0001087022
2017-12-31
0001087022
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2018-09-30
0001087022
2017-09-30
0001087022
2018-09-30
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2017-01-01
2017-09-30
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2017-12-31
0001087022
alrt:ChairmanAndCEOMember
2018-09-30
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alrt:WifeOfChairmanMember
2017-12-31
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alrt:WifeOfChairmanMember
2018-09-30
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alrt:ChairmanAndCEOMember
2017-01-01
2017-12-31
0001087022
alrt:WifeOfChairmanMember
2017-01-01
2017-12-31
0001087022
alrt:ChairmanAndCEOMember
2018-01-01
2018-09-30
0001087022
alrt:WifeOfChairmanMember
2018-01-01
2018-09-30
0001087022
2016-12-31
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2018-07-01
2018-09-30
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2017-07-01
2017-09-30
iso4217:USD
xbrli:shares
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ALR Technologies Inc.
10-Q
--12-31
false
0001087022
Yes
No
Smaller Reporting Company
No
2018-09-30
2018
Q3
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>1.       Basis of Presentation,
Nature of Operations and Going Concern</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">ALR Technologies Inc. (the
“Company”) was incorporated under the laws of the state of Nevada on March 24, 1987. The Company has developed
a compliance monitoring system that will allow for health care professionals to remotely monitor patient health conditions and
provide patient health management. On October 17, 2011 the Company announced that it had received Section 510(k) clearance
from the United States Food and Drug Administration for its Diabetes Management System. The Company is currently seeking pilot
programs to deploy its product.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">These condensed financial
statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US
GAAP”) in US dollars and on a going concern basis, which presumes the realization of assets and the discharge of liabilities
and commitments in the normal course of operations for the foreseeable future. Several adverse conditions cast substantial doubt
on the validity of this assumption. The Company has incurred significant losses over the nine months ended September 30, 2018
and 2017 of $3,465,834 and $2,039,737. In addition, losses incurred for the years ended December 31, 2017 and 2016 were $2,842,025
and $10,093,733. As of September 30, 2018, the Company is unable to self-finance its operations, has a working capital deficit
of $27,786,183 (December 31, 2017 - $25,976,379), accumulated deficit of $77,993,909 (December 31, 2017 - $74,528,075), limited
resources, no source of operating cash flow and no assurance that sufficient funding will be available to conduct continued product
development activities. If the Company is able to finance its required product development activities, there is no assurance the
Company’s current projects will be commercially viable or profitable. The Company has debts comprised of accounts payable,
interest payable, lines of credit and promissory notes payable totaling $27,790,584 currently due, due on demand or considered
delinquent. There is no assurance that the Company will not face additional legal action from creditors regarding the above debts.
Any one or a combination of these above conditions could result in the failure of the business and cause the Company to cease operations.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The Company’s ability
to continue as a going concern is dependent upon the continued financial support of its creditors and its ability to obtain financing
to fund working capital and overhead requirements, fund the development of the Company’s product line and, ultimately, the
Company’s ability to achieve profitable operations and repay overdue obligations. The Company has obtained short-term financing
from its chairman’s family through lines of credit facilities with available borrowing in the principal amount up to $10,500,000
(as of September 30, 2018 the total principal balance outstanding was $10,886,648) (note 5). During 2018, the Company
has continued to receive financing from the Chairman in excess of the borrowing limit of the line of credit it has available. The
amounts received by the Company from the Chairman have been borrowed under the same terms as the line of credit. The Company and
the Chairman have not entered into a new agreement for the amount of borrowing available but have agreed to work towards a convertible
promissory note financing.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The resolution of whether
the Company is able to continue as a going concern is dependent upon the realization of management’s plans. The Company plans
to raise needed capital through the exercise of share options, increase to existing debt facilities or the acquisition of new debt
facilities, and by future common share private placements. There can be no assurance that the Company will be able to raise any
additional debt or equity capital from the sources described above, or that the lenders in the line of credit arrangements will
maintain the availability of borrowing from the line. If management is unsuccessful in obtaining short-term financing or achieving
long-term profitable operations, the Company will be required to cease operations.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">All of the Company’s
debt is either due on demand or is in default, while continuing to accrue interest at its stated rate. The Company will seek to
obtain creditors’ consents to delay repayment of the outstanding promissory notes payable and related interest thereto, until
it is able to replace this financing with funds generated by operations, recapitalization with replacement debt or from equity
financings through private placements. While some of the Company’s creditors have agreed to extend repayment deadlines in
the past, there is no assurance that they will continue to do so in the future. In the past, creditors have successfully commenced
legal action against the Company to recover debts outstanding. In those instances, the Company was able to obtain financing from
related parties to cover the verdict or settlement; however, there is no assurance that the Company would be able to obtain the
same financing in the future. If the Company is unsuccessful in obtaining financing to cover any potential verdicts or settlements,
the Company will be required to cease operations.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The Company’s activities
will necessitate significant uses of working capital beyond 2018. Additionally, the Company’s capital requirements will depend
on many factors, including the success of the Company’s continued product development and distribution efforts. The Company
plans to continue financing its operations with the lines of credit it has available and future debt arrangements it obtains.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">While the Company strongly
believes that its capital resources will be sufficient in the near term, there is no assurance that the Company’s
activities will generate sufficient revenues to sustain its operations without additional capital or if additional capital is needed,
that such funds, if available, will be obtainable on terms satisfactory to the Company.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>2.       Significant
Accounting Policies</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The unaudited condensed financial
statements as of September 30, 2018 and for the period then ended have been prepared pursuant to the rules and regulations
of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual
financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed
or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make
the information not misleading.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">In the opinion of management,
all adjustments necessary to present fairly the financial position as of September 30, 2018 and December 31, 2017 and the
results of operations and cash flows as of September 30, 2018 and 2017, and for the periods then ended, have been made. Those
adjustments consist of normal and recurring adjustments.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">These unaudited condensed
financial statements should be read in conjunction with the financial statements and notes thereto included in the Annual Report
on Form 10-K for the fiscal year ended December 31, 2017.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The results of operations
for the nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the full year.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>3.        Accounts
Payable and Accrued Liabilities</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in">A summary of the accounts payable and accrued
liabilities is as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="2" style="border-top: black 4.5pt double; line-height: 107%"> </td>
<td colspan="2" rowspan="3" style="border-top: black 4.5pt double">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30,</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td>
<td colspan="2" rowspan="3" style="border-top: black 4.5pt double">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2017</b></p></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 2%; border-top: black 1pt solid; line-height: 107%"> </td>
<td style="width: 70%; border-top: black 1pt solid; line-height: 107%"> </td>
<td style="width: 1%; border-top: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="width: 13%; border-top: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; border-top: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="width: 13%; border-top: black 1pt solid; text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payables</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">780,168</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">782,307</font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Accrued liabilities</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">224,922</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">255,766</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: black 4.5pt double; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,005,090</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,038,073</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>4.       Promissory
Notes and Interest Payable</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in">a)       Promissory
notes payable to related parties:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in">A summary of the promissory notes payable to related
parties is as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-indent: 0.25in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="3" style="border-top: black 4.5pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Promissory Notes Payable to Related Parties</b></font></td>
<td colspan="2" rowspan="2" style="border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30,</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td>
<td colspan="2" rowspan="2" style="border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2017</b></p></td></tr>
<tr style="vertical-align: bottom">
<td colspan="3" style="border-bottom: black 1pt solid; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="3" style="line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td colspan="3" style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Promissory notes payable to relatives of directors collateralized by a general security agreement on all the assets of the Company, due on demand:</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 2%; line-height: 107%"> </td>
<td style="width: 2%; line-height: 107%"> </td>
<td style="width: 68%; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 13%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 13%; text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">i.</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest at 1% per month</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">875,619</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">875,619</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">ii.</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest at 1.25% per month</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">51,347</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">51,347</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">iii.</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest at the US bank prime rate plus 1%</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="3" style="line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td colspan="3" style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Promissory notes payable, unsecured, to relatives of a director, bearing interest at 1% per month, due on demand</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,465,000</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,465,000</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="3" style="border-bottom: black 4.5pt double; padding-top: 12pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total Promissory Notes Payable to Related Parties</b></font></td>
<td style="border-bottom: black 4.5pt double; padding-top: 12pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,891,966</font></td>
<td style="border-bottom: black 4.5pt double; padding-top: 12pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,891,966</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in">b)       Promissory
notes payable to unrelated parties</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-indent: 0.25in">A summary of the promissory
notes payable to unrelated parties is as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="3" style="border-top: black 4.5pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Promissory Notes Payable to Unrelated Parties</b></font></td>
<td colspan="2" rowspan="2" style="border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30,</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td>
<td colspan="2" rowspan="2" style="border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2017</b></p></td></tr>
<tr style="vertical-align: bottom">
<td colspan="3" style="border-bottom: black 1pt solid; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="3" style="line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td colspan="3" style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Unsecured promissory notes payable to unrelated lenders:</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; width: 2%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 2%; line-height: 107%"> </td>
<td style="vertical-align: bottom; width: 68%; line-height: 107%"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; width: 13%; text-align: right; line-height: 107%"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; width: 13%; text-align: right; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">i.</font></td>
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest at 1% per month, repayable on March 31, 2009, due on demand</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">450,000</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">450,000</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">ii.</font></td>
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest at 1% per month, with $50,000 repayable on December 31, 2004, $75,000 repayable on August 18, 2007, $75,000 repayable on November 19, 2007 and the balance due on demand. All are due on demand, accruing interest at the same rate</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">887,455</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">887,455</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">iii.</font></td>
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest at 0.625% per month, with $50,000 repayable on October 5, 2004, $40,000 repayable on December 31, 2004 and $60,000 repayable on July 28, 2006, all due on demand</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">150,000</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">150,000</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">iv.</font></td>
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Non-interest-bearing, repayable on July 17, 2005, due on demand</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">270,912</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">270,912</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">v.</font></td>
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest at 0.667% per month, repayable at $25,000 per month beginning October 2009, none repaid to date</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">310,986</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">310,986</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">vi.</font></td>
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest at 0.667% per month, with $125,000 due January 15, 2011</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">125,000</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">125,000</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td colspan="3" style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Promissory notes payable, secured by a guarantee from the Chief Executive Officer, bearing interest at 1% per month</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">200,000</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">200,000</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="3" style="border-bottom: black 4.5pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total Promissory Notes Payable to Unrelated Parties</b></font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,394,353</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,394,353</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">c)       Interest
payable</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.25in">A summary
of the interest payable activity is as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest </font><br />
<font style="font: 10pt Times New Roman, Times, Serif">Payable</font></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 71%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance, December 31, 2016</font></td>
<td style="width: 10%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 17%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3,629,913</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 0.25in; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest incurred on promissory notes payable</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">504,873</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 0.25in; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Transfer from implicit interest to interest payable on promissory notes</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">172,470</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 0.25in; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance, December 31, 2017</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,307,256</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 0.25in; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest incurred on promissory notes payable</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">396,653</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 0.25in; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance, September 30, 2018</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,703,909</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>September 30, </b></font><br />
<font style="font: 10pt Times New Roman, Times, Serif"><b>2018</b></font></td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, </b></font><br />
<font style="font: 10pt Times New Roman, Times, Serif"><b>2017</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Related parties (relatives of the Chairman)</font></td>
<td style="width: 8%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,479,873</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 8%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,255,529</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Non-related parties</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,224,036</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,051,727</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,703,909</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,307,256</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Historically, all interest
payable incurred is from interest incurred at the stated rate of promissory notes issued by the Company. The payment terms, security
and any interest payable are based on the underlying promissory notes payable that the Company has outstanding.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in">d)       Interest
expense</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">During the nine months ended
September 30, 2018, the Company incurred interest expense of $1,446,935 (2017 - $1,387,891) substantially as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">·</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$396,653 (2017 - $378,653) incurred on promissory notes payables as shown in notes 4(a) and 4(b);</font></td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">·</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$959,025 (2017 - $892,902) incurred on lines of credit payable; and</font></td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">·</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$91,526 (2017 - $115,901) incurred from the calculation of imputed interest on accounts payable outstanding for longer than one year, advances payable and promissory notes payable, which had no stated interest rate.</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 6pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>5.        Lines of
Credit</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">As of September 30,
2018, the Company had two lines of credit as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr>
<td style="width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Creditor</font></td>
<td style="width: 6%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Interest</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Rate</p></td>
<td style="width: 11%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Borrowing</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Limit</p></td>
<td style="width: 11%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Repayment</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Terms</p></td>
<td style="width: 11%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Amount</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Outstanding</p></td>
<td style="width: 11%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Accrued</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Interest</p></td>
<td style="width: 11%; border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td>
<td style="width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Security</font></td>
<td style="width: 19%; border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Purpose</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Chairman</font></td>
<td>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">1% per</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Month</p></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$8,500,000</font></td>
<td>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Due on</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Demand</p></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">8,886,648</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,232,233</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">13,118,881</font></td>
<td>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">General</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Security</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">over Assets</p></td>
<td>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">General</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Corporate Requirements</p></td></tr>
<tr>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Wife of Chairman</font></td>
<td style="border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">1% per</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Month</p></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,000,000</font></td>
<td style="border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Due on</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Demand</p></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,000,000</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,676,385</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3,676,385</font></td>
<td style="border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">General</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Security</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">over Assets</p></td>
<td style="border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">General</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Corporate Requirements</p></td></tr>
<tr style="background-color: #CCEEFF">
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$10,500,000</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">10,886,648</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">5,908,618</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">16,795,266</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The Chairman has continued
to provide financing to the Company in excess of the line of credit borrowing limit available under the same terms as the existing
line of credit facility.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">As of December 31, 2017,
the Company had two lines of credit as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Creditor</font></td>
<td style="width: 6%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest Rate</font></td>
<td style="width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Borrowing Limit </font></td>
<td style="width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Repayment Terms </font></td>
<td style="width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Principal Borrowed</font></td>
<td style="vertical-align: top; width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Accrued Interest</font></td>
<td style="vertical-align: top; width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Total</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Outstanding</p></td>
<td style="width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Security </font></td>
<td style="width: 24%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Purpose</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Chairman</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1% per Month</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$8,500,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Due on Demand</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$8,398,249</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$3,453,208</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$11,851,457</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">General Security over Assets</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">General Corporate Requirements</font></td></tr>
<tr style="background-color: white">
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Wife of Chairman</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1% per Month</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,000,000</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Due on Demand</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,000,000</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,496,385</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3,496,385</font></td>
<td style="vertical-align: top; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">General Security over Assets</font></td>
<td style="vertical-align: top; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">General Corporate Requirements</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$10,500,000</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$10,398,249</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$4,949,593</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$15,347,842</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>6.       Capital Stock</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"> </td>
<td style="width: 23px; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">a)</font></td>
<td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Authorized capital stock</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 72px"> </td>
<td style="width: 24px; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">i.</font></td>
<td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Common stock</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 53.45pt; text-indent: 18.55pt; background-color: white"><b>During
the period ended September 30, 2018:</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">None.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 53.45pt; text-indent: 18.55pt; background-color: white"><b>During
the year ended December 31, 2017:</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">On January 27, 2017, the Company’s
Board of Directors approved a 100:1 reverse share split of the Company’s common stock. Subsequently, on February 22, 2018,
the Company’s Board of Directors proposed a reversal of such reverse share split. The initial reverse share split and subsequent
reversal are pending approval from regulatory bodies. On May 3, 2018, the Company filed a stock split with the State of Nevada
to affect the reversal of the reverse share split.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 1in">  </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">On December 21, 2017, the Company’s
shareholders holding a majority of the issued capital stock consented in writing to increase the authorized shares of common stock
of the Company from two billion shares (2,000,000,000) to ten billion shares (10,000,000,000) shares. The increase in the authorized
shares of common stock of the Company is pending approval from regulatory bodies.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 72px"> </td>
<td style="width: 24px; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">ii.</font></td>
<td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Preferred stock </font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 1in">500,000,000 shares of preferred stock with a par
value of $0.001 per share.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">b)       Issued
capital stock</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; background-color: white"><b>During the period
ended September 30, 2018:</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 35.3pt">There were no capital stock issuances for the
nine months ended September 30, 2018.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; background-color: white"><b>During the year ended
December 31, 2017:</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 35.3pt">There were no capital stock issuances for the
year ended December 31, 2017.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>7.        Additional
Paid-in Capital </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Stock options</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">A summary of stock option
activity is as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="2" style="border-top: black 4.5pt double; line-height: 107%"> </td>
<td colspan="3" style="border-top: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Nine Months Ended</b></font></td>
<td colspan="3" style="border-top: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Year Ended</b></font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>September 30, 2018</b></font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, 2017</b></font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="line-height: 107%"> </td>
<td style="padding-top: 12pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Number of</font></td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Weighted Average</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Number of</font></td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Weighted Average</font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Options</font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Exercise Price</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Options</font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Exercise Price</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding, beginning of period</font></td>
<td colspan="2" style="padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,963,851,500</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td>
<td style="padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,962,301,500</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Granted</font></td>
<td colspan="2" style="padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">52,200,000</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015</font></td>
<td style="padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">6,500,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="border-bottom: black 1pt solid; padding-right: 3.75pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Cancelled   </font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,500,000)</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015 </font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(4,950,000)</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.061)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="2" style="border-bottom: black 4.5pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding, end of period</font></td>
<td style="border-bottom: black 4.5pt double; padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">5,014,551,500</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.004</font></td>
<td style="border-bottom: black 4.5pt double; padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,963,851,500</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="line-height: 107%"> </td>
<td style="padding-right: 1.85pt; text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="padding-right: 3.75pt; text-align: right; line-height: 107%"> </td>
<td style="padding-right: 1.85pt; text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="padding-right: 3.75pt; text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="2" style="border-bottom: black 4.5pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Exercisable, end of period</font></td>
<td style="border-bottom: black 4.5pt double; padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,987,551,500</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.004</font></td>
<td style="border-bottom: black 4.5pt double; padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,958,201,500</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="width: 39%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 13%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 16%; line-height: 107%"> </td>
<td style="width: 13%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 16%; line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"><b>During the period ended
September 30, 2018:</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">On January 31, 2018, the
Company granted 9 consultants and advisors the option to acquire a total of 47,000,000 shares of common stock of the Company at
a price of $0.015 per share for a term of five years and 1 advisor the option to acquire 200,000 shares of common stock of the
Company at a price of $0.03 per share until April 18, 2019. Options to acquire 24,000,000 shares of common stock will vest based
on achievements of performance milestones by one consulting group. The fair value of the options granted totalled $2,722,605, of
which, $1,338,207 related to vested options was recorded as compensation expense and $1,384,399 related to options with performance
vesting conditions was not recorded.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">On June 3, 2018, the Company
received notification that an option holder would be exercising their option to acquire 1,000,000 shares of common stock of the
Company at a price of $0.015 by extinguishing $15,000 of accounts payable owed by the Company to the option holder. The Company
has not yet issued the shares as certain of the options still had vesting conditions at September 30, 2018.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">On June 13, 2018, the Company
granted one consultant the option to acquire a total of 5,000,000 shares of common stock of the Company at a price of $0.015 per
share for a term of five years. The fair value of the options granted totalled $189,968.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The Company recorded $35,956
in compensation expense related to vesting of stock options granted in previous years.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"><b>During the year ended
December 31, 2017:</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">On November 27, 2017, the
Company:</p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 71px"> </td>
<td style="width: 24px; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">·</font></td>
<td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">granted 10 individuals the option to acquire a total of 6,500,000 shares of common stock of the Company at a price of $0.015 per share for a term of five years; 2,350,000 of the approved options were to a director of the Company and 4,150,000 were to consultants of the Company; and </font></td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 71px"> </td>
<td style="width: 24px; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">·</font></td>
<td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">extended the life of the option held by 4 consultants to acquire an aggregate 2,200,000 shares of common stock to November 27, 2022. </font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 71.45pt; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 71.45pt; text-align: justify">The Company recorded compensation
expense of $194,970 related to the grant of options. There was no compensation expense related to the extension of life of the
options.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The Company recorded a further
$5,259 in compensation expense related to vesting of stock options granted in previous years.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The expense incurred related
to stock options was allocated as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-left: 6.15pt; text-indent: -6.15pt; line-height: 107%"> </td>
<td colspan="2" style="border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Three Months</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Ended </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2018</b></p></td>
<td colspan="2" style="border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Three Months</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Ended </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2017</b></p></td>
<td colspan="2" style="border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Nine Months </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Ended </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2018</b></p></td>
<td colspan="2" style="border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Nine Months </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Ended </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2017</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 27%; padding-left: 6.15pt; text-indent: -6.15pt; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 17%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 17%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 18%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 17%; text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 6.15pt; text-indent: -6.15pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">General, selling and administration</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">107</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">187</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">977,683</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,263</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 6.15pt; text-indent: -6.15pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Product development</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">536</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">933</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">185,940</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,877</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="border-bottom: black 1pt solid; padding-left: 6.15pt; text-indent: -6.15pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Professional</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">401,151</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 6.15pt; text-indent: -6.15pt; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="border-bottom: black 4.5pt double; padding-left: 6.15pt; text-indent: -6.15pt; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">643</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,119</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,564,774</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,140</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The Company uses the fair
value method for determining stock-based compensation for all options granted during the fiscal periods. The fair value was determined
using the Black-Scholes option pricing model based on the following weighted average assumptions:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>September 30, </b></font><br />
<font style="font: 10pt Times New Roman, Times, Serif"><b>2018</b></font></td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, </b></font><br />
<font style="font: 10pt Times New Roman, Times, Serif"><b>2017</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="text-align: center; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="text-align: center; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Risk-free interest rate</font></td>
<td style="width: 8%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2.52</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="width: 8%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2.34</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Expected life</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">5 years</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">5 years</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Expected dividends</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Expected volatility</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">309</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">330</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Forfeiture rate</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The weighted average fair
value for the options granted during the nine months ended September 30, 2018 was $0.06 (December 31, 2017 - $0.03).</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"><b>Options outstanding: </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The options outstanding at
September 30, 2018 and December 31, 2017 were as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-top: black 4.5pt double; line-height: 107%"> </td>
<td style="border-top: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td colspan="5" style="border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>September 30, 2018</b></font></td>
<td style="border-top: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td colspan="5" style="border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, 2017</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Expiry Date</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Options</font></td>
<td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Exercise Price</font></td>
<td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Intrinsic Value</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Options</font></td>
<td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Exercise Price</font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Intrinsic Value</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 31%; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 14%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 8%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 8%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 14%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 9%; text-align: right; line-height: 107%"> </td>
<td style="width: 3%; text-align: right; line-height: 107%"> </td>
<td style="width: 8%; text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">April 18, 2019</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">200,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.030</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.023</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">May 21, 2019</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.030</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.023</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.030</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.01</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">July 25, 2019</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,000,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,000,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.030</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.01</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">August 1, 2019</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,250,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,250,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.030</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.01</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">January 30, 2020</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,400,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,400,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.030</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.01</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">May 29, 2020</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">560,000,200</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.051</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">560,000,200</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">July 1, 2021</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,390,001,300</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.051</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,390,001,300</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">November 27, 2022</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">8,700,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">8,700,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.025</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">January 31, 2023</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">47,000,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">June 13, 2023</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">5,000,000</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="border-bottom: black 4.5pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">5,014,551,500</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.004</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,963,851,500</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="3" style="border-bottom: black 4.5pt double">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Weighted Average Remaining</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Contractual Life</p></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2.62</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3.38</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>8.</b>       <b>Related
Party Transactions and Balances</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="width: 44%; border-top: black 4.5pt double; border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="width: 1%; border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="width: 13%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Three months ended</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2018</b></p></td>
<td style="width: 1%; border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="width: 13%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Three months ended</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2017</b></p></td>
<td style="width: 1%; border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="width: 13%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Nine months </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>ended</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2018</b></p></td>
<td style="width: 1%; border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="width: 13%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Nine months </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>ended</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2017</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Related party transaction included within interest expense:</b></font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 0.25in; text-indent: -13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest expenses on promissory notes issued to relatives of the Chairman & Chief Executive Officer of the Company</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">74,782</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">74,782</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">224,344</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">224,344</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-indent: -13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest expense on lines of credit payable to the Chairman & Chief Executive Officer of the Company and his spouse</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">324,519</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">303,595</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">959,025</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">893,336</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="border-top: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>Related party transactions including within general, selling
and administration expenses</b>:</p></td>
<td style="border-top: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-top: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-top: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-top: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-top: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-top: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-top: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-top: black 1pt solid; text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 4.5pt double; padding-left: 0.25in; text-indent: -13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Consulting fees to the Chairman & Chief Executive Officer of the Company accrued on the line of credit available to the Company</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">47,400</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">47,400</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">142,200</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">142,200</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Interest on promissory notes
payable to related parties, management compensation and compensation paid to a relative of a director have been recorded at the
exchange amount, which is the amount agreed to by the parties. Options granted to related parties have been recorded at their estimated
fair value.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>9.</b>       <b>Commitments
and Contingencies</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in">a)       Contingencies</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Company has had three
judgments against it relating to overdue promissory notes and accrued interest and a fourth creditor has demanded repayment of
an overdue promissory note and accrued interest. To date, the Company has not repaid any of these promissory notes and related
accrued interest and could be subject to further action. The legal liability, totaling $1,141,968 (December 31, 2017 -
$1,113,768), of these promissory notes and related accrued interest have been fully recognized and recorded by the Company. The
Company has accrued interest of $190,472 (December 31, 2017 - $172,471) related to one of these promissory notes.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">  </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in">b)      Commitments</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Company has a consulting
arrangement with Sidney Chan, Chief Executive Officer and Chairman of the Board of Directors of the Company. Under the terms of
the contract, Mr. Chan will be paid $180,000 per annum for services as Chief Executive Officer. The contract can be terminated
at any time with thirty days’ notice and the payment of two years’ annual salary. Should the contract be terminated,
all debts owed to Mr. Chan and his spouse must be immediately repaid. The initial term of the contract is for one year and automatically
renews for continuous one-year terms. Also, under the terms of the contract are the following:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">i.                   
Incentive revenue bonus</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">Mr. Chan will be entitled
to a 1% net sales commission from the sales of any of the Company’s products at any time during his life, regardless if Mr.
Chan is still under contract with the Company.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">ii.                 
Sale of business</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">If more than 50% of the Company’s
stock or assets are sold, Mr. Chan will be compensated for entering into non-compete agreements based on the selling price of the
Company or its assets as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 72px"> </td>
<td style="width: 24px; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">·</font></td>
<td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">2% of sales price up to $24,999,999 plus;</font></td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 72px"> </td>
<td style="width: 24px; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">·</font></td>
<td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">3% of sales price between $25,000,000 and $49,999,999 plus;</font></td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 72px"> </td>
<td style="width: 24px; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">·</font></td>
<td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">4% of sales price between $50,000,000 and $199,999,999 plus; and</font></td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 72px"> </td>
<td style="width: 24px; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">·</font></td>
<td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">5% of sales price in excess of $200,000,000.</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>10.       Subsequent
Event</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">On October 1, 2018, the Company
granted two consultants the option to acquire a total of 300,000 shares of common stock of the Company at a price of $0.015 per
share for a term of five years.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="2" style="border-top: black 4.5pt double; line-height: 107%"> </td>
<td colspan="2" rowspan="3" style="border-top: black 4.5pt double">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30,</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td>
<td colspan="2" rowspan="3" style="border-top: black 4.5pt double">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2017</b></p></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 2%; border-top: black 1pt solid; line-height: 107%"> </td>
<td style="width: 70%; border-top: black 1pt solid; line-height: 107%"> </td>
<td style="width: 1%; border-top: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="width: 13%; border-top: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; border-top: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="width: 13%; border-top: black 1pt solid; text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payables</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">780,168</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">782,307</font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Accrued liabilities</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">224,922</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">255,766</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: black 4.5pt double; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,005,090</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,038,073</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="3" style="border-top: black 4.5pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Promissory Notes Payable to Related Parties</b></font></td>
<td colspan="2" rowspan="2" style="border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30,</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td>
<td colspan="2" rowspan="2" style="border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2017</b></p></td></tr>
<tr style="vertical-align: bottom">
<td colspan="3" style="border-bottom: black 1pt solid; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="3" style="line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td colspan="3" style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Promissory notes payable to relatives of directors collateralized by a general security agreement on all the assets of the Company, due on demand:</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 2%; line-height: 107%"> </td>
<td style="width: 2%; line-height: 107%"> </td>
<td style="width: 68%; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 13%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 13%; text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">i.</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest at 1% per month</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">875,619</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">875,619</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">ii.</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest at 1.25% per month</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">51,347</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">51,347</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">iii.</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest at the US bank prime rate plus 1%</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="3" style="line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td colspan="3" style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Promissory notes payable, unsecured, to relatives of a director, bearing interest at 1% per month, due on demand</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,465,000</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,465,000</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="3" style="border-bottom: black 4.5pt double; padding-top: 12pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total Promissory Notes Payable to Related Parties</b></font></td>
<td style="border-bottom: black 4.5pt double; padding-top: 12pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,891,966</font></td>
<td style="border-bottom: black 4.5pt double; padding-top: 12pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,891,966</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="3" style="border-top: black 4.5pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Promissory Notes Payable to Unrelated Parties</b></font></td>
<td colspan="2" rowspan="2" style="border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30,</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td>
<td colspan="2" rowspan="2" style="border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2017</b></p></td></tr>
<tr style="vertical-align: bottom">
<td colspan="3" style="border-bottom: black 1pt solid; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="3" style="line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td colspan="3" style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Unsecured promissory notes payable to unrelated lenders:</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; width: 2%; line-height: 107%"> </td>
<td style="vertical-align: top; width: 2%; line-height: 107%"> </td>
<td style="vertical-align: bottom; width: 68%; line-height: 107%"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; width: 13%; text-align: right; line-height: 107%"> </td>
<td style="vertical-align: bottom; width: 1%; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; width: 13%; text-align: right; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">i.</font></td>
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest at 1% per month, repayable on March 31, 2009, due on demand</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">450,000</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">450,000</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">ii.</font></td>
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest at 1% per month, with $50,000 repayable on December 31, 2004, $75,000 repayable on August 18, 2007, $75,000 repayable on November 19, 2007 and the balance due on demand. All are due on demand, accruing interest at the same rate</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">887,455</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">887,455</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">iii.</font></td>
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest at 0.625% per month, with $50,000 repayable on October 5, 2004, $40,000 repayable on December 31, 2004 and $60,000 repayable on July 28, 2006, all due on demand</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">150,000</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">150,000</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">iv.</font></td>
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Non-interest-bearing, repayable on July 17, 2005, due on demand</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">270,912</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">270,912</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">v.</font></td>
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest at 0.667% per month, repayable at $25,000 per month beginning October 2009, none repaid to date</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">310,986</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">310,986</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"> </td>
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"> </td></tr>
<tr style="background-color: #CCEEFF">
<td style="vertical-align: bottom; line-height: 107%"> </td>
<td style="vertical-align: top; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">vi.</font></td>
<td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest at 0.667% per month, with $125,000 due January 15, 2011</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">125,000</font></td>
<td style="vertical-align: bottom; text-align: center; line-height: 107%"> </td>
<td style="vertical-align: bottom; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">125,000</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td colspan="2" style="line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td colspan="3" style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Promissory notes payable, secured by a guarantee from the Chief Executive Officer, bearing interest at 1% per month</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">200,000</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">200,000</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="3" style="border-bottom: black 4.5pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total Promissory Notes Payable to Unrelated Parties</b></font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,394,353</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,394,353</font></td></tr>
</table>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest </font><br />
<font style="font: 10pt Times New Roman, Times, Serif">Payable</font></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 71%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance, December 31, 2016</font></td>
<td style="width: 10%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 17%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3,629,913</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 0.25in; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest incurred on promissory notes payable</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">504,873</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 0.25in; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Transfer from implicit interest to interest payable on promissory notes</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">172,470</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 0.25in; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance, December 31, 2017</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,307,256</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-indent: 0.25in; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest incurred on promissory notes payable</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">396,653</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-indent: 0.25in; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance, September 30, 2018</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,703,909</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>September 30, </b></font><br />
<font style="font: 10pt Times New Roman, Times, Serif"><b>2018</b></font></td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, </b></font><br />
<font style="font: 10pt Times New Roman, Times, Serif"><b>2017</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Related parties (relatives of the Chairman)</font></td>
<td style="width: 8%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,479,873</font></td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 8%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,255,529</font></td>
<td style="width: 1%; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Non-related parties</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,224,036</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,051,727</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,703,909</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,307,256</font></td>
<td style="line-height: 107%"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr>
<td style="width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Creditor</font></td>
<td style="width: 6%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Interest</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Rate</p></td>
<td style="width: 11%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Borrowing</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Limit</p></td>
<td style="width: 11%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Repayment</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Terms</p></td>
<td style="width: 11%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Amount</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Outstanding</p></td>
<td style="width: 11%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Accrued</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Interest</p></td>
<td style="width: 11%; border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td>
<td style="width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Security</font></td>
<td style="width: 19%; border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Purpose</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Chairman</font></td>
<td>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">1% per</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Month</p></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$8,500,000</font></td>
<td>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Due on</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Demand</p></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">8,886,648</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,232,233</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">13,118,881</font></td>
<td>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">General</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Security</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">over Assets</p></td>
<td>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">General</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Corporate Requirements</p></td></tr>
<tr>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Wife of Chairman</font></td>
<td style="border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">1% per</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Month</p></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,000,000</font></td>
<td style="border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Due on</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Demand</p></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,000,000</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,676,385</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3,676,385</font></td>
<td style="border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">General</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Security</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">over Assets</p></td>
<td style="border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">General</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Corporate Requirements</p></td></tr>
<tr style="background-color: #CCEEFF">
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$10,500,000</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">10,886,648</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">5,908,618</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">16,795,266</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The Chairman has continued
to provide financing to the Company in excess of the line of credit borrowing limit available under the same terms as the existing
line of credit facility.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">As of December 31, 2017,
the Company had two lines of credit as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Creditor</font></td>
<td style="width: 6%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest Rate</font></td>
<td style="width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Borrowing Limit </font></td>
<td style="width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Repayment Terms </font></td>
<td style="width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Principal Borrowed</font></td>
<td style="vertical-align: top; width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Accrued Interest</font></td>
<td style="vertical-align: top; width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Total</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Outstanding</p></td>
<td style="width: 10%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Security </font></td>
<td style="width: 24%; border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Purpose</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Chairman</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1% per Month</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$8,500,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Due on Demand</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$8,398,249</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$3,453,208</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$11,851,457</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">General Security over Assets</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">General Corporate Requirements</font></td></tr>
<tr style="background-color: white">
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Wife of Chairman</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1% per Month</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,000,000</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Due on Demand</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,000,000</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,496,385</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3,496,385</font></td>
<td style="vertical-align: top; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">General Security over Assets</font></td>
<td style="vertical-align: top; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">General Corporate Requirements</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$10,500,000</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$10,398,249</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$4,949,593</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$15,347,842</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="2" style="border-top: black 4.5pt double; line-height: 107%"> </td>
<td colspan="3" style="border-top: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Nine Months Ended</b></font></td>
<td colspan="3" style="border-top: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Year Ended</b></font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>September 30, 2018</b></font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, 2017</b></font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="line-height: 107%"> </td>
<td style="padding-top: 12pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Number of</font></td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Weighted Average</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Number of</font></td>
<td colspan="2" style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Weighted Average</font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Options</font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Exercise Price</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Options</font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Exercise Price</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding, beginning of period</font></td>
<td colspan="2" style="padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,963,851,500</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td>
<td style="padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,962,301,500</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Granted</font></td>
<td colspan="2" style="padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">52,200,000</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015</font></td>
<td style="padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">6,500,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="border-bottom: black 1pt solid; padding-right: 3.75pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Cancelled   </font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1,500,000)</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015 </font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(4,950,000)</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="vertical-align: bottom; border-bottom: black 1pt solid; padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.061)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="2" style="border-bottom: black 4.5pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Outstanding, end of period</font></td>
<td style="border-bottom: black 4.5pt double; padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">5,014,551,500</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.004</font></td>
<td style="border-bottom: black 4.5pt double; padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,963,851,500</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td></tr>
<tr style="background-color: #CCEEFF">
<td colspan="2" style="line-height: 107%"> </td>
<td style="padding-right: 1.85pt; text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="padding-right: 3.75pt; text-align: right; line-height: 107%"> </td>
<td style="padding-right: 1.85pt; text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="padding-right: 3.75pt; text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="2" style="border-bottom: black 4.5pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Exercisable, end of period</font></td>
<td style="border-bottom: black 4.5pt double; padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,987,551,500</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.004</font></td>
<td style="border-bottom: black 4.5pt double; padding-right: 1.85pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,958,201,500</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; padding-right: 3.75pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td></tr>
<tr style="background-color: #CCEEFF">
<td style="width: 39%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 13%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 16%; line-height: 107%"> </td>
<td style="width: 13%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 16%; line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-top: black 4.5pt double; border-bottom: black 1pt solid; padding-left: 6.15pt; text-indent: -6.15pt; line-height: 107%"> </td>
<td colspan="2" style="border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Three Months</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Ended </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2018</b></p></td>
<td colspan="2" style="border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Three Months</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Ended </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2017</b></p></td>
<td colspan="2" style="border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Nine Months </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Ended </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2018</b></p></td>
<td colspan="2" style="border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Nine Months </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Ended </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2017</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 27%; padding-left: 6.15pt; text-indent: -6.15pt; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 17%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 17%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 18%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 17%; text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 6.15pt; text-indent: -6.15pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">General, selling and administration</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">107</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">187</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">977,683</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,263</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 6.15pt; text-indent: -6.15pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Product development</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">536</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">933</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">185,940</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,877</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="border-bottom: black 1pt solid; padding-left: 6.15pt; text-indent: -6.15pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Professional</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">401,151</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 6.15pt; text-indent: -6.15pt; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="border-bottom: black 4.5pt double; padding-left: 6.15pt; text-indent: -6.15pt; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">643</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,119</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,564,774</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,140</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>September 30, </b></font><br />
<font style="font: 10pt Times New Roman, Times, Serif"><b>2018</b></font></td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, </b></font><br />
<font style="font: 10pt Times New Roman, Times, Serif"><b>2017</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="text-align: center; line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td colspan="3" style="text-align: center; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Risk-free interest rate</font></td>
<td style="width: 8%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2.52</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="width: 8%; line-height: 107%"> </td>
<td style="width: 1%; line-height: 107%"> </td>
<td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2.34</font></td>
<td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Expected life</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">5 years</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">5 years</font></td>
<td style="line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Expected dividends</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Expected volatility</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">309</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="line-height: 107%"> </td>
<td style="line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">330</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Forfeiture rate</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td>
<td style="line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 107%"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0</font></td>
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-top: black 4.5pt double; line-height: 107%"> </td>
<td style="border-top: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td colspan="5" style="border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>September 30, 2018</b></font></td>
<td style="border-top: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td colspan="5" style="border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, 2017</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Expiry Date</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Options</font></td>
<td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Exercise Price</font></td>
<td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Intrinsic Value</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Options</font></td>
<td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Exercise Price</font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Intrinsic Value</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 31%; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 14%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 8%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 8%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; text-align: right; line-height: 107%"> </td>
<td style="width: 14%; text-align: right; line-height: 107%"> </td>
<td style="width: 1%; text-align: center; line-height: 107%"> </td>
<td style="width: 9%; text-align: right; line-height: 107%"> </td>
<td style="width: 3%; text-align: right; line-height: 107%"> </td>
<td style="width: 8%; text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">April 18, 2019</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">200,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.030</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.023</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">May 21, 2019</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.030</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.023</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.030</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.01</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">July 25, 2019</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,000,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,000,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.030</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.01</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">August 1, 2019</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,250,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,250,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.030</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.01</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">January 30, 2020</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,400,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,400,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.030</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.01</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">May 29, 2020</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">560,000,200</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.051</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">560,000,200</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">July 1, 2021</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,390,001,300</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.051</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,390,001,300</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">November 27, 2022</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">8,700,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">8,700,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.025</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">January 31, 2023</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">47,000,000</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">June 13, 2023</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">5,000,000</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.015</font></td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="border-bottom: black 4.5pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">5,014,551,500</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.004</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,963,851,500</font></td>
<td style="border-bottom: black 4.5pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.002</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.038</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="3" style="border-bottom: black 4.5pt double">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Weighted Average Remaining</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Contractual Life</p></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2.62</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3.38</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="width: 44%; border-top: black 4.5pt double; border-bottom: black 1pt solid; line-height: 107%"> </td>
<td style="width: 1%; border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="width: 13%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Three months ended</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2018</b></p></td>
<td style="width: 1%; border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="width: 13%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Three months ended</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2017</b></p></td>
<td style="width: 1%; border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="width: 13%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Nine months </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>ended</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2018</b></p></td>
<td style="width: 1%; border-top: black 4.5pt double; border-bottom: black 1pt solid; text-align: center; line-height: 107%"> </td>
<td style="width: 13%; border-top: black 4.5pt double; border-bottom: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Nine months </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>ended</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>September 30, 2017</b></p></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: center; line-height: 107%"> </td>
<td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Related party transaction included within interest expense:</b></font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 0.25in; text-indent: -13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest expenses on promissory notes issued to relatives of the Chairman & Chief Executive Officer of the Company</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">74,782</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">74,782</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">224,344</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">224,344</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in; text-indent: -13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Interest expense on lines of credit payable to the Chairman & Chief Executive Officer of the Company and his spouse</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">324,519</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">303,595</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">959,025</font></td>
<td style="text-align: right; line-height: 107%"> </td>
<td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">893,336</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="border-top: black 1pt solid">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>Related party transactions including within general, selling
and administration expenses</b>:</p></td>
<td style="border-top: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-top: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-top: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-top: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-top: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-top: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-top: black 1pt solid; text-align: right; line-height: 107%"> </td>
<td style="border-top: black 1pt solid; text-align: right; line-height: 107%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 4.5pt double; padding-left: 0.25in; text-indent: -13.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Consulting fees to the Chairman & Chief Executive Officer of the Company accrued on the line of credit available to the Company</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">47,400</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">47,400</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">142,200</font></td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"> </td>
<td style="border-bottom: black 4.5pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">142,200</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
242777909
3111
4401
3111
4401
25979490
27790584
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4703909
2394353
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242777909
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25976379
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500000
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1465000
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2891966
2891966
450000
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887455
887455
150000
150000
270912
270912
310986
310986
125000
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200000
200000
2394353
2394353
4307256
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172470
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4949593
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16795266
11851457
13118881
3496385
3676385
Due on Demand
Due on Demand
Due on Demand
Due on Demand
General Security over Assets
General Security over Assets
General Security over Assets
General Security over Assets
General Corporate Requirements
General Corporate Requirements
General Corporate Requirements
General Corporate Requirements
4963851500
5014551500
4962301500
0.002
0.004
0.002
52200000
6500000
0.015
0.002
-1500000
-4950000
0.015
-0.061
498755150000
495820150000
0.004
0.002
401151
185940
2877
536
933
-977683
-1263
-107
-187
1564774
4140
643
1119
0.0252
0.0234
P5Y
P5Y
0
0
3.09
3.30
0
0
0.002
0.004
P2Y7M13D
P3Y4M17D
959025
893336
324519
303595
224344
224344
74782
74782
142200
142200
47400
47400