DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2016

Discontinued Operations

DISCONTINUED OPERATIONS

Trademark Settlement/Disposal of eCigarette Operations

As of March 30, 2016, pursuant to a settlement agreement under trademark litigation with plaintiff, Breathe LLC (a Florida organization), the Company had ceased its continuing operations in the eCigarette business (the effective date of the discontinuance of operations in that industry). In accordance with the settlement agreement, the Company is required to pay two cash payments ($10,000 paid March 31, 2016 and $15,000 due by July 31, 2016.) Under the agreement, the Company also is required to issue 50 million restricted common shares of Company stock (which was issued April 15, 2016 at a value of $50,000) in addition to the transfer of 5,000,000 common shares which it holds in Tauriga Sciences, Inc. (at a value of $0 as this had been written off). The Company further agrees to split 50/50 any future sales of its held inventory.  The sale of inventory shall be a joint effort by the two companies and shall last for a duration of one year from April 1, 2016. After such period, the Company will dispose of any remaining inventory.

As a result of the disposal of the business and the discontinuance of the eCigarette operations, the following chart reflects the results of the condensed consolidated financial statements as loss from discontinued operations as of March 31, 2016:

WHITE FOX VENTURES, INC.

(FORMERLY BREATHE ECIG CORP.)

CONDENSED CONSOLIDATED STATEMENTS OF DISCOUNTED OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2016 AND 2015

(UNAUDITED)

	March 31,
	2016			2015
REVENUE	$	19		$	-
COST OF GOODS SOLD		1,851			-
GROSS LOSS		(1,832	)		-
OPERATING EXPENSES
Research and development		-			530
Marketing, advertising and promotion		6,000			13,775
Rent		3,561			-
Salaries and related expenses, including stock-based compensation		10,911			16,501
Professional fees		-			831,524
Depreciation and amortization		-			3,254
General and administrative		1,407			22,572
Total operating expenses		21,879			888,156
Net loss before provision for income taxes		(23,711	)		(888,156	)
Provision for income taxes		-			-
Net loss from discontinued operations	$	(23,711	)	$	(888,156	)

WHITE FOX VENTURES, INC.

(FORMERLY BREATHE ECIG CORP.)

BALANCE SHEET FROM DISCONTINUED OPERATIONS

	March 31, 2016		December 31, 2015
Assets of discontinued operations	$	113,843		114,067
Liabilities of discontinued operations	$	278,190		232,771

WHITE FOX VENTURES, INC.
Loss on disposal of Breathe e-Cigs Corp. (subsidiary)
Inventory, at cost	$	494,768
Less valuation for inventory reserve		(380,925	)
Accounts receivable		14,817
Allowance for doubtful accounts		(14,817	)
Accounts payable and accrued expenses		(203,190	)
Value of stock paid in settlement (50,000,000 shares at par)		(50,000	)
Cash settlement payment		(25,000	)
Loss on disposal of operation	$	(164,347	)