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<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The Note allows for the lender to secure a portion
of the Company assets up to 200% of the face value of the note.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The Note allows for the lender to secure a portion
of the Company assets up to 200% of the face value of the note.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The Note allows for the lender to secure a portion
of the Company assets up to 200% of the face value of the note.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The balance is non-interest
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<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The balance are non-interest bearing, unsecured and
have no specified terms of repayment</font></p>
<p style="font: 10pt Times New Roman, Times, Serif">In accordance with the original terms of the Side Letter Agreement, the convertible
note was renewed on January 1, 2015, the face value increased by 20% and the maturity date was extended to December 31, 2015.</p>
<p style="font: 10pt Times New Roman, Times, Serif">In accordance with the original terms of the Side Letter Agreement, the convertible
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<p style="font: 10pt Times New Roman, Times, Serif">In accordance with the original terms of the Side Letter Agreement, the convertible
note was renewed on January 1, 2015, the face value increased by 20% and the maturity date was extended to December 31, 2015.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The balance is non-interest
bearing, unsecured and have no specified terms of repayment.</p>
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<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Innovative
Product Opportunities Inc. (the "Company" or "Innovative") was incorporated on April 3, 2009 in the State
of Delaware and established a fiscal year end of December 31.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Our
business is a research and product development firm specializing in computer vision and gesture recognition technologies targeted
at the staging and lighting industry. The operations of the business are carried on by a 100% owned subsidiary, I8 Interactive
Corporation, a company incorporated under the laws of Canada.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">BASIS
OF PRESENTATION</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
accompanying unaudited financial statements of Innovative Product Opportunities Inc. have been prepared without audit pursuant
to the rules and regulations of the Securities and Exchange Commission requirements for interim financial statements. Therefore,
they do not include all of the information and footnotes required by accounting principles generally accepted in the United States
for complete financial statements. The financial statements should be read in conjunction with the annual financial statements
for the year ended December 31, 2014 of Innovative Product Opportunities Inc. in our Form 10-K filed on April 15, 2015.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
interim financial statements present the balance sheets, statements of operations and cash flows of Innovative Product Opportunities
Inc. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
interim financial information is unaudited. In the opinion of management, all adjustments necessary to present fairly the financial
position as of March 31, 2015 and the results of operations and cash flows presented herein have been included in the financial
statements. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results
of operations for the full year.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">GOING
CONCERN</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company's financial statements are prepared in accordance with generally accepted accounting principles applicable to a going
concern. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business. Currently,
the Company does not have significant operations or a source of revenue sufficient to cover its operation costs and allow it to
continue as a going concern. The Company has an accumulated deficit at March 31, 2015 of $22,359,352. The Company will be dependent
upon the raising of additional capital through placement of its common stock in order to implement its business plan. There can
be no assurance that the Company will be successful in this situation. Accordingly, these factors raise substantial doubt as to
the Company's ability to continue as a going concern. These financial statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might result from
this uncertainty. The Company is funding its initial operations by way of loans from its Chief Executive Office and others, and
the use of equity to pay some operating expenses. The Company's officers and directors have committed to advancing certain operating
costs of the Company.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">USE
OF ESTIMATES AND ASSUMPTIONS</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Preparation
of the financial statements in conformity with accounting principles generally accepted in the United States requires management
to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ
from those estimates</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">CASH
AND CASH EQUIVALENTS</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of
three months or less to be cash equivalents.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">REVENUE
RECOGNITION</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company recognizes revenues and the related costs when persuasive evidence of an arrangement exists, delivery and acceptance has
occurred or service has been rendered, the price is fixed or determinable, and collection of the resulting receivable is reasonably
assured. Amounts invoiced or collected in advance of product delivery or providing services are recorded as deferred revenue or
customer deposits. The company accrues for sales returns, bad debts, and other allowances based on its historical experience.
Net sales under certain long-term contracts for product design, which may provide for periodic payments, are recognized under
the percentage-of-completion method. Estimated cost-at-completion for these contracts are reviewed on a routine periodic basis,
and adjustments are made periodically to the estimated cost-at-completion, based on actual costs incurred, progress made, and
estimates of the costs required to complete the contractual requirements. When the estimated cost-at-completion exceeds the contract
value, the contract is written down to its net realizable value, and the loss resulting from cost overruns is immediately recognized.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">To
properly match net sales with costs, certain contracts may have revenue recognized in excess of billings (unbilled revenues),
and other contracts may have billings in excess of net sales recognized (customer deposits). Under long-term contracts, the prerequisites
for billing the customer for periodic payments generally involve the Company's achievement of contractually specific, objective
milestones.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Revenue
for services contracts will be recognized under a proportional performance model if the following criteria are met (i) the arrangement
provides for periodic billings as services are provided (ii) the customer receives value as the services as rendered, not just
upon the completion of the services and (iii) the customer need not re-perform services that it has already received if it terminates
the service contract early and hires another service provider to complete the service deliverable. If these criteria are not met,
the Company will recognize revenue on the service contracts using the completed contract method.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">INCOME
TAXES</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company accounts for income taxes in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards
Codification ("FASB ASC") 740, Income Taxes. Under the assets and liability method of FASB ASC 740, deferred tax assets
and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured
using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The
Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">NET
LOSS PER SHARE</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Basic
net income (loss) per share includes no dilution and is computed by dividing net income (loss) available to common stockholders
by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing
earnings available to common shareholders by the weighted average number of common shares outstanding for the period increased
to include the number of additional common shares that would have been outstanding if potentially dilutive securities had been
issued. There were no potentially dilutive securities outstanding during the periods presented.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">FOREIGN
CURRENCY TRANSLATION</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
financial statements are presented in the Company’s functional currency which is the United States dollars. In accordance
with FASB ASC 830, Foreign Currency Matters, foreign denominated monetary assets and liabilities are translated to their United
States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date. Non-monetary assets and liabilities
are translated at exchange rates prevailing at the transaction date. Revenue and expenses are translated at average rates of exchange
during the periods presented. Related translation adjustments are reported as a separate component of stockholders' equity (deficit),
whereas gains or losses resulting from foreign currency transactions are included in results of operations.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">STOCK-BASED
COMPENSATION</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company measures stock-based compensation at the grant date based on the fair value of the award and recognizes stock-based compensation
expense over the requisite service period.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company also grants awards to non-employees and determines the fair value of such stock-based compensation awards granted as either
the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.
If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions
as of the earlier of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is
reached, or (2) the date at which the counterparty's performance is completed.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has not adopted a stock option plan and has not granted any stock options.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">COMPREHENSIVE
INCOME (LOSS)</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has adopted ASC Topic 220 - Comprehensive Income, which establishes standards for reporting and the display of comprehensive
income, its components and accumulated balances. Comprehensive income is defined to include all changes in equity except those
resulting from investments by owners or distributions to owners. Among other disclosures, Topic 220 requires that all items that
are required to be recognized under the current accounting standards as a component of comprehensive income be reported in a financial
statement that is displayed with the same prominence as other financial statements. Comprehensive income is displayed in the statement
of stockholders' deficit and in the balance sheet as a component of stockholders' deficit.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">FAIR
VALUE OF FINANCIAL INSTRUMENTS</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
accordance with the requirements of FASB ASC 820, Fair Value Measurements and Disclosures, and FASB ASC 825, Financial Instruments,
the Company has determined the estimated fair value of financial instruments using available market information and appropriate
valuation methodologies. FASB ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer
a liability (exit price) in an orderly transaction between market participants at the measurement date. The statement establishes
market or observable inputs as the preferred sources of values, followed by assumptions based on hypothetical transactions in
the absence of market inputs. The statement requires fair value measurements be classified and disclosed in one of the following
categories:</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level
1 – Quoted prices in active markets for identical assets and liabilities.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level
2 – Quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar instruments
in markets that are not active and model-derived valuations whose inputs are observable or whose significant value drivers are
observable.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level
3 – Significant inputs to the valuation model are unobservable.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financial
assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">RECENT
ACCOUNTING PRONOUNCEMENTS</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue
from Contracts with Customers. ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under
current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require
that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also
will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer
contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill
a contract. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, and early adoption is not permitted.
Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption.
Management is currently assessing the impact the adoption of ASU 2014-09 and has not determined the effect of the standard on
our ongoing financial reporting.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
April 2014, the FASB issued Accounting Standards Update No. 2014-08 (ASU 2014-08), Presentation of Financial Statements (Topic
205) and Property, Plant and Equipment (Topic 360). ASU 2014-08 amends the requirements for reporting discontinued operations
and requires additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic
shift in operations or that have a major effect on the Company's operations and financial results should be presented as discontinued
operations. This new accounting guidance is effective for annual periods beginning after December 15, 2014. The Company is currently
evaluating the impact of adopting ASU 2014-08 on the Company's results of operations or financial condition.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
August 2014, the FASB issued Accounting Standards Update No. 2014-15 (ASU 2014-15), Disclosure of Uncertainties about an Entity’s
Ability to Continue as a Going Concern, which provides guidance on determining when and how to disclose going-concern uncertainties
in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s
ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide
certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.
The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter,
with early adoption permitted. The Company is currently evaluating the impact the adopting ASU 2014-15 on the Company’s
financial statement presentation and disclosures.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Other
recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified
Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact
on the Company's present or future consolidated financial statements.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
3 – ADVANCES</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Advances
are non-interest bearing, unsecured and due on demand.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
4 – CONVERTIBLE NOTES</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
June 10, 2014, the Company agreed to amend and add certain terms to unsecured, non-interest bearing promissory notes payable on
demand issued to The Cellular Connection Ltd. issued during the period from February 22, 2013 to June 10, 2014 with a total carrying
value $42,189. Under the terms of the Side Letter Agreement, the issue price of the Note is $42,189 with a face value of $54,193
and interest rate 20% per year. The terms of the Note include a fixed conversion price of $0.0002 per share of Company’s
common stock and a maturity date of December 31, 2014. The amendment of the terms of the Note resulted in a beneficial conversion
feature of $42,189. The beneficial conversion feature of $42,189 is included in additional paid-in capital. The Note allows for
the lender to secure a portion of the Company assets up to 200% of the face value of the note. On June 20 and 26, 2014 the Company
elected to convert $5,500 of principal into 27,500,000 shares of the Company's common stock. In accordance with the original terms
of the Side Letter Agreement, the convertible note was renewed on January 1, 2015, the face value increased by 20% and the maturity
date was extended to December 31, 2015. From January 1 to March 31, 2015, the Company elected to convert $26,500 of principal
and interest of a convertible note due to The Cellular Connection Ltd. into 265,000,000 shares of common stock of the Company
at a fixed conversion price of $0.0001 per share. The consolidated statement of operations includes interest expense of $2,401
for the three months ended March 31, 2015.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
June 10, 2014, the Company entered into Side Letter Agreement with the Dorset Solutions Inc. to amend and add certain terms to
invoices issued for services during the period from August 21, 2012 to May 17, 2014 with a total carrying value $17,150. Under
the terms of the Side Letter Agreement, the issue price of the Note is $17,150 with a face value of $22,295 and interest rate
20% per year. The terms of the Note include a fixed conversion price of $0.0002 per share of Company’s common stock and
a maturity date of December 31, 2014. The amendment of the terms of the Note resulted in a beneficial conversion feature of $17,150.
The beneficial conversion feature of $17,150 is included in additional paid-in capital. The Note allows for the lender to secure
a portion of the Company assets up to 200% of the face value of the note. In accordance with the original terms of the Side Letter
Agreement, the convertible note was renewed on January 1, 2015, the face value increased by 20% and the maturity date was extended
to December 31, 2015. The consolidated statement of operations includes interest expense of $1,099 for the three months ended
March 31, 2015.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
June 10, 2014, the Company entered into Side Letter Agreement with the Doug Clark, former Chief Executive Officer, to amend and
add certain terms to the related party advances of $82,495 for the period from March 2009 to June 2014 and officer and director
compensation accrued and unpaid of $137,000 for the period October 1, 2013 to May 19, 2014. Under the terms of the Side Letter
Agreement, the issue price of the Note is $219,495 with a face value of $272,038 and interest rate 20% per year. The terms of
the Note include a fixed conversion price of $0.0002 per share of Company’s common stock and a maturity date of December
31, 2014. The amendment of the terms of the Note resulted in a beneficial conversion feature of $219,495. The beneficial conversion
feature of $219,495 is included in additional paid-in capital. The Note allows for the lender to secure a portion of the Company
assets up to 200% of the face value of the note. In accordance with the original terms of the Side Letter Agreement, the convertible
note was renewed on January 1, 2015, the face value increased by 20% and the maturity date was extended to December 31, 2015.
The consolidated statement of operations includes interest expense of $13,416 for the three months ended March 31, 2015.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
5 – NOTES PAYABLE</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of March 31, 2015 and December 31, 2014 notes payable totaling $25,689 and $17,767, respectively, were outstanding. The balances
are non-interest bearing, unsecured and have no specified terms of repayment.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
6 – DUE TO RELATED PARTY</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of March 31, 2015 and December 31, 2014 advances of $4,390 were due to Doug Clark, the Company's former Chief Executive Officer.
The balance are non-interest bearing, unsecured and have no specified terms of repayment.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of March 31, 2015 and December 31, 2014 advances of $13,131 and $6,774, respectively, were due to Nadav Elituv, the Company's
Chief Executive Officer. The balance is non-interest bearing, unsecured and have no specified terms of repayment.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of March 31, 2015 and December 31, 2014 advances of $3,517 were due to Doug Clark, the Company's former Chief Executive Officer.
The balance are non-interest bearing, unsecured and have no specified terms of repayment.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
7 - STOCKHOLDERS’ EQUITY </b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company is authorized to issue an aggregate of 3,000,000,000 common shares with a par value of $0.0001 per share and 1,000,000
shares of preferred stock with a par value of $0.001 per share. No preferred shares have been issued.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
January 12, 2015, the Company agreed to issue 221,340,000 shares of common stock valued at $177,072 to consultants as stock-based
compensation for development, implementation and maintenance of sound business strategies. The services are valued based on the
closing price of the Company's common stock on the date of the agreement exchanged for the services.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">From
January 1 to March 31, 2015, the Company elected to convert $26,500 of principal and interest of a convertible note due to The
Cellular Connection Ltd. into 265,000,000 shares of common stock of the Company at a fixed conversion price of $0.0001 per share.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
8 – SUBSEQUENT EVENTS</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
accordance with ASC Topic 855-10, the Company has analyzed its operations subsequent to March 31, 2015 to the date these financial
statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial
statements.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">BASIS
OF PRESENTATION</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
accompanying unaudited financial statements of Innovative Product Opportunities Inc. have been prepared without audit pursuant
to the rules and regulations of the Securities and Exchange Commission requirements for interim financial statements. Therefore,
they do not include all of the information and footnotes required by accounting principles generally accepted in the United States
for complete financial statements. The financial statements should be read in conjunction with the annual financial statements
for the year ended December 31, 2014 of Innovative Product Opportunities Inc. in our Form 10-K filed on April 15, 2015.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
interim financial statements present the balance sheets, statements of operations and cash flows of Innovative Product Opportunities
Inc. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
interim financial information is unaudited. In the opinion of management, all adjustments necessary to present fairly the financial
position as of March 31, 2015 and the results of operations and cash flows presented herein have been included in the financial
statements. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results
of operations for the full year.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">GOING
CONCERN</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company's financial statements are prepared in accordance with generally accepted accounting principles applicable to a going
concern. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business. Currently,
the Company does not have significant operations or a source of revenue sufficient to cover its operation costs and allow it to
continue as a going concern. The Company has an accumulated deficit at March 31, 2015 of $22,359,352. The Company will be dependent
upon the raising of additional capital through placement of its common stock in order to implement its business plan. There can
be no assurance that the Company will be successful in this situation. Accordingly, these factors raise substantial doubt as to
the Company's ability to continue as a going concern. These financial statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might result from
this uncertainty. The Company is funding its initial operations by way of loans from its Chief Executive Office and others, and
the use of equity to pay some operating expenses. The Company's officers and directors have committed to advancing certain operating
costs of the Company.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">USE
OF ESTIMATES AND ASSUMPTIONS</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Preparation
of the financial statements in conformity with accounting principles generally accepted in the United States requires management
to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ
from those estimates</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">CASH
AND CASH EQUIVALENTS</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of
three months or less to be cash equivalents.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">REVENUE
RECOGNITION</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company recognizes revenues and the related costs when persuasive evidence of an arrangement exists, delivery and acceptance has
occurred or service has been rendered, the price is fixed or determinable, and collection of the resulting receivable is reasonably
assured. Amounts invoiced or collected in advance of product delivery or providing services are recorded as deferred revenue or
customer deposits. The company accrues for sales returns, bad debts, and other allowances based on its historical experience.
Net sales under certain long-term contracts for product design, which may provide for periodic payments, are recognized under
the percentage-of-completion method. Estimated cost-at-completion for these contracts are reviewed on a routine periodic basis,
and adjustments are made periodically to the estimated cost-at-completion, based on actual costs incurred, progress made, and
estimates of the costs required to complete the contractual requirements. When the estimated cost-at-completion exceeds the contract
value, the contract is written down to its net realizable value, and the loss resulting from cost overruns is immediately recognized.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">To
properly match net sales with costs, certain contracts may have revenue recognized in excess of billings (unbilled revenues),
and other contracts may have billings in excess of net sales recognized (customer deposits). Under long-term contracts, the prerequisites
for billing the customer for periodic payments generally involve the Company's achievement of contractually specific, objective
milestones.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Revenue
for services contracts will be recognized under a proportional performance model if the following criteria are met (i) the arrangement
provides for periodic billings as services are provided (ii) the customer receives value as the services as rendered, not just
upon the completion of the services and (iii) the customer need not re-perform services that it has already received if it terminates
the service contract early and hires another service provider to complete the service deliverable. If these criteria are not met,
the Company will recognize revenue on the service contracts using the completed contract method.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">INCOME
TAXES</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company accounts for income taxes in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards
Codification ("FASB ASC") 740, Income Taxes. Under the assets and liability method of FASB ASC 740, deferred tax assets
and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured
using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The
Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">NET
LOSS PER SHARE</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Basic
net income (loss) per share includes no dilution and is computed by dividing net income (loss) available to common stockholders
by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing
earnings available to common shareholders by the weighted average number of common shares outstanding for the period increased
to include the number of additional common shares that would have been outstanding if potentially dilutive securities had been
issued. There were no potentially dilutive securities outstanding during the periods presented.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">FOREIGN
CURRENCY TRANSLATION</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
financial statements are presented in the Company’s functional currency which is the United States dollars. In accordance
with FASB ASC 830, Foreign Currency Matters, foreign denominated monetary assets and liabilities are translated to their United
States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date. Non-monetary assets and liabilities
are translated at exchange rates prevailing at the transaction date. Revenue and expenses are translated at average rates of exchange
during the periods presented. Related translation adjustments are reported as a separate component of stockholders' equity (deficit),
whereas gains or losses resulting from foreign currency transactions are included in results of operations.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">STOCK-BASED
COMPENSATION</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company measures stock-based compensation at the grant date based on the fair value of the award and recognizes stock-based compensation
expense over the requisite service period.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company also grants awards to non-employees and determines the fair value of such stock-based compensation awards granted as either
the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.
If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions
as of the earlier of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is
reached, or (2) the date at which the counterparty's performance is completed.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has not adopted a stock option plan and has not granted any stock options.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">FAIR
VALUE OF FINANCIAL INSTRUMENTS</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
accordance with the requirements of FASB ASC 820, Fair Value Measurements and Disclosures, and FASB ASC 825, Financial Instruments,
the Company has determined the estimated fair value of financial instruments using available market information and appropriate
valuation methodologies. FASB ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer
a liability (exit price) in an orderly transaction between market participants at the measurement date. The statement establishes
market or observable inputs as the preferred sources of values, followed by assumptions based on hypothetical transactions in
the absence of market inputs. The statement requires fair value measurements be classified and disclosed in one of the following
categories:</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level
1 – Quoted prices in active markets for identical assets and liabilities.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level
2 – Quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar instruments
in markets that are not active and model-derived valuations whose inputs are observable or whose significant value drivers are
observable.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level
3 – Significant inputs to the valuation model are unobservable.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financial
assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">RECENT
ACCOUNTING PRONOUNCEMENTS</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue
from Contracts with Customers. ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under
current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require
that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also
will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer
contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill
a contract. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, and early adoption is not permitted.
Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption.
Management is currently assessing the impact the adoption of ASU 2014-09 and has not determined the effect of the standard on
our ongoing financial reporting.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
April 2014, the FASB issued Accounting Standards Update No. 2014-08 (ASU 2014-08), Presentation of Financial Statements (Topic
205) and Property, Plant and Equipment (Topic 360). ASU 2014-08 amends the requirements for reporting discontinued operations
and requires additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic
shift in operations or that have a major effect on the Company's operations and financial results should be presented as discontinued
operations. This new accounting guidance is effective for annual periods beginning after December 15, 2014. The Company is currently
evaluating the impact of adopting ASU 2014-08 on the Company's results of operations or financial condition.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
August 2014, the FASB issued Accounting Standards Update No. 2014-15 (ASU 2014-15), Disclosure of Uncertainties about an Entity’s
Ability to Continue as a Going Concern, which provides guidance on determining when and how to disclose going-concern uncertainties
in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s
ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide
certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.
The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter,
with early adoption permitted. The Company is currently evaluating the impact the adopting ASU 2014-15 on the Company’s
financial statement presentation and disclosures.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Other
recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified
Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact
on the Company's present or future consolidated financial statements.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
5500
26500
221340000
177072
42189
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">COMPREHENSIVE
INCOME (LOSS)</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has adopted ASC Topic 220 - Comprehensive Income, which establishes standards for reporting and the display of comprehensive
income, its components and accumulated balances. Comprehensive income is defined to include all changes in equity except those
resulting from investments by owners or distributions to owners. Among other disclosures, Topic 220 requires that all items that
are required to be recognized under the current accounting standards as a component of comprehensive income be reported in a financial
statement that is displayed with the same prominence as other financial statements. Comprehensive income is displayed in the statement
of stockholders' deficit and in the balance sheet as a component of stockholders' deficit.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
42189
17150
219495
-42189
-17150
-219495
17150
82495
137000