NOTE 15

QUARTERLY FINANCIAL INFORMATION (Unaudited)

INVO BIOSCIENCE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	September 30,			June 30,			March 31,
	2015			2015			2015
ASSETS
Current assets
Cash	$	114,561		$	79,623		$	24,471
Accounts receivable net		1,346			321			2,134
Inventory		60,851			61,038			61,896
Prepaid expense		-			-			-
Total current assets		176,758			140,982			88,501

Property and equipment, net		-			-			-

Other Assets:
Capitalized patents, net		22,424			23,832			25,240
Total other assets		22,424			23,832			25,240

Total assets	$	199,182		$	164,814		$	113,741

LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities
Accounts payable and accrued liabilities, including related parties	$	1,069,298		$	1,068,936		$	1,252,690
Accrued Compensation		2,993,190			2,895,990			2,798,790
Note payable - related party		230,888			230,888			230,888
Convertible notes		10,000			10,000			310,000
Derivative liability		-			-			-
Total current liabilities		4,303,376			4,205,814			4,592,368

Total liabilities		4,303,376			4,205,814			4,592,368

Stockholder's deficit
Preferred Stock, $.0001 par value; 100,000,000 shares authorized; No shares issued and outstanding.		-			-			-
Common Stock, $.0001 par value; 200,000,000 shares authorized; 134,078,170, 133,078,170, and 119,857,270 issued and outstanding as of September 30, 2015, June 30, 2015, and March 31, 2015, respectively.		13,408			13,308			11,986
Additional paid-in capital		11,456,988			11,397,087			6,513,514
Accumulated deficit		(15,574,590	)		(15,451,395	)		(11,004,127	)
Total stockholder's deficit		(4,104,194	)		(4,041,000	)		(4,478,627	)

Total liabilities and stockholders' deficit	$	199,182		$	164,814		$	113,741

INVO BIOSCIENCE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	September 30,			June 30,			March 31,
	2014			2014			2014
ASSETS
Current assets
Cash	$	6,274		$	8,634		$	7,256
Accounts receivable net		3,757			1,927			9,188
Inventory		62,996			63,799			64,078
Prepaid expense		-			-			-
Total current assets		73,027			74,360			80,522

Property and equipment, net		490			1,959			3,429

Other Assets:
Capitalized patents, net		28,057			29,465			30,874
Total other assets		28,057			29,465			30,874

Total assets	$	101,574		$	105,784		$	114,825

LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities
Accounts payable and accrued liabilities, including related parties	$	1,192,904		$	1,176,595		$	1,162,063
Accrued Compensation		2,604,390			2,507,190			2,409,990
Note payable - related party		230,888			230,888			164,888
Convertible notes		310,000			310,000			310,000
Derivative liability		-			-			-
Total current liabilities		4,338,182			4,224,673			4,046,941

Total liabilities		4,338,182			4,224,673			4,046,941

Stockholder's deficit
Preferred Stock, $.0001 par value; 100,000,000 shares authorized; No shares issued and outstanding.		-			-			-
Common Stock, $.0001 par value; 200,000,000 shares authorized; 111,402,270 issued and outstanding as of September 30, 2014, June 30, 2014, and March 31, 2014.		11,140			11,140			11,140
Additional paid-in capital		5,301,060			5,301,060			5,301,060
Accumulated deficit		(9,548,808	)		(9,431,089	)		(9,244,316	)
Total stockholder's deficit		(4,236,608	)		(4,118,889	)		(3,932,116	)

Total liabilities and stockholders' deficit	$	101,574		$	105,784		$	114,825

INVO BIOSCIENCE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	September 30,			June 30,			March 31,
	2013			2013			2013
ASSETS
Current assets
Cash	$	7,501		$	2,275		$	687
Accounts receivable net		(485	)		1,627			3,977
Inventory		67,903			52,259			52,537
Prepaid expense		-			16,064			13,592
Total current assets		74,919			72,225			70,793

Property and equipment, net		6,367			7,836			9,306

Other Assets:
Capitalized patents, net		33,690			35,098			36,507
Total other assets		33,690			35,098			36,507

Total assets	$	114,976		$	115,159		$	116,606

LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities
Accounts payable and accrued liabilities, including related parties	$	1,111,692		$	1,096,671		$	1,082,502
Accrued Compensation		2,215,590			2,118,390			2,021,190
Note payable - related party		164,888			164,888			164,888
Convertible notes		310,000			310,000			310,000
Derivative liability		156,246			79,685			137,654
Total current liabilities		3,958,416			3,769,634			3,716,234

Total liabilities		3,958,416			3,769,634			3,716,234

Stockholder's deficit
Preferred Stock, $.0001 par value; 100,000,000 shares authorized; No shares issued and outstanding.		-			-			-
Common Stock, $.0001 par value; 200,000,000 shares authorized; 110,152,270, 108,402,270, and 105,791,270 issued and outstanding as of September 30, 2014, June 30, 2014, and March 31, 2014, respectively.		11,015			10,840			10,579
Additional paid-in capital		5,133,392			5,108,567			5,058,790
Accumulated deficit		(8,987,847	)		(8,773,882	)		(8,668,997	)
Total stockholder's deficit		(3,843,440	)		(3,654,475	)		(3,599,628	)

Total liabilities and stockholders' deficit	$	114,976		$	115,159		$	116,606

INVO BIOSCIENCE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	September 30,			June 30,			March 31,
	2012			2012			2012
ASSETS
Current assets
Cash	$	27,690		$	31,459		$	887
Accounts receivable net		4,628			6,898			10,681
Inventory		56,407			56,929			58,145
Prepaid expense		-			541			1,082
Total current assets		88,725			95,827			70,795

Property and equipment, net		12,244			13,714			15,183

Other Assets:
Capitalized patents, net		39,323			40,731			42,140
Total other assets		39,323			40,731			42,140

Total assets	$	140,292		$	150,272		$	128,118

LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities
Accounts payable and accrued liabilities, including related parties	$	1,024,084		$	995,983		$	964,051
Accrued Compensation		1,826,790			1,729,590			1,632,390
Note payable - related party		164,888			164,888			164,888
Convertible notes		310,000			310,000			310,000
Derivative liability		165,455			75,387			108,987
Total current liabilities		3,491,217			3,275,848			3,180,316

Total liabilities		3,491,217			3,275,848			3,180,316

Stockholder's deficit
Preferred Stock, $.0001 par value; 100,000,000 shares authorized; No shares issued and outstanding.		-			-			-
Common Stock, $.0001 par value; 200,000,000 shares authorized; 91,369,305, 91,119,305, and 86,776,997 shares issued and outstanding as of September 30, 2012, June 30, 2012, and March 31, 2012, respectively.		9,137			9,112			8,678
Additional paid-in capital		4,963,191			4,948,216			4,882,727
Accumulated deficit		(8,323,253	)		(8,082,904	)		(7,943,603	)
Total stockholder's deficit		(3,350,925	)		(3,125,576	)		(3,052,198	)

Total liabilities and stockholders' deficit	$	140,292		$	150,272		$	128,118

INVO BIOSCIENCE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	For the Three			For the Nine			For the Three			For the Six			For the Three
	Months Ended			Months Ended			Months Ended			Months Ended			Months Ended
	September 30,			September 30,			June 30,			June 30,			March 31,
	2015			2015			2015			2015			2015


Revenue	$	2,513		$	11,689		$	5,551		$	9,176		$	3,625
Cost of goods sold:		4,412			6,154			(466	)		1,742			2,208

Gross Margin		(1,899	)		5,535			6,017			7,434			1,417

Selling, general and administrative expenses		116,865			363,582			113,457			246,717			133,260
Total operating expenses		116,865			363,582			113,457			246,717			133,260

Loss from operations		(118,764	)		(358,047	)		(107,440	)		(239,283	)		(131,843	)

Other (Income) Expenses:
Loss on settlement of debt		-			4,332,155			4,332,155			4,332,155			-
(Gain) Loss in fair value of derivative liability		-			-			-			-			-
Value of derivative liability in excess of principal of note		-			-			-			-			-
Interest expense		4,431			24,919			7,673			20,488			12,815
Total other ( income) expenses		4,431			4,357,074			4,339,828			4,352,643			12,815

Loss before income taxes		(123,195	)		(4,715,121	)		(4,447,268	)		(4,591,926	)		(144,658	)

Provisions for income taxes		-			-			-			-			-

Net Loss	$	(123,195	)	$	(4,715,121	)	$	(4,447,268	)	$	(4,591,926	)	$	(144,658	)

Basic net loss per weighted average shares of common stock	$	(0.00	)	$	(0.04	)	$	(0.04	)	$	(0.04	)	$	(0.00	)

Diluted net loss per weighted average shares of common stock	$	(0.00	)	$	(0.04	)	$	(004	)	$	(0.04	)	$	(0.00	)

Basic weighted average number of shares of common stock		133,241,213			126,253,467			125,580,775			122,701,684			119,790,603

Diluted weighted average number of shares of common stock		133,241,213			126,253,467			125,580,775			122,701,684			119,790,603

INVO BIOSCIENCE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	For the Three			For the Nine			For the Three			For the Six			For the Three
	Months Ended			Months Ended			Months Ended			Months Ended			Months Ended
	September 30,			September 30,			June 30,			June 30,			March 31,
	2014			2014			2014			2014			2014


Revenue	$	4,753		$	16,588		$	2,162		$	11,835		$	9,673
Cost of goods sold:		1,899			6,274			1,749			4,375			2,626

Gross Margin		2,854			10,314			413			7,460			7,047

Selling, general and administrative expenses		107,522			393,280			174,237			285,758			111,521
Total operating expenses		107,522			393,280			174,237			285,758			111,521

Loss from operations		(104,668	)		(382,966	)		(173,824	)		(278,298	)		(104,474	)

Other (Income) Expenses:
Loss on settlement of debt		-			-			-			-			-
(Gain) Loss in fair value of derivative liability		-			-			-			-			-
Value of derivative liability in excess of principal of note		-			-			-			-			-
Interest expense		13,051			38,845			12,949			25,794			12,845
Total other ( income) expenses		13,051			38,845			12,949			25,794			12,845

Loss before income taxes		(117,719	)		(421,811	)		(186,773	)		(304,092	)		(117,319	)

Provisions for income taxes		-			-			-			-			-

Net Loss	$	(117,719	)	$	(421,811	)	$	(186,773	)	$	(304,092	)	$	(117,319	)

Basic net loss per weighted average shares of common stock	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Diluted net loss per weighted average shares of common stock	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Basic weighted average number of shares of common stock		111,402,970			111,402,970			111,402,270			111,402,270			111,402,270

Diluted weighted average number of shares of common stock		111,402,970			111,402,970			111,402,270			111,402,270			111,402,270

INVO BIOSCIENCE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	For the Three			For the Nine			For the Three			For the Six			For the Three
	Months Ended			Months Ended			Months Ended			Months Ended			Months Ended
	September 30,			September 30,			June 30,			June 30,			March 31,
	2013			2013			2013			2013			2013


Revenue	$	297		$	12,198		$	3,625		$	11,901		$	8,276
Cost of goods sold:		1,074			5,193			1,674			4,119			2,445

Gross Margin		(777	)		7,005			1,951			7,782			5,831

Selling, general and administrative expenses		123,576			472,686			151,856			349,110			197,254
Total operating expenses		123,576			472,686			151,856			349,110			197,254

Loss from operations		(124,353	)		(465,681	)		(149,905	)		(341,328	)		(191,423	)

Other (Income) Expenses:
Loss on settlement of debt		-			-			-			-			-
(Gain) Loss in fair value of derivative liability		76,561			117,003			(57,969	)		40,442			98,411
Value of derivative liability in excess of principal of note		-			-			-			-			-
Interest expense		13,051			38,845			12,949			25,794			12,845
Total other ( income) expenses		89,612			155,848			(45,020	)		66,236			111,256

Loss before income taxes		(213,965	)		(621,529	)		(104,885	)		(407,564	)		(302,679	)

Provisions for income taxes		-			-			-			-			-

Net Loss	$	(213,965	)	$	(621,529	)	$	(104,885	)	$	(407,564	)	$	(302,679	)

Basic net loss per weighted average shares of common stock	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Diluted net loss per weighted average shares of common stock	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Basic weighted average number of shares of common stock		109,581,618			105,910,613			107,239,512			104,044,687			104,044,687

Diluted weighted average number of shares of common stock		109,581,618			105,910,613			107,239,512			104,044,687			104,044,687

INVO BIOSCIENCE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	For the Three			For the Nine			For the Three			For the Six			For the Three
	Months Ended			Months Ended			Months Ended			Months Ended			Months Ended
	September 30,			September 30,			June 30,			June 30,			March 31,
	2012			2012			2012			2012			2012


Revenue	$	3,624		$	27,575		$	12,669		$	23,951		$	11,282
Cost of goods sold:		1,990			7,867			5,011			5,877			866

Gross Margin		1,634			19,708			7,658			18,074			10,416

Selling, general and administrative expenses		161,960			456,471			167,610			294,481			126,871
Total operating expenses		161,960			456,471			167,610			294,481			126,871

Loss from operations		(160,326	)		(436,763	)		(159,952	)		(276,407	)		(116,455	)

Other (Income) Expenses:
Loss on settlement of debt		-			(3,244	)		-			(3,244	)		(3,244	)
(Gain) Loss in fair value of derivative liability		66,972			150,701			(33,600	)		78,655			117,359
Value of derivative liability in excess of principal of note		-			-			-			5,104			-
Interest expense		13,051			39,169			12,949			26,118			13,169
Total other ( income) expenses		80,023			186,626			(20,651	)		106,633			127,284

Loss before income taxes		(240,349	)		(623,389	)		(139,301	)		(383,040	)		(243,739	)

Provisions for income taxes		-			-			-			-			-

Net Loss	$	(240,349	)	$	(623,389	)	$	(139,301	)	$	(383,040	)	$	(243,739	)

Basic net loss per weighted average shares of common stock	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Diluted net loss per weighted average shares of common stock	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Basic weighted average number of shares of common stock		91,160,066			88,174,887			87,922,221			86,665,895			85,409,569

Diluted weighted average number of shares of common stock		91,160,066			88,174,887			87,922,221			86,665,895			85,409,569

INVO BIOSCIENCE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Nine			For the Six			For the Three
	Months Ended			Months Ended			Months Ended
	September 30,			June 30,			March 31,
	2015			2015			2015


Cash flows from operating activities:
Net loss	$	(4,715,121	)	$	(4,591,926	)	$	(144,658	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
(Gain) Loss on settlement of debt		4,332,155			4,332,155			-
Excess value of warrant liability		-			-			-
Non-cash cost of equity financing		-			-			-
Non-cash compensation issued for services		-			-			-
(Gain) Loss from the revaluation of derivative liability		-			-			-
Fair value of derivative liability in excess of principal		-			-			-
Accretion of convertible debt discount		-			-			-
Depreciation and amortization		4,225			2,817			1,409
Changes in assets and liabilities:
Accounts receivable		(1,025	)		-			(1,813	)
Inventory		1,604			1,417			559
Prepaid expenses and other current assets		-			-			-
Accounts payable and accrued expenses		37,497			37,134			28,148
Accrued compensation		291,600			194,400			97,200
Net cash used in operating activities		(49,065	)		(24,003	)		(19,155	)

Cash flows from financing activities:
Repayment from demand note payable		-			-			-
Principal payments on loans payable to related parties		-			-			-
Principal payments on notes payable		-			-			-
Proceeds from convertible notes payable		-			-			-
Proceeds from the sale of common stock		145,000			85,000			25,000
Net cash (used in) provided by financing activities		145,000			85,000			25,000

Decrease in cash and cash equivalents		95,935			60,997			5,845

Cash and cash equivalents at beginning of period		18,626			18,626			18,626

Cash and cash equivalents at end of period	$	114,561		$	79,623		$	24,471

Supplemental disclosure of cash flow information:

Cash paid during the period for:
Interest	$	-		$	-		$	-

Taxes	$	-		$	-		$	-

Common stock issued upon note payable and accrued interest conversion	$	4,824,896		$	4,824,896		$	-

Common stock issued for services	$	-		$	-		$	-

INVO BIOSCIENCE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Nine			For the Six			For the Three
	Months Ended			Months Ended			Months Ended
	September 30,			June 30,			March 31,
	2014			2014			2014


Cash flows from operating activities:
Net loss	$	(421,811	)	$	(304,092	)	$	(117,319	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
(Gain) Loss on settlement of debt		-			-			-
Excess value of warrant liability		-			-			-
Non-cash cost of equity financing		-			-			-
Non-cash compensation issued for services		-			-			-
(Gain) Loss from the revaluation of derivative liability		-			-			-
Fair value of derivative liability in excess of principal		-			-			-
Accretion of convertible debt discount		-			-			-
Depreciation and amortization		8,633			5,756			2,877
Changes in assets and liabilities:
Accounts receivable		(1,992	)		(162	)		(7,423	)
Inventory		2,575			1,772			1,493
Prepaid expenses and other current assets		-			-			-
Accounts payable and accrued expenses		109,242			92,933			12,401
Accrued compensation		291,600			194,400			97,200
Net cash provided by (used in) operating activities		(11,753	)		(9,393	)		(10,771	)

Cash flows from financing activities:
Repayment from demand note payable		-			-			-
Principal payments on loans payable to related parties		-			-			-
Principal payments on notes payable		-			-			-
Proceeds from convertible notes payable		-			-			-
Proceeds from the sale of common stock		-			-			-
Net cash (used in) provided by financing activities		-			-			-

Decrease in cash and cash equivalents		(11,753	)		(9,393	)		(10,771	)

Cash and cash equivalents at beginning of period		18,027			18,027			18,027

Cash and cash equivalents at end of period	$	6,274		$	8,634		$	7,256

Supplemental disclosure of cash flow information:

Cash paid during the period for:
Interest	$	-		$	-		$	-

Taxes	$	-		$	-		$	-

Common stock issued upon note payable and accrued interest conversion	$	-		$	-		$	-

Common stock issued for services	$	-		$	-		$	-

INVO BIOSCIENCE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Nine			For the Six			For the Three
	Months Ended			Months Ended			Months Ended
	September 30,			June 30,			March 31,
	2013			2013			2013


Cash flows from operating activities:
Net loss	$	(621,529	)	$	(407,564	)	$	(302,679	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
(Gain) Loss on settlement of debt		-			-			-
Excess value of warrant liability		-			-			-
Non-cash cost of equity financing		-			-			-
Non-cash compensation issued for services		105,039			95,039			60,000
(Gain) Loss from the revaluation of derivative liability		117,003			40,442			98,411
Fair value of derivative liability in excess of principal		-			-			-
Accretion of convertible debt discount		-			-			-
Depreciation and amortization		8,633			5,756			2,877
Changes in assets and liabilities:
Accounts receivable		12,945			10,833			8,483
Inventory		(14,029	)		1,615			1,337
Prepaid expenses and other current assets		3,051			(13,013	)		(10,541	)
Accounts payable and accrued expenses		51,845			36,824			22,655
Accrued compensation		291,600			194,400			97,200
Net cash provided by (used in) operating activities		(45,442	)		(35,668	)		(22,257	)

Cash flows from financing activities:
Repayment from demand note payable		-			-			-
Principal payments on loans payable to related parties		-			-			-
Principal payments on notes payable		-			-			-
Proceeds from convertible notes payable		-			-			-
Proceeds from the sale of common stock		45,749			30,749			15,750
Net cash (used in) provided by financing activities		45,749			30,749			15,750

Increase (decrease) in cash and cash equivalents		307			(4,919	)		(6,507	)

Cash and cash equivalents at beginning of period		7,194			7,194			7,194

Cash and cash equivalents at end of period	$	7,501		$	2,275		$	687

Supplemental disclosure of cash flow information:

Cash paid during the period for:
Interest	$	-		$	-		$	-

Taxes	$	-		$	-		$	-

Common stock issued upon note payable and accrued interest conversion	$	-		$	-		$	-

Common stock issued for services	$	-		$	-		$	-

INVO BIOSCIENCE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Nine			For the Six			For the Three
	Months Ended			Months Ended			Months Ended
	September 30,			June 30,			March 31,
	2012			2012			2012


Cash flows from operating activities:
Net loss	$	(623,389	)	$	(383,040	)	$	(243,739	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
(Gain) Loss on settlement of debt		(3,244	)		(3,244	)		(3,244	)
Excess value of warrant liability		23,096			5,104			-
Non-cash cost of equity financing		-			-			-
Non-cash compensation issued for services		35,923			35,923			-
(Gain) Loss from the revaluation of derivative liability		150,701			78,655			117,359
Fair value of derivative liability in excess of principal		-			-			-
Accretion of convertible debt discount		17,594			17,594			17,594
Depreciation and amortization		8,633			5,755			2,877
Changes in assets and liabilities:
Accounts receivable		949			(1,321	)		(5,104	)
Inventory		3,112			2,590			1,374
Prepaid expenses and other current assets		2,179			1,638			1,097
Accounts payable and accrued expenses		75,133			47,002			15,070
Accrued compensation		291,600			194,400			97,200
Net cash provided by (used in) operating activities		(17,713	)		1,056			484

Cash flows from financing activities:
Repayment from demand note payable		-			-			-
Principal payments on loans payable to related parties		-			-			-
Principal payments on notes payable		-			-			-
Proceeds from convertible notes payable		-			-			-
Proceeds from the sale of common stock		45,000			30,000			-
Net cash (used in) provided by financing activities		45,000			30,000			-

Increase in cash and cash equivalents		27,287			31,056			484

Cash and cash equivalents at beginning of period		403			403			403

Cash and cash equivalents at end of period	$	27,690		$	31,459		$	887

Supplemental disclosure of cash flow information:

Cash paid during the period for:
Interest	$	-		$	-		$	-

Taxes	$	-		$	-		$	-

Common stock issued upon note payable and accrued interest conversion	$	116,812		$	116,812		$	116,812

Common stock issued for services	$	35,923		$	35,923		$	-