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<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note 1: BUSINESS</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Medtainer,
Inc. (the “Company”) is in the business of designing, manufacturing, branding and selling proprietary plastic medical
grade containers that can store pharmaceuticals, herbs, teas and other solids or liquids and can grind solids and shred herbs,
the business of private labeling and branding for purchasers of containers and other products, and the sale of other products.
Prior to January 1, 2019, it conducted these businesses through wholly owned subsidiaries; from and after that date, it has conducted
them itself. The Company changed its corporate name from Acology, Inc. to Medtainer, Inc. on August 28, 2018.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Note 2: SIGNIFICANT ACCOUNTING POLICIES</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Basis of Presentation and Principals of Consolidation</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”)
for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities
and Exchange Commission (the “SEC”). Accordingly, they do not contain all information and footnotes required by accounting
principles generally accepted in the United States of America for annual financial statements. In the opinion of the Company’s
management, the accompanying unaudited financial statements contain all the adjustments necessary (consisting only of normal recurring
accruals) to present the financial position of the Company as of March 31, 2019, and the results of operations and cash flows for
the periods presented. The results of operations for the three months ended March 31, 2019, are not necessarily indicative of the
operating results for the full fiscal year or any future period. These unaudited consolidated financial statements should be read
in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K
for the year ended December 31, 2018, filed with the SEC on December 20, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements include
the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Use of Estimates</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of the financial statements
in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue
and expenses during the reporting periods. Actual results could differ from those estimates. Certain of the Company’s estimates
could be affected by external conditions, including those unique to its industry, and general economic conditions. It is possible
that these external conditions could have an effect on the Company’s estimates that could cause actual results to differ
from its estimates. The Company re-evaluates all its accounting estimates at least quarterly based on these conditions and record
adjustments when necessary.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Significant estimates relied upon in preparing
these consolidated financial statements include revenue recognition, accounts receivable reserves, inventory and related reserves,
valuations and purchase price allocations related to business combinations, expected future cash flows used to evaluate the recoverability
of long-lived assets, estimated fair values of long-lived assets used to record impairment charges related to intangible assets
and goodwill, amortization periods, accrued expenses, share-based compensation, and recoverability of the Company’s net deferred
tax assets and any related valuation allowance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Financial Statement Reclassification</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain account balances from prior periods
have been reclassified in these unaudited consolidated financial statements to conform to current period classifications.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Cash</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all short-term highly
liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Revenue Recognition</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2014, the Financial Accounting Standards
Board (“FASB”) issued Accounting Standards Update (ASU) No. 20 l4-09, <i>Revenue from Contracts with Customers (Topic
606)</i>, which supersedes all existing revenue recognition requirements, including most industry specific guidance. This standard
requires a company to recognize revenues when it transfers goods or services to customers in an amount that reflects the consideration
that the company expects to receive for those goods or services. FASB subsequently issued the following amendments to ASU No. 2014-09
that have the same effective date and transition date: ASU No. 2016-08, <i>Revenue from Contracts with Customers (Topic 606): Principal
versus Agent Considerations; </i>ASU No. 20l6-10, <i>Revenue from Contracts with Customers (Topic 606): Identifying Performance
Obligations and Licensing; </i>ASU No. 2016-12, <i>Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements
and Practical Expedients; </i>and ASU No. 2016-20, <i>Technical Corrections and Improvements to Topic 606, Revenue from Contracts
with Customers. </i>The Company adopted these amendments (collectively, the “new revenue standards”) with ASU 2014-09.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The new revenue standards became effective
for the Company on January 1, 2018, and were adopted using the modified retrospective method. The adoption of the new revenue standards
did not change the Company’s revenue recognition as the majority of its revenues continue to be recognized when the customer
takes control of its product. As the Company did not identify any accounting changes that impacted the amount of reported revenues
with respect to its product revenues, no adjustment to retained earnings was required upon adoption.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the new revenue standards, the Company
recognizes revenues when its customer obtains control of promised goods or services, or when they are shipped to that customer,
in an amount that reflects the consideration which it expects to receive in exchange for them. The Company recognizes revenues
following the five-step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance
obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations
in the contract; and (v) recognize revenues when (or as) the Company satisfies its performance obligation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenues from product sales are recognized
when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon shipment or delivery
to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization
period of the asset that it would have recognized is one year or less or the amount is immaterial.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 1pt 0 0; text-align: justify">The following table summarizes revenue
from contracts with customers for the three months ended March 31, 2019, and March 31, 2018:</p>
<p style="font: 10pt 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> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; padding-right: 30pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>March 31,</b></font></td>
<td style="border-bottom: black 1pt solid"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: #CCEEFF 1pt solid; width: 42%"> </td>
<td style="border-bottom: black 1pt solid; width: 5%"> </td>
<td style="border-bottom: black 1pt solid; width: 20%; padding-right: 58pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2019</b></font></td>
<td style="border-bottom: black 1pt solid; width: 1%"> </td>
<td style="border-bottom: #CCEEFF 1pt solid; width: 6%"> </td>
<td style="border-bottom: black 1pt solid; width: 5%"> </td>
<td style="border-bottom: black 1pt solid; width: 21%; padding-right: 61pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2018</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 6pt"><font style="font: 10pt Times New Roman, Times, Serif">Products</font></td>
<td style="padding-right: 26pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">582,404</font></td>
<td> </td>
<td> </td>
<td style="padding-right: 25pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">609,537</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 6pt"><font style="font: 10pt Times New Roman, Times, Serif">Services</font></td>
<td style="padding-right: 26pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">22,033</font></td>
<td colspan="3" style="padding-right: 25pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">34,814</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Inventories</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventories, which consist of products held
for resale, are stated at the lower of cost, determined using the first-in first-out, and net realizable value. Net realizable
value is the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose of the product.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If the Company identifies excess, obsolete
or unsalable items, its inventories are written down to their realizable value in the period in which the impairment is first identified.
Shipping and handling costs incurred for inventory purchases and product shipments are recorded in cost of sales in the Company’s
statements of operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Share-Based Payments</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2018, FASB issued ASU 2018-07, <i>Compensation—Stock
Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, </i>which aligns accounting for share-based
payments issued to nonemployees to that of employees under the existing guidance of Topic 718, with certain exceptions. This update
supersedes previous guidance for equity-based payments to nonemployees under Subtopic 505-50, <i>Equity—Equity-Based Payments
to Non-Employees.</i> This guidance became effective for the Company as of January 1, 2019. Based on the completed analysis, the
Company has determined the guidance did not have a material impact on the financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Accounts Receivable</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Included in “Accounts receivable”
on the consolidated balance sheets are amounts primarily related to customers. The Company estimates losses on receivables based
on known troubled accounts and historical experience of losses incurred. Receivables are considered impaired and written off when
it is probable that all contractual payments due will not be collected in accordance with the terms of the related agreement. Based
on experience and the judgment of management, the allowance for doubtful accounts was $0 as of March 31, 2019 and December 31,
2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Fair Value Measurements</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has adopted the provisions of ASC
Topic 820, <i>Fair Value Measurements and Disclosures,</i> which defines fair value as used in numerous accounting pronouncements,
establishes a framework for measuring fair value, and expands disclosure of fair value measurements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The estimated fair value of certain financial
instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical
cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of
the Company’s short- and long-term credit obligations approximate fair value because the effective yields on these obligations,
which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded
conversion options, are comparable to rates of returns for instruments of similar credit risk.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC Topic 820 defines fair value as the exchange
price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous
market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC Topic 820
also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use
of unobservable inputs when measuring fair value. ASC Topic 820 describes three levels of inputs that may be used to measure fair
value:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 25pt">Level 1 – Quoted prices in active markets for identical
assets or liabilities</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 25pt">Level 2 – Quoted prices for similar assets and liabilities
in active markets or inputs that are observable</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 25pt">Level 3 – Inputs that are unobservable (for example
cash flow modeling inputs based on assumptions)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2018, the
Company accounted for a derivative liability in connection with the conversion feature of convertible debt, classified as a Level
3 liability, as the only financial liability measured at fair value on a recurring basis. As of December 31, 2018, and during the
three months ended March 31, 2019, the Company had no derivative liability.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Property and Equipment</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment are stated at cost less
accumulated depreciation. Depreciation is provided for on a straight-line basis over the useful lives of the assets. For furniture
and fixtures the useful life is 5 years, Leasehold Improvements are depreciated over the 2-year lease term. Expenditures for additions
and improvements are capitalized; repairs and maintenance are expensed as incurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Convertible Instruments</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company evaluates and accounts for conversion
options embedded in convertible instruments in accordance with ASC 815, <i>Derivatives and Hedging Activities.</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">GAAP requires companies to bifurcate conversion
options from their host instruments and account for them as free standing derivative financial instruments according to certain
criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument
are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that
embodies both the embedded derivative instrument and the host contract is not remeasured at fair value under other GAAP with changes
in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument
would be considered a derivative instrument.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for convertible instruments
(when it has been determined that the embedded conversion options should not be bifurcated from their host instruments) as follows:
the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt
instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note
transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over
the term of the related debt to their stated date of redemption.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for the conversion of
convertible debt when a conversion option has been bifurcated using the general extinguishment standards. The debt- and equity-linked
derivatives are removed at their carrying amounts and the shares issued are measured at their then-current fair value, with any
difference recorded as a gain or loss on extinguishment of the two separate accounting liabilities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Advertising</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Advertising and marketing expenses are charged to operations as
incurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Income Taxes</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company use the asset and liability method
of accounting for income taxes in accordance with ASC Topic 740, <i>Income Taxes.</i> Under this method, income tax expense is
recognized for: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences
resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets
and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates
is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to
reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely
than not some portion or all the deferred tax assets will not be realized.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC Topic 740.10.30 clarifies the accounting
for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold
and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken
in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in
interim periods, disclosure, and transition. The Company has no material uncertain tax positions.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Concentration of Credit Risk</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Financial instruments that potentially subject
the Company to concentrations of credit risk consist of cash accounts in a financial institution, which at times, may exceed the
Federal depository insurance coverage of $250,000. The Company has not experienced losses on these accounts and management believes
that the Company is not exposed to significant risks on such accounts. Also, the Company has not experienced losses on accounts
receivable and management believes that the Company is not exposed to significant risks with respect to them.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Goodwill and Intangible Assets</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Goodwill and intangible assets that have indefinite
useful lives are not amortized but are evaluated for impairment annually or whenever events or changes in circumstances indicate
that the carrying value may not be recoverable. The Company records intangible assets at fair value, estimated using a discounted
cash flow approach. The Company amortizes its intangible assets that have finite lives using either the straight-line method or
base on estimated future cash flows to approximate the pattern in which the economic benefit of the assets will be utilized. Amortization
is recorded over the estimated useful lives ranging from 14 to 20 years. The Company reviews intangible assets subject to amortization
quarterly to determine if any adverse conditions exist or a change in circumstances has occurred that would indicate impairment
or a change in the remaining useful life. Conditions that would indicate impairment and trigger a more frequent impairment assessment
include, but are not limited to, a significant adverse change in legal factors or business climate that could affect the value
of an asset, or an adverse action or assessment by a regulator. If the carrying value of an asset exceeds its undiscounted cash
flows, the Company will write-down the carrying value of the intangible assets to its fair value in the period identified. The
Company generally calculates fair value as the present value of estimated future cash flows to be generated by the asset using
a risk-adjusted discount rate. If the estimate of an intangible asset’s remaining useful life is changed, the Company will
amortize the remaining carrying value of the intangible asset prospectively over the revised remaining useful life. Consistent
with prior years, the Company conducted its annual impairment test of goodwill during the fourth quarter of the year ended December
31, 2018. The Company operates as a single operating segment with one reporting unit and consequently evaluates goodwill for impairment
base on an evaluation of the fair value of the Company as a whole. The estimate of fair value requires significant judgement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify">Any loss resulting from an impairment
test would be reflected in operating income in the Company’s consolidated statements of income. The annual impairment testing
process is subjective and requires judgment at many points throughout the analysis. If these estimates or their related assumptions
change in the future, the Company may be required to record impairment charges for these assets not previously recorded.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify">In January 2017, FASB issued ASU 2017-04,
<i>Simplifying the Test for Goodwill Impairment</i> (“ASU 2017-04”), which simplifies accounting for goodwill impairment.
It requires a hypothetical purchase price allocation. It is mandatory for fiscal years beginning after December 14, 2019. As permitted,
the Company adopted ASU 2017-04 for fiscal periods beginning January 1, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify">The Company evaluates intangible assets
and long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of
such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market
conditions, or other events that indicate an asset’s carrying amount may not be recoverable. Recoverability of these assets
is measured by comparison of the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate.
If the undiscounted cash flows used in the test of recoverability are less than the carrying amount of these assets, the carrying
amount of such assets is reduced to fair value. The Company evaluates and tests the recoverability of its goodwill for impairment
at least annually during its fourth quarter or each fiscal year or more often if circumstances indicate that goodwill may not be
recoverable. There was no impairment of intangible assets, long-lived assets or goodwill during the three months ended March 31,
2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Recent Accounting Pronouncements</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify">In February 2016, FASB issued ASU
2016-02, <i>Leases (Topic 842),</i> which requires recognition of lease liabilities, representing future minimum lease
payments, on a discounted basis, and a corresponding right-of-use assets on a balance sheet for most leases, along with
requirements for enhanced disclosures to enable the assessment of the amount, timing and uncertainty of cash flows arising
from leasing arrangements. This ASU became effective for the Company on January 1, 2019. The Company has determined that the
impact of this guidance is immaterial. The Company had entered into a 24-month equipment lease in May 2017, which had only
five remaining payments of $2,000 each as of December 31, 2018; therefore, the Company determined that the impact of this
guidance is immaterial. The Company also had entered into a building lease September 1, 2018, which expired August 31, 2019.
The building lease was renewed on September 1, 2019, and expires on August 31, 2020. Because the building lease has an
initial term of 12 months or less and there is no assurance the Company will remain in the current location after the lease
term has expired, the Company has concluded that this ASU does not apply to this lease.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify">The Company does not believe there
are any other recently issued, but not yet effective, accounting standards that would have a significant impact on the Company’s
financial position or results of operations.</p>
<p style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note 3: GOING CONCERN</b></font></p>
<p style="margin: 0 7pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0 7pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and
the satisfaction of liabilities in the normal course of business. At March 31, 2019, the Company had a working capital deficit
of $1,092,913. In addition, the Company has generated operating losses since inception and has notes payable that are currently
in default. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern.
The ability of the Company to continue as a going concern is dependent on the successful execution of its operating plan which
includes increasing sales of existing products while introducing additional products and services, controlling operation expenses,
negotiating extensions of existing loans and raising either debt or equity financing. There is no assurance that the Company will
be able to increase sales or to obtain or extend financing on terms acceptable to us or at all or successfully execute any of
the other measures set forth in the previous sentence.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Note 4: INTANGIBLE ASSETS</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify">Intangible assets that are subject
to amortization are reviewed for potential impairment whenever events or circumstances indicate that carrying amounts may not be
recoverable. Assets not subject to amortization are tested for impairment at least annually. The Company has intangible assets
subject to amortization as described in the next paragraph. These costs were included in intangible assets on the balance sheet
and amortized as indicated in the next paragraph. The Company will periodically review these and other intangible assets for impairment
that it may acquire whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully
recoverable. The Company will recognize an impairment loss when the sum of expected undiscounted future cash flows is less that
the carrying amount of the asset, to be measured as the difference between the asset’s estimated fair value and its book
value.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify">On June 8, 2018, the Company acquired
certain patents and patent applications, a trademark and an internet domain related to “Medtainer<sup>®</sup>”
pursuant to an Asset Purchase Agreement, dated as of April 16, 2018, and amended on June 8, 2018, by and between the Company and
an unrelated party, in consideration of the issuance of 2,631,252 shares of common stock. These assets and the associated goodwill
have been apportioned as follows, based upon a report that the Company obtained from an independent valuation firm:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify">Estimated Asset Valuation at March
31, 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 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> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Weighted Average</b></font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Gross Carrying</b></font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Accumulated</b></font></td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>Description</b></font></td>
<td> </td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>Estimated Useful Life</b></font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Value</b></font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Amortization</b></font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Net Amount</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 22%"><font style="font: 10pt Times New Roman, Times, Serif">Certain U.S. patents</font></td>
<td style="width: 2%"> </td>
<td style="width: 18%"><font style="font: 10pt Times New Roman, Times, Serif">15 years</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 16%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">435,000</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(23,188</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">411,812</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">Certain U.S. patents</font></td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">15 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">435,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(22,315</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">412,685</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Certain Canadian</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">patents</font></td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">20 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">260,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(10,521</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">249,479</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Certain European</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">patents</font></td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">14 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">30,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(1,697</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,303</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Molds</font></td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">15 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">150,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(7,995</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">142,005</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">Trademark</font></td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">Indefinite life</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">220,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>—  </b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">220,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Domain name</font></td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">Indefinite life</font></td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,000</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>—  </b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Intangible Totals</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,532,000</b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>(65,716</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>)</b></font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,466,284</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Goodwill</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,020,314</b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>—  </b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,020,314</b></font></td>
<td> </td></tr>
</table>
<p style="font: 10pt/96% Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Estimated Asset Valuation at December 31, 2018:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 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> </td>
<td> </td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Weighted Average</b></font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Gross Carrying</b></font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Accumulated</b></font></td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>Description</b></font></td>
<td> </td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Estimated Useful Life</b></font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Value</b></font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Amortization</b></font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Net Amount</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 22%"><font style="font: 10pt Times New Roman, Times, Serif">Certain U.S. patents</font></td>
<td style="width: 2%"> </td>
<td style="width: 18%; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">15 years</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 16%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">435,000</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(16,060</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">418,940</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">Certain U.S. patents</font></td>
<td> </td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">15 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">435,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(15,455</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">419,545</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Certain Canadian patents</font></td>
<td> </td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">20 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">260,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(7,286</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">252,714</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">Certain European patents</font></td>
<td> </td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">14 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">30,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(1,175</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,825</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Molds</font></td>
<td> </td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">15 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">150,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(5,538</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">144,462</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">Trademark</font></td>
<td> </td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Indefinite life</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">220,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">220,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Domain name</font></td>
<td> </td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Indefinite life</font></td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,000</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Intangible Totals</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,532,000</b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>(45,514</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>)</b></font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,486,486</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Goodwill</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,020,314</b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>—  </b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,020,314</b></font></td>
<td> </td></tr>
</table>
<p style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Note 5: CONVERTIBLE NOTES PAYABLE AND PROMISSORY NOTES PAYABLE</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify">As of March 31, 2019, and December
31, 2018 the company had the following convertible notes and promissory notes outstanding:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 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> </td>
<td> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">March 31, 2019</font></td>
<td> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">December 31, 2018</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Principal</font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Accrued Interest</font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Principal</font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Accrued Interest</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Convertible Notes Payable (a)</u></b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 44%"><font style="font: 10pt Times New Roman, Times, Serif">July 2014 $75,000 Note convertible into common stock at $5.00 per share, 10% interest, currently in default</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">66,172</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18,749</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">66,172</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">17,095</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">July 2014 $15,000 Note convertible into common stock at $5.00 per share, 10% interest, currently in default</font></td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">15,000</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">8,000</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">15,000</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">7,625</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>                    <u>Total Convertible Notes Payable</u></b></font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">81,172</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">81,172</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Promissory Notes Payable</u></b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">November 2014 $300,000 Note, 10% interest, due February 2019, currently in default (b)</font></td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">298,959</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">32,387</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">298,959</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">24,913</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">August 2015 $75,000 Note, with a one-time interest charge of $75,000, currently in default (c)</font></td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">75,000</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">75,000</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">75,000</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">75,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">                     <b><u>Total Promissory Notes Payable</u></b></font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">373,959</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">373,959</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Total Accrued Interest Payable</b></font></td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">134,136</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">124,633</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; 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: 24px"> </td>
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif">a.</font></td>
<td style="padding-right: 7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Tthe Company
entered into a series of promissory note conversion agreements in the aggregate amount of $90,000. Payments of $8,828 have
been made on these notes as of March 31, 2019. These notes
are convertible into shares of the Company’s common stock at a conversion price of $5.00 per share. The loans under
these agreements are noninterest-bearing and have no stated maturity date however the Company is accruing interest at a 10%
nominal annual rate.</font></td></tr>
</table>
<p style="font: 11pt 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> </td>
<td> </td>
<td style="padding-right: 7pt; text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="width: 24px"> </td>
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif">b.</font></td>
<td style="padding-right: 7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On November 3, 2014, the Company made a promissory note in the principal amount of $300,000 in favor of an unrelated person (the “Old Note”). On February 22, 2018, the Company repaid $100,000 on the principal of the Old Note and made a new promissory note, dated February 22, 2018, in the principal amount of $298,959 in favor of said party (the “New Note”) in satisfaction of the Old Note, which principal amount comprised the unpaid principal amount of $200,000 due on the Old Note after the repayment, and $98,958.90 of accrued interest on the Old Note. At March 31, 2019, accrued interest on this note was $32,387. The outstanding balance of this note was $298,959 at March 31, 2019, and December 31, 2018. The New Note was due on February 22, 2019. This note is in default and the Company is negotiating an extension. The company made interest payments in the amount of $20,182 and $3,394 to the note holder during the twelve months ended December 31, 2019 and the three months ended March 31, 2020, respectively.</font></td></tr>
</table>
<p style="font: 11pt 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> </td>
<td> </td>
<td style="padding-right: 7pt; text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="width: 24px"> </td>
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif">c.</font></td>
<td style="padding-right: 7pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On August 15, 2015, the Company made a promissory note in the amount of $150,000 in favor of an unrelated party. The note bears interest at 0.48% per annum, provided that the note is paid on or before maturity date, or 2 percentage points over the Wall Street Journal Prime Rate, if it is not repaid on or before the maturity date. This note matured on August 11, 2016. Upon an event of default, as defined in the note, interest shall be compounded daily. The Company is currently negotiating an extension of the maturity date for the balance. During the year ended December 31, 2017, the holder of this note agreed to exchange $75,000 of principal and $663 of interest accrued on this note for 500,000 shares of common stock. This exchange was accounted for as an extinguishment of debt resulting in a loss of $683,337. In connection with this exchange, the Company agreed to pay the holder a fee of $75,000 in consideration of his waiving the default under the promissory note, as additional consideration for his agreeing to the exchange and as compensation for his foregoing the interest that would have accrued on the promissory note at the default rate but for the waiver. At March 31, 2019 and December 31, 2018, the note had a balance of $75,000 in addition to the $75,000 fee included in accrued interest.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Note 6: STOCKHOLDERS’ EQUITY</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">On February 12, 2018, the Company issued 120,000 shares of common
stock to an unrelated third party in consideration of $120,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify">On June 8, 2018, the Company
issued 2,631,252 shares of common stock, valued at $2,552,314, for the purchase of patent patent applications, a trademark
and an internet domain. For information regarding the valuation of these assets goodwill, see Note 4 a patent.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify">On September 25, 2018, the Company
issued 57,741 shares of common stock upon conversion of three convertible promissory notes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify">On March 22, 2019, the Company implemented
a reverse split of its common stock on the basis of one new share of common stock for each 100 shares of common stock then outstanding.
Also, on that date, the Company reduced the number of shares of its authorized common stock from 6,000,000,000 to 100,000,000.
The number of authorized shares of preferred stock remained 10,000,000.</p>
<p style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b></b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note 7: SHARE-BASED COMPENSATION</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="margin: 0 7pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company’s 2018 Incentive Award Plan (the “2018 Plan”) became effective on December 1, 2018, under which the
Company may issue up to 2,000,000 shares of common stock, which the Company reserved, as incentive stock options, non-statutory
stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, and other forms of compensation
to employees, directors and consultants. In addition, the 2018 Plan provides for the grant of performance cash awards to employees,
directors and consultants. All these shares were reserved on that date.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0 7pt 0 0; text-align: justify"></p>
<p style="margin: 0 7pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
December 1, 2018, 1,350,000 shares of common stock were awarded to employees in the form of restricted shares and 335,000 shares
of common stock were awarded to consultants as compensation. The fair value of these shares on the grant date was $0.01 per share.
As of December 31, 2018, 185,000 shares awarded to consultants were vested and none of the shares awarded to employees were vested.
During the three months ended March 31, 2019, all of the 335,000 shares awarded to consultants were vested and 750,000 of the
shares awarded to employees were vested.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0 7pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company made no
awards in any other form during the three months ending March 31, 2019, and March 31, 2018. The Company expensed $420,642 and
$0 for share-based compensation in the three months ended March 31, 2019, and March 31, 2018, for its employees and
nonemployees in the accompanying consolidated statements of operations.</font></p>
<p style="margin: 0 7pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="margin: 0 15pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="margin: 0 15pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following table summarizes vesting of the common stock shares issued per the 2018 Plan:</font></p>
<p style="margin: 0 7pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-right: 3pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Employees</font></td>
<td colspan="2"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-right: 4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Consultants</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: #CCEEFF 1pt solid; padding-left: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Dates
common stock shares were vested:</font></td>
<td style="border-top: #CCEEFF 1pt solid; padding-left: 95pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: #CCEEFF 1pt solid; padding-left: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: #CCEEFF 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">    December
31, 2018</font></td>
<td colspan="2" style="padding-left: 95pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td colspan="2" style="padding-left: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">185,000</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-top: #CCEEFF 1pt solid; padding-left: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">    January
1, 2019</font></td>
<td colspan="2" style="border-top: #CCEEFF 1pt solid; padding-left: 95pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: #CCEEFF 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">750,000</font></td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="border-top: #CCEEFF 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 54%"><font style="font: 10pt Times New Roman, Times, Serif">    March
31, 2019</font></td>
<td style="width: 6%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 16%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 3%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 16%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">150,000</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td colspan="2" style="padding-left: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Total common stock shares vested at March 31, 2019</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">750,000</font></td>
<td style="padding-left: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">335,000</font></td>
</tr></table>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note 8: INCOME TAXES</b></font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company
has approximately $2,651,000 net operating loss carryforwards (“NOLs”) that are available to reduce future taxable
income. As of December 31, 2018, those NOLs begin to expire in 2034. In assessing the realization of deferred tax assets, management
considers whether it is more likely than not that some portion or all the deferred tax assets will be realized. The ultimate realization
of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences
become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and
tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance
against all the deferred tax assets for every period because it is more likely than not that all the deferred tax assets will
not be realized.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On December
22, 2017, the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”) was signed into law, making significant changes to
the Internal Revenue Code. Changes include a federal corporate tax rate decrease from 35% to 21% for tax years beginning after
December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system and a one-time
transition tax on the mandatory deemed repatriation of foreign earnings. The Company has estimated its provision for income taxes
in accordance with the 2017 Tax Act and the guidance available and has kept the full valuation allowance. As a result, the Company
recorded no income tax expense during the three months ended March 31, 2019.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note 9: CAPITAL LEASES</b></font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During each of the years
ended at December 31, 2017, and December 31, 2016, the Company entered a capitalized equipment lease. Each of these leases
was payable in 24 monthly installments of $2,000, including interest at the rate of 19.87% per annum. The lessor under these
leases was a related party. The Company made its final payments for these leases during June 2018 and May 2019,
respectively.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note 10: RELATED-PARTY TRANSACTIONS</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Loans</i></b></font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company
has received loans from its officers and directors from time to time since 2014. During the three months ended March 31, 2019,
the Company received loans of $124,483 from its officers and directors. During the three months ended March 31, 2019, the Company
repaid $88,483 of the loans. The balance of these loans at March 31, 2019, and December 31,
2018, was $421,660 and $385,660, respectively. All these loans are non-interest-bearing and have no set maturity date. The Company
expects to repay these loans when cash flows become available.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i></i></b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i></i></b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Contracts</i></b></font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company
makes capital lease payments for equipment, building lease payments, and products for resale from an entity owned by a related
party, who is also one of its executive officers.</font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Payments made
to the related party for the three months ended March 31, 2019, and March 31, 2018, are as follows:</font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3" style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2019</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2018</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; text-align: left">Capital lease payments</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">6,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">12,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Building lease payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,921</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Purchase of products for resale</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">30,221</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"></td><td style="border-bottom: Black 1pt solid; text-align: right">18,600</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Total paid to related party</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">62,142</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">30,600</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr></table>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note 11: CONCENTRATIONS</b></font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For the three months ended
March 31, 2019, and March 31, 2018, one of the Company’s customers accounted for approximately 18% and 15% of sales,
respectively.</font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For the three months ended
March 31, 2019, and March 31, 2018, the Company respectively purchased approximately 36% and 55% of its products from one
distributor.</font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As of March
31, 2019, one of the Company's customers accounted for 43% of accounts receivable. As of December 31, 2018, three of the Company’s
customers accounted for 35%, 20% and 11% of accounts receivable, respectively.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note 12: COMMITMENTS</b></font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company
was committed under an operating lease for its premises, under which it made monthly payments of $7,500 plus 100% of operating
expenses, until the lease expired June 30, 2018. On September 1, 2018, the Company entered a new operating lease with
an entity owned by a related party (see Note 10) calling for monthly payments of $8,641 plus 100% of operating expenses, for a
term expiring on August 31, 2019. On September 1, 2019, the lease of the Company’s premises was amended such that it expires
on August 31, 2020, and the rent thereunder was increased to $8,967 per month.</font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In conjunction
with the Asset Purchase Agreement referred to in Note 4, the Company agreed to purchase a minimum of 30,000 units of product per
month, subject to an increase of 1% of the agreed purchase on each anniversary of said agreement. The minimum purchase will increase
by 1% every anniversary of its effective date. The agreement expires on April 30, 2031.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Note 13: SUBSEQUENT EVENTS</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 1, 2019, the Company issued 10,000
shares of common stock to an unrelated party pursuant to a joint venture contract for the contract dated October 18, 2017. The
10,000 shares resulted in a $9,100 expense that was recognized in December 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management evaluated all other subsequent
events through the date of when the financial statements were issued and has determined that none of these requires
disclosure therein. </p>
<p style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Basis of Presentation and
Principals of Consolidation</i></b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The accompanying
unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States
of America (“GAAP”) for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation
S-X of the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not contain all information
and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements.
In the opinion of the Company’s management, the accompanying unaudited financial statements contain all the adjustments
necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of March 31, 2019,
and the results of operations and cash flows for the periods presented. The results of operations for the three months ended March
31, 2019, are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited
consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included
in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on December 20, 2019.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The consolidated
financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions
have been eliminated.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Use of Estimates</i></b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The preparation
of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements
and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.
Certain of the Company’s estimates could be affected by external conditions, including those unique to its industry, and
general economic conditions. It is possible that these external conditions could have an effect on the Company’s estimates
that could cause actual results to differ from its estimates. The Company re-evaluates all its accounting estimates at least quarterly
based on these conditions and record adjustments when necessary.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Significant
estimates relied upon in preparing these consolidated financial statements include revenue recognition, accounts receivable reserves,
inventory and related reserves, valuations and purchase price allocations related to business combinations, expected future cash
flows used to evaluate the recoverability of long-lived assets, estimated fair values of long-lived assets used to record impairment
charges related to intangible assets and goodwill, amortization periods, accrued expenses, share-based compensation, and recoverability
of the Company’s net deferred tax assets and any related valuation allowance.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Financial Statement Reclassification</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain account balances from prior periods
have been reclassified in these unaudited consolidated financial statements so as to conform to current period classifications.
For the three-month period ending March 31, 2018, the Company reclassified $37,084 of operating expenses to cost of goods sold.
This reclassification was made to more accurately show the prior period to properly reflect the absorption calculations used in
the current period.</p>
<p style="font: 11pt/107% Times New Roman, Times, Serif; margin: 0 0 8pt"> </p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Cash</i></b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company
considers all short-term highly liquid investments with an original maturity at the date of purchase of three months or less to
be cash equivalents.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b></b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Revenue Recognition</i></b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In May 2014,
the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 20 l4-09, <i>Revenue
from Contracts with Customers (Topic 606)</i>, which supersedes all existing revenue recognition requirements, including most
industry specific guidance. This standard requires a company to recognize revenues when it transfers goods or services to customers
in an amount that reflects the consideration that the company expects to receive for those goods or services. FASB subsequently
issued the following amendments to ASU No. 2014-09 that have the same effective date and transition date: ASU No. 2016-08, <i>Revenue
from Contracts with Customers (Topic 606): Principal versus Agent Considerations; </i>ASU No. 20l6-10, <i>Revenue from Contracts
with Customers (Topic 606): Identifying Performance Obligations and Licensing; </i>ASU No. 2016-12, <i>Revenue from Contracts
with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; </i>and ASU No. 2016-20, <i>Technical Corrections
and Improvements to Topic 606, Revenue from Contracts with Customers. </i>The Company adopted these amendments (collectively,
the “new revenue standards”) with ASU 2014-09.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The new revenue
standards became effective for the Company on January 1, 2018, and were adopted using the modified retrospective method. The adoption
of the new revenue standards did not change the Company’s revenue recognition as the majority of its revenues continue to
be recognized when the customer takes control of its product. As the Company did not identify any accounting changes that impacted
the amount of reported revenues with respect to its product revenues, no adjustment to retained earnings was required upon adoption.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Under the
new revenue standards, the Company recognizes revenues when its customer obtains control of promised goods or services, or when
they are shipped to that customer, in an amount that reflects the consideration which it expects to receive in exchange for them.
The Company recognizes revenues following the five-step model prescribed under ASU No. 2014-09: (i) identify contract(s) with
a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the
transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) the Company satisfies
its performance obligation.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Revenues from
product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time,
typically upon shipment or delivery to the customer. The Company expenses incremental costs of obtaining a contract as and when
incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0 1pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following table summarizes revenue from contracts with customers for the three months ended March 31, 2019, and March 31, 2018:</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; padding-right: 30pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>March
31,</b></font></td>
<td style="border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: #CCEEFF 1pt solid; width: 39%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; width: 6%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; width: 20%; padding-right: 58pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2019</b></font></td>
<td style="border-bottom: Black 1pt solid; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #CCEEFF 1pt solid; width: 7%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; width: 6%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; width: 21%; padding-right: 61pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2018</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 6pt"><font style="font: 10pt Times New Roman, Times, Serif">Products</font></td>
<td style="padding-right: 26pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">582,404</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 25pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">609,537</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 6pt"><font style="font: 10pt Times New Roman, Times, Serif">Services</font></td>
<td style="padding-right: 26pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">22,033</font></td>
<td colspan="3" style="padding-right: 25pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">34,814</font></td></tr>
</table>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Inventories</i></b></font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Inventories,
which consist of products held for resale, are stated at the lower of cost, determined using the first-in first-out, and net realizable
value. Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete
and dispose of the product.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">If the Company
identifies excess, obsolete or unsalable items, its inventories are written down to their realizable value in the period in which
the impairment is first identified. Shipping and handling costs incurred for inventory purchases and product shipments are recorded
in cost of sales in the Company’s statements of operations.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Share-Based Payments</i></b></font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In June
2018, FASB issued ASU 2018-07, <i>Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based
Payment Accounting, </i>which aligns accounting for share-based payments issued to nonemployees to that of employees under
the existing guidance of Topic 718, with certain exceptions. This update supersedes previous guidance for equity-based
payments to nonemployees under Subtopic 505-50, <i>Equity—Equity-Based Payments to Non-Employees.</i> This guidance
became effective for the Company as of January 1, 2019. Based on the completed analysis, the Company has determined the
guidance did not have a material impact on the financial statements.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Accounts Receivable</i></b></font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Included in
“Accounts receivable” on the consolidated balance sheets are amounts primarily related to customers. The Company estimates
losses on receivables based on known troubled accounts and historical experience of losses incurred. Receivables are considered
impaired and written off when it is probable that all contractual payments due will not be collected in accordance with the terms
of the related agreement. Based on experience and the judgment of management, the allowance for doubtful accounts was $0 as of
March 31, 2019 and December 31, 2018.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i></i></b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Fair Value Measurements</i></b></font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company
has adopted the provisions of ASC Topic 820, <i>Fair Value Measurements and Disclosures,</i> which defines fair value as used
in numerous accounting pronouncements, establishes a framework for measuring fair value, and expands disclosure of fair value
measurements.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The estimated
fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued
expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these
instruments. The carrying amounts of the Company’s short- and long-term credit obligations approximate fair value because
the effective yields on these obligations, which include contractual interest rates taken together with other features such as
concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar
credit risk.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">ASC Topic
820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price)
in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants
on the measurement date. ASC Topic 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of
observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC Topic 820 describes three levels
of inputs that may be used to measure fair value:</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0 0 0 25pt"><font style="font: 10pt Times New Roman, Times, Serif">Level 1 – Quoted
prices in active markets for identical assets or liabilities</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0 0 0 25pt"><font style="font: 10pt Times New Roman, Times, Serif">Level 2 – Quoted
prices for similar assets and liabilities in active markets or inputs that are observable</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0 0 0 25pt"><font style="font: 10pt Times New Roman, Times, Serif">Level 3 – Inputs
that are unobservable (for example cash flow modeling inputs based on assumptions)</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During the
year ended December 31, 2018, the Company accounted for a derivative liability in connection with the conversion feature of convertible
debt, classified as a Level 3 liability, as the only financial liability measured at fair value on a recurring basis. As of December
31, 2018, and during the three months ended March 31, 2019, the Company had no derivative liability.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Property and Equipment</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment are stated at cost less
accumulated depreciation. Depreciation is provided for on a straight-line basis over the useful lives of the assets. For furniture
and fixtures the useful life is 5 years, Leasehold Improvements are depreciated over the 2-year lease term. Expenditures for additions
and improvements are capitalized; repairs and maintenance are expensed as incurred.</p>
<p style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Convertible Instruments</i></b></font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company
evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815, <i>Derivatives and
Hedging Activities.</i></font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">GAAP requires
companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial
instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks
of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host
contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not remeasured
at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with
the same terms as the embedded derivative instrument would be considered a derivative instrument.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company
accounts for convertible instruments (when it has been determined that the embedded conversion options should not be bifurcated
from their host instruments) as follows: the Company records, when necessary, discounts to convertible notes for the intrinsic
value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common
stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under
these arrangements are amortized over the term of the related debt to their stated date of redemption.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company
accounts for the conversion of convertible debt when a conversion option has been bifurcated using the general extinguishment
standards. The debt- and equity-linked derivatives are removed at their carrying amounts and the shares issued are measured at
their then-current fair value, with any difference recorded as a gain or loss on extinguishment of the two separate accounting
liabilities.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Advertising</i></b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Advertising and marketing expenses
are charged to operations as incurred.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Income Taxes</i></b></font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company
use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, <i>Income Taxes.</i> Under
this method, income tax expense is recognized for: (i) taxes payable or refundable for the current year and (ii) deferred tax
consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements
or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in
the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and
liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date.
A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive
and negative evidence, it is more likely than not some portion or all the deferred tax assets will not be realized.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">ASC Topic
740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and
prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax
position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification,
interest and penalties, accounting in interim periods, disclosure, and transition. The Company has no material uncertain tax positions.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Concentration of Credit Risk</i></b></font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financial
instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution,
which at times, may exceed the Federal depository insurance coverage of $250,000. The Company has not experienced losses on these
accounts and management believes that the Company is not exposed to significant risks on such accounts. Also, the Company has
not experienced losses on accounts receivable and management believes that the Company is not exposed to significant risks with
respect to them.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Goodwill and Intangible Assets</i></b></font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Goodwill and
intangible assets that have indefinite useful lives are not amortized but are evaluated for impairment annually or whenever events
or changes in circumstances indicate that the carrying value may not be recoverable. The Company records intangible assets at
fair value, estimated using a discounted cash flow approach. The Company amortizes its intangible assets that have finite lives
using either the straight-line method or base on estimated future cash flows to approximate the pattern in which the economic
benefit of the assets will be utilized. Amortization is recorded over the estimated useful lives ranging from 14 to 20 years.
The Company reviews intangible assets subject to amortization quarterly to determine if any adverse conditions exist or a change
in circumstances has occurred that would indicate impairment or a change in the remaining useful life. Conditions that would indicate
impairment and trigger a more frequent impairment assessment include, but are not limited to, a significant adverse change in
legal factors or business climate that could affect the value of an asset, or an adverse action or assessment by a regulator.
If the carrying value of an asset exceeds its undiscounted cash flows, the Company will write-down the carrying value of the intangible
assets to its fair value in the period identified. The Company generally calculates fair value as the present value of estimated
future cash flows to be generated by the asset using a risk-adjusted discount rate. If the estimate of an intangible asset’s
remaining useful life is changed, the Company will amortize the remaining carrying value of the intangible asset prospectively
over the revised remaining useful life. Consistent with prior years, the Company conducted its annual impairment test of goodwill
during the fourth quarter of the year ended December 31, 2018. The Company operates as a single operating segment with one reporting
unit and consequently evaluates goodwill for impairment base on an evaluation of the fair value of the Company as a whole. The
estimate of fair value requires significant judgement.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0 7pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Any
loss resulting from an impairment test would be reflected in operating income in the Company’s consolidated statements of
income. The annual impairment testing process is subjective and requires judgment at many points throughout the analysis. If these
estimates or their related assumptions change in the future, the Company may be required to record impairment charges for these
assets not previously recorded.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0 7pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="margin: 0 7pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
January 2017, FASB issued ASU 2017-04, <i>Simplifying the Test for Goodwill Impairment</i> (“ASU 2017-04”), which
simplifies accounting for goodwill impairment. It requires a hypothetical purchase price allocation. It is mandatory for fiscal
years beginning after December 14, 2019. As permitted, the Company adopted ASU 2017-04 for fiscal periods beginning January 1,
2018.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0 7pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company evaluates intangible assets and long-lived assets for possible impairment whenever events or changes in circumstances
indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse
changes in business climate, market conditions, or other events that indicate an asset’s carrying amount may not be recoverable.
Recoverability of these assets is measured by comparison of the carrying amount of each asset to the future undiscounted cash
flows the asset is expected to generate. If the undiscounted cash flows used in the test of recoverability are less than the carrying
amount of these assets, the carrying amount of such assets is reduced to fair value. The Company evaluates and tests the recoverability
of its goodwill for impairment at least annually during its fourth quarter or each fiscal year or more often if circumstances
indicate that goodwill may not be recoverable. There was no impairment of intangible assets, long-lived assets or goodwill during
the three months ended March 31, 2019.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Recent Accounting Pronouncements</i></b></font></p>
<p style="margin: 0 7pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0 7pt 0 0; text-align: justify"><font style="font-size: 10pt">In February 2016, FASB issued ASU 2016-02, <i>Leases
(Topic 842),</i> which requires recognition of lease liabilities, representing future minimum lease payments, on a discounted
basis, and a corresponding right-of-use assets on a balance sheet for most leases, along with requirements for enhanced
disclosures to enable the assessment of the amount, timing and uncertainty of cash flows arising from leasing arrangements.
This ASU became effective for the Company on January 1, 2019. The Company has determined that the impact of this guidance is
immaterial. The Company had entered into a 24-month equipment lease in May 2017, which had only five remaining payments of
$2,000 each as of December 31, 2018; therefore, the Company determined that the impact of this guidance is immaterial. The
Company also had entered into a building lease September 1, 2018, which expired August 31, 2019. The building lease was
renewed on September 1, 2019, and expires on August 31, 2020. Because the building lease has an initial term of 12 months or
less and there is no assurance the Company will remain in the current location after the lease term has expired, the Company
has concluded that this ASU does not apply to this lease.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0 7pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company does not believe there are any other recently issued, but not yet effective, accounting standards that would have a significant
impact on the Company’s financial position or results of operations.</font></p>
<p style="margin: 0 1pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid; padding-right: 30pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>March
31,</b></font></td>
<td style="border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: #CCEEFF 1pt solid; width: 39%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; width: 6%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; width: 20%; padding-right: 58pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2019</b></font></td>
<td style="border-bottom: Black 1pt solid; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: #CCEEFF 1pt solid; width: 7%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; width: 6%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; width: 21%; padding-right: 61pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2018</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 6pt"><font style="font: 10pt Times New Roman, Times, Serif">Products</font></td>
<td style="padding-right: 26pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">582,404</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 25pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">609,537</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 6pt"><font style="font: 10pt Times New Roman, Times, Serif">Services</font></td>
<td style="padding-right: 26pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">22,033</font></td>
<td colspan="3" style="padding-right: 25pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">34,814</font></td></tr>
</table>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify">Estimated Asset Valuation at March
31, 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 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> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Weighted Average</b></font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Gross Carrying</b></font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Accumulated</b></font></td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>Description</b></font></td>
<td> </td>
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>Estimated Useful Life</b></font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Value</b></font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Amortization</b></font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Net Amount</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 26%"><font style="font: 10pt Times New Roman, Times, Serif">Certain U.S. patents</font></td>
<td style="width: 1%"> </td>
<td style="width: 18%"><font style="font: 10pt Times New Roman, Times, Serif">15 years</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 16%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">435,000</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(23,188</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">411,812</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">Certain U.S. patents</font></td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">15 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">435,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(22,315</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">412,685</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Certain Canadian</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">patents</font></td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">20 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">260,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(10,521</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">249,479</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Certain European</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">patents</font></td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">14 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">30,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(1,697</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,303</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Molds</font></td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">15 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">150,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(7,995</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">142,005</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">Trademark</font></td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">Indefinite life</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">220,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>—  </b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">220,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Domain name</font></td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">Indefinite life</font></td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,000</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>—  </b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Intangible Totals</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,532,000</b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>(65,716</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>)</b></font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,466,284</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Goodwill</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,020,314</b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>—  </b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,020,314</b></font></td>
<td> </td></tr>
</table>
<p style="font: 10pt/95% Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Estimated Asset Valuation at December 31, 2018:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 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> </td>
<td> </td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Weighted Average</b></font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Gross Carrying</b></font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Accumulated</b></font></td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>Description</b></font></td>
<td> </td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Estimated Useful Life</b></font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Value</b></font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Amortization</b></font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Net Amount</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 26%"><font style="font: 10pt Times New Roman, Times, Serif">Certain U.S. patents</font></td>
<td style="width: 1%"> </td>
<td style="width: 18%; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">15 years</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 16%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">435,000</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(16,060</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">418,940</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">Certain U.S. patents</font></td>
<td> </td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">15 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">435,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(15,455</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">419,545</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Certain Canadian patents</font></td>
<td> </td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">20 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">260,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(7,286</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">252,714</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">Certain European patents</font></td>
<td> </td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">14 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">30,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(1,175</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,825</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Molds</font></td>
<td> </td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">15 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">150,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(5,538</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">144,462</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">Trademark</font></td>
<td> </td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Indefinite life</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">220,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">220,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">Domain name</font></td>
<td> </td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Indefinite life</font></td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,000</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Intangible Totals</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,532,000</b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>(45,514</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>)</b></font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,486,486</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Goodwill</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,020,314</b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>—  </b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>1,020,314</b></font></td>
<td> </td></tr>
</table>
<p style="font: 11pt/106% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
<p style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
.18
.15
1092913
582404
609537
22033
34814
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">March 31, 2019</font></td>
<td> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">December 31, 2018</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Principal</font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Accrued Interest</font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Principal</font></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Accrued Interest</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Convertible Notes Payable (a)</u></b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 44%"><font style="font: 10pt Times New Roman, Times, Serif">July 2014 $75,000 Note convertible into common stock at $5.00 per share, 10% interest, currently in default</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">66,172</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18,749</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">66,172</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">17,095</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">July 2014 $15,000 Note convertible into common stock at $5.00 per share, 10% interest, currently in default</font></td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">15,000</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">8,000</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">15,000</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">7,625</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>                    <u>Total Convertible Notes Payable</u></b></font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">81,172</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">81,172</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b><u>Promissory Notes Payable</u></b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">November 2014 $300,000 Note, 10% interest, due February 2019, currently in default (b)</font></td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">298,959</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">32,387</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">298,959</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">24,913</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Times New Roman, Times, Serif">August 2015 $75,000 Note, with a one-time interest charge of $75,000, currently in default (c)</font></td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">75,000</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">75,000</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">75,000</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">75,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif">                     <b><u>Total Promissory Notes Payable</u></b></font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">373,959</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">373,959</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Total Accrued Interest Payable</b></font></td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">134,136</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">124,633</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 0; text-align: justify"> </p>
<p style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
<p style="margin: 0 15pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following table summarizes vesting of the common stock shares issued per the 2018 Plan:</font></p>
<p style="margin: 0 7pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-right: 3pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Employees</font></td>
<td colspan="2"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-right: 4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Consultants</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: #CCEEFF 1pt solid; padding-left: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Dates
common stock shares were vested:</font></td>
<td style="border-top: #CCEEFF 1pt solid; padding-left: 95pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: #CCEEFF 1pt solid; padding-left: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: #CCEEFF 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">    December
31, 2018</font></td>
<td colspan="2" style="padding-left: 95pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td colspan="2" style="padding-left: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">185,000</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-top: #CCEEFF 1pt solid; padding-left: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">    January
1, 2019</font></td>
<td colspan="2" style="border-top: #CCEEFF 1pt solid; padding-left: 95pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: #CCEEFF 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">750,000</font></td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="border-top: #CCEEFF 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 54%"><font style="font: 10pt Times New Roman, Times, Serif">    March
31, 2019</font></td>
<td style="width: 6%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 16%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="width: 3%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 16%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">150,000</font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td colspan="2" style="padding-left: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Total common stock shares vested at March 31, 2019</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">750,000</font></td>
<td style="padding-left: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">335,000</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
-23188
-22315
-10521
-1697
-7995
-65716
-16060
-15455
-7286
-1175
-5538
-45514
435000
435000
260000
30000
220000
2000
150000
1532000
1020314
435000
435000
260000
30000
150000
220000
2000
1532000
1020314
P15Y
P15Y
P20Y
P14Y
P15Y
P15Y
P15Y
P20Y
P14Y
P15Y
66172
66172
15000
15000
81172
81172
298959
298959
75000
75000
373959
373959
18749
17095
8000
7625
32387
24913
75000
75000
750000
750000
185000
150000
335000
<p style="margin: 0"></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Payments made
to the related party for the three months ended March 31, 2019, and March 31, 2018, are as follows:</font></p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3" style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2019</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2018</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; text-align: left">Capital lease payments</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">6,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">12,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Building lease payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,921</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Purchase of products for resale</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">30,221</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"></td><td style="border-bottom: Black 1pt solid; text-align: right">18,600</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Total paid to related party</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">62,142</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">30,600</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr></table>
6000
12000
25921
30221
18600
62142
30600