GOING CONCERN

The accompanying unaudited condensed interim consolidated financial statements have been prepared assuming the Company will continue as a going concern.

As shown in the financial statements, the Company has incurred loss of

$50,405

for the

three

month period ended

March

31,

2017

and, in addition the Company incurred losses of

$453,240

and

$386,584

for the years ended

December

31,

2016

and

2015,

respectively. As of

March

31,

2017,

the Company had an accumulated deficit of

$40,830,258

and a working capital deficit of

$371,961.

These conditions raise doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations as they come due which management believes it will be able to do. To date, the Company has funded operations primarily through the issuance of common stock and warrants to outside investors and the Company’s management. The Company believes that its operations will generate additional funds and that additional funding from outside investors and the Company’s management will continue to be available to the Company when needed. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary in the event the Company cannot continue as a going concern.