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&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;b&gt;Note 6 &amp;#150; Stockholders Deficit&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;b&gt;&amp;#160;&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;i&gt;&lt;u&gt;Preferred Stock&lt;/u&gt;&lt;/i&gt;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;b&gt;&amp;#160;&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company has 5,000,000 preferred shares authorized. None are
designated, issued or outstanding.&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;i&gt;&lt;u&gt;Reverse Stock Split and Name Change&lt;/u&gt;&lt;/i&gt;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;i&gt;&amp;#160;&lt;/i&gt;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company entered into a non-binding letter of intent on October
18, 2012 to acquire a private company. This agreement was terminated by the Company&amp;#146;s management on January 4, 2013. (See
Note 7)&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On November 14, 2012, the Company effected a 1 for 10 reverse stock
split of outstanding common stock of the Company. All share and per share information in the accompanying consolidated financial
statements has been retroactively adjusted to give effect to the reverse stock split.&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On November 14, 2012, the Company effected a name change of the
Company, upon filing the amended Articles of Incorporation with the State of Nevada, whereby the Company&amp;#146;s new name is Bright
Mountain Holdings, Inc.&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;i&gt;&lt;u&gt;Conversion of Related Party Debt to Common Stock and Capital
Contributions&lt;/u&gt;&lt;/i&gt;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On February 8, 2013, two related party stockholders converted their
convertible promissory notes and related accrued interest through December&amp;#160;31,&amp;#160;2012 totaling $272,291 into shares of
common stock at the contractual conversion price of $0.40 per share. In addition, certain other outstanding liabilities of the
principal stockholders such as accrued rent for $23,800 and accrued salary of $223,750 was converted to shares at $0.01 per share.
Total shares issued were 25,435,727.&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Accrued interest on the convertible notes and any other accrued
liabilities due to the two principal stockholders from January&amp;#160;1, 2013 to February 8, 2013 and not covered by the $20,000
payment discussed in Note 1 were forgiven and were reclassed to additional paid-in capital at February&amp;#160;8,&amp;#160;2013. The
total amount of this reclass was $27,335 which was comprised of $24,000 in contributed salary, $1,800 in rent which was paid by
our President, $535 in accrued interest on the note balance from January 1, 2013 through February 8, 2013 and $1,000 of additional
expenses paid by our President.&lt;/p&gt;



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