
Total Operating Expenses		138,626			145,254			468,481			477,183
INCOME (LOSS) FROM OPERATIONS		(13,611	)		(20,913	)		119,876			(114,417	)
OTHER EXPENSES
Interest expense		(5,530	)		-			(19,592	)		(1,122	)
NET INCOME (LOSS)	$	(19,141	)	$	(20,913	)	$	100,284		$	(115,539	)
NET INCOME (LOSS) PER COMMON SHARE -
BASIC AND DILUTED	$	(0.00	)	$	(0.00	)	$	0.01		$	(0.00	)
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING -
BASIC AND DILUTED		19,007,144			18,507,144			18,921,430			19,330,454
The accompanying notes are an integral part of these unaudited financial statements

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NEXUS ENTERPRISE SOLUTIONS, INC.
Statements of Cash Flows
(Unaudited)
	Nine Months Ended
	September 30,
	2015			2014
OPERATING ACTIVITIES
Net income (loss)	$	100,284		$	(115,539	)
Adjustments to reconcile net income (loss) to net cash provided by     operating activities:
Stock-based compensation		43,719			33,451
Depreciation expense		-			264
Changes in operating assets and liabilities:
Accounts receivable		133,017			27,988
Prepaid expenses		-			15,250
Interest payable		19,592			-
Accounts payable		(116,012	)		58,898
Accrued expenses to related parties		-			1,122
Net Cash Provided by Operating Activities		180,600			21,434
FINANCING ACTIVITIES
Proceeds from convertible note payable		-			387,000
Repayment of notes payable		(207,500	)		(50,500	)
Cash paid for repurchase and cancellation of common stock		-			(356,874	)
Net Cash Used In Financing Activities		(207,500	)		(20,374	)
NET INCREASE (DECREASE) IN CASH		(26,900	)		1,060
CASH AT BEGINNING OF PERIOD		31,575			23,013
CASH AT END OF PERIOD	$	4,675		$	24,073
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
CASH PAID FOR:
Interest	$	-		$	-
Income taxes		-			-
The accompanying notes are an integral part of these unaudited financial statements.

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NEXUS ENTERPRISE SOLUTIONS, INC.

Notes to the Financial Statements

 (Unaudited)

NOTE 1 - BASIS OF PRESENTATION

Basis of Presentation

The unaudited interim financial statements of Nexus Enterprise Solutions, Inc. (the "Company") have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information in accordance with Securities and Exchange Commission (SEC) Regulation S-X rule 8-03. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited interim financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position and the results of operations and cash flows for the interim periods presented herein. The financial data and other information disclosed in these notes to the interim financial statements related to the period are unaudited. The results for the three and nine month periods ended September 30, 2015, are not necessarily indicative of the results to be expected for any subsequent quarters or for the entire year ending December 31, 2015. These financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2014.

Reclassifications

Certain prior period amounts have been reclassified to conform to current period presentation.

Basic and Diluted Net Income (Loss) per Share

Basic and diluted net income (loss) per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the period. Diluted income (loss) per share calculations includes the dilutive effect of common stock. Basic and diluted net income (loss) per share is the same for each of the three and nine months ended September 30, 2015, and 2014 due to the absence of common stock equivalents.

NOTE 2 - GOING CONCERN

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States, which contemplate continuation of the Company as a going concern.  The Company has generated recurring net losses since inception and has a working capital deficit of $528,276 as of September 30, 2015. The Company currently has limited liquidity and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time. These factors raise substantial doubt about the Company's ability to continue as a going concern.

Management anticipates that the Company will be dependent, for the near future, on additional investment capital, primarily from its shareholders, to fund operating expenses. The Company intends to position itself so that it may be able to raise additional funds through the private placement of its common stock. In light of management's efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.

NOTE 3 – RELATED PARTY TRANSACTIONS

As of September 30, 2015 and December 31, 2014 the balance of accrued expenses to related parties, which consists of accrued interest and accrued payroll, was $200,668 and $181,076, respectively. At September 30, 2015 and December 31, 2014, the accrued interest on the outstanding notes payable to related parties was $82,668 and $63,076, respectively. The outstanding balance of accrued payroll to officers was $118,000 as of September 30, 2015 and December 31, 2014.

The Company pays monthly consulting fees to two stockholders. During the nine months ended September 30, 2015 and 2014, these fees aggregated $118,900 and $108,750, respectively.

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NEXUS ENTERPRISE SOLUTIONS, INC.

Notes to the Financial Statements

 (Unaudited)

NOTE 4 – NOTES PAYABLE TO RELATED PARTIES

As of September 30, 2015 and December 31, 2014, the Company had outstanding notes payable to related parties of $127,485. These notes are unsecured, bear interest between 0% and 6% and are due on demand.

NOTE 5 – NOTES PAYABLE

In April 2013, the Company and a third party reached an agreement for Nexus to use certain intellectual property in its lead generation business into perpetuity in exchange for a $150,000 note and 500,000 common shares which were previously issued during February 2012 (the fair value of these shares of $125,000 was reclassified from deposits to intangible assets during the year ended December 31, 2013). The note will be repaid in 18 monthly installments, with the monthly payments varying based on the Company's gross profit for that month. The monthly payments range from $5,000 to $25,000. The note does not bear interest unless a monthly payment is not made, at which time the note will bear interest at 12.5% until the non-payment is cured. During 2014 and 2013, the Company made payments of $65,500 and $54,000, respectively. As of September 30, 2015 and December 31, 2014, the outstanding balance under this note payable was $0 and $30,500, respectively.

On June 4, 2014, the Company borrowed $387,000 from an unrelated third party entity in the form of a convertible note. The note bears a zero percent interest rate until December 31, 2014, at which point the note will accrue interest at a rate of 8 percent per annum commencing on January 1, 2015. The principal balance of the note with accrued interest is due on February 15, 2017. Monthly payments commence in January 2015, with the first payment of $17,500 due on January 15, 2015 and every payment due on or near the 15th of each month thereafter.  On January 15, 2016, the monthly payments decrease to $15,000 per month until maturity. The Holder is prohibited from converting all or any portion of the outstanding principal and accrued interest provided timely monthly payments are received by the Holder pursuant to the terms set forth in the payment schedule. If the note becomes convertible due to timely monthly payments not being made, the note will be convertible into common stock at 55% of the lowest closing bid price of the Company's common stock during the 25 trading days preceding the date of conversion. The Company evaluated the convertible note under FASB ASC 815 and determined it does not qualify as a derivative liability as of September 30, 2015. As of September 30, 2015, the outstanding balance under this note was $210,000 and accrued interest was $19,039.

NOTE 6 – STOCKHOLDERS' EQUITY

During the year ended December 31, 2013, the Company granted 300,000 common shares to a new Board member, Stanley Rapp. The shares vest on September 16, 2015. The fair value of the award was determined to be $78,000 and it is being expensed over the vesting period. During the nine months ended September 30, 2015, an aggregate of $27,674 was expensed under this award.  Nothing remains to be expensed as of September 30, 2015. The 300,000 shares were issued during January 2014.

On June 13, 2014, the Company granted 50,000 common shares to a new Chief Technology Officer. The shares vest on April 13, 2015. The fair value of the award was determined to be $11,940 and it is being expensed over the vesting period. During the nine months ended September 30, 2015, an aggregate of $4,045 was expensed under this award. Nothing remains to be expensed as of September 30, 2015. On April 13, 2015, the 50,000 shares were issued.

On April 28, 2015, the Company granted 100,000 common shares to Scott Schluer (Chief Technology Officer) and 50,000 common shares to TMG Interactive for services. The shares were valued and expensed at $12,000 during the nine months ended September 30, 2015.

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ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION

The following discussion of our financial condition and results of operations should be read in conjunction with, and is qualified in its entirety by, the consolidated financial statements and notes thereto included in Item 1 in this Quarterly Report on Form 10-Q. This item contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those indicated in such forward-looking statements.

Forward-Looking Statements

This Quarterly Report on Form 10-Q and the documents incorporated herein by reference contain forward-looking statements. Such forward-looking statements are based on current expectations, estimates, and projections about our industry, management beliefs, and certain assumptions made by our management. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", variations of such words, and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict; therefore, actual results may differ materially from those expressed or forecasted in any such forward-looking statements. Unless required by law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. However, readers should carefully review the risk factors set forth herein and in other reports and documents that we file from time to time with the Securities and Exchange Commission, particularly the Report on Form 10-K, Form 10-Q and any Current Reports on Form 8-K.

Overview and History

Nexus Enterprise Solutions, Inc. ("Nexus") was incorporated in the State of Wyoming on October 19, 1995 as Global Link Technologies, Inc.  On June 10, 2008, Global Link Technologies filed Articles of Amendment with the State of Wyoming changing its name to MutuaLoan Corporation.  On June 16, 2011 (as filed with the State of Wyoming on September 16, 2011), MutuaLoan Corporation entered into a business combination with Nexus Enterprise Solutions, Inc. ("Nexus Florida").  The business combination was accounted for as a reverse merger recapitalization. The accounting target/legal acquirer was MutuaLoan. The accounting acquirer/legal target was Nexus Florida.  Nexus is currently conducting operations and generating revenue.

The Company operations are currently being conducted out of the Company office located at 5340 N Federal Hwy STE 206 Lighthouse Point, FL 33406 1375; (561) 767-4346.  It considers that the current principal office space arrangement adequate and will reassess its needs based upon the future growth of the Company.   Its fiscal year end is December 31^st.

Our Company's primary service is lead generation for its customers.  The Company's target customers are currently companies in the insurance and financial service industries, but we intend to expand to additional industries in the future.  Our Company uses both online leads and offline lead generation techniques in order to generate revenue by selling such leads, as well as various other services, to our customers.

Online Generation

There are many ways to generate leads online. Each has its own formula that needs to be perfected in order to find the balance between quantity and quality. The online lead generation methods used by our Company include, but are not limited to, Proprietary Lead Portals, Pay Per Click Advertising, Email Advertising and Website Banners.

Offline Lead Generation

Using a combination of a predictive dialer call center solution and an overseas outsourced call center solution, our Company is able to generate custom live transfer leads for our customers.  We utilize this method of lead generation in situations where we are confident that a high volume of live leads can be generated and sold for a profit.

Revenue Model and Distribution methods of the products or services

Our revenue model is based on customer development.  We either purchase leads from accredited brokers or locate leads based on the methods described above, and then resell those leads to our customers through our automated system.  The leads must meet the stringent criteria of our system.  The leads are vetted through our fraud filters in order to ensure quality.

We are currently focusing our attention on the auto insurance market, but expect to expand to other industries in the very near future.  The Company will identify and address additional target markets for its services other than the insurance and financial industries with market research and feedback from its customers.

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Results of Operations

For the Three Months Ended September 30, 2015 Compared to the Three Months Ended September 30, 2014

The Company generated $312,409 in revenue for the three month period ended September 30, 2015, which compares to revenue of $328,845 for the three month period ended September 30, 2014.  Our revenues decreased slightly during the three month period ended September 30, 2015 due to decreased sales of our services to our current customers during this three month period.

Cost of sales for the three month period ended September 30, 2015 was $187,394, which compares to cost of sales of $204,504 for the three month period ended September 30, 2014.  Our revenues decreased during the three months ended September 30, 2015, and as our sales revenue decreased, our cost of sales correspondingly decreased.

Operating expenses, which consisted solely of general and administrative expenses, and consulting and professional fees for the three month period ended September 30, 2015, were $138,626. This compares with operating expenses for the three month period ended September 30, 2014 of $145,254.  The major components of general and administrative expenses include accounting fees, legal and professional fees. Our operating expenses decreased during the period primarily because we had decrease in our dependence on consulting services.

As a result of the foregoing, we had a net loss of $19,141 for the three month period ended September 30, 2015. This compares with net loss for the three month period ended September 30, 2014 of $20,913.

For the Nine Months Ended September 30, 2015 Compared to the Nine Months Ended September 30, 2014

The Company generated $1,374,577 in revenue for the nine month period ended September 30, 2015, which compares to revenue of $956,034 for the nine month period ended September 30, 2014.  Our revenues increased during the nine month period ended September 30, 2015 due to the fact that we were able to secure new lead generation relationships as compared to the nine month period ended September 30, 2014, which enabled us to increase our sales revenue.

Cost of sales for the nine month period ended September 30, 2015 was $786,220, which compares to cost of sales of $593,268 for the nine month period ended September 30, 2014.  Our revenues increased during the nine months ended September 30, 2015, and as our sales revenue increased during the period, our cost of sales correspondingly increased.

Operating expenses, which consisted solely of general and administrative expenses, and consulting and professional fees for the nine month period ended September 30, 2015, were $468,481. This compares with operating expenses for the nine month period ended September 30, 2014 of $477,183.  The major components of general and administrative expenses include accounting fees, legal and professional fees. Our operating expenses decreased during the period primarily because we had a decrease in fees related to professional services.

As a result of the foregoing, we had a net income of $100,284 for the nine month period ended September 30, 2015. This compares with a net loss for the nine month period ended September 30, 2014 of $115,539.

In its audited financial statements as of December 31, 2014, the Company was issued an opinion by its auditors that raised substantial doubt about the ability to continue as a going concern based on the Company's current financial position. Our ability to achieve and maintain profitability and positive cash flow is dependent upon our ability to successfully develop and market our products and our ability to generate revenues.

Liquidity and Capital Resources

As of September 30, 2015 we had cash or cash equivalents of $4,675.  As of December 31, 2014, we had cash or cash equivalents of $31,575.

We believe that with our existing cash flows we have sufficient cash to meet our operating requirements for the next twelve months due to the fact that we believe our revenue will increase throughout the year.  We believe that the amount of revenue we are generating will allow us to meet our operating requirements during the next twelve months.  If our revenue is not sufficient to allow us to meet our cash requirements during the next twelve months, the company may need to raise additional funds through the sale of its equity securities.  We cannot guarantee that we will be successful in generating sufficient revenues or other funds in the future to cover these operating costs. Failure to generate sufficient revenues or additional financing when needed could cause us to go out of business.

- 9 -

Net cash provided by operating activities was $180,600 for the nine month period ended September 30, 2015. This compares to net cash provided by operating activities of $21,434 for the nine month period ended September 30, 2014.   This change is due to an increase in accounts payable, as well as the fact that we had net income of $100,284 for the nine months ended September 30, 2015, as compared to a net loss of $115,539 for the nine months ended September 30, 2014.

Cash flows from investing activities were $0 for the nine month period ended September 30, 2015 and 2014.  We do not anticipate significant cash outlays for investing activities over the next twelve months.

Cash flows used in financing activities was $207,500 for the nine month period ended September 30, 2015 which compares to cash flows used in financing activities of $20,374 for the nine month period ended September 30, 2014.  The change in cash flows related to financing activities is due to the fact that we have increased repayment of notes payable and decreased proceeds from sales of convertible notes during the nine months ended September 30, 2015, as compared with the nine months ended September 30, 2014.

As of September 30, 2015, our total assets were $442,865 and our total liabilities were $755,357.  As of December 31, 2014, our total assets were $602,782 and our total liabilities were $1,059,277.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Plan of Operation

Our plan for the twelve months beginning September 30, 2015 is to operate at a profit or at break even. Our plan is to attract sufficient additional product sales and services within our present organizational structure and resources to become profitable in our operations.

Our revenue model is based on customer development.  We either purchase leads from accredited brokers or locate leads based on the methods described above, and then resell those leads to our customers through our automated system.  The leads must meet the stringent criteria of our system.  The leads are vetted through our fraud filters in order to ensure quality.

We are currently focusing our attention on the auto insurance market, but expect to expand to other industries in the very near future.

Nexus Enterprise Solutions, Inc. (Nexus) is redefining the current prospect and lead generation and acquisition industry by developing an information exchange service which allows sellers and buyers of leads, and other information assets, to operate in an optimized, transparent, and efficient way to transact deals in a more efficient manner than what is experienced in today's markets and systems.  This is accomplished primarily through systems and processes which enable enhanced business intelligence and management thereby empowering stakeholders on both sides of the transaction to make well-informed and meaningful connections with each other.

Our Company generates revenue through its lead generation services, which are comprised of the lead generation methods described above and are accessed by our customers through our automated system. The cost of developing an automated system such as ours is prohibitive for a majority of companies. We fulfill a need by allowing these companies to use our technology, forms, landing pages etc, for a fee. We currently are back logged with the amount of companies looking to buy and sell leads to us, our carriers and agencies. In return, we get compensated when we sell a lead by charging our customers a fee for each lead purchased.

The Company will identify and address additional target markets for its services other than the insurance and financial industries with market research and feedback from its customers.

Recently Issued Accounting Pronouncements

We have  reviewed  all  recently issued, but not yet effective,  accounting pronouncements and do not believe the future adoption of any such  pronouncements  may be expected to cause a material impact on our financial condition or the results of our operations.

Seasonality

We do not expect our revenues to be impacted by seasonal demands for our services.

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ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a "smaller  reporting  company" as defined by Item 10 of Regulation  S-K, the Company is not required to provide information required by this Item.

ITEM 4. CONTROLS AND PROCEDURES

Not applicable.

ITEM 4T. CONTROLS AND PROCEDURES

As required by Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), our management carried out an evaluation, with the participation of our Chief Executive Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) of the Exchange Act), as of the period covered by this report. Disclosure controls and procedures are defined as controls and other procedures that are designed to ensure that information required to be disclosed by us in reports filed with the SEC under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and (ii) accumulated and communicated to the Company's management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Based upon their evaluation, our management (including our Chief Executive Officer) concluded that our disclosure controls and procedures were not effective as of September 30, 2015, based on the material weaknesses defined below:

(i)inadequate segregation of duties consistent with control objectives; and

(ii)ineffective controls over period end financial disclosure and reporting processes.

Management's Remediation Plan

We plan to take steps to enhance and improve the design of our internal control over financial reporting.  During the period covered by this quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above.  To remediate such weaknesses, we plan to implement the following changes in the future:

(i)   (ii) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk  management; and   adopt sufficient written policies and procedures for accounting and financial reporting.

The remediation efforts set out in (i) is largely dependent upon our company generating the necessary revenue to cover the costs of implementing the changes required.  If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.  Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within our company have been detected.  These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake.

Management believes that despite our material weaknesses set forth above, our unaudited interim consolidated financial statements for the three months ended September 30, 2015 are fairly stated, in all material respects, in accordance with US GAAP.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal controls over financial reporting that occurred during our most recent fiscal quarter.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There are no legal proceedings, to which we are a party, which could have a material adverse effect on our business, financial condition or operating results.

ITEM 1A. RISK FACTORS

There have been no changes to our Risk Factors included in our Annual Report for the year ended December 31, 2014, filed with the Securities and Exchange Commission on April 14, 2015.  

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.  MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.  OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

EXHIBITS. The following exhibits required by Item 601 to be filed herewith are incorporated by reference to previously filed documents:

Exhibit Number	Description
31.1	Certification of Chief Executive Officer pursuant to Section 302
31.2	Certification of Chief Financial Officer pursuant to Section 302
32.1	Certification of Chief Executive Officer pursuant to Section 906
32.2	Certification of Chief Financial Officer pursuant to Section 906
101.INS**	XBRL Instance Document
101.SCH**	XBRL Taxonomy Schema
101.CAL**	XBRL Taxonomy Calculation Linkbase
101.DEF**	XBRL Taxonomy Definition Linkbase
101.LAB**	XBRL Taxonomy Label Linkbase
101.PRE **	XBRL Taxonomy Presentation Linkbase

    ** Furnished herewith. XBRL (eXtensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

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SIGNATURES

In accordance with Section 12 of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November 12, 2015.

Nexus Enterprise Solutions, Inc.
By:	/s/ James Bayardelle
	James Bayardelle, President

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed   below by the following person on behalf of the Registrant and in the capacity and on the date indicated.

/s/  James Bayardelle	President, Chief Executive Officer,  Principal Accounting Officer, Chief Financial Officer and Director	November 12, 2015
James Bayardelle	Title	Date

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EX-31.1

  Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

     I, James Bayardelle, certify that:

1)   I have reviewed this quarterly report of Nexus Enterprise Solutions, Inc. on Form 10-Q;

2)   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3)   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4)    I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have;

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure the material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation.

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5)   I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal controls over financial reporting.

Date: November 12, 2015	/s/ James Bayardelle
	James Bayardelle
	President

EX-31.2

  Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

     I, James Bayardelle, certify that:

1)   I have reviewed this quarterly report of Nexus Enterprise Solutions, Inc. on Form 10-Q;

2)   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3)   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4)    I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have;

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure the material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation.

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5)   I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal controls over financial reporting.

Date: November 12, 2015	/s/ James Bayardelle
	James Bayardelle
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT 0F 2002

In connection with the Quarterly Report of Nexus Enterprise Solutions, Inc. (the Company") on Form 10-Q for the period ended herein as filed with the Securities and Exchange Commission (the "Report"), I, James Bayardelle, President of the Company, certify, pursuant to 18 U.S.C. ss.1350, as adopted pursuant to ss.906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fully presents, in all material respects, the financial condition and results of operations or the Company.

		Nexus Enterprise Solutions, Inc.
Date: November 12, 2015	By:	/s/ James Bayardelle
		James Bayardelle
		President

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT 0F 2002

In connection with the Quarterly Report of Nexus Enterprise Solutions, Inc. (the Company") on Form 10-Q for the period ended herein as filed with the Securities and Exchange Commission (the "Report"), I, James Bayardelle, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. ss.1350, as adopted pursuant to ss.906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fully presents, in all material respects, the financial condition and results of operations or the Company.

		Nexus Enterprise Solutions, Inc.
Date: November 12, 2015	By:	/s/ James Bayardelle
		James Bayardelle
		Chief Financial Officer

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4 NOTES PAYABLE TO RELATED PARTIES

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

4 PAYABLES TO RELATED PARTIES

NOTE 4 – NOTES PAYABLE TO RELATED PARTIES

As of September 30, 2015 and December 31, 2014, the Company had outstanding notes payable to related parties of $127,485. These notes are unsecured, bear interest between 0% and 6% and are due on demand.

XML

3 RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2015

Payables and Accruals [Abstract]

3 PAYABLES TO RELATED PARTIES

NOTE 3 – RELATED PARTY TRANSACTIONS

As of September 30, 2015 and December 31, 2014 the balance of accrued expenses to related parties, which consists of accrued interest and accrued payroll, was $200,668 and $181,076, respectively. At September 30, 2015 and December 31, 2014, the accrued interest on the outstanding notes payable to related parties was $82,668 and $63,076, respectively. The outstanding balance of accrued payroll to officers was $118,000 as of September 30, 2015 and December 31, 2014.

The Company pays monthly consulting fees to two stockholders. During the nine months ended September 30, 2015 and 2014, these fees aggregated $118,900 and $108,750, respectively.

XML

Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash	$ 4,675	$ 31,575
Accounts receivable, net of allowance for doubtful accounts	162,406	295,423
Total Current Assets	167,081	326,998
Property and equipment, net of accumulated depreciation	784	784
Intangible assets	275,000	275,000
TOTAL ASSETS	442,865	602,782
CURRENT LIABILITIES
Accounts payable and accrued expenses	217,204	333,216
Accrued expenses to related parties	$ 118,000	118,000
Notes payable		$ 30,500
Short-term portion of convertible note payable	$ 150,000
Interest payable to related parties	82,668	$ 63,076
Notes payable to related parties	127,485	127,485
Total Current Liabilities	695,357	$ 672,277
Long-term portion of convertible note payable	$ 60,000
Long-term portion of notes payable		$ 387,000
TOTAL LIABILITIES	$ 755,357	$ 1,059,277
STOCKHOLDERS' DEFICIT
Preferred stock, 10,000,000 shares authorized at no par value, no shares issued and outstanding.
Common stock, 500,000,000 shares authorized; $.001 par value, 19,007,144 and 18,807,144 shares issued and outstanding, respectively	$ 19,007	$ 18,807
Additional paid-in capital	1,542,270	1,498,751
Accumulated deficit	(1,873,769)	(1,974,053)
Total Stockholders' Deficit	(312,492)	(456,495)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 442,865	$ 602,782

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1 BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

1 BASIS OF PRESENTATION

NOTE 1 - BASIS OF PRESENTATION

Basis of Presentation

The unaudited interim financial statements of Nexus Enterprise Solutions, Inc. (the "Company") have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information in accordance with Securities and Exchange Commission (SEC) Regulation S-X rule 8-03. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited interim financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position and the results of operations and cash flows for the interim periods presented herein. The financial data and other information disclosed in these notes to the interim financial statements related to the period are unaudited. The results for the three and nine month periods ended September 30, 2015, are not necessarily indicative of the results to be expected for any subsequent quarters or for the entire year ending December 31, 2015. These financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2014.

Reclassifications

Certain prior period amounts have been reclassified to conform to current period presentation.

Basic and Diluted Net Income (Loss) per Share

Basic and diluted net income (loss) per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the period. Diluted income (loss) per share calculations includes the dilutive effect of common stock. Basic and diluted net income (loss) per share is the same for each of the three and nine months ended September 30, 2015, and 2014 due to the absence of common stock equivalents.

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2 GOING CONCERN

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

2 GOING CONCERN

NOTE 2 - GOING CONCERN

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States, which contemplate continuation of the Company as a going concern.  The Company has generated recurring net losses since inception and has a working capital deficit of $528,276 as of September 30, 2015. The Company currently has limited liquidity and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time. These factors raise substantial doubt about the Company's ability to continue as a going concern.

Management anticipates that the Company will be dependent, for the near future, on additional investment capital, primarily from its shareholders, to fund operating expenses. The Company intends to position itself so that it may be able to raise additional funds through the private placement of its common stock. In light of management's efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.

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Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0	$ 0
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ .001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	19,007,144	18,807,144
Common stock, shares outstanding	19,007,144	18,807,144

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Sep. 13, 2015
Document And Entity Information
Entity Registrant Name	Nexus Enterprise Solutions, Inc.
Entity Central Index Key	0001561781
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		19,007,144
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015

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Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
REVENUES	$ 312,409	$ 328,845	$ 1,374,577	$ 956,034
COST OF SALES	187,394	204,504	786,220	593,268
GROSS PROFIT	125,015	124,341	588,357	362,766
OPERATING EXPENSES
General and administrative	21,187	23,781	75,720	104,762
Consulting and professional fees	117,439	121,473	392,761	372,421
Total Operating Expenses	138,626	145,254	468,481	477,183
INCOME (LOSS) FROM OPERATIONS	(13,611)	$ (20,913)	119,876	(114,417)
OTHER EXPENSES
Interest expense	(5,530)		(19,592)	(1,122)
NET LOSS	$ (19,141)	$ (20,913)	$ 100,284	$ (115,539)
BASIC AND DILUTED LOSS PER COMMON SHARE	$ (0.00)	$ (0.00)	$ 0.01	$ (0.00)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED	19,007,144	18,507,144	18,921,430	19,330,454

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2 GOING CONCERN (Details Narrative) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Working capital deficit	$ 528,276
Accumulated deficit	$ (1,873,769)	$ (1,974,053)

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6 STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

6 STOCKHOLDERS' EQUITY

NOTE 6 – STOCKHOLDERS' EQUITY

During the year ended December 31, 2013, the Company granted 300,000 common shares to a new Board member, Stanley Rapp. The shares vest on September 16, 2015. The fair value of the award was determined to be $78,000 and it is being expensed over the vesting period. During the nine months ended September 30, 2015, an aggregate of $27,674 was expensed under this award.  Nothing remains to be expensed as of September 30, 2015. The 300,000 shares were issued during January 2014.

On June 13, 2014, the Company granted 50,000 common shares to a new Chief Technology Officer. The shares vest on April 13, 2015. The fair value of the award was determined to be $11,940 and it is being expensed over the vesting period. During the nine months ended September 30, 2015, an aggregate of $4,045 was expensed under this award. Nothing remains to be expensed as of September 30, 2015. On April 13, 2015, the 50,000 shares were issued.

On April 28, 2015, the Company granted 100,000 common shares to Scott Schluer (Chief Technology Officer) and 50,000 common shares to TMG Interactive for services. The shares were valued and expensed at $12,000 during the nine months ended September 30, 2015.

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5 NOTES PAYABLE (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Debt Disclosure [Abstract]
Note issued for intangible asset	$ 150,000
Shares issed for intangible asset	500,000
Fair value of shares issued for intangible asset	$ 125,000
Low range of monthly payments	5,000
High range of monthly payments	$ 25,000
Interest if monthly payment is not made	12.50%
Amount unpaid as of May 10, 2014	$ 100,000
Interest rate	600.00%
Oustanding balance of note 1	$ 5,000	$ 30,500
Oustanding balance of note 2	$ 210,000
Interest rate for note 2	80.00%
Date of first payment due for note 2	Jan. 15, 2015
Monthly Ppayment amount note 2	$ 15,000
Accrued interest note 2	$ 19,039

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3 RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Related Party Transactions [Abstract]
Accrued interest and accrued payroll	$ 200,668	$ 181,076
Accrued interest on the outstanding notes payable to related parties	82,668	63,076
Accrued payroll to officers	118,000	118,000
Aggragated consulting fees to two shareholders	$ 118,900	$ 108,750

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4 NOTES PAYABLE TO RELATED PARTIES (Details Narrative)	Sep. 30, 2015 USD ($)
Notes to Financial Statements
Outstanding unsecured notes payable related parties	$ 127,485
Interest rate	6.00%

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6 STOCKHOLDERS EQUITY (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2013	Jun. 13, 2014	Sep. 16, 2013
Equity [Abstract]
Number of shares awarded to a new Board member		300,000
Fair value of award to a new Board member				$ 78,000
Amount of issuance expensed during period	$ 27,674
Aggregate remaining to be expensed over the remaining vesting period	8,335
Number of shares awarded to CTO			50,000
Fair value of award to CTO	11,940
Amount of issuance expensed during period	$ 4,045
Number of shares issued for services	35,385
Amount of issuance valued and expensed during period	$ 12,000

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Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
OPERATING ACTIVITIES
Net income (loss)	$ 100,284	$ (115,539)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation	43,719	33,451
Depreciation expense		$ 264
Changes in operating assets and liabilities:
Accounts receivable	$ 133,017	27,988
Prepaid expenses		$ 15,250
Interest payable	$ 19,592
Accounts payable	$ (116,012)	$ 58,898
Accrued expenses to related parties		1,122
Net Cash Provided by Operating Activities	$ 180,600	21,434
FINANCING ACTIVITIES
Proceeds from convertible note payable		387,000
Repayment of notes payable	$ (207,500)	$ (50,500)
Cash paid for repurchase and cancellation of common stock		(356,874)
Net Cash Used in Financing Activities	$ (207,500)	$ (20,374)
NET INCREASE (DECREASE) IN CASH	(26,900)	1,060
CASH AT BEGINNING OF PERIOD	31,575	23,013
CASH AT END OF PERIOD	$ 4,675	$ 24,073
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION CASH PAID FOR:
Interest
Income Taxes

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5 NOTES PAYABLE

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

5 NOTES PAYABLE

NOTE 5 – NOTES PAYABLE

In April 2013, the Company and a third party reached an agreement for Nexus to use certain intellectual property in its lead generation business into perpetuity in exchange for a $150,000 note and 500,000 common shares which were previously issued during February 2012 (the fair value of these shares of $125,000 was reclassified from deposits to intangible assets during the year ended December 31, 2013). The note will be repaid in 18 monthly installments, with the monthly payments varying based on the Company's gross profit for that month. The monthly payments range from $5,000 to $25,000. The note does not bear interest unless a monthly payment is not made, at which time the note will bear interest at 12.5% until the non-payment is cured. During 2014 and 2013, the Company made payments of $65,500 and $54,000, respectively. As of September 30, 2015 and December 31, 2014, the outstanding balance under this note payable was $0 and $30,500, respectively.

On June 4, 2014, the Company borrowed $387,000 from an unrelated third party entity in the form of a convertible note. The note bears a zero percent interest rate until December 31, 2014, at which point the note will accrue interest at a rate of 8 percent per annum commencing on January 1, 2015. The principal balance of the note with accrued interest is due on February 15, 2017. Monthly payments commence in January 2015, with the first payment of $17,500 due on January 15, 2015 and every payment due on or near the 15th of each month thereafter.  On January 15, 2016, the monthly payments decrease to $15,000 per month until maturity. The Holder is prohibited from converting all or any portion of the outstanding principal and accrued interest provided timely monthly payments are received by the Holder pursuant to the terms set forth in the payment schedule. If the note becomes convertible due to timely monthly payments not being made, the note will be convertible into common stock at 55% of the lowest closing bid price of the Company's common stock during the 25 trading days preceding the date of conversion. The Company evaluated the convertible note under FASB ASC 815 and determined it does not qualify as a derivative liability as of September 30, 2015. As of September 30, 2015, the outstanding balance under this note was $210,000 and accrued interest was $19,039.