LICENSE AGREEMENT AND INVESTMENT

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

LICENSE AGREEMENT AND INVESTMENT

On March 31, 2015, the Company and TAUG entered into a non-exclusive license agreement, whereby TAUG will provide CBD oil cartridges to be used in the Breathe eCigs Corp. e-cigarette.  In accordance with the agreement, TAUG was to receive a royalty of 50% of the net revenues associated with the sale of specified list of products listed in the agreement.  In addition, there was a share swap between TAUG and the Company to equate to $100,000.  The Company issued 26,667 shares at $3.75 for the commercialization of the products.  TAUG issued 10,869,565 shares of its stock to acquire the license agreement (investment).

Description	Amount
Stock issued	$	100,000
Total	$	100,000
Less: Management impairment valuation		100,000
Net June 30, 2016 and December 31, 2015 balances	$	-
Issued 26,667 shares of Company common stock		26,667
at $1.00 per share.	$	3.75
Share value	$	100,000
Less: Management impairment valuation	$	100,000
Net June 30, 2016 and December 31, 2015 balances	$	-

At March 30, 2016 it was determined by management of both companies that the value of the investment based on stock value and no business venture will be pursued was valueless. Therefore, the entire investment and commercialization fees recorded were written off completely.