Note 12 – Subsequent Events

Management of the Company performed an evaluation of all subsequent events that occurred as of the date these financial statements were issued to determine if they must be reported. Management of the Company has determined that the following subsequent events are required to be disclosed:

On November 17, 2015, the Company entered into a primary note with an investor for a total principal of $10,000, bearing interest at 10% per year. The entire principal balances together with accrued interest are due on the maturity date of February 15, 2016.

On November 30, 2015, the Company filed a Certificate of Designations with the Secretary of State of Nevada to establish the relative rights, preferences and limitations of the Series D Preferred Stock authorizing the issuance of up to 19,675,000 shares of Series D Preferred Stock.

The Series D is convertible at any time into shares of the Company’s common stock at the conversion rate of two shares of common stock per each share of Series D converted. The Series D is treated on an “as converted” basis for both voting and liquidation rights. Each Holder of Series D Preferred Stock shall vote at the rate of twenty votes of Common Stock per share of Series D Preferred Stock and shall not be entitled to receive dividends on all matters to which shareholders of the Company are entitled to vote. On December 3, 2015, the Company issued 10,000,000 shares of Preferred Series D to its CEO.

On December 18, 2015, the Company agreed to transition the production servers of the data center to PCD for a payment of $300,000.

During November 1, 2015 to December 21, 2015, three lenders converted the partial principal and accrued interest owed under certain convertible note agreements into 7,336,233 shares of the Company's common stock. The notes were converted at a discount to the trading price of the common stock in accordance with the conversion.