DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 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 originally due by July 31, 2016 and was paid on August 10, 2016.) Under the agreement, the Company also is required to issue 500,000 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 of August 15, 2016, the Company has not transferred the 5,000,000 common shares which it holds in Tauriga Sciences, Inc.

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 June 30, 2016:

WHITE FOX VENTURES, INC.

(FORMERLY BREATHE ECIG CORP.)

CONSOLIDATED STATEMENTS OF DISCOUNTED OPERATIONS

FOR THE THREE AND  SIX MONTHS ENDED JUNE 30, 2016 AND 2015

(UNAUDITED)

	SIX MONTHS ENDED						THREE MONTHS ENDED
	JUNE 30,						JUNE 30,
	2016			2015			2016			2015
REVENUE	$	19		$	6,000		$	-		$	6,000
COST OF GOODS SOLD		1,851			7,057			-			7,057
GROSS LOSS		(1,832	)		(1,057	)		-			(1,057	)
OPERATING EXPENSES
Research and development		-			2,178			-			1,648
Marketing, advertising and promotion		9,000			438,233			3,000			424,458
Rent		7,122			1,187			3,561			1,187
Salaries and related expenses, including stock-based compensation		10,911			114,150			-			97,649
Professional fees		-			1,155,236			-			323,712
Depreciation and amortization		-			12,449			-			9,195
General and administrative		1,631			167,076			-			144,504
Total operating expenses		28,664			1,890,509			6,561			1,002,353
OTHER (INCOME) EXPENSE
Loss from Inventory valuation LCM		(224	)		-			-			-
Total other (income) expense		(224	)		-			-			-
Net loss before provision for income taxes		(30,272	)		(1,891,566	)		(6,561	)		(1,003,410	)
Provision for income taxes		-			-						-
Net loss	$	(30,272	)	$	(1,891,566	)	$	(6,561	)	$	(1,003,410	)

WHITE FOX VENTURES, INC.

(FORMERLY BREATHE ECIG CORP.)

BALANCE SHEET FROM DISCONTINUED OPERATIONS

	June 30, 2016		December 31, 2015
Assets of discontinued operations	$	113,843		114,067
Liabilities of discontinued operations	$	250,443		232,771