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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"&gt;&lt;b&gt;NOTE 1 &amp;#150; HISTORY AND ORGANIZATION&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Giggles N&amp;#146; Hugs, Inc. (&amp;#147;GIGL
Inc.&amp;#148;) was originally organized on September 17, 2004 under the laws of the State of Nevada, as Teacher&amp;#146;s Pet, Inc.&amp;#160;&amp;#160;GIGL
Inc was organized to sell teaching supplies and learning tools.&amp;#160;&amp;#160;On August 20, 2010, GIGL Inc. filed an amendment to
its articles of incorporation to change its name to Giggles N&amp;#146; Hugs, Inc.&amp;#160;&amp;#160;The Company is authorized to issue 1,125,000,000
shares of its $0.001 par value common stock.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On December 30, 2011, GIGL Inc. completed
the acquisition of all the issued and outstanding shares of GNH, Inc. (&amp;#147;GNH&amp;#148;), a Nevada corporation, pursuant to a
Stock Exchange Agreement (the &amp;#147;SEA&amp;#148;).&amp;#160; Under the SEA, GIGL Inc. issued 18,289,716 shares of its common stock in
exchange for a 100% interest in GNH.&amp;#160; Additionally under the SEA, the former officer, director and shareholders of GIGL Inc.
agreed to cancel a total of 47,607,500 shares of its common stock. &amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;For accounting purposes, the acquisition
of GNH by GIGL Inc. has been recorded as a reverse merger of a public company, with the exception that no goodwill is generated,
and followed up with a recapitalization of GNH based on the factors demonstrating that GNH represents the accounting acquirer.&amp;#160;&amp;#160;As
part of closing of the merger between GNH and GIGL Inc. GNH obtained 100% of the restaurant operations of Giggles N Hugs in Westfield
Mall in Century City, California.&amp;#160;&amp;#160;The restaurant operations of Giggles N Hugs in Westfield Mall in Century City, California
was originally formed April 30, 2010 and opened for operation December 3, 2010.&amp;#160;&amp;#160;Consequently, the historical financial
information in the accompanying consolidated financial statements is that of GNH and the restaurant operations of Giggles N Hugs
located in Century City, California.&amp;#160;&amp;#160;As a result of the Merger, GIGL Inc. now owns all of the assets, liabilities and
operations of a kid friendly restaurant named Giggles N Hugs in Westfield Mall in Century City, California. Additionally, GIGL
Inc. obtained ownership to all intellectual property rights for Giggles N Hugs facilities in the future.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On December 30, 2011, the transactions
were completed and resulted in a change in control of the Company.&amp;#160;&amp;#160;Pursuant to the terms of the Agreement, the Company
accepted the resignation of its prior officer and director, Tracie Hadama and appointed Mr. Joey Parsi as President, Chief Executive
Officer, Treasurer, and Secretary of the Company.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

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