4. PURCHASE - ROCKY MOUNTAIN HYDROPONICS and EVERGREEN GARDEN CENTER (Tables)

6 Months Ended

Jun. 30, 2014

Purchase - Rocky Mountain Hydroponics And Evergreen Garden Center Tables

Purchase Price for tangible and intangible Assets

Allocation		$
Assets	$	907,614
Intangible assets		366,000
Goodwill		739,000
Total		2,012,614
Less fair value of liabilities		(387,614	)
Purchase price	$	1,625,000

Pro-forma operating results of Rocky Mountain Hydroponics/Evergreen Garden Center

	Six Months Ended June 30, 2013,
				RMH/ EGC		Combined
	As Reported			As Reported		Pro-Forma
Net revenue	$	1,625,625		$	1,635,143	$	3,260,768
Cost of goods sold		1,196,277			1,127,113		2,323,390
Gross profit		429,348			508,030		937,378
General and administrative		2,007,464			475,839		2,483,303
Loss from operations		(1,578,116	)		32,191		(1,545,925	)
Other income (expense):
Warrant expense		(250,000	)		-		(250,000	)
Loss on extinguishment of debt		(2,750	)		-		(2,750	)
Change in fair value of derivative		(169,753	)		-		(169,753	)
Interest expense, net		(799,310	)		-		(799,310	)
Net loss	$	(2,799,929	)	$	32,191	$	(2,767,738	)
Net loss per share - (basic and diluted)	$	(0.01	)	$	0.00	$	(0.01	)
Weighted average shares outstanding  - (basic and diluted)		500,801,583			6,815,310		507,616,893