0000721748-16-001610.txt : 20160822 0000721748-16-001610.hdr.sgml : 20160822 20160822145844 ACCESSION NUMBER: 0000721748-16-001610 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 40 CONFORMED PERIOD OF REPORT: 20160630 FILED AS OF DATE: 20160822 DATE AS OF CHANGE: 20160822 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Kaya Holdings, Inc. CENTRAL INDEX KEY: 0001530746 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 900898007 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-177532 FILM NUMBER: 161845086 BUSINESS ADDRESS: STREET 1: 305 SOUTH ANDREWS AVENUE STREET 2: SUITE 209 CITY: FORT LAUDERDALE STATE: FL ZIP: 33301 BUSINESS PHONE: 954-5347895 MAIL ADDRESS: STREET 1: 305 SOUTH ANDREWS AVENUE STREET 2: SUITE 209 CITY: FORT LAUDERDALE STATE: FL ZIP: 33301 FORMER COMPANY: FORMER CONFORMED NAME: Alternative Fuels Americas, Inc. DATE OF NAME CHANGE: 20120125 FORMER COMPANY: FORMER CONFORMED NAME: Alternative Fuels America, Inc. DATE OF NAME CHANGE: 20110921 10-Q 1 kays10q082116.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C.  20549

 

FORM 10-Q

 [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

 OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Quarterly Period ended June 30, 2016

OR

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

 

For the transition period from

__________to __________

 

Commission File No.: 333-177532

 

(Exact name of registrant as specified in its charter)

 

Delaware   90-0898007
(State or other jurisdiction of incorporation or organization)   (I.R.S. Employer Identification  Number)

 

305 S. Andrews Avenue

Suite 209

Ft. Lauderdale, Florida 33301

(Address of principal executive offices)

 

(561) 210-5784

(Issuer's telephone number)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

  

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ ] No [X]

  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

  Large accelerated filer [ ] Accelerated filer [ ]
  Non-accelerated filer [ ] Smaller reporting company [X]

 

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.) Yes [ ] No [X]

 

As of August 22, 2016, the Issuer had 101,785,684 shares of its common stock outstanding.   

 
 

KAYA HOLDINGS, INC.

 

INDEX TO QUARTERLY REPORT ON FORM 10 Q

 

Part I – Financial Information Page
 
Item 1. Condensed Consolidated Financial Statements  1
  Condensed Consolidated Balance Sheet 1
  Condensed Consolidated Statements of Operation 3
  Condensed Consolidated Statements of Cash Flows 4
  Notes to Condensed Consolidated Financial Statements 6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 23
Item 3. Quantitative and Qualitative Disclosures About Market Risk 26
Item 4. Controls and Procedures 26
   
Part II Other Information
   
Item 1. Legal Proceedings 27
Item 1A. Risk Factors 28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28
Item 3. Defaults Upon Senior Securities 28
Item 4. Mine Safety Disclosures 28
Item 5. Other Information 28
Item 6. Exhibits  28

 

Signatures

 

 

 
 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements 

 

Kaya Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
       
ASSETS
   Unaudited  Audited
   June 30, 2016  December 31, 2015
CURRENT ASSETS:          
Cash and equivalents  $94,485    123,907 
Inventory-Net of Allowance   44,462    80,657 
Prepaid license fee   23,000    10,500 
Total Current Assets   161,947    215,064 
           
OTHER ASSETS:          
Property and equipment, net   213,912    225,664 
Deposits   31,167    24,206 
Total Other Assets   245,079    249,870 
           
Total Assets   407,026    464,934 
           
           
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)          
           
CURRENT LIABILITIES:          
Accounts payable and accrued expense   417,053    283,124 
Accounts payable and accrued expense-related parties   13,586    42,206 
Accrued interest   92,017    20,929 
Convertible Note Payable-net of discount   385,938    40,738 
Derivative liabilities   1,622,389    39,944 
Total Current Liabilities   2,530,982    426,941 
           
LONG TERM LIABILITIES:          
Convertible Note Payable-related party-Net of Discount   199,454    100,000 
Derivative liabilities   1,541,636    4,554,466 
Convertible Note Payable-Net of Discount   —      32,601 
Notes Payable   304,376    57,210 
Notes Payable-Related Party   250,000    250,000 
Total Long Term Liabilities   2,295,466    4,994,277 
           
Total Liabilities   4,826,448    5,421,218 
           

 

 

STOCKHOLDERS' EQUITY (DEFICIT):          
Convertible Preferred Stock, Series C, par value $.001; 10,000,000 shares authorized;          
49,900 and 55,120 issued and outstanding at June 30, 2016   50    55 
and December 31, 2015          
Common stock , par value $.001;  250,000,000 shares authorized;          
101,785,684 shares issued as of June 30, 2016 and          
    88,855,991 shares issued as of December 31, 2015   101,786    88,856 
Additional paid in capital   5,470,115    4,755,418 
Subscriptions payable   107,610    410,510 
Accumulated Deficit   (9,771,726)   (9,941,151)
Non-controlling Interest   (327,257)   (269,973)
Net Stockholders' Equity/(Deficit)   (4,419,422)   (4,956,285)
Total Liabilities and Stockholders' Equity/(Deficit)  $407,026   $464,933 
           

 

The accompanying notes are an integral part of these financial statements.  

     

 

       

Kaya Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
Unaudited
             
             
             
         Restated         Restated 
    For the three    For the three    For the six    For the six 
    months ended    months ended    months ended    months ended 
    June 30, 2016    June 30, 2015    June 30, 2016    June 30, 2015 
                     
Net Sales  $246,001   $27,493   $490,658   $57,832 
                     
Cost of Sales   129,676    4,901    294,286    13,336 
                     
Gross Profit   116,325    22,592    196,371    44,496 
                     
Operating Expenses:                    
Professional Fees   210,096    63,200    389,785    610,210 
Salaries and Wages   78,780    24,989    151,333    48,052 
General and Administrative   108,101    70,433    229,052    147,017 
                     
Total Operating Expenses   396,977    158,622    770,170    805,279 
                     
Operating Loss   (280,652)   (136,030)   (573,799)   (760,783)
                     
Other Income(expense)                    
Interest Expense   (76,766)   (323,574)   (149,985)   (325,074)
Amortization of Debt discount   (342,860)   —      (622,405)   —   
Derivative Liabilities Expense   —      (180,203)   (129,340)   (354,718)
Gain(Loss) on Extinguishment of Debt   —      237,991    (126,000)   237,991 
Change in Derivative Liabilities Expense   282,563    (267,543)   1,713,670    (407,328)
Asset Valuation   —      (17,500)   —      10,500 
Total Other Income(Expense)   (137,063)   (550,829)   685,940    (838,629)
                     
Net (loss) before Income Taxes   (417,715)   (686,859)   112,141    (1,599,412)
                     
Provision for Income Taxes   —      —      —      —   
                     
Net (loss)   (417,715)   (686,859)   112,141    (1,599,412)
                     
Net (Loss) attributed to non-controlling interest   (16,793)   (12,672)   (57,284)   (18,032)
                     
Net (loss) attributed to Kaya Holdings, Inc.   (400,923)   (674,187)   169,425    (1,581,380)
                     
Basic and diluted net loss per common share  $(0.00)  $(0.01)  $0.00   $(0.02)
                     
Weighted average number of common shares outstanding   101,459,250    85,989,325    97,320,813    84,497,017 
                     

The accompanying notes are an integral part of these financial statements.

 

Kaya Holdings, Inc. and Subsidiaries
Condensed Consolidated Statement of Cashflows
Unaudited
      Restated
   For the six  For the six
   months ended  months ended
   June 30, 2016  June 30, 2015
OPERATING ACTIVITIES:          
Net loss  $169,425    (1,581,379)
Adjustments to reconcile net loss to net cash used in operating activities:          
Net loss attributable to non-controlling interest   (57,284)   (18,032)
Depreciation   39,976    3,030 
Imputed Interest   60,000    —   
Gain on Extinguishment of Debt   126,000    (237,991)
Derivative Expense   129,340    354,718 
Change in derivative liabilities   (1,713,670)   407,328 
Amortization of debt discount   622,405    348,063 
Stock issued for services   20,900    444,500 
Stock issued for interest   9,000    1,500 
Changes in operating assets and liabilities:          
Prepaid Expense   (12,500)   (6,333)
Inventory   36,195    (38,743)
Other assets   (6,961)   (22,107)
Accrued Interest   71,088    (9,302)
Accounts payable and accrued expenses   141,356    19,637 
           
        Net cash used in operating activities   (364,730)   (335,112)
           
INVESTING ACTIVITIES:          
Purchase of property and equipment   (28,224)   (12,500)
Proceeds for equipment   —      —   
Net cash used in investing activities   (28,224)   (12,500)
           
FINANCING ACTIVITIES:          
Proceeds from Convertible debt   150,000    340,000 
Proceeds from Notes Payable   150,000    10,000 
Payments on Note Payable   (36,468)   (5,000)
Proceeds from sales of common stock   100,000    65,000 
        Net cash provided by (used in) financing activities   363,532    410,000 

 

 

NET INCREASE IN CASH   (29,422)   62,388 
           
CASH BEGINNING BALANCE   123,907    35,194 
           
CASH ENDING BALANCE  $94,485    97,582 
           
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:          
Taxes paid   —      —   
Interest paid   —      —   
           
NON-CASH TRANSACTIONS AFFECTING OPERATING, INVESTING          
   AND FINANCING ACTIVITIES:          
    —      —   
Value of common shares issued as payment of debt   —      30,000 
Value of common shares issued as payment for equipment   —      17,500 
Value of common shares issued as payment of interest   9,000    —   

The accompanying notes are an integral part of these financial statements.

 

Kaya Holdings, Inc. and Subsidiaries

June 30, 2016

 

NOTE 1 – ORGANIZATION AND NATURE OF THE BUSINESS

 

Organization

 

Kaya Holdings, Inc. FKA (Alternative Fuels Americas, Inc.) is a holding company. The Company was incorporated in 1993 and has engaged in a number of businesses. Its name was changed on May 11, 2007 to NetSpace International Holdings, Inc. (a Delaware corporation) (“NetSpace”). NetSpace acquired 100% of Alternative Fuels Americas, Inc. (a Florida corporation) in January 2010 in a stock-for-member interest transaction and issued 6,567,247 shares of common stock and 100,000 shares of Series C convertible preferred stock to existing shareholders. Certificate of Amendment to the Certificate of Incorporation was filed in October 2010 changing the Company’s name from NetSpace International Holdings, Inc. to Alternative Fuels Americas, Inc. (a Delaware corporation). Certificate of Amendment to the Certificate of Incorporation was filed in March 2015 changing the Company’s name from Alternative Fuels Americas, Inc. (a Delaware corporation) to Kaya Holdings, Inc.

 

The Company has two subsidiaries: Alternative Fuels Americas, Inc. (a Florida corporation) which is wholly owned, and Marijuana Holdings Americas, Inc. a Florida corporation, (“MJAI”) which is a majority owned subsidiary. Additionally, MJAI conducts operations in Oregon through ownership interests in MJAI Oregon 1 LLC. , MJAI Oregon 2 LLC, MJAI Oregon 3 LLC and MJAI Oregon 4 LLC.

 

Nature of the Business  

 

The Company operates a subsidiary, Marijuana Holdings Americas, Inc., a Florida corporation, that pursues medical and/or recreational licenses for the growing, processing and/or sale of marijuana in jurisdictions where it is legal and permissible under local laws. The subsidiary was formed in March 2014.

 

In March 2014 Marijuana Holdings Americas, Inc. (through local Oregon subsidiaries) began the application process to obtain licenses to operate medical marijuana dispensaries in Oregon. On March 21, 2014 the Company received notice from the Oregon Health Authority that MJAI Oregon 1 had been granted provisional licensing approval to operate their first Medical Marijuana Dispensary in Portland, Oregon and subsequently received full licensing approval for the first “Kaya ShackTM” retail medical marijuana dispensary, which we began operating July 3, 2014.

 

In April 2015 KAYS commenced its own medical marijuana grow operations for the cultivation and harvesting of legal marijuana, thereby becoming the first US publicly traded company to own a majority interest in a vertically integrated legal marijuana enterprise in the United States. The Company opened its second MMD (and first Kaya Shack™ Marijuana Superstore) in October 2015 in Salem, Oregon. During 2015, the Company also consolidated its grow operations and manufacturing operations into a single facility in Portland, Oregon. In October 2015, Oregon commenced legal recreational marijuana sales, which are initially being conducted solely through State Licensed MMDs, including those operated by the Company. The Company plans to open at least two additional dispensaries in Oregon during 2016 and in April 2016 entered into leases and filed increased applications for its next two planned retain outlets in Salem Oregon.

 

 

Kaya Holdings, Inc. and Subsidiaries

June 30, 2016

 

NOTE 2 - LIQUIDITY AND GOING CONCERN

 

The Company’s consolidated financial statements as of and for the three and six months ended June 30, 2016 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company incurred a net loss of $ 400,923 for the three months ended June 30, 2016 and a net loss of $3,225,397 for the year ended December 31, 2015. At June 30, 2016 the Company has a working capital deficiency of $2,369,035 and is totally dependent on its ability to raise capital. The Company has a plan of operations and acknowledges that its plan of operations may not result in generating positive working capital in the near future. Even though management believes that it will be able to successfully execute its business plan, which includes third-party financing and capital issuance, and meet the Company’s future liquidity needs, there can be no assurances in that regard. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this material uncertainty. Management recognizes that the Company must generate additional funds to successfully develop its operations and activities. Management plans include:

 

  the sale of additional equity and debt securities,
  alliances and/or partnerships with entities interested in and having the resources to support the further development of the Company’s business plan,
  other business transactions to assure continuation of the Company’s development and operations,
  development of a unified brand and the pursuit of licenses to operate medical marijuana facilities under the branded name.

 

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND BASIS OF PRESENTATION

 

Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements of the Company and the notes thereto have been prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). The December 31, 2015 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited financial statements and the notes thereto that are included in the Company’s Annual Report on form 10-K for the year ended December 31, 2015 filed with the SEC on May 5, 2016.

  

The accounting policies applied by the Company in these condensed interim financial statements are the same as those applied by the Company in its audited consolidated financial statements as at and for the year ended December 31, 2015. The quarterly information presented should be read in conjunction with the annual report filed on Form 10-K with the Securities and Exchange Commission.

 

Use of Estimates

 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.

 

Such estimates and assumptions impact both assets and liabilities, including but not limited to: net realizable value of accounts receivable and inventory, estimated useful lives and potential impairment of property and equipment, the valuation of intangible assets, estimate of fair value of share based payments and derivative liabilities, estimates of fair value of warrants issued and recorded as debt discount, estimates of tax liabilities and estimates of the probability and potential magnitude of contingent liabilities.

 

 

Kaya Holdings, Inc. and Subsidiaries

June 30, 2016

 

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future non-conforming events. Accordingly, actual results could differ significantly from estimates.

 

Risks and Uncertainties

 

The Company’s operations are subject to risk and uncertainties including financial, operational, regulatory and other risks including the potential risk of business failure.  

 

The Company has experienced, and in the future expects to continue to experience, variability in its sales and earnings.  The factors expected to contribute to this variability include, among others, (i) the uncertainty associated with the commercialization and ultimate success of the product, (ii) competition inherent at other locations where product is expected to be sold (iii) general economic conditions and (iv) the related volatility of prices pertaining to the cost of sales. 

 

Fiscal Year

 

The Company’s fiscal year-end is December 31.

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of Kaya Holdings, Inc. and its subsidiary, Alternative Fuels Americas, Inc. (a Florida corporation) and Marijuana Holdings Americas, Inc. (a Florida corporation) which is a majority owned subsidiary.  All inter-company accounts and transactions have been eliminated in consolidation.

 

Non-Controlling Interest

 

The company owns 55% of Marijuana Holdings Americas, Inc.

Cash and Cash Equivalents

 

Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less. The Company had no cash equivalents

  

Inventory

 

Inventory will consist of finished goods purchased, which are valued at the lower of cost or market value, with cost being determined on the first-in, first-out method.  The Company will periodically review historical sales activity to determine potentially obsolete items and also evaluates the impact of any anticipated changes in future demand.  

 

Property and Equipment

 

Property and equipment is stated at cost, less accumulated depreciation and is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  

 

Depreciation of property and equipment is provided utilizing the straight-line method over the estimated useful lives, ranging from 5-7 years of the respective assets. Expenditures for maintenance and repairs are charged to expense as incurred.

 

 

Kaya Holdings, Inc. and Subsidiaries

June 30, 2016

 

Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the statements of operations.

 

Fair Value of Financial Instruments

 

The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level.

 

The following are the hierarchical levels of inputs to measure fair value:

 

Level 1 – Observable inputs that reflect quoted market prices in active markets for identical assets or liabilities.

 

Level 2 - Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

Level 3 – Unobservable inputs reflecting the Company’s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

 

The carrying amounts of the Company’s financial assets and liabilities, such as cash, prepaid expenses, other current assets, accounts payable & accrued expenses, certain notes payable and notes payable – related party, approximate their fair values because of the short maturity of these instruments.

 

The Company accounts for its derivative liabilities, at fair value, on a recurring basis under level 3. See Note 6.

 

Embedded Conversion Features

 

The Company evaluates embedded conversion features within convertible debt under ASC 815 “Derivatives and Hedging” to determine whether the embedded conversion feature(s) should be bifurcated from the host instrument and accounted for as a derivative at fair value with changes in fair value recorded in earnings. If the conversion feature does not require derivative treatment under ASC 815, the instrument is evaluated under ASC 470-20 “Debt with Conversion and Other Options” for consideration of any beneficial conversion feature.

 

Derivative Financial Instruments

 

The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of it financial instruments, including stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income.

 

For option-based simple derivative financial instruments, the Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period.

 

 

Kaya Holdings, Inc. and Subsidiaries

June 30, 2016

 

Beneficial Conversion Feature

 

For conventional convertible debt where the rate of conversion is below market value, the Company records a "beneficial conversion feature" ("BCF") and related debt discount.

 

When the Company records a BCF, the relative fair value of the BCF is recorded as a debt discount against the face amount of the respective debt instrument (offset to additional paid in capital) and amortized to interest expense over the life of the debt.

 

Debt Issue Costs and Debt Discount

 

The Company may record debt issue costs and/or debt discounts in connection with raising funds through the issuance of debt.  These costs may be paid in the form of cash, or equity (such as warrants). These costs are amortized to interest expense over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed.

 

Original Issue Discount

 

For certain convertible debt issued, the Company may provide the debt holder with an original issue discount.  The original issue discount would be recorded to debt discount, reducing the face amount of the note and is amortized to interest expense over the life of the debt.

 

Extinguishments of Liabilities

 

The Company accounts for extinguishments of liabilities in accordance with ASC 860-10 (formerly SFAS 140) “Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities”. When the conditions are met for extinguishment accounting, the liabilities are derecognized and the gain or loss on the sale is recognized.

 

Stock-Based Compensation - Employees

 

The Company accounts for its stock based compensation in which the Company obtains employee services in share-based payment transactions under the recognition and measurement principles of the fair value recognition provisions of section 718-10-30 of the FASB Accounting Standards Codification. Pursuant to paragraph 718-10-30-6 of the FASB Accounting Standards Codification, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.  

 

The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur.  

 

If the Company is a newly formed corporation or shares of the Company are thinly traded, the use of share prices established in the Company’s most recent private placement memorandum (based on sales to third parties) (“PPM”), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.

 

 

Kaya Holdings, Inc. and Subsidiaries

June 30, 2016

 

The fair value of share options and similar instruments is estimated on the date of grant using a Black-Scholes option-pricing valuation model.  The ranges of assumptions for inputs are as follows:

 

[]

Expected term of share options and similar instruments: The expected life of options and similar instruments represents the period of time the option and/or warrant are expected to be outstanding. Pursuant to Paragraph 718-10-50-2(f)(2)(i) of the FASB Accounting Standards Codification the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and employees’ expected exercise and post-vesting employment termination behavior into the fair value (or calculated value) of the instruments.  Pursuant to paragraph 718-10-S99-1, it may be appropriate to use the simplified method, i.e., expected term = ((vesting term + original contractual term) / 2), if (i) A company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its equity shares have been publicly traded; (ii) A company significantly changes the terms of its share option grants or the types of employees that receive share option grants such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term; or (iii) A company has or expects to have significant structural changes in its business such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term. The Company uses the simplified method to calculate expected term of share options

and similar instruments as the company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term.

 

[] Expected volatility of the entity’s shares and the method used to estimate it.  Pursuant to ASC Paragraph 718-10-50-2(f)(2)(ii) a thinly-traded or nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for the Company to estimate the expected volatility of its share price, the appropriate industry sector index that it has selected, the reasons for selecting that particular index, and how it has calculated historical volatility using that index.  The Company uses the average historical volatility of the comparable companies over the expected contractual life of the share options or similar instruments as its expected volatility.  If shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.

 

[]

Expected annual rate of quarterly dividends.  An entity that uses a method that employs different dividend rates during the contractual term shall disclose the range of expected dividends used and the weighted-average expected dividends.  The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments.

 

[]

Risk-free rate(s). An entity that uses a method that employs different risk-free rates shall disclose the range of risk-free rates used.  The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the share options and similar instruments.

 

Generally, all forms of share-based payments, including stock option grants, warrants and restricted stock grants and stock appreciation rights are measured at their fair value on the awards’ grant date, based on estimated number of awards that are ultimately expected to vest.

 

The expense resulting from share-based payments is recorded in general and administrative expense in the statements of operations.

  

 

Kaya Holdings, Inc. and Subsidiaries

June 30, 2016

 

Stock-Based Compensation – Non Employees

 

Equity Instruments Issued to Parties Other Than Employees for Acquiring Goods or Services

 

The Company accounts for equity instruments issued to parties other than employees for acquiring goods or services under guidance of Sub-topic 505-50 of the FASB Accounting Standards Codification (“Sub-topic 505-50”).

 

Pursuant to ASC Section 505-50-30, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.  The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur.  If the Company is a newly formed corporation or shares of the Company are thinly traded the use of share prices established in the Company’s most recent private placement memorandum (“PPM”), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.

 

The fair value of share options and similar instruments is estimated on the date of grant using a Black-Scholes option-pricing valuation model.  The ranges of assumptions for inputs are as follows:

 

[] Expected term of share options and similar instruments: Pursuant to Paragraph 718-10-50-2(f)(2)(i) of the FASB Accounting Standards Codification the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and holder’s expected exercise behavior into the fair value (or calculated value) of the instruments.  The Company uses historical data to estimate holder’s expected exercise behavior.  If the Company is a newly formed corporation or shares of the Company are thinly traded the contractual term of the share options and similar instruments is used as the expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term.

 

 

[] Expected volatility of the entity’s shares and the method used to estimate it.  Pursuant to ASC Paragraph 718-10-50-2(f)(2)(ii) a thinly-traded or nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for the Company to estimate the expected volatility of its share price, the appropriate industry sector index that it has selected, the reasons for selecting that particular index, and how it has calculated historical volatility using that index.  The Company uses the average historical volatility of the comparable companies over the expected contractual life of the share options or similar instruments as its expected volatility.  If shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.

 

Kaya Holdings, Inc. and Subsidiaries

June 30, 2016

 

[] Expected annual rate of quarterly dividends.  An entity that uses a method that employs different dividend rates during the contractual term shall disclose the range of expected dividends used and the weighted-average expected dividends.  The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments.

 

[] Risk-free rate(s). An entity that uses a method that employs different risk-free rates shall disclose the range of risk-free rates used.  The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the share options and similar instruments.

 

Pursuant to ASC paragraph 505-50-25-7, if fully vested, non-forfeitable equity instruments are issued at the date the grantor and grantee enter into an agreement for goods or services (no specific performance is required by the grantee to retain those equity instruments), then, because of the elimination of any obligation on the part of the counterparty to earn the equity instruments, a measurement date has been reached. A grantor shall recognize the equity instruments when they are issued (in most cases, when the agreement is entered into). Whether the corresponding cost is an immediate expense or a prepaid asset (or whether the debit should be characterized as contra-equity under the requirements of paragraph 505-50-45-1) depends on the specific facts and circumstances. Pursuant to ASC paragraph 505-50-45-1, a grantor may conclude that an asset (other than a note or a receivable) has been received in return for fully vested, non-forfeitable equity instruments that are issued at the date the grantor and grantee enter into an agreement for goods or services (and no specific performance is required by the grantee in order to retain those equity instruments). Such an asset shall not be displayed as contra-equity by the grantor of the equity instruments. The transferability (or lack thereof) of the equity instruments shall not affect the balance sheet display of the asset. This guidance is limited to transactions in which equity instruments are transferred to other than employees in exchange for goods or services. Section 505-50-30 provides guidance on the determination of the measurement date for transactions that are within the scope of this Subtopic.

 

Pursuant to Paragraphs 505-50-25-8 and 505-50-25-9, an entity may grant fully vested, non-forfeitable equity instruments that are exercisable by the grantee only after a specified period of time if the terms of the agreement provide for earlier exercisability if the grantee achieves specified performance conditions. Any measured cost of the transaction shall be recognized in the same period(s) and in the same manner as if the entity had paid cash for the goods or services or used cash rebates as a sales discount instead of paying with, or using, the equity instruments. A recognized asset, expense, or sales discount shall not be reversed if a share option and similar instrument that the counterparty has the right to exercise expires unexercised.

 

Pursuant to ASC paragraph 505-50-30-S99-1, if the Company receives a right to receive future services in exchange for unvested, forfeitable equity instruments, those equity instruments are treated as unissued for accounting purposes until the future services are received (that is, the instruments are not considered issued until they vest). Consequently, there would be no recognition at the measurement date and no entry should be recorded.

 

Revenue Recognition

  

Revenue is recorded when all of the following have occurred: (1) persuasive evidence of an arrangement exists, (2) asset is transferred to the customer without further obligation, (3) the sales price to the customer is fixed or determinable, and (4) collectability is reasonably assured.

 

Cost  of Sales

 

Cost of sales represents costs directly related to the purchase of goods and third party testing of the Company’s products.  

 

 

Kaya Holdings, Inc. and Subsidiaries

June 30, 2016

 

Related Parties

 

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

 

Pursuant to Section 850-10-20 the related parties include a. affiliates of the Company; b. Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

 

The consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

 

 

Contingencies

 

The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

 

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

 

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, consolidated financial position, and consolidated results of operations or consolidated cash flows.

 

 

Kaya Holdings, Inc. and Subsidiaries

June 30, 2016

 

Subsequent Events

 

The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements are issued.

  

Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR.

 

Recently Issued Accounting Pronouncements 

 

In May 2014, the FASB has issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”.  The guidance in this update supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition.”  In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (for example, assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this Update.  Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  The amendments in ASU No, 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted.  We do not believe the adoption of this update will have a material impact on our financial statements.

 

 Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

 

Re-Classifications

 

Certain amounts in 2015 were reclassified to conform to the 2016 presentation. These reclassifications had no effect on consolidated net loss for the periods presented.

 

The fair value of the warrants on the date of issuance and on each re-measurement date of those warrants classified as liabilities is estimated using the Black-Scholes option pricing model using the following assumptions: contractual life according to the remaining terms of the warrants, no dividend yield, weighted average risk-free interest rate of .59% at June 30, 2016 and weighted average volatility of 141%. For this liability, the Company developed its own assumptions that do not have observable inputs or available market data to support the fair value. This method of valuation involves using inputs such as the fair value of the Company's various classes of preferred stock, stock price volatility, the contractual term of the warrants, risk free interest rates and dividend yields. Due to the nature of these inputs, the valuation of the warrants is considered a Level 3 measurement. The warrant liability is recorded in other liabilities on the Company's Consolidated Balance Sheets. The warrant liability is marked-to-market each reporting period with the change in fair value recorded on the Consolidated Statement of Operations and Comprehensive Loss until the warrants are exercised, expire or other facts and circumstances lead the warrant liability to be reclassified as an equity instrument.

 

 

Kaya Holdings, Inc. and Subsidiaries

June 30, 2016

 

NOTE 4- CONVERTIBLE DEBT

 

These debts have a price adjustment provision. Therefore, the Company accounted for these Notes under ASC Topic 815-15 “Embedded Derivative.”  The derivative component of the obligation are initially valued and classified as a derivative liability with an offset to discounts on convertible debt. Discounts have been amortized to interest expense over the respective term of the related note. In determining the indicated value of the convertible note issued, the Company used the Black Scholes Option Model with a risk -free interest rate of ranging from 0.05% to 1.06%, volatility ranging from 141% of 221%, trading prices ranging from $.056 per share to $0.1 per share and a conversion price ranging from $0.03 per share to $0.04 per share. The total derivative liabilities associated with these notes are $3,164,025 at June 30, 2016.

 

  June 30, 2016  December 31, 2015
Convertible note - related party, Due December 31, 2017 (2)   500,000    500,000 
Convertible note - 12% due January 1, 2017 (3)   58,556    58,556 
Convertible note - 12% due January 1, 2017 (3)   28,278    28,278 
Convertible note - 12% due January 1, 2017 (3)   186,316    186,316 
Convertible note - 12% due January 1, 2017 (3)   -0-    126,000 
Convertible note - 12% due January 1, 2017 (3)   117,113    117,113 
Convertible note - 12% due January 1, 2017 (3)   117,113    117,113 
Convertible note - 12% due January 1, 2017 (3)   55,895    55,895 
Convertible note - 12% due January 1, 2017 (3)   67,074    67,074 
Convertible note - 12% due January 1, 2017 (3)   23,442    23,442 
Convertible note - 12% due January 1, 2017 (3)   23,442    23,442 
Convertible note - 12% due January 1, 2017  (3)   27,116    27,116 
Convertible note - 12% due January 1, 2017 (3)   116,966    116,966 
Convertible note – 10% due January 1, 2017 (3)   25,000    25,000 
Convertible note – 10% due January 1, 2017 (6)   50,000    -0- 
Convertible note – 10% due January 1, 2017 (5)   100,000    -0- 
Convertible note – 10% due September 21, 2017 (4)   50,000    50,000 
Convertible note – 10% due September 21, 2017 (4)   100,000    100,000 
Convertible note – 10% due September 21, 2017 (4)   50,000    50,000 
Convertible note - stockholder, 10%, due April 30, 2013, unsecured (1)   25,000    25,000 
Convertible note – 10% due April, 1, 2016 (7)   23,500    23,500 
Totals   1,745,811    1,721,811 

 

 

Kaya Holdings, Inc. and Subsidiaries

June 30, 2016

 

(1)   At the option of the holder the convertible note may be converted into shares of the Company’s common stock at the lesser of $0.40 or 20% discount to the market price, as defined, of the Company’s common stock. The Company is currently in discussions with the lender on a payment schedule.

 

Accrued interest on this note that was charged to operations for the quarter ended June 30, 2016 totaled approximately $935. The balance of the convertible note at June 30, 2016 including accrued interest and net of the discount amounted to $14,325.

 

The Company valued the derivative liabilities at June 30, 2016 at $18,477. The Company recognized a change in the fair value of derivative liabilities for the three months ended June 30, 2015 of $1,788, which were credited to operations.  In determining the indicated values at June 30, 2016, the Company used the Black Scholes Option Model with risk-free interest rates ranging from 0.018% to 0.02%, volatility ranging from 141% to 336%, a trading price of $.07, and conversion prices ranging from $.05 per share. 

 

(2)   At December 31, 2013 the Company was indebted to an affiliated shareholder of the Company for $840,955, which consisted of $737,100 principal and $103,895 accrued interest, with interest accruing at 10%. On January 2, 2014 the Company entered into a Debt Modification Agreement whereby the total amount of the debt was reduced to $750,000.00 and there is no accrued interest or principal due until December 31, 2017. $500,000 of the debt is convertible into 50,000 Series C Convertible Preferred Shares of AFAI, which if converted are subject to resale restrictions through December 31, 2015. The two-year note in the aggregate amount of $500,000 is convertible into the Company’s preferred stock at a conversion rate of $10.00 per share of preferred. At a conversion rate of 433.9297 common shares to 1 preferred share, this would result in a total of 21,696,485 common shares issued if all debt was converted. The market value of the stock at the date of issuance of the debt was $0.04. The debt issued is a result of a financing transaction and contain a beneficial conversion feature valued at $500,000 to be amortized over the life of the debt. Total amortization for the quarter ended June 30, 2016 was $49,727. As of June 30, 2016, the balance of the debt was $500,000. The net balance reflected on the balance sheet is $199,454. The remaining $250,000 is not convertible. The company has imputed interest on both the convertible debt and the non-convertible debt. The company used an interest rate of 4% for calculation purposes. The net balance of $250,000 of the non-convertible portion is reflected on the balance sheet.  

 

(3)  

On December 31, 2015 the Company renegotiated twelve (12) convertible and non-convertible notes payable. The Total face value of the notes issued was $888,500 the six month notes were due on December 31, 2015. The new notes are convertible after January 1, 2016 and are convertible into the Company’s common stock at a conversion rate of $0.03 per share. The market value of the stock at the date when the debt becomes convertible was $0.087. The debt was issued is a result of a financing transaction and contain a derivative liability feature. As of December 31, 2015, the balance was $947,311. The beneficial conversion feature in the amount of $947,311 will be expensed as interest over the term of the note (one year). In determining the indicated value of the convertible note issued, the Company used the Black Scholes Option Model with a risk-free interest rate of ranging from 0.05% to 1.06%, volatility ranging from 141% of 221%, trading prices ranging from $.056 per share to $0.1 per share and a conversion price ranging from $0.03 per share to $0.04 per share. The total derivative liabilities associated with these notes are $3,449,588 at June 30, 2016

 

(5)  

On March 31 of 2016 the Company received $100,000 from the issuance of convertible debt. Interest is stated at 12% The Note and Interest is convertible into common shares at $0.03 per share. Note is Due in January of 2017. 

 

(6)  

In January of 2016 the Company received $50,000 from the issuance of convertible debt. Interest is stated at 12% The Note and Interest is convertible into common shares at $0.03 per share. Note is Due in January of 2017.

 

 

 

Kaya Holdings, Inc. and Subsidiaries

June 30, 2016

 

(7)  

On July 27, 2015 the company issued a note payable for $28,500 The Company agrees to pay to the Holder $28,500 plus accrued interest pursuant to the following schedule:

An initial payment of $5,000 is due no later than December 1, 2015. This amount represents the balance of the security deposit due for the lease of Commercial/Manufacturing Space occupied by MJAI Oregon 1, LLC, a majority-owned subsidiary of the company.

 

A final payment of $23,500 principal, plus any accrued Interest at 10% is due no later than April 1, 2016. This amount represents the balance of accrued rent due for the initial monthly lease payments from August 1, 2015 through June 30, 2016

 

The note is convertible after June 30, 2016 and is convertible into the Company’s common stock at a conversion rate of $0.10 per share or 20% discount to the thirty day moving average stock price.

 

Note 5 NOTES PAYABLE

 

A) Non-Related Party 

    30-Jun-16    31-Dec-15 
Note 1   77,188    95,422 
Note 2   77,188    95,422 
Note 3   75,000    -0- 
Note 4   75,000    -0- 
Total Notes Payable   304,376    190,844 

 

1)On September 8, 2015 the Company received a total of $100,000 from an accredited investor in exchange for a two year note in the aggregate amount of $100,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 3,161,583 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $100,000 10% promissory note due September 9, 2017 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or September 9, 2017.

 

2)On September 9, 2015 the Company received a total of $100,000 from an accredited investor in exchange for a two year note in the aggregate amount of $100,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 3,161,583 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $100,000 10% promissory note due September 9, 2017 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or September 9, 2017.

 

3)On  May 17, 2016 the Company received a total of $75,000 from an accredited investor in exchange for a two year note in the aggregate amount of $75,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 2,371,187 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $75,000, 10% promissory note due May 17 2018 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or May 17, 2018.

 

4)On May 9, 2016 the Company received a total of $75,000 from an accredited investor in exchange for a two year note in the aggregate amount of $75,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 2,371,187 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $75,000, 10% promissory note due May 9, 2018 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or May 9, 2018.

 

 

B) Related Party

 

     June 30,
2016
  December 31,
2015
                 
 
Loan payable - related party , Due December 31, 2017 (1)
  $ 250,000     $ 250,000  
                 
    $ 250,000     $ 250,000  

 

(1)   At December 31, 2013 the Company was indebted to an affiliated shareholder of the Company for $840,955, which consisted of $737,100 principal and $103,895 accrued interest, with interest accruing at 10%. On January 2, 2014 the Company entered into a Debt Modification Agreement whereby the total amount of the debt was reduced to $750,000.00 and there is no accrued interest or principal due until December 31, 2017. $500,000 of the debt is convertible into 50,000 Series C Convertible Preferred Shares of AFAI, which if converted are subject to resale restrictions through December 31, 2015. The two-year note in the aggregate amount of $500,000 is convertible into the Company’s preferred stock at a conversion rate of $10.00 per share of preferred. At a conversion rate of 433.9297 common shares to 1 preferred share, this would result in a total of 21,696,485 common shares issued if all debt was converted. The market value of the stock at the date of issuance of the debt was $0.04. The debt issued is a result of a financing transaction and contain a beneficial conversion feature valued at $500,000 to be amortized over the life of the debt. Total amortization for the quarter ended June 30, 2016 was $49,727. As of June 30, 2016, the balance of the debt was $500,000. The net balance reflected on the balance sheet is $199,454. The remaining $250,000 is not convertible. The company has imputed interest on both the convertible debt and the non-convertible debt. The company used an interest rate of 4% for calculation purposes. The net balance of $250,000 of the non-convertible portion is reflected on the balance sheet.  

 

 

 

 

NOTE 6 – STOCKHOLDERS’ EQUITY

 

The Company has 10,000,000 shares of preferred stock authorized with a par value of $0.001, of which 100,000 shares have been designated as Series C convertible preferred stock (“Series C” or “Series C preferred stock”). The Board has the authority to issue the shares in one or more series and to fix the designations, preferences, powers and other rights, as it deems appropriate.

 

Each share of Series C has 433.9297 votes on any matters submitted to a vote of the stockholders of the Company and is entitled to dividends equal to the dividends of 433.9297 shares of common stock. Each share of Series C preferred stock is convertible at any time at the option of the holder into 433.9297 shares of common stock.

 

 

Kaya Holdings, Inc. and Subsidiaries

June 30, 2016

 

The Company has 250,000,000 shares of common stock authorized with a par value of $0.001. Each share of common stock has one vote per share for the election of directors and all other items submitted to a vote of stockholders. The common stock does not have cumulative voting rights, preemptive, redemption or conversion rights.

 

In January of 2016 the Company received $100,000 from the sale of 2,222,222 restricted common shares of Kaya Holdings, Inc. stock to an accredited investor that is a current shareholder of the company.

 

In February of 2016 the Company issued 4,200,000 restricted common shares of Kaya Holdings, Inc. stock to an accredited investor that is a current shareholder of the company. As a conversion of $126,000 Note Payable due January 1, 2017.

 

In February of 2016 the Company issued

 

·An aggregate of 200,000 shares to our two non-employee directors (100,000 shares each) for services as directors;
·An aggregate of 1,435,000 shares to consultants for services rendered.

 

In April of 2016 the Company issued 150,000 restricted common shares of Kaya Holdings, Inc. stock to an accredited investor that is a current shareholder of the company. As a payment of interest on a Note Payable due January 1, 2017.

 

In April of 2016 the Company issued 1,200,249 common shares of Kaya Holdings, Inc. stock to an accredited investor that is a current shareholder of the company. As a conversion of preferred stock of 2,766 shares. On the same date the shareholder returned 2,454 preferred shares to be cancelled.

 

In June of 2016 the Company authorized the issuance of 100,000 restricted common shares of Kaya Holdings, Inc. stock as payment of consulting fees. The shares were valued at $7,610.

  

Note 7 Derivative Liabilities

 

The Company identified conversion features embedded within convertible debt and issued in 2013 and subsequent periods. The Company has determined that the features associated with the embedded conversion option, in the form a ratchet provision, should be accounted for at fair value, as a derivative liability, as the Company cannot determine if a sufficient number of shares would be available to settle all potential future conversion transactions.

 

Additionally, due to a recognition of tainting, due to shares not being held in reserve in 2014 all convertible notes are considered to have a derivative liability, therefore the Company accounted for these Notes under ASC Topic 815-15 “Embedded Derivative.”  The derivative component of the obligation is initially valued and classified as a derivative liability with an offset to discounts on convertible debt. Discounts are amortized to interest expense over the respective term of the related note. In determining the indicated value of the convertible note issued, the Company used the Black Scholes Option Model with a risk-free interest rate of ranging from 0.05% to 1.06%, volatility ranging from 141% of 221%, trading prices ranging from $.056 per share to $0.1 per share and a conversion price ranging from $0.03 per share to $0.04 per share.

 

 

Kaya Holdings, Inc. and Subsidiaries

June 30, 2016

 

As a result of the application of ASC No. 815, the fair value of the ratchet feature related to convertible debt and warrants is summarized as follow: 

 

Balance as of March 31, 2016  $3,446,588 
      
Change in Derivative Values   (282,563)
      
Balance as of June 30, 2016  $3,164,025 

 

The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as June 30, 2016:

 

The Company recorded the debt discount to the extent of the gross proceeds raised, and expensed immediately the remaining fair value of the derivative liability, as it exceeded the gross proceeds of the note.  

 

The Company recorded a derivative expense of $-0- and $129,340 for the three and six months ended June 30, 2016

  

The Company recorded a change in the value of embedded derivative liabilities income/(expense) of $ 282,563 and $ 1,713,670 for the three and six months ended June 30, 2016, respectively.

 

NOTE 8 WARRANTS

 

On May 9, 2016 the Company received a total of $75,000 from an accredited investor in exchange for a two year note in the aggregate amount of $75,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 2,371,187 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $75,000, 10% promissory note due May 9, 2018 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or May 9, 2018.

 

On May 17, 2016 the Company received a total of $75,000 from an accredited investor in exchange for a two year note in the aggregate amount of $75,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 2,371,187 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $75,000, 10% promissory note due May 17 2018 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or May 17, 2018.

  

Warrants issued to Non-Employees    
           
        Weighted Weighted
        Average Average
      Warrants Exercise Contract
      Issued Price Terms Years
Balance as of December 31, 2015  6,323,166 0.0316297  1.75
Granted      4,742,374 0.0316297  2.00
Exercised      -     -     -   
Expired      -     -     -   
Balance as of June 30, 2016  11,065,540 0.0316297  1.79

 

 

Kaya Holdings, Inc. and Subsidiaries

June 30, 2016

 

NOTE 9 RELATED PARTY TRANSACTIONS

 

The Company has agreements covering certain of its management personnel. Such agreements provide for minimum compensation levels and are subject to annual adjustment.

 

The Company’s Chief Executive Officer holds 50,000 shares of its Series C preferred stock. These shares can be converted into 21,696,485 shares of the Company’s common stock at his option.

 

The Company’s largest stockholder has from time to time provided unsecured loans to the Company, which is due on demand and bear interest at 10%. See Note 4 and 5 for the detail of the convertible and non-convertible debt with a face value of $750,000 

 

NOTE 10 SUBSEQUENT EVENTS

 

On July 19 of 2016 the Company received $50,000 from the issuance of convertible debt. Interest is stated at 12% The Note and Interest is convertible into common shares at $0.03 per share. Note is Due in January of 2017

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

In this Quarterly Report on Form 10-Q, the terms “Kaya Holdings,” “KAYS,” “the Company,” “we,” “us” and “our” refer to Kaya Holdings, Inc.. and its subsidiaries, unless the context indicates otherwise.

 

Forward-Looking Statements

 

This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding guidance, industry prospects or future results of operations or financial condition, made in this Quarterly Report on Form 10-Q are forward-looking. We use words such as anticipates, believes, expects, future, intends and similar expressions to identify forward-looking statements. Forward-looking statements reflect management’s current expectations and are inherently uncertain. Actual results could differ materially for a variety of reasons, including those risks described in our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission (“SEC”). These risks and uncertainties as well as other risks and uncertainties could cause our actual results to differ significantly from management’s expectations. The forward-looking statements included in this Quarterly Report on Form 10-Q reflect the beliefs of our management on the date of this report. We undertake no obligation to update publicly any forward-looking statements for any reason.

 

Business Overview

 

Kaya Holdings was incorporated in Delaware in 1993 under the name Gourmet Market, Inc. and has engaged in a number of businesses. Its name was changed on May 11, 2007 to Netspace International Holdings, Inc. (“Netspace”). Netspace acquired 100% of the capital stock of Alternative Fuels Americas, Inc., a Florida corporation in January 2010 in a stock-for-stock transaction and issued 100,000 shares of Series C convertible preferred stock to existing shareholders of the Florida corporation. The Company’s name was changed in October 2010 Netspace International Holdings, Inc. to Alternative Fuels Americas, Inc.

 

From 2010 to 2014 the Company was engaged in seeking to develop a biofuels business. In January 2015 the Company determined that it was in the best interests of its stockholders to discontinue its biofuel development activities, and to instead leverage its agricultural and business development experience and focus all its resources on the development of legal medical and recreational marijuana opportunities in the United States and in select international markets.

 

In 2014, KAYS incorporated a subsidiary, Marijuana Holdings Americas, Inc. a Florida corporation (“MJAI”). Through MJAI, KAYS has focused on the development of opportunities within the legal recreational and medical marijuana sectors in the United States. In March 2014, MJAI, through an Oregon subsidiary, applied for and was awarded its first license to operate a Medical Marijuana Dispensary (“MMD”). The Company developed the Kaya Shack™ brand for its retail operations and on July 3, 2014 opened its first Kaya Shack™ Medical Marijuana Dispensary in Portland, Oregon, thereby becoming the first US publicly traded company to own and operate an MMD. In March 2015, the Company changed its name to Kaya Holdings, Inc. to better reflect its new plan of operations.

 

 

In April 2015 KAYS commenced its own medical marijuana grow operations for the cultivation and harvesting of legal marijuana, thereby becoming the first US publicly traded company to own a majority interest in a vertically integrated legal marijuana enterprise in the United States. The Company opened its second MMD (and first Kaya Shack™ Marijuana Superstore) in October 2015 in Salem, Oregon. During 2015, the Company also consolidated its grow operations and manufacturing operations into a single facility in Portland, Oregon. In October 2015, Oregon commenced legal recreational marijuana sales, which are initially being conducted solely through State Licensed MMDs, including those operated by the Company. The Company plans to open at least two additional dispensaries in Oregon during 2016 and in April 2016 entered into leases and filed increased applications for its next two planned retain outlets in Salem Oregon.

 

Our corporate office is located at 305 South Andrews Avenue, Suite 209, Fort Lauderdale, Florida, 33301. Our website is www.kayaholdings.com. Information contained on our website does not constitute part of this Annual Report.\

 

Critical Accounting Estimates

 

The following are deemed to be the most significant accounting estimates affecting us and our results of operations:

 

Fair value of financial instruments

 

The Company follows the provisions of ASC 820. This Topic defines fair value, establishes a measurement framework and expands disclosures about fair value measurements. We apply these provisions to estimate the fair value of our financial instruments including cash, accounts payable and accrued expenses, and notes payable.

 

Income Taxes

 

The Company accounts for income taxes in accordance with ASC 740, Accounting for Income Taxes, as clarified by ASC 740-10, Accounting for Uncertainty in Income Taxes. Our deferred income taxes are determined based on the estimated future tax effects of differences between the financial statement and tax basis of assets and liabilities given the provisions of enacted tax laws. Deferred income tax provisions and benefits are based on changes to the assets or liabilities from year to year. In providing for deferred taxes, the Company considers tax regulations of the jurisdictions in which the Company operates, estimates of future taxable income, and available tax planning strategies. If tax regulations, operating results or the ability to implement tax-planning strategies vary, adjustments to the carrying value of deferred tax assets and liabilities may be required. Valuation allowances are recorded related to deferred tax assets based on the “more likely than not” criteria of ASC 740.

 

The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the “more-likely-than-not” threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority.

 

Recently Issued Accounting Pronouncements

 

There are no recent accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”), the American Institute of Certified Public Accountants (“AICPA”), and the SEC believed by management to have a material impact on the Company’s present or future financial statements.

 

 

Off-Balance Sheet Arrangements

 

There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

 

Results of Operations

 

Three months ended June 30, 2016 compared to three months ended June 30, 2015

and the six months ended June 30, 2016 compared to six months ended June 30, 2015

 

Revenues

 

We had revenues of $246,001 for the three months ended June 30, 2016, as compared to revenues of $27,493 for the three months ended June 30, 2015 and revenues of $490,658 for the six months ended June 30, 2016, as compared to revenues of $57,832 for the six months ended June 30, 2015. The significant increases in revenues in the 2016 periods from the comparable periods in 2015, reflects revenues from legal recreational marijuana sales, which commenced on October 1, 2015 and revenues generated from our second retail outlet, the Kaya Shack™ Marijuana Superstore which we opened in October 2015, as compared to the operation of only our initial Kaya Shack™ outlet in the first quarter of 2015.

 

Selling, General and Administrative Expenses

 

Selling, general and administrative expenses increased to $108,101 for the three months ended June 30, 2016 from $70,433 for the three months ended June 30, 2015 and increased to $229,052 for the six months ended June 30, 2016 from $147,017 for the six months ended June 30, 2015. These increases reflect our increased level of operations, including operation of two dispensaries in the 2016 periods as compared to a single retail outlet in the 2015 periods. In addition, the increases in selling general and administrative expenses from the 2015 periods to the 2016 periods are attributable, in part, to the establishment and operation of our growing and manufacturing operations.

 

Professional

 

Professional fees were $210,096 for the three months ended June 30, 2016, as compared to $63,200 for the three months ended June 30, 2015. Professional fees were $389,785 for the six months ended June 30, 2016, as compared to $610,210 for the six months ended June 30, 2015. These increases reflect additional employee, licensing and regulatory compliance costs arising from our increase level of retail operations, as well as out establishment of grow and manufacturing operations.

 

Interest expense

 

Interest expense and debt amortization expense increased to $419,626 for the three months ended June 30, 2016 from $323,574 for the three months ended June 30, 2015, Interest expense and debt amortization expense increased to $772,390 for the six months ended June 30, 2016 from $325,074 for the six months ended June 30, 2015. These increases reflect additional debt incurred to fund expansion of our operations. 

  

Net Income (Loss)

 

We incurred a net loss of $400,923 for the three months ended June 30, 2016 and net income of $169,425 for the six months ended June 30, 2016 as compared to net losses of $674,187 and $1,581,380 for the three and six months ended June 30, 2015, respectively.

 

 

The majority of our net income during the six month period ending June 30, 2016 $1,713,670 was a result of the reduction in derivative liabilities from the conversion of debt in the first quarter of 2016 and from the stabilization of our stock prices the reduces the volatility factors used in the derivative calculations.

 

Ultimately, we believe that we can successfully enter other markets as they open up by applying our “brand” retail chain and vertically integrated grow and manufacture model to other states that legalize recreational marijuana use.

 

Liquidity and Capital Resources

 

During the six months ended June 30, 2016, the Company raised a total of $400,000 through the private sale of debt and equity securities. Management recognizes the Company’s current financial difficulties that, at June 30, 2016, include a working capital deficiency of $2,369,035 and limited cash. Moreover, we acknowledge that our financial position at June 30, 2016, raises substantial doubt about the Company’s ability to continue as a going concern. However, management believes that its proposed plan of operation is strong. Our plan recognizes the Company’s needs to generate working capital to successfully develop its operations towards the goal of successfully operating in the legal recreational and medical marijuana sectors.

 

Further, we realize that may not be successful in raising additional capital, and even assuming that we raise additional funds, the Company may not achieve profitability or positive cash flow. If we are not able to timely and successfully raise additional capital and/or achieve profitability or positive cash flow, our business, financial condition, cash flows and results of operations may be materially and adversely affected.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Not applicable.

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

Under the direction of Chief Executive Officer and Acting Chief Financial Officer (our principal executive, financial and accounting officer), we evaluated our disclosure controls and procedures as of June 30, 2016. Our Chief Executive Officer and Acting Chief Financial Officer (our principal executive, financial and accounting officer) concluded that our disclosure controls and procedures were not effective as of June 30, 2016.

 

We maintain disclosure controls and procedures that are designed to ensure that the information required to be disclosed in the reports that we file under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Acting Chief Financial Officer (our principal executive, financial and accounting officer), as appropriate, to allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can only provide reasonable assurance of achieving the desired control objectives, and in reaching a reasonable level of assurance, management necessarily was required to apply its judgment in evaluating the cost benefit relationship of possible controls and procedures.

 

As required by SEC Rule 13a15(b), we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Acting Chief Financial Officer (our principal executive, financial and accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of our fourth fiscal quarter covered by this report. Based on the foregoing, our Chief Executive Officer and Acting Chief Financial Officer (our principal executive, financial and accounting officer) concluded that our disclosure controls and procedures were not effective. It should be noted that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

 

 

Changes in Internal Controls

 

There was no change in our internal controls or in other factors that could affect these controls during the quarter ended June 30, 2016, that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting. We do not anticipate any changes to our internal controls at this time.

 

 

PART II – OTHER INFORMATION

  

Item 1. Legal Proceedings

 

On June 22, 2016, Daniel A. Goldin and Wally Goldin commenced an action in Oregon Circuit Court, Multnomah County, against the Company, MJAI, its direct majority-owned subsidiary, Craig Frank, our Chairman, President and Chief Executive Officer, William David Jones, a consultant to our Company and BMN Capital Group, LLC (the “Action”). The plaintiffs allege breach of contract, state securities fraud and state racketeering claims against the defendants arising from alleged misrepresentations made in subscription agreements with the Company entered into in October 2015 and January 2016 by Daniel A. Goldin and Wally Goldin, respectively, pursuant to which they each purchased 2,222,222 “restricted” shares of our common stock for $100,000 in a private transaction. In addition, Daniel A. Goldin alleges that the Company breached a purported employment agreement with him pursuant to which he was purportedly to be compensated for working in our Oregon operations through a combination of cash and stock. The Plaintiffs are seeking damages in excess of $1.7 million.

 

The Company believes that the claims and allegations set forth in the complaint filed in the Action are without merit and contain factual misstatements, and that the Company possesses documentation to establish that the plaintiffs’ investments were not solicited by the Company but that plaintiff Daniel A. Goldin unilaterally contacted the Company and represented himself as an “accredited investor” with expertise in the marijuana industry and proposed an investment in the Company.

 

Accordingly, the Company is in the process of preparing motions to dismiss all claims alleged in the Action based on multiple grounds including but not limited to failure to state valid claims under Oregon securities and racketeering laws, failure to state valid contract claims, and lack of jurisdiction over the defendants.

 

In the event that the Action is not dismissed the Company intends to vigorously defend against the claims and is evaluating possible counter-claims against the plaintiffs.

 

Item 1A. Risk Factors.

 

See “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

During the quarter ended June 30, 2016, the Company issued:

 

•          An aggregate of 150,000 shares of our common stock for prepaid interest of $12,500 due an investor pursuant to a promissory note issued in March 2015; and

 

•          •An aggregate of $150,000 in two-year promissory notes accruing interest payable at maturity at the rate of 10% per annum (the “Notes”) to two persons in private transactions. The Notes were accompanied by warrants, each of which entitles the holder to purchase 2,371,187 “restricted” shares of our common stock at an exercise price of $0.0316297 per share during the five (5) year period commencing on the earliest to occur of (i) repayment of the Note in full; (ii) start of the “Acceleration Period” (as defined in the Note”); or (iii) May 9, 2018.

 

These securities were issued without registration under the Securities Act of 1933, as amended pursuant to the exemption from registration afforded by Section 4 (a) (2) thereof and Regulation D thereunder.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

Item 5. Other Information.

 

None  

 

Item 6. Exhibits

 

Exhibit No.   Description
31.1   Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Rule 130-14 of the Securities Exchange Act of 1934, as amended, pursuant to Section 302 of the SarbanesOxley Act of 2002
32.1   Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350
 as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002

 

 

 

 

SIGNATURES

 

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

Dated: August 22, 2016   KAYA HOLDINGS, INC.
     
  By: /s/ Craig Frank
    Craig Frank, Chairman of the Board, President, Chief
    Executive Officer and Acting Chief Financial Officer
    (Principal Executive, Financial and Accounting Officer)

 

 

 

 

 

 

EX-31.1 2 kays10q082116ex31_1.htm CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Exhibit 31.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

AND CHIEF FINANCIAL OFFICER PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANESOXLEY ACT OF 2002

 

I, Craig Frank, Chairman of the Board, President, Chief Executive Officer and Chief Acting Financial Officer of Kaya Holdings, Inc. (the “Registrant”), certify that:

  

1.   I have reviewed this report on Form 10-Q for the quarter ended June 30, 2016 of the Registrant (the “Report”) ;

 

2.   Based on my knowledge, the Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by the Report;

 

3.   Based on my knowledge, the financial statements, and other financial information included in the Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in the Report;

 

4.   I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules13a15 (e) and 15d15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13aa15 (f) and 15d15 (f) for the Registrant and have:

 

(a)   designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which the Report is being prepared;

 

(b)   designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)   evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in the Report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by the Report based on such evaluation; and

 

(d)   disclosed in the Report any change in the Registrant’s internal controls over financial reporting that occurred during the Registrant’s fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

5.   I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

 

(a)   All significant deficiencies and material weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and 

 

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal controls.

 

Dated: August 22, 2016   KAYA HOLDINGS, INC.
     
  By: /s/ Craig Frank
    Craig Frank, Chairman of the Board, President,
    Chief Executive Officer and Acting Chief Financial Officer
    (Principal Executive, Financial and Accounting Officer)

 

 

 

 

 

EX-32.1 3 kays10q082116ex32_1.htm CERTIFICATION PURSUANT TO

Exhibit 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT

TO SECTION 906 OF THE SARBANES OXLEY ACT OF 2002

 

In connection with the accompanying Quarterly Report of Kaya Holdings, Inc. (the "Company") on Form 10-Q for the quarter ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Craig Frank, Chairman of the Board, President, Chief Executive Officer and Acting Chief Financial Officer (Principal Executive, Financial and Accounting Officer) of the Company certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

 

1.   The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.   The information contained in the Report fully presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated: August 22, 2016   KAYA HOLDINGS, INC.
     
  By: /s/ Craig Frank
    Craig Frank, Chairman of the Board, President,
    Chief Executive Officer and Acting Chief Financial Officer
    (Principal Executive, Financial and Accounting Officer)

 

 

 

 

EX-101.INS 4 afai-20160630.xml XBRL INSTANCE FILE 0001530746 2015-01-01 2015-06-30 0001530746 2016-08-22 0001530746 2015-06-30 0001530746 2014-12-31 0001530746 2016-01-01 2016-06-30 0001530746 2015-01-01 2015-12-31 0001530746 AFAI:NotePayable1Member 2015-06-30 0001530746 AFAI:NotePayable1Member 2014-12-31 0001530746 AFAI:NotePayable2Member 2015-06-30 0001530746 AFAI:NotePayable2Member 2014-12-31 0001530746 AFAI:NotePayable3Member 2015-06-30 0001530746 AFAI:NotePayable3Member 2014-12-31 0001530746 AFAI:ConvertibleNote1Member 2015-06-30 0001530746 AFAI:ConvertibleNote1Member 2014-12-31 0001530746 AFAI:ConvertibleNote2Member 2015-06-30 0001530746 AFAI:ConvertibleNote2Member 2014-12-31 0001530746 AFAI:ConvertibleNote3Member 2015-06-30 0001530746 AFAI:ConvertibleNote3Member 2014-12-31 0001530746 AFAI:ConvertibleNote4Member 2015-06-30 0001530746 AFAI:ConvertibleNote4Member 2014-12-31 0001530746 AFAI:ConvertibleNote5Member 2015-06-30 0001530746 AFAI:ConvertibleNote5Member 2014-12-31 0001530746 AFAI:ConvertibleNote6Member 2015-06-30 0001530746 AFAI:ConvertibleNote6Member 2014-12-31 0001530746 AFAI:ConvertibleNote7Member 2015-06-30 0001530746 AFAI:ConvertibleNote7Member 2014-12-31 0001530746 AFAI:ConvertibleNote8Member 2015-06-30 0001530746 AFAI:ConvertibleNote8Member 2014-12-31 0001530746 AFAI:ConvertibleNote9Member 2015-06-30 0001530746 AFAI:ConvertibleNote9Member 2014-12-31 0001530746 AFAI:ConvertibleNote10Member 2015-06-30 0001530746 AFAI:ConvertibleNote10Member 2014-12-31 0001530746 2016-06-30 0001530746 2015-12-31 0001530746 2016-04-01 2016-06-30 0001530746 2015-04-01 2015-06-30 0001530746 AFAI:NotePayable4Member 2015-06-30 0001530746 AFAI:NotePayable4Member 2014-12-31 0001530746 AFAI:ConvertibleNote11Member 2015-06-30 0001530746 AFAI:ConvertibleNote11Member 2014-12-31 0001530746 AFAI:ConvertibleNote12Member 2015-06-30 0001530746 AFAI:ConvertibleNote12Member 2014-12-31 0001530746 AFAI:ConvertibleNote13Member 2015-06-30 0001530746 AFAI:ConvertibleNote13Member 2014-12-31 0001530746 AFAI:ConvertibleNote14Member 2015-06-30 0001530746 AFAI:ConvertibleNote14Member 2014-12-31 0001530746 AFAI:ConvertibleNote15Member 2015-06-30 0001530746 AFAI:ConvertibleNote15Member 2014-12-31 0001530746 AFAI:ConvertibleNote16Member 2015-06-30 0001530746 AFAI:ConvertibleNote16Member 2014-12-31 0001530746 AFAI:ConvertibleNote17Member 2015-06-30 0001530746 AFAI:ConvertibleNote17Member 2014-12-31 0001530746 AFAI:ConvertibleNote18Member 2015-06-30 0001530746 AFAI:ConvertibleNote18Member 2014-12-31 0001530746 AFAI:ConvertibleNote19Member 2015-06-30 0001530746 AFAI:ConvertibleNote19Member 2014-12-31 0001530746 AFAI:ConvertibleNote20Member 2015-06-30 0001530746 AFAI:ConvertibleNote20Member 2014-12-30 0001530746 AFAI:ConvertibleNote21Member 2015-06-30 0001530746 AFAI:ConvertibleNote21Member 2014-12-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares Kaya Holdings, Inc. 0001530746 10-Q 2016-06-30 false --12-31 No No Yes Smaller Reporting Company Q2 2016 101785684 <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 1 &#150; ORGANIZATION AND NATURE OF THE BUSINESS</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Organization</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Kaya Holdings, Inc. FKA (Alternative Fuels Americas, Inc.) is a holding company. The Company was incorporated in 1993 and has engaged in a number of businesses. Its name was changed on May 11, 2007 to NetSpace International Holdings, Inc. (a Delaware corporation) (&#147;NetSpace&#148;). NetSpace acquired 100% of Alternative Fuels Americas, Inc. (a Florida corporation) in January 2010 in a stock-for-member interest transaction and issued 6,567,247 shares of common stock and 100,000 shares of Series C convertible preferred stock to existing shareholders. Certificate of Amendment to the Certificate of Incorporation was filed in October 2010 changing the Company&#146;s name from NetSpace International Holdings, Inc. to Alternative Fuels Americas, Inc. (a Delaware corporation). Certificate of Amendment to the Certificate of Incorporation was filed in March 2015 changing the Company&#146;s name from Alternative Fuels Americas, Inc. (a Delaware corporation) to Kaya Holdings, Inc.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has two subsidiaries: Alternative Fuels Americas, Inc. (a Florida corporation) which is wholly owned, and Marijuana Holdings Americas, Inc. a Florida corporation, (&#147;MJAI&#148;) which is a majority owned subsidiary. Additionally, MJAI conducts operations in Oregon through ownership interests in MJAI Oregon 1 LLC. , MJAI Oregon 2 LLC, MJAI Oregon 3 LLC and MJAI Oregon 4 LLC.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Nature of the Business</i></b> &#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company operates a subsidiary, Marijuana Holdings Americas, Inc., a Florida corporation, that pursues medical and/or recreational licenses for the growing, processing and/or sale of marijuana in jurisdictions where it is legal and permissible under local laws. The subsidiary was formed in March 2014.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In March 2014 Marijuana Holdings Americas, Inc. (through local Oregon subsidiaries) began the application process to obtain licenses to operate medical marijuana dispensaries in Oregon. On March 21, 2014 the Company received notice from the Oregon Health Authority that MJAI Oregon 1 had been granted provisional licensing approval to operate their first Medical Marijuana Dispensary in Portland, Oregon and subsequently received full licensing approval for the first &#147;Kaya ShackTM&#148; retail medical marijuana dispensary, which we began operating July 3, 2014.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In April 2015 KAYS commenced its own medical marijuana grow operations for the cultivation and harvesting of legal marijuana, thereby becoming the first US publicly traded company to own a majority interest in a vertically integrated legal marijuana enterprise in the United States. The Company opened its second MMD (and first Kaya Shack&#153; Marijuana Superstore) in October 2015 in Salem, Oregon. During 2015, the Company also consolidated its grow operations and manufacturing operations into a single facility in Portland, Oregon. In October 2015, Oregon commenced legal recreational marijuana sales, which are initially being conducted solely through State Licensed MMDs, including those operated by the Company. The Company plans to open at least two additional dispensaries in Oregon during 2016 and in April 2016 entered into leases and filed increased applications for its next two planned retain outlets in Salem Oregon.</p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" colspan="4" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Warrants issued to Non-Employees</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 40%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="width: 8%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="width: 18%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="width: 18%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Weighted</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Weighted</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Average</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Average </font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Warrants</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Exercise</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Contract </font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>Issued</u></font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>Price</u></font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>Terms Years</u></font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td nowrap="nowrap" colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance as of December 31, 2015</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;6,323,166 </font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.0316297</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;1.75 </font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Granted</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;4,742,374 </font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.0316297</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;2.00 </font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Exercised</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;-&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;-&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;-&#160;&#160;&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Expired</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>&#160;-&#160;&#160;&#160;</u></font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>&#160;-&#160;&#160;&#160;</u></font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>&#160;-&#160;&#160;&#160;</u></font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td nowrap="nowrap" colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance as of June 30, 2016</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>&#160;11,065,540 </u></font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>0.0316297</u></font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>&#160;1.79 </u></font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Basis of Presentation</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited condensed consolidated financial statements of the Company and the notes thereto have been prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (&#147;SEC&#148;). The December 31, 2015 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited financial statements and the notes thereto that are included in the Company&#146;s Annual Report on form 10-K for the year ended December 31, 2015 filed with the SEC on May 5, 2016.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;<b><i>&#160;</i></b>&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The accounting policies applied by the Company in these condensed interim financial statements are the same as those applied by the Company in its audited consolidated financial statements as at and for the year ended December 31, 2015. The quarterly information presented should be read in conjunction with the annual report filed on Form 10-K with the Securities and Exchange Commission.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Use of Estimates</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Such estimates and assumptions impact both assets and liabilities, including but not limited to: net realizable value of accounts receivable and inventory, estimated useful lives and potential impairment of property and equipment, the valuation of intangible assets, estimate of fair value of share based payments and derivative liabilities, estimates of fair value of warrants issued and recorded as debt discount, estimates of tax liabilities and estimates of the probability and potential magnitude of contingent liabilities.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future non-conforming events. Accordingly, actual results could differ significantly from estimates.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Risks and Uncertainties</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#146;s operations are subject to risk and uncertainties including financial, operational, regulatory and other risks including the potential risk of business failure.&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has experienced, and in the future expects to continue to experience, variability in its sales and earnings.&#160;&#160;The factors expected to contribute to this variability include, among others, (i) the uncertainty associated with the commercialization and ultimate success of the product, (ii) competition inherent at other locations where product is expected to be sold (iii) general economic conditions and (iv)&#160;the related volatility of prices pertaining to the cost of sales.&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Fiscal Year</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#146;s fiscal year-end is December 31.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Principles of Consolidation</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements include the accounts of Kaya Holdings, Inc. and its subsidiary, Alternative Fuels Americas, Inc. (a Florida corporation) and Marijuana Holdings Americas, Inc. (a Florida corporation) which is a majority owned subsidiary.&#160; All inter-company accounts and transactions have been eliminated in consolidation.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Non-Controlling Interest</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The company owns 55% of Marijuana Holdings Americas, Inc.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Cash and Cash Equivalents</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less. The Company had no cash equivalents.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Inventory</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventory will consist of finished goods purchased, which are valued at the lower of cost or market value, with cost being determined on the first-in, first-out method.&#160;&#160;The Company will periodically review historical sales activity to determine potentially obsolete items and also evaluates the impact of any anticipated changes in future demand.&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Property and Equipment</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment is stated at cost, less accumulated depreciation and is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation of property and equipment is provided utilizing the straight-line method over the estimated useful lives, ranging from 5-7 years of the respective assets. Expenditures for maintenance and repairs are charged to expense as incurred.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the statements of operations.&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Fair Value of Financial Instruments</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following are the hierarchical levels of inputs to measure fair value:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">&#149;</font></td> <td style="width: 7px">&#160;</td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level 1 &#150; Observable inputs that reflect quoted market prices in active markets for identical assets or liabilities.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 48pt">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">&#149;</font></td> <td style="width: 7px">&#160;</td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level 2 - Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">&#149;</font></td> <td style="width: 7px">&#160;</td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level 3 &#150;&#160;Unobservable inputs reflecting the Company&#146;s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying amounts of the Company&#146;s financial assets and liabilities, such as cash, prepaid expenses, other current assets, accounts payable &#38; accrued expenses, certain notes payable and notes payable &#150; related party, approximate their fair values because of the short maturity of these instruments.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for its derivative liabilities, at fair value, on a recurring basis under level 3. See Note 6.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Embedded Conversion Features</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company evaluates embedded conversion features within convertible debt under ASC 815 &#147;Derivatives and Hedging&#148; to determine whether the embedded conversion feature(s) should be bifurcated from the host instrument and accounted for as a derivative at fair value with changes in fair value recorded in earnings. If the conversion feature does not require derivative treatment under ASC 815, the instrument is evaluated under ASC 470-20 &#147;Debt with Conversion and Other Options&#148; for consideration of any beneficial conversion feature.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Derivative Financial Instruments</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of it financial instruments, including stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For option-based simple derivative financial instruments, the Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Beneficial Conversion Feature</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For conventional convertible debt where the rate of conversion is below market value, the Company records a &#34;beneficial conversion feature&#34; (&#34;BCF&#34;) and related debt discount.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">When the Company records a BCF, the relative fair value of the BCF is recorded as a debt discount against the face amount of the respective debt instrument (offset to additional paid in capital) and amortized to interest expense over the life of the debt.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Debt Issue Costs and Debt Discount</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company may record debt issue costs and/or debt discounts in connection with raising funds through the issuance of debt.&#160;&#160;These costs may be paid in the form of cash, or equity (such as warrants). These costs are amortized to interest expense over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Original Issue Discount</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For certain convertible debt issued, the Company may provide the debt holder with an original issue discount.&#160;&#160;The original issue discount would be recorded to debt discount, reducing the face amount of the note and is amortized to interest expense over the life of the debt.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Extinguishments of Liabilities</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for extinguishments of liabilities in accordance with ASC 860-10 (formerly SFAS 140) &#147;Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities&#148;. When the conditions are met for extinguishment accounting, the liabilities are derecognized and the gain or loss on the sale is recognized.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Stock-Based Compensation - Employees</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for its stock based compensation in which the Company obtains employee services in share-based payment transactions under the recognition and measurement principles of the fair value recognition provisions of section 718-10-30 of the FASB Accounting Standards Codification. Pursuant to paragraph 718-10-30-6 of the FASB Accounting Standards Codification, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur.&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">If the Company is a newly formed corporation or shares of the Company are thinly traded, the use of share prices established in the Company&#146;s most recent private placement memorandum (based on sales to third parties) (&#147;PPM&#148;), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of share options and similar instruments is estimated on the date of grant using a Black-Scholes option-pricing valuation model.&#160;&#160;The ranges of assumptions for inputs are as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">[]</font></td> <td style="width: 97%; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Expected term of share options and similar instruments: The expected life of options and similar instruments represents the period of time the option and/or warrant are expected to be outstanding. Pursuant to Paragraph 718-10-50-2(f)(2)(i) of the FASB Accounting Standards Codification the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and employees&#146; expected exercise and post-vesting employment termination behavior into the fair value (or calculated value) of the instruments.&#160;&#160;Pursuant to paragraph 718-10-S99-1, it may be appropriate to use the&#160;simplified method,&#160;i.e.,&#160;expected term = ((vesting term + original contractual term) / 2), if (i) A company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its equity shares have been publicly traded; (ii) A company significantly changes the terms of its share option grants or the types of employees that receive share option grants such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term; or (iii) A company has or expects to have significant structural changes in its business such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term. The Company uses the simplified method to calculate expected term of share options</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">and similar instruments as the company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term.</p></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1%; padding-right: 5.75pt; padding-left: 5.75pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">[]</font></td> <td style="width: 99%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Expected volatility of the entity&#146;s shares and the method used to estimate it.&#160;&#160;Pursuant to ASC Paragraph 718-10-50-2(f)(2)(ii) a thinly-traded or nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for the Company to estimate the expected volatility of its share price, the appropriate industry sector index that it has selected, the reasons for selecting that particular index, and how it has calculated historical volatility using that index.&#160;&#160;The Company uses the average historical volatility of the comparable companies over the expected contractual life of the share options or similar instruments as its expected volatility.&#160;&#160;If shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&#160;&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">[]</font></td> <td style="width: 99%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Expected annual rate of quarterly dividends.&#160;&#160;An entity that uses a method that employs different dividend rates during the contractual term shall disclose the range of expected dividends used and the weighted-average expected dividends.&#160;&#160;The expected dividend yield is based on the Company&#146;s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">[]</font></td> <td style="width: 99%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Risk-free rate(s). An entity that uses a method that employs different risk-free rates shall disclose the range of risk-free rates used.&#160;&#160;The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the share options and similar instruments.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Generally, all forms of share-based payments, including stock option grants, warrants and restricted stock grants and stock appreciation rights are measured at their fair value on the awards&#146; grant date, based on estimated number of awards that are ultimately expected to vest.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The expense resulting from share-based payments is recorded in general and administrative expense in the statements of operations.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Stock-Based Compensation &#150; Non Employees</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Equity Instruments Issued to Parties Other Than Employees for Acquiring Goods or Services</u></i></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for equity instruments issued to parties other than employees for acquiring goods or services under guidance of Sub-topic 505-50 of the FASB Accounting Standards Codification (&#147;Sub-topic 505-50&#148;).</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to ASC Section 505-50-30, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.&#160;&#160;The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur.&#160;&#160;If the Company is a newly formed corporation or shares of the Company are thinly traded the use of share prices established in the Company&#146;s most recent private placement memorandum (&#147;PPM&#148;), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of share options and similar instruments is estimated on the date of grant using a Black-Scholes option-pricing valuation model.&#160;&#160;The ranges of assumptions for inputs are as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">[]</font></td> <td style="width: 95%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Expected term of share options and similar instruments: Pursuant to Paragraph 718-10-50-2(f)(2)(i) of the FASB Accounting Standards Codification the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and holder&#146;s expected exercise behavior into the fair value (or calculated value) of the instruments.&#160;&#160;The Company uses historical data to estimate holder&#146;s expected exercise behavior.&#160;&#160;If the Company is a newly formed corporation or shares of the Company are thinly traded the contractual term of the share options and similar instruments is used as the expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">[]</font></td> <td style="width: 95%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Expected volatility of the entity&#146;s shares and the method used to estimate it.&#160;&#160;Pursuant to ASC Paragraph 718-10-50-2(f)(2)(ii) a thinly-traded or nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for the Company to estimate the expected volatility of its share price, the appropriate industry sector index that it has selected, the reasons for selecting that particular index, and how it has calculated historical volatility using that index.&#160;&#160;The Company uses the average historical volatility of the comparable companies over the expected contractual life of the share options or similar instruments as its expected volatility.&#160;&#160;If shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&#160;&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">[]</font></td> <td style="width: 95%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Expected annual rate of quarterly dividends.&#160;&#160;An entity that uses a method that employs different dividend rates during the contractual term shall disclose the range of expected dividends used and the weighted-average expected dividends.&#160;&#160;The expected dividend yield is based on the Company&#146;s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">[]</font></td> <td style="width: 95%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Risk-free rate(s). An entity that uses a method that employs different risk-free rates shall disclose the range of risk-free rates used.&#160;&#160;The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the share options and similar instruments.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to ASC paragraph 505-50-25-7, if fully vested, non-forfeitable equity instruments are issued at the date the grantor and grantee enter into an agreement for goods or services (no specific performance is required by the grantee to retain those equity instruments), then,&#160;because of the elimination of any obligation on the part of the counterparty to earn the equity instruments, a measurement date has been reached.&#160;A grantor shall recognize the equity instruments when they are issued (in most cases, when the agreement is entered into). Whether the corresponding cost is an immediate expense or a prepaid asset (or whether the debit should be characterized as contra-equity under the requirements of paragraph&#160;505-50-45-1) depends on the specific facts and circumstances. Pursuant to ASC paragraph 505-50-45-1, a grantor may conclude that an asset (other than a note or a receivable) has been received in return for fully vested, non-forfeitable equity instruments that are issued at the date the grantor and grantee enter into an agreement for goods or services (and no specific performance is required by the grantee in order to retain those equity instruments).&#160;Such an asset shall not be displayed as contra-equity by the grantor of the equity instruments. The transferability (or lack thereof) of the equity instruments shall not affect the balance sheet display of the asset. This guidance is limited to transactions in which equity instruments are transferred to other than employees in exchange for goods or services. Section&#160;505-50-30 provides guidance on the determination of the measurement date for transactions that are within the scope of this Subtopic.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to Paragraphs 505-50-25-8 and 505-50-25-9,&#160;an entity may grant fully vested, non-forfeitable equity instruments that are exercisable by the grantee only after a specified period of time if the terms of the agreement provide for earlier exercisability if the grantee achieves specified performance conditions.&#160;Any measured cost of the transaction shall be recognized in the same period(s) and in the same manner as if the entity had paid cash for the goods or services or used cash rebates as a sales discount instead of paying with, or using, the equity instruments. A recognized asset, expense, or sales discount shall not be reversed if a share option and similar instrument that the counterparty has the right to exercise expires unexercised.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to ASC paragraph 505-50-30-S99-1, if the Company receives a right to receive future services in exchange for unvested, forfeitable equity instruments, those equity instruments are treated as unissued for accounting purposes until the future services are received (that is, the instruments are not considered issued until they vest). Consequently, there would be no recognition at the measurement date and no entry should be recorded.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Revenue Recognition</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 48pt">&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue is recorded when all of the following have occurred: (1) persuasive evidence of an arrangement exists, (2) asset is transferred to the customer without further obligation, (3) the sales price to the customer is fixed or determinable, and (4) collectability is reasonably assured.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Cost of Sales &#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Cost of sales represents costs directly related to the purchase of goods and third party testing of the Company&#146;s products. &#160; &#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Related Parties</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to Section 850-10-20 the related parties include a. affiliates of the Company; b. Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825&#150;10&#150;15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Contingencies</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company&#146;s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. However, there is no assurance that such matters will not materially and adversely affect the Company&#146;s business, consolidated financial position, and consolidated results of operations or consolidated cash flows.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Subsequent Events</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events.&#160;The Company will evaluate subsequent events through the date when the&#160;financial statements are issued.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Recently Issued Accounting Pronouncements</b>&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2014, the FASB has issued ASU No. 2014-09, &#147;Revenue from Contracts with Customers (Topic 606)&#148;.&#160; The guidance in this update supersedes the revenue recognition requirements in Topic 605, &#147;Revenue Recognition.&#148;&#160;&#160;In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (for example, assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles&#151;Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this Update.&#160; Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.&#160; The amendments in ASU No, 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted.&#160;&#160;We do not believe the adoption of this update will have a material impact on our financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Re-Classifications</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain amounts in 2015 were reclassified to conform to the 2016 presentation. These reclassifications had no effect on consolidated net loss for the periods presented.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of the warrants on the date of issuance and on each re-measurement date of those warrants classified as liabilities is estimated using the Black-Scholes option pricing model using the following assumptions: contractual life according to the remaining terms of the warrants, no dividend yield, weighted average risk-free interest rate of .59% at June 30, 2016 and weighted average volatility of 141%. For this liability, the Company developed its own assumptions that do not have observable inputs or available market data to support the fair value. This method of valuation involves using inputs such as the fair value of the Company's various classes of preferred stock, stock price volatility, the contractual term of the warrants, risk free interest rates and dividend yields. Due to the nature of these inputs, the valuation of the warrants is considered a Level&#160;3 measurement. The warrant liability is recorded in other liabilities on the Company's Consolidated Balance Sheets. The warrant liability is marked-to-market each reporting period with the change in fair value recorded on the Consolidated Statement of Operations and Comprehensive Loss until the warrants are exercised, expire or other facts and circumstances lead the warrant liability to be reclassified as an equity instrument.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 10 SUBSEQUENT EVENTS</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 19&#160;of 2016 the Company received $50,000 from the issuance of convertible debt. Interest is stated at 12% The Note and Interest is convertible into common shares at $0.03 per share. Note is Due in January of 2017</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 9 RELATED PARTY TRANSACTIONS</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has agreements covering certain of its management personnel. Such agreements provide for minimum compensation levels and are subject to annual adjustment.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#146;s Chief Executive Officer holds 50,000 shares of its Series C preferred stock. These shares can be converted into 21,696,485 shares of the Company&#146;s common stock at his option.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#146;s largest stockholder has from time to time provided unsecured loans to the Company, which is due on demand and bear interest at 10%. See Note 4 and 5 for the detail of the convertible and non-convertible debt with a face value of $750,000&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="margin: 0pt">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 8 Warrants</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 9, 2016 the Company received a total of $75,000 from an accredited investor in exchange for a two year note in the aggregate amount of $75,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 2,371,187 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the &#147;Warrant Exercise Price&#148;) for a period of five (5) years commencing from the earlier of such time as that certain $75,000, 10% promissory note due May 9, 2018 has been fully repaid or the start of the Acceleration Period as defined in &#147;The Note&#148; or May 9, 2018.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 17, 2016 the Company received a total of $75,000 from an accredited investor in exchange for a two year note in the aggregate amount of $75,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 2,371,187 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the &#147;Warrant Exercise Price&#148;) for a period of five (5) years commencing from the earlier of such time as that certain $75,000, 10% promissory note due May 17 2018 has been fully repaid or the start of the Acceleration Period as defined in &#147;The Note&#148; or May 17, 2018.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" colspan="4" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Warrants issued to Non-Employees</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 40%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="width: 8%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="width: 18%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="width: 18%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Weighted</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Weighted</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Average</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Average </font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Warrants</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Exercise</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Contract </font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>Issued</u></font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>Price</u></font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>Terms Years</u></font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td nowrap="nowrap" colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance as of December 31, 2015</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;6,323,166 </font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.0316297</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;1.75 </font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Granted</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;4,742,374 </font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">0.0316297</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;2.00 </font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Exercised</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;-&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;-&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;-&#160;&#160;&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Expired</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>&#160;-&#160;&#160;&#160;</u></font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>&#160;-&#160;&#160;&#160;</u></font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>&#160;-&#160;&#160;&#160;</u></font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td nowrap="nowrap" colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance as of June 30, 2016</font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>&#160;11,065,540 </u></font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>0.0316297</u></font></td> <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"><u>&#160;1.79 </u></font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="margin: 0pt"></p> <p style="margin: 0pt">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 7 Derivative Liabilities</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company identified conversion features embedded within convertible debt and issued in 2013 and subsequent periods. The Company has determined that the features associated with the embedded conversion option, in the form a ratchet provision, should be accounted for at fair value, as a derivative liability, as the Company cannot determine if a sufficient number of shares would be available to settle all potential future conversion transactions.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Additionally, due to a recognition of tainting, due to shares not being held in reserve in 2014 all convertible notes are considered to have a derivative liability, therefore the Company accounted for these Notes under ASC Topic 815-15 &#147;Embedded Derivative.&#148; &#160;The derivative component of the obligation is initially valued and classified as a derivative liability with an offset to discounts on convertible debt. Discounts are amortized to interest expense over the respective term of the related note. In determining the indicated value of the convertible note issued, the Company used the Black Scholes Option Model with a risk-free interest rate of ranging from 0.05% to 1.06%, volatility ranging from 141% of 221%, trading prices ranging from $.056 per share to $0.1 per share and a conversion price ranging from $0.03 per share to $0.04 per share.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of the application of ASC No. 815, the fair value of the ratchet feature related to convertible debt and warrants is summarized as follow:&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 71%; text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance as of March 31, 2016</font></td> <td style="width: 10%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 17%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3,446,588</font></td> <td style="width: 1%; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Change in Derivative Values</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(282,563</font></td> <td style="line-height: 107%">)&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance as of June 30, 2016</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3,164,025</font></td> <td style="line-height: 107%">&#160;</td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value at the commitment and re-measurement dates for the Company&#146;s derivative liabilities were based upon the following management assumptions as June 30, 2016:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recorded the debt discount to the extent of the gross proceeds raised, and expensed immediately the remaining fair value of the derivative liability, as it exceeded the gross proceeds of the note.&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recorded a derivative expense of $-0- and $129,340 for the three and six months ended June 30, 2016</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recorded a change in the value of embedded derivative liabilities income/(expense) of $ 282,563 and $ 1,713,670 for the three and six months ended June 30, 2016, respectively.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 6 &#150; STOCKHOLDERS&#146; EQUITY</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has 10,000,000 shares of preferred stock authorized with a par value of $0.001, of which 100,000 shares have been designated as Series C convertible preferred stock (&#147;Series C&#148; or &#147;Series C preferred stock&#148;). The Board has the authority to issue the shares in one or more series and to fix the designations, preferences, powers and other rights, as it deems appropriate.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Each share of Series C has 433.9297 votes on any matters submitted to a vote of the stockholders of the Company and is entitled to dividends equal to the dividends of 433.9297 shares of common stock. Each share of Series C preferred stock is convertible at any time at the option of the holder into 433.9297 shares of common stock.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has 250,000,000 shares of common stock authorized with a par value of $0.001. Each share of common stock has one vote per share for the election of directors and all other items submitted to a vote of stockholders. The common stock does not have cumulative voting rights, preemptive, redemption or conversion rights.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In January of 2016 the Company received $100,000 from the sale of 2,222,222 restricted common shares of Kaya Holdings, Inc. stock to an accredited investor that is a current shareholder of the company.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In February of 2016 the Company issued 4,200,000 restricted common shares of Kaya Holdings, Inc. stock to an accredited investor that is a current shareholder of the company. As a conversion of $126,000 Note Payable due January 1, 2017.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In February of 2016 the Company issued</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px">&#160;</td> <td style="width: 24px; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Symbol">&#183;</font></td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt TimesNewRomanPSMT,serif">An aggregate of 200,000 shares to our two non-employee directors (100,000 shares each) for services as directors;</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px">&#160;</td> <td style="width: 24px; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Symbol">&#183;</font></td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt TimesNewRomanPSMT,serif">An aggregate of 1,435,000 shares to consultants for services rendered.</font></td></tr> </table> <p style="font: 10pt/normal TimesNewRomanPSMT,serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In April of 2016 the Company issued 150,000 restricted common shares of Kaya Holdings, Inc. stock to an accredited investor that is a current shareholder of the company. As a payment of interest on a Note Payable due January 1, 2017.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In April of 2016 the Company issued 1,200,249 common shares of Kaya Holdings, Inc. stock to an accredited investor that is a current shareholder of the company. As a conversion of preferred stock of 2,766 shares. On the same date the shareholder returned 2,454 preferred shares to be cancelled.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In June of 2016 the Company authorized the issuance of 100,000 restricted common shares of Kaya Holdings, Inc. stock as payment of consulting fees. The shares were valued at $7,610.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE 4- CONVERTIBLE DEBT</b></font></p> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font></p> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">These debts have a price adjustment provision. Therefore, the Company accounted for these Notes under ASC Topic 815-15 &#147;Embedded Derivative.&#148; &#160;The derivative component of the obligation are initially valued and classified as a derivative liability with an offset to discounts on convertible debt. Discounts have been amortized to interest expense over the respective term of the related note. In determining the indicated value of the convertible note issued, the Company used the Black Scholes Option Model with a risk&#160;-free interest rate of ranging from 0.05% to 1.06%, volatility ranging from 141% of 221%, trading prices ranging from $.056 per share to $0.1 per share and a conversion price ranging from $0.03 per share to $0.04 per share. The total derivative liabilities associated with these notes are $3,164,025 at June 30, 2016.</font></p> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>June 30, 2016</b></font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td colspan="3" style="border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, 2015</b></font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify; text-indent: -72.6pt; padding-left: 72.6pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - related party, Due December 31, 2017 (2)</font></td><td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">58,556</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">58,556</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,278</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,278</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">186,316</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">186,316</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-0-</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">126,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">117,113</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">117,113</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">117,113</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">117,113</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">55,895</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">55,895</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">67,074</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">67,074</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">23,442</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">23,442</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">23,442</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">23,442</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 &#160;(3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">27,116</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">27,116</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">116,966</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">116,966</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note &#150; 10% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note &#150; 10% due January 1, 2017 (6)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-0-</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note &#150; 10% due January 1, 2017 (5)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">100,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-0-</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note &#150; 10% due September 21, 2017 (4)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note &#150; 10% due September 21, 2017 (4)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">100,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">100,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note &#150; 10% due September 21, 2017 (4)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - stockholder, 10%, due April 30, 2013, unsecured (1)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note &#150; 10% due April, 1, 2016 (7)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">23,500</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">23,500</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Totals</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,745,811</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,721,811</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> </table> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p> <p style="margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: top"> <td style="width: 20px; padding-right: 4.5pt; padding-bottom: 6pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(1)</font></td> <td style="width: 1px"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">At the option of the holder the convertible note may be converted into shares of the Company&#146;s common stock at the lesser of $0.40 or 20% discount to the market price, as defined, of the Company&#146;s common stock. The Company is currently in discussions with the lender on a payment schedule.</font><p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Accrued interest on this note that was charged to operations for the quarter ended June 30, 2016 totaled approximately $935. The balance of the convertible note at June 30, 2016 including accrued interest and net of the discount amounted to $14,325.</font></p> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company valued the derivative liabilities at June 30, 2016 at $18,477. The Company recognized a change in the fair value of derivative liabilities for the three months ended June 30, 2015 of $1,788, which were credited to operations. &#160;In determining the indicated values at June 30, 2016, the Company used the Black Scholes Option Model with risk-free interest rates ranging from 0.018% to 0.02%, volatility ranging from 141% to 336%, a trading price of $.07, and conversion prices ranging from $.05 per share.&#160;</font></p> <font style="font-family: Times New Roman, Times, Serif"></font></td></tr> </table> <p style="margin-top: 0; margin-bottom: 0"></p> <p style="margin: 0; text-align: justify"></p> <p style="margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(2)</font></td> <td style="width: 7px"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">At December 31, 2013 the Company was indebted to an affiliated shareholder of the Company for $840,955, which consisted of $737,100 principal and $103,895 accrued interest, with interest accruing at 10%. On January 2, 2014 the Company entered into a Debt Modification Agreement whereby the total amount of the debt was reduced to $750,000.00 and there is no accrued interest or principal due until December 31, 2017. $500,000 of the debt is convertible into 50,000 Series C Convertible Preferred Shares of AFAI, which if converted are subject to resale restrictions through December 31, 2015. The two-year note in the aggregate amount of $500,000 is convertible into the Company&#146;s preferred stock at a conversion rate of $10.00 per share of preferred. At a conversion rate of 433.9297 common shares to 1 preferred share, this would result in a total of 21,696,485 common shares issued if all debt was converted. The market value of the stock at the date of issuance of the debt was $0.04. The debt issued is a result of a financing transaction and contain a beneficial conversion feature valued at $500,000 to be amortized over the life of the debt. Total amortization for the quarter ended June 30, 2016 was $49,727. As of June 30, 2016, the balance of the debt was $500,000. The net balance reflected on the balance sheet is $199,454. The remaining $250,000 is not convertible. The company has imputed interest on both the convertible debt and the non-convertible debt. The company used an interest rate of 4% for calculation purposes. The net balance of $250,000 of the non-convertible portion is reflected on the balance sheet.&#160;&#160;</font></td></tr> </table> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 3%; padding-right: 4.5pt; padding-bottom: 6pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(3)</font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 96%"><p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On December 31, 2015 the Company renegotiated twelve (12) convertible and non-convertible notes payable. The Total face value of the notes issued was $888,500 the six month notes were due on December 31, 2015. The new notes are convertible after January 1, 2016 and are convertible into the Company&#146;s common stock at a conversion rate of $0.03 per share. The market value of the stock at the date when the debt becomes convertible was $0.087. The debt was issued is a result of a financing transaction and contain a derivative liability feature. As of December 31, 2015, the balance was $947,311. The beneficial conversion feature in the amount of $947,311 will be expensed as interest over the term of the note (one year). In determining the indicated value of the convertible note issued, the Company used the Black Scholes Option Model with a risk-free interest rate of ranging from 0.05% to 1.06%, volatility ranging from 141% of 221%, trading prices ranging from $.056 per share to $0.1 per share and a conversion price ranging from $0.03 per share to $0.04 per share. The total derivative liabilities associated with these notes are $3,449,588 at June 30, 2016</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p></td></tr> <tr style="vertical-align: top"> <td style="padding-right: 4.5pt; padding-bottom: 6pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(5)</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On March 31&#160;of 2016 the Company received $100,000 from the issuance of convertible debt. Interest is stated at 12% The Note and Interest is convertible into common shares at $0.03 per share. Note is Due in January of 2017.&#160;</font></p> <p style="margin-top: 0; margin-bottom: 0"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p></td></tr> <tr style="vertical-align: top"> <td style="padding-right: 4.5pt; padding-bottom: 6pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(6)</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In January of 2016 the Company received $50,000 from the issuance of convertible debt. Interest is stated at 12% The Note and Interest is convertible into common shares at $0.03 per share. Note is Due in January of 2017.</font></p> <p style="margin-top: 0; margin-bottom: 0"></p></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="padding-right: 4.5pt; padding-bottom: 6pt; text-align: right; width: 3%"><font style="font: 10pt Times New Roman, Times, Serif">(7)</font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 96%"><p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On July 27, 2015 the company issued a note payable for $28,500 The Company agrees to pay to the Holder $28,500 plus accrued interest pursuant to the following schedule:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">An initial payment of $5,000 is due no later than December 1, 2015. This amount represents the balance of the security deposit due for the lease of Commercial/Manufacturing Space occupied by MJAI Oregon 1, LLC, a majority-owned subsidiary of the company.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">A final payment of $23,500 principal, plus any accrued Interest at 10% is due no later than April 1, 2016. This amount represents the balance of accrued rent due for the initial monthly lease payments from August 1, 2015 through June 30, 2016</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The note is convertible after June 30, 2016 and is convertible into the Company&#146;s common stock at a conversion rate of $0.10 per share or 20% discount to the thirty day moving average stock price.</font></p> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND BASIS OF PRESENTATION</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Basis of Presentation</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited condensed consolidated financial statements of the Company and the notes thereto have been prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (&#147;SEC&#148;). The December 31, 2015 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited financial statements and the notes thereto that are included in the Company&#146;s Annual Report on form 10-K for the year ended December 31, 2015 filed with the SEC on May 5, 2016.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;<b><i>&#160;</i></b>&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The accounting policies applied by the Company in these condensed interim financial statements are the same as those applied by the Company in its audited consolidated financial statements as at and for the year ended December 31, 2015. The quarterly information presented should be read in conjunction with the annual report filed on Form 10-K with the Securities and Exchange Commission.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Use of Estimates</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Such estimates and assumptions impact both assets and liabilities, including but not limited to: net realizable value of accounts receivable and inventory, estimated useful lives and potential impairment of property and equipment, the valuation of intangible assets, estimate of fair value of share based payments and derivative liabilities, estimates of fair value of warrants issued and recorded as debt discount, estimates of tax liabilities and estimates of the probability and potential magnitude of contingent liabilities.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future non-conforming events. Accordingly, actual results could differ significantly from estimates.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Risks and Uncertainties</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#146;s operations are subject to risk and uncertainties including financial, operational, regulatory and other risks including the potential risk of business failure.&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has experienced, and in the future expects to continue to experience, variability in its sales and earnings.&#160;&#160;The factors expected to contribute to this variability include, among others, (i) the uncertainty associated with the commercialization and ultimate success of the product, (ii) competition inherent at other locations where product is expected to be sold (iii) general economic conditions and (iv)&#160;the related volatility of prices pertaining to the cost of sales.&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Fiscal Year</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#146;s fiscal year-end is December 31.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Principles of Consolidation</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements include the accounts of Kaya Holdings, Inc. and its subsidiary, Alternative Fuels Americas, Inc. (a Florida corporation) and Marijuana Holdings Americas, Inc. (a Florida corporation) which is a majority owned subsidiary.&#160; All inter-company accounts and transactions have been eliminated in consolidation.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Non-Controlling Interest</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The company owns 55% of Marijuana Holdings Americas, Inc.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Cash and Cash Equivalents</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less. The Company had no cash equivalents</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Inventory</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventory will consist of finished goods purchased, which are valued at the lower of cost or market value, with cost being determined on the first-in, first-out method.&#160;&#160;The Company will periodically review historical sales activity to determine potentially obsolete items and also evaluates the impact of any anticipated changes in future demand.&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Property and Equipment</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment is stated at cost, less accumulated depreciation and is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation of property and equipment is provided utilizing the straight-line method over the estimated useful lives, ranging from 5-7 years of the respective assets. Expenditures for maintenance and repairs are charged to expense as incurred.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the statements of operations.&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Fair Value of Financial Instruments</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following are the hierarchical levels of inputs to measure fair value:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">&#149;</font></td> <td style="width: 7px">&#160;</td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level 1 &#150; Observable inputs that reflect quoted market prices in active markets for identical assets or liabilities.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 48pt">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">&#149;</font></td> <td style="width: 7px">&#160;</td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level 2 - Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">&#149;</font></td> <td style="width: 7px">&#160;</td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Level 3 &#150;&#160;Unobservable inputs reflecting the Company&#146;s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying amounts of the Company&#146;s financial assets and liabilities, such as cash, prepaid expenses, other current assets, accounts payable &#38; accrued expenses, certain notes payable and notes payable &#150; related party, approximate their fair values because of the short maturity of these instruments.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for its derivative liabilities, at fair value, on a recurring basis under level 3. See Note 6.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Embedded Conversion Features</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company evaluates embedded conversion features within convertible debt under ASC 815 &#147;Derivatives and Hedging&#148; to determine whether the embedded conversion feature(s) should be bifurcated from the host instrument and accounted for as a derivative at fair value with changes in fair value recorded in earnings. If the conversion feature does not require derivative treatment under ASC 815, the instrument is evaluated under ASC 470-20 &#147;Debt with Conversion and Other Options&#148; for consideration of any beneficial conversion feature.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Derivative Financial Instruments</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of it financial instruments, including stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For option-based simple derivative financial instruments, the Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Beneficial Conversion Feature</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For conventional convertible debt where the rate of conversion is below market value, the Company records a &#34;beneficial conversion feature&#34; (&#34;BCF&#34;) and related debt discount.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">When the Company records a BCF, the relative fair value of the BCF is recorded as a debt discount against the face amount of the respective debt instrument (offset to additional paid in capital) and amortized to interest expense over the life of the debt.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Debt Issue Costs and Debt Discount</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company may record debt issue costs and/or debt discounts in connection with raising funds through the issuance of debt.&#160;&#160;These costs may be paid in the form of cash, or equity (such as warrants). These costs are amortized to interest expense over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Original Issue Discount</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For certain convertible debt issued, the Company may provide the debt holder with an original issue discount.&#160;&#160;The original issue discount would be recorded to debt discount, reducing the face amount of the note and is amortized to interest expense over the life of the debt.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Extinguishments of Liabilities</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for extinguishments of liabilities in accordance with ASC 860-10 (formerly SFAS 140) &#147;Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities&#148;. When the conditions are met for extinguishment accounting, the liabilities are derecognized and the gain or loss on the sale is recognized.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Stock-Based Compensation - Employees</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for its stock based compensation in which the Company obtains employee services in share-based payment transactions under the recognition and measurement principles of the fair value recognition provisions of section 718-10-30 of the FASB Accounting Standards Codification. Pursuant to paragraph 718-10-30-6 of the FASB Accounting Standards Codification, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur.&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">If the Company is a newly formed corporation or shares of the Company are thinly traded, the use of share prices established in the Company&#146;s most recent private placement memorandum (based on sales to third parties) (&#147;PPM&#148;), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of share options and similar instruments is estimated on the date of grant using a Black-Scholes option-pricing valuation model.&#160;&#160;The ranges of assumptions for inputs are as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">[]</font></td> <td style="width: 97%; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Expected term of share options and similar instruments: The expected life of options and similar instruments represents the period of time the option and/or warrant are expected to be outstanding. Pursuant to Paragraph 718-10-50-2(f)(2)(i) of the FASB Accounting Standards Codification the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and employees&#146; expected exercise and post-vesting employment termination behavior into the fair value (or calculated value) of the instruments.&#160;&#160;Pursuant to paragraph 718-10-S99-1, it may be appropriate to use the&#160;simplified method,&#160;i.e.,&#160;expected term = ((vesting term + original contractual term) / 2), if (i) A company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its equity shares have been publicly traded; (ii) A company significantly changes the terms of its share option grants or the types of employees that receive share option grants such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term; or (iii) A company has or expects to have significant structural changes in its business such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term. The Company uses the simplified method to calculate expected term of share options</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">and similar instruments as the company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term.</p></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1%; padding-right: 5.75pt; padding-left: 5.75pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">[]</font></td> <td style="width: 99%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Expected volatility of the entity&#146;s shares and the method used to estimate it.&#160;&#160;Pursuant to ASC Paragraph 718-10-50-2(f)(2)(ii) a thinly-traded or nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for the Company to estimate the expected volatility of its share price, the appropriate industry sector index that it has selected, the reasons for selecting that particular index, and how it has calculated historical volatility using that index.&#160;&#160;The Company uses the average historical volatility of the comparable companies over the expected contractual life of the share options or similar instruments as its expected volatility.&#160;&#160;If shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">[]</font></td> <td style="width: 99%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Expected annual rate of quarterly dividends.&#160;&#160;An entity that uses a method that employs different dividend rates during the contractual term shall disclose the range of expected dividends used and the weighted-average expected dividends.&#160;&#160;The expected dividend yield is based on the Company&#146;s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">[]</font></td> <td style="width: 99%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Risk-free rate(s). An entity that uses a method that employs different risk-free rates shall disclose the range of risk-free rates used.&#160;&#160;The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the share options and similar instruments.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Generally, all forms of share-based payments, including stock option grants, warrants and restricted stock grants and stock appreciation rights are measured at their fair value on the awards&#146; grant date, based on estimated number of awards that are ultimately expected to vest.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The expense resulting from share-based payments is recorded in general and administrative expense in the statements of operations.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Stock-Based Compensation &#150; Non Employees</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Equity Instruments Issued to Parties Other Than Employees for Acquiring Goods or Services</u></i></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for equity instruments issued to parties other than employees for acquiring goods or services under guidance of Sub-topic 505-50 of the FASB Accounting Standards Codification (&#147;Sub-topic 505-50&#148;).</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to ASC Section 505-50-30, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.&#160;&#160;The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur.&#160;&#160;If the Company is a newly formed corporation or shares of the Company are thinly traded the use of share prices established in the Company&#146;s most recent private placement memorandum (&#147;PPM&#148;), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of share options and similar instruments is estimated on the date of grant using a Black-Scholes option-pricing valuation model.&#160;&#160;The ranges of assumptions for inputs are as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">[]</font></td> <td style="width: 95%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Expected term of share options and similar instruments: Pursuant to Paragraph 718-10-50-2(f)(2)(i) of the FASB Accounting Standards Codification the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and holder&#146;s expected exercise behavior into the fair value (or calculated value) of the instruments.&#160;&#160;The Company uses historical data to estimate holder&#146;s expected exercise behavior.&#160;&#160;If the Company is a newly formed corporation or shares of the Company are thinly traded the contractual term of the share options and similar instruments is used as the expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">[]</font></td> <td style="width: 95%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Expected volatility of the entity&#146;s shares and the method used to estimate it.&#160;&#160;Pursuant to ASC Paragraph 718-10-50-2(f)(2)(ii) a thinly-traded or nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for the Company to estimate the expected volatility of its share price, the appropriate industry sector index that it has selected, the reasons for selecting that particular index, and how it has calculated historical volatility using that index.&#160;&#160;The Company uses the average historical volatility of the comparable companies over the expected contractual life of the share options or similar instruments as its expected volatility.&#160;&#160;If shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">[]</font></td> <td style="width: 95%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Expected annual rate of quarterly dividends.&#160;&#160;An entity that uses a method that employs different dividend rates during the contractual term shall disclose the range of expected dividends used and the weighted-average expected dividends.&#160;&#160;The expected dividend yield is based on the Company&#146;s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">[]</font></td> <td style="width: 95%; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Risk-free rate(s). An entity that uses a method that employs different risk-free rates shall disclose the range of risk-free rates used.&#160;&#160;The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the share options and similar instruments.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to ASC paragraph 505-50-25-7, if fully vested, non-forfeitable equity instruments are issued at the date the grantor and grantee enter into an agreement for goods or services (no specific performance is required by the grantee to retain those equity instruments), then,&#160;because of the elimination of any obligation on the part of the counterparty to earn the equity instruments, a measurement date has been reached.&#160;A grantor shall recognize the equity instruments when they are issued (in most cases, when the agreement is entered into). Whether the corresponding cost is an immediate expense or a prepaid asset (or whether the debit should be characterized as contra-equity under the requirements of paragraph&#160;505-50-45-1) depends on the specific facts and circumstances. Pursuant to ASC paragraph 505-50-45-1, a grantor may conclude that an asset (other than a note or a receivable) has been received in return for fully vested, non-forfeitable equity instruments that are issued at the date the grantor and grantee enter into an agreement for goods or services (and no specific performance is required by the grantee in order to retain those equity instruments).&#160;Such an asset shall not be displayed as contra-equity by the grantor of the equity instruments. The transferability (or lack thereof) of the equity instruments shall not affect the balance sheet display of the asset. This guidance is limited to transactions in which equity instruments are transferred to other than employees in exchange for goods or services. Section&#160;505-50-30 provides guidance on the determination of the measurement date for transactions that are within the scope of this Subtopic.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to Paragraphs 505-50-25-8 and 505-50-25-9,&#160;an entity may grant fully vested, non-forfeitable equity instruments that are exercisable by the grantee only after a specified period of time if the terms of the agreement provide for earlier exercisability if the grantee achieves specified performance conditions.&#160;Any measured cost of the transaction shall be recognized in the same period(s) and in the same manner as if the entity had paid cash for the goods or services or used cash rebates as a sales discount instead of paying with, or using, the equity instruments. A recognized asset, expense, or sales discount shall not be reversed if a share option and similar instrument that the counterparty has the right to exercise expires unexercised.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to ASC paragraph 505-50-30-S99-1, if the Company receives a right to receive future services in exchange for unvested, forfeitable equity instruments, those equity instruments are treated as unissued for accounting purposes until the future services are received (that is, the instruments are not considered issued until they vest). Consequently, there would be no recognition at the measurement date and no entry should be recorded.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Revenue Recognition</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 48pt">&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue is recorded when all of the following have occurred: (1) persuasive evidence of an arrangement exists, (2) asset is transferred to the customer without further obligation, (3) the sales price to the customer is fixed or determinable, and (4) collectability is reasonably assured.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Cost of Sales &#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Cost of sales represents costs directly related to the purchase of goods and third party testing of the Company&#146;s products. &#160; &#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Related Parties</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to Section 850-10-20 the related parties include a. affiliates of the Company; b. Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825&#150;10&#150;15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Contingencies</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company&#146;s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. However, there is no assurance that such matters will not materially and adversely affect the Company&#146;s business, consolidated financial position, and consolidated results of operations or consolidated cash flows.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Subsequent Events</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events.&#160;The Company will evaluate subsequent events through the date when the&#160;financial statements are issued.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Recently Issued Accounting Pronouncements</b>&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2014, the FASB has issued ASU No. 2014-09, &#147;Revenue from Contracts with Customers (Topic 606)&#148;.&#160; The guidance in this update supersedes the revenue recognition requirements in Topic 605, &#147;Revenue Recognition.&#148;&#160;&#160;In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (for example, assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles&#151;Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this Update.&#160; Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.&#160; The amendments in ASU No, 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted.&#160;&#160;We do not believe the adoption of this update will have a material impact on our financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Re-Classifications</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain amounts in 2015 were reclassified to conform to the 2016 presentation. These reclassifications had no effect on consolidated net loss for the periods presented.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of the warrants on the date of issuance and on each re-measurement date of those warrants classified as liabilities is estimated using the Black-Scholes option pricing model using the following assumptions: contractual life according to the remaining terms of the warrants, no dividend yield, weighted average risk-free interest rate of .59% at June 30, 2016 and weighted average volatility of 141%. For this liability, the Company developed its own assumptions that do not have observable inputs or available market data to support the fair value. This method of valuation involves using inputs such as the fair value of the Company's various classes of preferred stock, stock price volatility, the contractual term of the warrants, risk free interest rates and dividend yields. Due to the nature of these inputs, the valuation of the warrants is considered a Level&#160;3 measurement. The warrant liability is recorded in other liabilities on the Company's Consolidated Balance Sheets. The warrant liability is marked-to-market each reporting period with the change in fair value recorded on the Consolidated Statement of Operations and Comprehensive Loss until the warrants are exercised, expire or other facts and circumstances lead the warrant liability to be reclassified as an equity instrument.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 - LIQUIDITY AND GOING CONCERN</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#146;s consolidated financial statements as of and for the three months and six months ended June 30, 2016 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company incurred a net loss of $ 400,923 for the three months ended June 30, 2016 and a net loss of $3,225,397 for the year ended December 31, 2015. At June 30, 2016 the Company has a working capital deficiency of $2,369,035 and is totally dependent on its ability to raise capital. The Company has a plan of operations and acknowledges that its plan of operations may not result in generating positive working capital in the near future. Even though management believes that it will be able to successfully execute its business plan, which includes third-party financing and capital issuance, and meet the Company&#146;s future liquidity needs, there can be no assurances in that regard. These matters raise substantial doubt about the Company&#146;s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this material uncertainty. Management recognizes that the Company must generate additional funds to successfully develop its operations and activities. Management plans include:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#149;</font></td> <td style="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td style="width: 96%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">the sale of additional equity and debt securities,</font></td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#149;</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">alliances and/or partnerships with entities interested in and having the resources to support the further development of the Company&#146;s business plan,</font></td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#149;</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">other business transactions to assure continuation of the Company&#146;s development and operations,</font></td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">&#149;</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">development of a unified brand and the pursuit of licenses to operate medical marijuana facilities under the branded name.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> 161947 215064 23000 10500 44462 80657 94485 123907 407026 464934 245079 249870 31167 24206 213912 225664 385938 40738 92017 20929 13586 42206 417053 283124 2530982 426941 250000 250000 199454 100000 4826448 5421218 2295466 4994277 50 55 407026 464933 -4419422 -4956285 -327257 -269973 -9771726 -9941151 107610 410510 5470115 4755418 101786 88856 .001 .001 .001 .001 10000000 10000000 49900 55120 49900 55120 250000000 250000000 101785684 88855991 101785684 88855991 44496 196371 116325 22592 13336 294286 129676 4901 57832 490658 246001 27493 -760783 -573799 -280652 -136030 805279 770170 396977 158622 147017 229052 108101 70433 48052 151333 78780 24989 610210 389785 210096 63200 -1581380 169425 -400923 -674187 -18032 -57284 -16793 -12672 -1599412 112141 -417715 -686859 -1599412 112141 -417715 -686859 838629 -685940 137063 550829 10500 0 -17500 407328 -1713670 -282563 267543 237991 -126000 237991 354718 129340 180203 325074 149985 76766 323574 84497017 97320813 101459250 85989325 -0.02 0 -0.00 -0.01 -1581379 169425 3225397 400923 19637 141356 -22107 -6961 -38743 36195 -6333 -12500 1500 9000 444500 20900 348063 622405 407328 -1713670 354718 129340 3030 39976 -18032 -57284 -335112 -364730 -12500 -28224 12500 28224 410000 363532 65000 100000 10000 150000 340000 150000 97582 35194 94485 123907 62388 -29422 17500 30000 2369035 250000 250000 11065540 6323166 4742374 0.0316297 0.0316297 0.0316297 P1Y9M14D 3164025 -282563 <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b></b></font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>June 30, 2016</b></font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td colspan="3" style="border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, 2015</b></font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify; text-indent: -72.6pt; padding-left: 72.6pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - related party, Due December 31, 2017 (2)</font></td><td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">58,556</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">58,556</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,278</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">28,278</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">186,316</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">186,316</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-0-</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">126,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">117,113</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">117,113</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">117,113</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">117,113</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">55,895</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">55,895</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">67,074</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">67,074</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">23,442</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">23,442</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">23,442</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">23,442</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 &#160;(3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">27,116</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">27,116</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - 12% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">116,966</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">116,966</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note &#150; 10% due January 1, 2017 (3)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note &#150; 10% due January 1, 2017 (6)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-0-</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note &#150; 10% due January 1, 2017 (5)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">100,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-0-</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note &#150; 10% due September 21, 2017 (4)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note &#150; 10% due September 21, 2017 (4)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">100,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">100,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note &#150; 10% due September 21, 2017 (4)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note - stockholder, 10%, due April 30, 2013, unsecured (1)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible note &#150; 10% due April, 1, 2016 (7)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">23,500</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">23,500</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Totals</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,745,811</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,721,811</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> </table> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p> <p style="margin: 0; text-align: justify"></p> <p style="margin: 0; text-align: center"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">&#160;<b>&#160;</b></font></td> <td style="padding-bottom: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>June 30,</b><br /> <b>2016</b></font></td> <td style="padding-bottom: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b><br /> <b>2015</b></font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 74%; padding-left: 72.6pt; text-align: justify; text-indent: -72.6pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 10%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 10%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;<br /> Loan payable - related party , Due December 31, 2017 (1)</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">250,000</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">250,000</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">250,000</font></td> <td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">250,000</font></td> <td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 5 NOTES PAYABLE</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</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">A) Non-Related Party&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">30-Jun-16</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">31-Dec-15</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 56%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Note 1</font></td><td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">77,188</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">95,422</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Note 2</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">77,188</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">95,422</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Note 3</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">75,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-0-</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Note 4</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">75,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-0-</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Total Notes Payable</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">304,376</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">190,844</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">1)</td><td style="margin: 0; text-align: justify">On September 8, 2015 the Company received a total of $100,000 from an accredited investor in exchange for a two year note in the aggregate amount of $100,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 3,161,583 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the &#147;Warrant Exercise Price&#148;) for a period of five (5) years commencing from the earlier of such time as that certain $100,000 10% promissory note due September 9, 2017 has been fully repaid or the start of the Acceleration Period as defined in &#147;The Note&#148; or September 9, 2017.</td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">2)</td><td style="margin: 0; text-align: justify">On September 9, 2015 the Company received a total of $100,000 from an accredited investor in exchange for a two year note in the aggregate amount of $100,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 3,161,583 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the &#147;Warrant Exercise Price&#148;) for a period of five (5) years commencing from the earlier of such time as that certain $100,000 10% promissory note due September 9, 2017 has been fully repaid or the start of the Acceleration Period as defined in &#147;The Note&#148; or September 9, 2017.</td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">3)</td><td style="margin: 0; text-align: justify">On<font style="font-size: 8pt">&#160;</font> May 17, 2016 the Company received a total of $75,000 from an accredited investor in exchange for a two year note in the aggregate amount of $75,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 2,371,187 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the &#147;Warrant Exercise Price&#148;) for a period of five (5) years commencing from the earlier of such time as that certain $75,000, 10% promissory note due May 17 2018 has been fully repaid or the start of the Acceleration Period as defined in &#147;The Note&#148; or May 17, 2018.</td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">4)</td><td style="margin: 0; text-align: justify">On May 9, 2016 the Company received a total of $75,000 from an accredited investor in exchange for a two year note in the aggregate amount of $75,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 2,371,187 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the &#147;Warrant Exercise Price&#148;) for a period of five (5) years commencing from the earlier of such time as that certain $75,000, 10% promissory note due May 9, 2018 has been fully repaid or the start of the Acceleration Period as defined in &#147;The Note&#148; or May 9, 2018.</td></tr></table> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">B) Related Party</font></p> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p> <p style="margin: 0; text-align: center"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">&#160;<b>&#160;</b></font></td> <td style="padding-bottom: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>June 30,</b><br /> <b>2016</b></font></td> <td style="padding-bottom: 1pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b><br /> <b>2015</b></font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 74%; padding-left: 72.6pt; text-align: justify; text-indent: -72.6pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 10%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 10%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;<br /> Loan payable - related party , Due December 31, 2017 (1)</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">250,000</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">250,000</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">250,000</font></td> <td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">250,000</font></td> <td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: top"> <td style="padding-bottom: 6pt; text-align: right; width: 20px"><font style="font-family: Times New Roman, Times, Serif">(1)</font></td> <td style="width: 7px">&#160;</td> <td style="margin: 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif">At December 31, 2013 the Company was indebted to an affiliated shareholder of the Company for $840,955, which consisted of $737,100 principal and $103,895 accrued interest, with interest accruing at 10%. On January 2, 2014 the Company entered into a Debt Modification Agreement whereby the total amount of the debt was reduced to $750,000.00 and there is no accrued interest or principal due until December 31, 2017. $500,000 of the debt is convertible into 50,000 Series C Convertible Preferred Shares of AFAI, which if converted are subject to resale restrictions through December 31, 2015. The two-year note in the aggregate amount of $500,000 is convertible into the Company&#146;s preferred stock at a conversion rate of $10.00 per share of preferred. At a conversion rate of 433.9297 common shares to 1 preferred share, this would result in a total of 21,696,485 common shares issued if all debt was converted. The market value of the stock at the date of issuance of the debt was $0.04. The debt issued is a result of a financing transaction and contain a beneficial conversion feature valued at $500,000 to be amortized over the life of the debt. Total amortization for the quarter ended June 30, 2016 was $49,727. As of June 30, 2016, the balance of the debt was $500,000. The net balance reflected on the balance sheet is $199,454. The remaining $250,000 is not convertible. The company has imputed interest on both the convertible debt and the non-convertible debt. The company used an interest rate of 4% for calculation purposes. The net balance of $250,000 of the non-convertible portion is reflected on the balance sheet.&#160;&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p> <p style="font: 12pt/0.05pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 12pt/0.05pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 12pt/0.05pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">30-Jun-16</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">31-Dec-15</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 58%; text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Note 1</font></td> <td style="width: 8%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%">&#160;</td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">77,188</font></td> <td style="width: 1%; line-height: 107%">&#160;</td> <td style="width: 8%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%">&#160;</td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">95,422</font></td> <td style="width: 1%; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Note 2</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">77,188</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">95,422</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Note 3</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">75,000</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-0-</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Note 4</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">75,000</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-0-</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total Non-Convertible Debt</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">304,376</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">190,844</font></td> <td style="line-height: 107%">&#160;</td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 71%; text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance as of March 31, 2016</font></td> <td style="width: 10%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 17%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3,446,588</font></td> <td style="width: 1%; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Change in Derivative Values</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(282,563</font></td> <td style="line-height: 107%">)&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Balance as of June 30, 2016</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3,164,025</font></td> <td style="line-height: 107%">&#160;</td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> 304376 190844 77188 95422 77188 95422 75000 0 75000 0 1622389 39944 1541636 4554466 32601 304376 57210 -622405 -342860 -237991 126000 60000 -9302 71088 5000 36468 9000 1745811 1721811 500000 500000 58556 58556 28278 28278 186316 186316 0 126000 117113 117113 117113 117113 55895 55895 67074 67074 23442 23442 23442 23442 27116 27116 116966 116966 25000 25000 50000 0 100000 0 50000 50000 100000 100000 50000 50000 25000 25000 23500 23500 3446588 At December 31, 2013 the Company was indebted to an affiliated shareholder of the Company for $840,955, which consisted of $737,100 principal and $103,895 accrued interest, with interest accruing at 10%. On January 2, 2014 the Company entered into a Debt Modification Agreement whereby the total amount of the debt was reduced to $750,000.00 and there is no accrued interest or principal due until December 31, 2017. $500,000 of the debt is convertible into 50,000 Series C Convertible Preferred Shares of AFAI, which if converted are subject to resale restrictions through December 31, 2015. The two-year note in the aggregate amount of $500,000 is convertible into the Company’s preferred stock at a conversion rate of $10.00 per share of preferred. At a conversion rate of 433.9297 common shares to 1 preferred share, this would result in a total of 21,696,485 common shares issued if all debt was converted. The market value of the stock at the date of issuance of the debt was $0.04. The debt issued is a result of a financing transaction and contain a beneficial conversion feature valued at $500,000 to be amortized over the life of the debt. Total amortization for the quarter ended June 30, 2016 was $49,727. As of June 30, 2016, the balance of the debt was $500,000. The net balance reflected on the balance sheet is $199,454. The remaining $250,000 is not convertible. The company has imputed interest on both the convertible debt and the non-convertible debt. The company used an interest rate of 4% for calculation purposes. The net balance of $250,000 of the non-convertible portion is reflected on the balance sheet. At the option of the holder the convertible note may be converted into shares of the Company’s common stock at the lesser of $0.40 or 20% discount to the market price, as defined, of the Company’s common stock. The Company is currently in discussions with the lender on a payment schedule. Accrued interest on this note that was charged to operations for the quarter ended June 30, 2016 totaled approximately $935. The balance of the convertible note at June 30, 2016 including accrued interest and net of the discount amounted to $14,325. The Company valued the derivative liabilities at June 30, 2016 at $18,477. The Company recognized a change in the fair value of derivative liabilities for the three months ended June 30, 2015 of $1,788, which were credited to operations. In determining the indicated values at June 30, 2016, the Company used the Black Scholes Option Model with risk-free interest rates ranging from 0.018% to 0.02%, volatility ranging from 141% to 336%, a trading price of $.07, and conversion prices ranging from $.05 per share. At December 31, 2013 the Company was indebted to an affiliated shareholder of the Company for $840,955, which consisted of $737,100 principal and $103,895 accrued interest, with interest accruing at 10%. On January 2, 2014 the Company entered into a Debt Modification Agreement whereby the total amount of the debt was reduced to $750,000.00 and there is no accrued interest or principal due until December 31, 2017. $500,000 of the debt is convertible into 50,000 Series C Convertible Preferred Shares of AFAI, which if converted are subject to resale restrictions through December 31, 2015. The two-year note in the aggregate amount of $500,000 is convertible into the Company’s preferred stock at a conversion rate of $10.00 per share of preferred. At a conversion rate of 433.9297 common shares to 1 preferred share, this would result in a total of 21,696,485 common shares issued if all debt was converted. The market value of the stock at the date of issuance of the debt was $0.04. The debt issued is a result of a financing transaction and contain a beneficial conversion feature valued at $500,000 to be amortized over the life of the debt. Total amortization for the quarter ended June 30, 2016 was $49,727. As of June 30, 2016, the balance of the debt was $500,000. The net balance reflected on the balance sheet is $199,454. The remaining $250,000 is not convertible. The company has imputed interest on both the convertible debt and the non-convertible debt. The company used an interest rate of 4% for calculation purposes. The net balance of $250,000 of the non-convertible portion is reflected on the balance sheet. On December 31, 2015 the Company renegotiated twelve (12) convertible and non-convertible notes payable. The Total face value of the notes issued was $888,500 the six month notes were due on December 31, 2015. The new notes are convertible after January 1, 2016 and are convertible into the Company’s common stock at a conversion rate of $0.03 per share. The market value of the stock at the date when the debt becomes convertible was $0.087. The debt was issued is a result of a financing transaction and contain a derivative liability feature. As of December 31, 2015, the balance was $947,311. The beneficial conversion feature in the amount of $947,311 will be expensed as interest over the term of the note (one year). In determining the indicated value of the convertible note issued, the Company used the Black Scholes Option Model with a risk-free interest rate of ranging from 0.05% to 1.06%, volatility ranging from 141% of 221%, trading prices ranging from $.056 per share to $0.1 per share and a conversion price ranging from $0.03 per share to $0.04 per share. The total derivative liabilities associated with these notes are $3,449,588 at June 30, 2016 On March 31 of 2016 the Company received $100,000 from the issuance of convertible debt. Interest is stated at 12% The Note and Interest is convertible into common shares at $0.03 per share. Note is Due in January of 2017. On July 27, 2015 the company issued a note payable for $28,500 The Company agrees to pay to the Holder $28,500 plus accrued interest pursuant to the following schedule: An initial payment of $5,000 is due no later than December 1, 2015. This amount represents the balance of the security deposit due for the lease of Commercial/Manufacturing Space occupied by MJAI Oregon 1, LLC, a majority-owned subsidiary of the company. A final payment of $23,500 principal, plus any accrued Interest at 10% is due no later than April 1, 2016. This amount represents the balance of accrued rent due for the initial monthly lease payments from August 1, 2015 through June 30, 2016 The note is convertible after June 30, 2016 and is convertible into the Company’s common stock at a conversion rate of $0.10 per share or 20% discount to the thirty day moving average stock price. On September 8, 2015 the Company received a total of $100,000 from an accredited investor in exchange for a two year note in the aggregate amount of $100,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 3,161,583 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $100,000 10% promissory note due September 9, 2017 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or September 9, 2017. On September 9, 2015 the Company received a total of $100,000 from an accredited investor in exchange for a two year note in the aggregate amount of $100,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 3,161,583 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $100,000 10% promissory note due September 9, 2017 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or September 9, 2017. On May 17, 2016 the Company received a total of $75,000 from an accredited investor in exchange for a two year note in the aggregate amount of $75,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 2,371,187 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $75,000, 10% promissory note due May 17 2018 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or May 17, 2018. On May 9, 2016 the Company received a total of $75,000 from an accredited investor in exchange for a two year note in the aggregate amount of $75,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 2,371,187 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $75,000, 10% promissory note due May 9, 2018 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or May 9, 2018. EX-101.SCH 5 afai-20160630.xsd XBRL SCHEMA FILE 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - Balance Sheets (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - Balance Sheets (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - Statements of Operations (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - Statements of Cash Flows (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000006 - Disclosure - 1. ORGANIZATION AND NATURE OF THE BUSINESS link:presentationLink link:calculationLink link:definitionLink 00000007 - Disclosure - 2. LIQUIDITY AND GOING CONCERN link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND BASIS OF PRESENTATION link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - 4. CONVERTIBLE DEBT link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - 5. NOTES PAYABLE link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - 6. STOCKHOLDERS EQUITY link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - 7. DERIVATIVE LIABILITIES link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - 8. WARRANTS link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - 9. RELATED PARTY TRANSACTIONS link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - 10. SUBSEQUENT EVENTS link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND BASIS OF PRESENTATION (Policies) link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - 4. CONVERTIBLE DEBT (Tables) link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - 5. NOTES PAYABLE (Tables) link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - 7. DERIVATIVE LIABILITIES (Tables) link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - 8. WARRANTS (Tables) link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - 2. LIQUIDITY AND GOING CONCERN (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - 4. CONVERTIBLE DEBT - Convertible Debt (Details) link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - 5. NOTES PAYABLE - Non-related party (Details) link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - 5. NOTES PAYABLE - Related party (Details) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - 7. DERIVATIVE LIABILITIES (Details) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - 8. WARRANTS (Details) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 6 afai-20160630_cal.xml XBRL CALCULATION FILE EX-101.DEF 7 afai-20160630_def.xml XBRL DEFINITION FILE EX-101.LAB 8 afai-20160630_lab.xml XBRL LABEL FILE Cash Proceeds Sale of Stock [Axis] Interest Member Debt Paid Assets Acquired Consulting Services Preferred Stock - Class C Shareholders' Equity Class [Axis] Loan Payable 1 Credit Facility [Axis] Loan Payable 2 NotePayable1Member NotePayable2Member Note Payable 3 Convertible Note 1 Convertible Note 2 Convertible Note 3 Convertible Note 4 Convertible Note 5 Convertible Note 6 Convertible Note 7 Convertible Note 8 Convertible Note 9 Convertible Note 10 Chief Executive Officer Legal Entity [Axis] Stockholder Subsequent Event [Member] Subsequent Event Type [Axis] Original Report Date [Axis] Restated Change Note Payable 4 Convertible Note 11 Convertible Note 12 Convertible Note 13 Convertible Note 14 Convertible Note 15 Convertible Note 16 Convertible Note 17 Convertible Note 18 Convertible Note 19 Convertible Note 20 Convertible Note 21 Document And Entity Information Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Amendment Flag Current Fiscal Year End Date Is Entity a Well-known Seasoned Issuer? Is Entity a Voluntary Filer? Is Entity's Reporting Status Current? Entity Filer Category Entity Public Float Entity Common Stock, Shares Outstanding Document Fiscal Period Focus Document Fiscal Year Focus Statement of Financial Position [Abstract] ASSETS CURRENT ASSETS: Cash and equivalents Inventory - Net of Allowance Prepaid license fee Total Current Assets OTHER ASSETS: Property and equipment, net Deposits Total Other Assets Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) LIABILITIES CURRENT LIABILITIES: Accounts payable and accrued expense Accounts payable and accrued expense - related parties Accrued interest Convertible Note Payable - net of discount Derivative liabilities Total Current Liabilities LONG TERM LIABILITIES: Convertible Note Payable - related party - Net of Discount Derivative liabilities Convertible Note Payable-Net of Discount Notes Payable Note Payable - Related Party Total Long Term Liabilities Total Liabilities STOCKHOLDERS' EQUITY (DEFICIT): Convertible Preferred Stock, Series C, par value $.001; 10,000,000 shares authorized; 49,900 and 55,120 issued and outstanding at June 30, 2016 and December 31, 2015 Common stock , par value $.001; 250,000,000 shares authorized; 101,785,684 shares issued as of June 30, 2016 and 88,855,991 shares issued as of December 31, 2015 Additional paid in capital Subscriptions payable Accumulated Deficit Non-controlling Interest Net Stockholders' Equity/(Deficit) Total Liabilities and Stockholders' Equity/(Deficit) Preferred Stock Par Value Preferred Stock Shares Authorized Preferred Stock Shares Issued Preferred Stock Shares Outstanding Common Stock Par Value Common Stock Shares Authorized Common Stock Shares Issued Common Stock Shares Outstanding Income Statement [Abstract] Net Sales Cost of Sales Gross Profit Operating Expenses: Professional Fees Salaries and Wages General and Administrative Total Operating Expenses Operating Loss Other Income (expense) Interest Expense Amortization of Debt discount Derivative Liabilities Expense Gain (Loss) on Extingishment of Debt Change in Derivative Liabilities Expense Asset Valuation Allowance Total Other Income(Expense) Net (loss) before Income Taxes Provision for Income Taxes Net (loss) Net (Loss) attributed to non-controlling interest Net (loss) attributed to Kaya Holdings, Inc. Basic and diluted net loss per common share Weighted average number of common shares outstanding Statement of Cash Flows [Abstract] OPERATING ACTIVITIES: Net loss Adjustments to reconcile net loss to net cash used in operating activities: Net loss attributable to non-controlling interest Depreciation Imputed Interest Gain on Extinguishment of Debt Derivative Expense Change in Derivative Liabilities Amortization of debt discount Stock issued for services Stock issued for interest Changes in operating assets and liabilities: Prepaid Expense Inventory Other assets Accrued Interest Accounts payable and accrued expenses Net cash used in operating activities INVESTING ACTIVITIES: Purchase of property and equipment Proceeds for equipment Net cash used in investing activities FINANCING ACTIVITIES: Proceeds from Convertible debt Proceeds from Note Payable Payments on Note Payable Proceeds from sales of common stock Net cash provided by (used in) financing activities NET INCREASE IN CASH CASH BEGINNING BALANCE CASH ENDING BALANCE SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Taxes paid Interest paid NON-CASH TRANSACTIONS AFFECTING OPERATING, INVESTING AND FINANCING ACTIVITIES: Value of common shares issued as payment of debt Value of common shares issued as payment for equipment Value of common shares issued as payment of interest Accounting Policies [Abstract] 1. ORGANIZATION AND NATURE OF THE BUSINESS Organization, Consolidation and Presentation of Financial Statements [Abstract] 2. LIQUIDITY AND GOING CONCERN 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND BASIS OF PRESENTATION Debt Disclosure [Abstract] 4. CONVERTIBLE DEBT Notes to Financial Statements 5. NOTES PAYABLE Equity [Abstract] 6. STOCKHOLDERS EQUITY 7. DERIVATIVE LIABILITIES 8. WARRANTS Related Party Transactions [Abstract] 8. RELATED PARTY TRANSACTIONS Subsequent Events [Abstract] 10. SUBSEQUENT EVENTS Basis of Presentation Use of Estimates Risks and Uncertainties Fiscal Year Principles of Consolidation Non-Controlling Interest Cash and Cash Equivalents Inventory Property and Equipment Fair Value of Financial Instruments Embedded Conversion Features Derivative Financial Instruments Beneficial Conversion Feature Debt Issue Costs and Debt Discount Original Issue Discount Extinguishments of Liabilities Stock-Based Compensation - Employees Stock-Based Compensation - Non Employees Revenue Recognition Cost of Sales Related Parties Contingencies Subsequent Events Recently Issued Accounting Pronouncements Re-Classifications Convertible Debt Notes Payable Tables Non-related party Related Party Derivative Liabilities Tables Derivative Liabilities Warrants Tables Warrants Net Loss Working Capital Deficiency Statement [Table] Statement [Line Items] Convertible Debt Non-related party Notes Payable - Related Party Details Loan payable - related party , Due December 31, 2017 Derivative Liabilities Details Balance as of March 31, 2016 Change in Derivative Values Balance as of June 30, 2016 Warrants Details Number of Warrants Number of Warrants Outstanding, Beginning Number of Warrants, Granted Number of Warrants, Exercised Number of Warrants, Expired Number of Warrants Outstanding, Ending Weighted Average Exercise Price Weighted Average Exercise Price, Beginning Weighted Average Exercise Price, Granted Weighted Average Exercise Price, Ending Weighted Average Contract Term Years Working Capital Deficiency Assets, Current Other Assets Assets Liabilities, Current Derivative Liability, Noncurrent Liabilities, Noncurrent Liabilities Stockholders' Equity Attributable to Parent Liabilities and Equity Interest Expense DerivativeLiabilitiesExpense Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss) Other Expenses Payments to Acquire Productive Assets Repayments of Long-term Debt Cash Inventory, Policy [Policy Text Block] Cost of Sales, Policy [Policy Text Block] Convertible Debt [Default Label] Due to Other Related Parties, Noncurrent Class of Warrant or Right, Outstanding Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price EX-101.PRE 9 afai-20160630_pre.xml XBRL PRESENTATION FILE XML 10 R1.htm IDEA: XBRL DOCUMENT v3.5.0.2
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2016
Aug. 22, 2016
Document And Entity Information    
Entity Registrant Name Kaya Holdings, Inc.  
Entity Central Index Key 0001530746  
Document Type 10-Q  
Document Period End Date Jun. 30, 2016  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Is Entity a Well-known Seasoned Issuer? No  
Is Entity a Voluntary Filer? No  
Is Entity's Reporting Status Current? Yes  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   101,785,684
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2016  
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.5.0.2
Balance Sheets (Unaudited) - USD ($)
Jun. 30, 2016
Dec. 31, 2015
CURRENT ASSETS:    
Cash and equivalents $ 94,485 $ 123,907
Inventory - Net of Allowance 44,462 80,657
Prepaid license fee 23,000 10,500
Total Current Assets 161,947 215,064
OTHER ASSETS:    
Property and equipment, net 213,912 225,664
Deposits 31,167 24,206
Total Other Assets 245,079 249,870
Total Assets 407,026 464,934
CURRENT LIABILITIES:    
Accounts payable and accrued expense 417,053 283,124
Accounts payable and accrued expense - related parties 13,586 42,206
Accrued interest 92,017 20,929
Convertible Note Payable - net of discount 385,938 40,738
Derivative liabilities 1,622,389 39,944
Total Current Liabilities 2,530,982 426,941
LONG TERM LIABILITIES:    
Convertible Note Payable - related party - Net of Discount 199,454 100,000
Derivative liabilities 1,541,636 4,554,466
Convertible Note Payable-Net of Discount 32,601
Notes Payable 304,376 57,210
Note Payable - Related Party 250,000 250,000
Total Long Term Liabilities 2,295,466 4,994,277
Total Liabilities 4,826,448 5,421,218
STOCKHOLDERS' EQUITY (DEFICIT):    
Convertible Preferred Stock, Series C, par value $.001; 10,000,000 shares authorized; 49,900 and 55,120 issued and outstanding at June 30, 2016 and December 31, 2015 50 55
Common stock , par value $.001; 250,000,000 shares authorized; 101,785,684 shares issued as of June 30, 2016 and 88,855,991 shares issued as of December 31, 2015 101,786 88,856
Additional paid in capital 5,470,115 4,755,418
Subscriptions payable 107,610 410,510
Accumulated Deficit (9,771,726) (9,941,151)
Non-controlling Interest (327,257) (269,973)
Net Stockholders' Equity/(Deficit) (4,419,422) (4,956,285)
Total Liabilities and Stockholders' Equity/(Deficit) $ 407,026 $ 464,933
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.5.0.2
Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]    
Preferred Stock Par Value $ .001 $ .001
Preferred Stock Shares Authorized 10,000,000 10,000,000
Preferred Stock Shares Issued 49,900 55,120
Preferred Stock Shares Outstanding 49,900 55,120
Common Stock Par Value $ .001 $ .001
Common Stock Shares Authorized 250,000,000 250,000,000
Common Stock Shares Issued 101,785,684 88,855,991
Common Stock Shares Outstanding 101,785,684 88,855,991
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.5.0.2
Statements of Operations (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Income Statement [Abstract]        
Net Sales $ 246,001 $ 27,493 $ 490,658 $ 57,832
Cost of Sales 129,676 4,901 294,286 13,336
Gross Profit 116,325 22,592 196,371 44,496
Operating Expenses:        
Professional Fees 210,096 63,200 389,785 610,210
Salaries and Wages 78,780 24,989 151,333 48,052
General and Administrative 108,101 70,433 229,052 147,017
Total Operating Expenses 396,977 158,622 770,170 805,279
Operating Loss (280,652) (136,030) (573,799) (760,783)
Other Income (expense)        
Interest Expense (76,766) (323,574) (149,985) (325,074)
Amortization of Debt discount (342,860) (622,405)
Derivative Liabilities Expense (180,203) (129,340) (354,718)
Gain (Loss) on Extingishment of Debt 237,991 (126,000) 237,991
Change in Derivative Liabilities Expense 282,563 (267,543) 1,713,670 (407,328)
Asset Valuation Allowance (17,500) 0 10,500
Total Other Income(Expense) (137,063) (550,829) 685,940 (838,629)
Net (loss) before Income Taxes (417,715) (686,859) 112,141 (1,599,412)
Provision for Income Taxes
Net (loss) (417,715) (686,859) 112,141 (1,599,412)
Net (Loss) attributed to non-controlling interest (16,793) (12,672) (57,284) (18,032)
Net (loss) attributed to Kaya Holdings, Inc. $ (400,923) $ (674,187) $ 169,425 $ (1,581,380)
Basic and diluted net loss per common share $ (0.00) $ (0.01) $ 0 $ (0.02)
Weighted average number of common shares outstanding 101,459,250 85,989,325 97,320,813 84,497,017
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.5.0.2
Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2016
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
OPERATING ACTIVITIES:        
Net loss $ 400,923 $ 169,425 $ (1,581,379) $ 3,225,397
Adjustments to reconcile net loss to net cash used in operating activities:        
Net loss attributable to non-controlling interest   (57,284) (18,032)  
Depreciation   39,976 3,030  
Imputed Interest   60,000  
Gain on Extinguishment of Debt   126,000 (237,991)  
Derivative Expense   129,340 354,718  
Change in Derivative Liabilities   (1,713,670) 407,328  
Amortization of debt discount   622,405 348,063  
Stock issued for services   20,900 444,500  
Stock issued for interest   9,000 1,500  
Changes in operating assets and liabilities:        
Prepaid Expense   (12,500) (6,333)  
Inventory   36,195 (38,743)  
Other assets   (6,961) (22,107)  
Accrued Interest   71,088 (9,302)  
Accounts payable and accrued expenses   141,356 19,637  
Net cash used in operating activities   (364,730) (335,112)  
INVESTING ACTIVITIES:        
Purchase of property and equipment   (28,224) (12,500)  
Proceeds for equipment    
Net cash used in investing activities   (28,224) (12,500)  
FINANCING ACTIVITIES:        
Proceeds from Convertible debt   150,000 340,000  
Proceeds from Note Payable   150,000 10,000  
Payments on Note Payable   (36,468) (5,000)  
Proceeds from sales of common stock   100,000 65,000  
Net cash provided by (used in) financing activities   363,532 410,000  
NET INCREASE IN CASH   (29,422) 62,388  
CASH BEGINNING BALANCE   123,907 35,194 35,194
CASH ENDING BALANCE $ 94,485 94,485 97,582 $ 123,907
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:        
Taxes paid    
Interest paid    
NON-CASH TRANSACTIONS AFFECTING OPERATING, INVESTING AND FINANCING ACTIVITIES:        
Value of common shares issued as payment of debt   30,000  
Value of common shares issued as payment for equipment   17,500  
Value of common shares issued as payment of interest   $ 9,000  
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.5.0.2
1. ORGANIZATION AND NATURE OF THE BUSINESS
6 Months Ended
Jun. 30, 2016
Accounting Policies [Abstract]  
1. ORGANIZATION AND NATURE OF THE BUSINESS

NOTE 1 – ORGANIZATION AND NATURE OF THE BUSINESS

 

Organization

 

Kaya Holdings, Inc. FKA (Alternative Fuels Americas, Inc.) is a holding company. The Company was incorporated in 1993 and has engaged in a number of businesses. Its name was changed on May 11, 2007 to NetSpace International Holdings, Inc. (a Delaware corporation) (“NetSpace”). NetSpace acquired 100% of Alternative Fuels Americas, Inc. (a Florida corporation) in January 2010 in a stock-for-member interest transaction and issued 6,567,247 shares of common stock and 100,000 shares of Series C convertible preferred stock to existing shareholders. Certificate of Amendment to the Certificate of Incorporation was filed in October 2010 changing the Company’s name from NetSpace International Holdings, Inc. to Alternative Fuels Americas, Inc. (a Delaware corporation). Certificate of Amendment to the Certificate of Incorporation was filed in March 2015 changing the Company’s name from Alternative Fuels Americas, Inc. (a Delaware corporation) to Kaya Holdings, Inc.

 

The Company has two subsidiaries: Alternative Fuels Americas, Inc. (a Florida corporation) which is wholly owned, and Marijuana Holdings Americas, Inc. a Florida corporation, (“MJAI”) which is a majority owned subsidiary. Additionally, MJAI conducts operations in Oregon through ownership interests in MJAI Oregon 1 LLC. , MJAI Oregon 2 LLC, MJAI Oregon 3 LLC and MJAI Oregon 4 LLC.

 

Nature of the Business  

 

The Company operates a subsidiary, Marijuana Holdings Americas, Inc., a Florida corporation, that pursues medical and/or recreational licenses for the growing, processing and/or sale of marijuana in jurisdictions where it is legal and permissible under local laws. The subsidiary was formed in March 2014.

 

In March 2014 Marijuana Holdings Americas, Inc. (through local Oregon subsidiaries) began the application process to obtain licenses to operate medical marijuana dispensaries in Oregon. On March 21, 2014 the Company received notice from the Oregon Health Authority that MJAI Oregon 1 had been granted provisional licensing approval to operate their first Medical Marijuana Dispensary in Portland, Oregon and subsequently received full licensing approval for the first “Kaya ShackTM” retail medical marijuana dispensary, which we began operating July 3, 2014.

 

In April 2015 KAYS commenced its own medical marijuana grow operations for the cultivation and harvesting of legal marijuana, thereby becoming the first US publicly traded company to own a majority interest in a vertically integrated legal marijuana enterprise in the United States. The Company opened its second MMD (and first Kaya Shack™ Marijuana Superstore) in October 2015 in Salem, Oregon. During 2015, the Company also consolidated its grow operations and manufacturing operations into a single facility in Portland, Oregon. In October 2015, Oregon commenced legal recreational marijuana sales, which are initially being conducted solely through State Licensed MMDs, including those operated by the Company. The Company plans to open at least two additional dispensaries in Oregon during 2016 and in April 2016 entered into leases and filed increased applications for its next two planned retain outlets in Salem Oregon.

XML 16 R7.htm IDEA: XBRL DOCUMENT v3.5.0.2
2. LIQUIDITY AND GOING CONCERN
6 Months Ended
Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
2. LIQUIDITY AND GOING CONCERN

NOTE 2 - LIQUIDITY AND GOING CONCERN

 

The Company’s consolidated financial statements as of and for the three months and six months ended June 30, 2016 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company incurred a net loss of $ 400,923 for the three months ended June 30, 2016 and a net loss of $3,225,397 for the year ended December 31, 2015. At June 30, 2016 the Company has a working capital deficiency of $2,369,035 and is totally dependent on its ability to raise capital. The Company has a plan of operations and acknowledges that its plan of operations may not result in generating positive working capital in the near future. Even though management believes that it will be able to successfully execute its business plan, which includes third-party financing and capital issuance, and meet the Company’s future liquidity needs, there can be no assurances in that regard. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this material uncertainty. Management recognizes that the Company must generate additional funds to successfully develop its operations and activities. Management plans include:

 

  the sale of additional equity and debt securities,
  alliances and/or partnerships with entities interested in and having the resources to support the further development of the Company’s business plan,
  other business transactions to assure continuation of the Company’s development and operations,
  development of a unified brand and the pursuit of licenses to operate medical marijuana facilities under the branded name.

 

XML 17 R8.htm IDEA: XBRL DOCUMENT v3.5.0.2
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND BASIS OF PRESENTATION
6 Months Ended
Jun. 30, 2016
Accounting Policies [Abstract]  
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND BASIS OF PRESENTATION

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND BASIS OF PRESENTATION

 

Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements of the Company and the notes thereto have been prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). The December 31, 2015 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited financial statements and the notes thereto that are included in the Company’s Annual Report on form 10-K for the year ended December 31, 2015 filed with the SEC on May 5, 2016.

   

The accounting policies applied by the Company in these condensed interim financial statements are the same as those applied by the Company in its audited consolidated financial statements as at and for the year ended December 31, 2015. The quarterly information presented should be read in conjunction with the annual report filed on Form 10-K with the Securities and Exchange Commission.

 

Use of Estimates

 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.

 

Such estimates and assumptions impact both assets and liabilities, including but not limited to: net realizable value of accounts receivable and inventory, estimated useful lives and potential impairment of property and equipment, the valuation of intangible assets, estimate of fair value of share based payments and derivative liabilities, estimates of fair value of warrants issued and recorded as debt discount, estimates of tax liabilities and estimates of the probability and potential magnitude of contingent liabilities.

 

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future non-conforming events. Accordingly, actual results could differ significantly from estimates.

 

Risks and Uncertainties

 

The Company’s operations are subject to risk and uncertainties including financial, operational, regulatory and other risks including the potential risk of business failure. 

 

The Company has experienced, and in the future expects to continue to experience, variability in its sales and earnings.  The factors expected to contribute to this variability include, among others, (i) the uncertainty associated with the commercialization and ultimate success of the product, (ii) competition inherent at other locations where product is expected to be sold (iii) general economic conditions and (iv) the related volatility of prices pertaining to the cost of sales. 

 

Fiscal Year

 

The Company’s fiscal year-end is December 31.

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of Kaya Holdings, Inc. and its subsidiary, Alternative Fuels Americas, Inc. (a Florida corporation) and Marijuana Holdings Americas, Inc. (a Florida corporation) which is a majority owned subsidiary.  All inter-company accounts and transactions have been eliminated in consolidation.

 

Non-Controlling Interest

 

The company owns 55% of Marijuana Holdings Americas, Inc.

 

Cash and Cash Equivalents

 

Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less. The Company had no cash equivalents

 

Inventory

 

Inventory will consist of finished goods purchased, which are valued at the lower of cost or market value, with cost being determined on the first-in, first-out method.  The Company will periodically review historical sales activity to determine potentially obsolete items and also evaluates the impact of any anticipated changes in future demand.  

 

Property and Equipment

 

Property and equipment is stated at cost, less accumulated depreciation and is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  

 

Depreciation of property and equipment is provided utilizing the straight-line method over the estimated useful lives, ranging from 5-7 years of the respective assets. Expenditures for maintenance and repairs are charged to expense as incurred.

 

Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the statements of operations. 

 

Fair Value of Financial Instruments

 

The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level.

 

The following are the hierarchical levels of inputs to measure fair value:

 

  Level 1 – Observable inputs that reflect quoted market prices in active markets for identical assets or liabilities.

 

  Level 2 - Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

  Level 3 – Unobservable inputs reflecting the Company’s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

The carrying amounts of the Company’s financial assets and liabilities, such as cash, prepaid expenses, other current assets, accounts payable & accrued expenses, certain notes payable and notes payable – related party, approximate their fair values because of the short maturity of these instruments.

 

The Company accounts for its derivative liabilities, at fair value, on a recurring basis under level 3. See Note 6.

 

Embedded Conversion Features

 

The Company evaluates embedded conversion features within convertible debt under ASC 815 “Derivatives and Hedging” to determine whether the embedded conversion feature(s) should be bifurcated from the host instrument and accounted for as a derivative at fair value with changes in fair value recorded in earnings. If the conversion feature does not require derivative treatment under ASC 815, the instrument is evaluated under ASC 470-20 “Debt with Conversion and Other Options” for consideration of any beneficial conversion feature.

 

Derivative Financial Instruments

 

The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of it financial instruments, including stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income.

 

For option-based simple derivative financial instruments, the Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period.

 

Beneficial Conversion Feature

 

For conventional convertible debt where the rate of conversion is below market value, the Company records a "beneficial conversion feature" ("BCF") and related debt discount.

 

When the Company records a BCF, the relative fair value of the BCF is recorded as a debt discount against the face amount of the respective debt instrument (offset to additional paid in capital) and amortized to interest expense over the life of the debt.

 

Debt Issue Costs and Debt Discount

 

The Company may record debt issue costs and/or debt discounts in connection with raising funds through the issuance of debt.  These costs may be paid in the form of cash, or equity (such as warrants). These costs are amortized to interest expense over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed.

 

Original Issue Discount

 

For certain convertible debt issued, the Company may provide the debt holder with an original issue discount.  The original issue discount would be recorded to debt discount, reducing the face amount of the note and is amortized to interest expense over the life of the debt.

 

Extinguishments of Liabilities

 

The Company accounts for extinguishments of liabilities in accordance with ASC 860-10 (formerly SFAS 140) “Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities”. When the conditions are met for extinguishment accounting, the liabilities are derecognized and the gain or loss on the sale is recognized.

 

Stock-Based Compensation - Employees

 

The Company accounts for its stock based compensation in which the Company obtains employee services in share-based payment transactions under the recognition and measurement principles of the fair value recognition provisions of section 718-10-30 of the FASB Accounting Standards Codification. Pursuant to paragraph 718-10-30-6 of the FASB Accounting Standards Codification, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.  

 

The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur.  

 

If the Company is a newly formed corporation or shares of the Company are thinly traded, the use of share prices established in the Company’s most recent private placement memorandum (based on sales to third parties) (“PPM”), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.

 

The fair value of share options and similar instruments is estimated on the date of grant using a Black-Scholes option-pricing valuation model.  The ranges of assumptions for inputs are as follows:

 

[]

Expected term of share options and similar instruments: The expected life of options and similar instruments represents the period of time the option and/or warrant are expected to be outstanding. Pursuant to Paragraph 718-10-50-2(f)(2)(i) of the FASB Accounting Standards Codification the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and employees’ expected exercise and post-vesting employment termination behavior into the fair value (or calculated value) of the instruments.  Pursuant to paragraph 718-10-S99-1, it may be appropriate to use the simplified method, i.e., expected term = ((vesting term + original contractual term) / 2), if (i) A company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its equity shares have been publicly traded; (ii) A company significantly changes the terms of its share option grants or the types of employees that receive share option grants such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term; or (iii) A company has or expects to have significant structural changes in its business such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term. The Company uses the simplified method to calculate expected term of share options

and similar instruments as the company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term.

 

[] Expected volatility of the entity’s shares and the method used to estimate it.  Pursuant to ASC Paragraph 718-10-50-2(f)(2)(ii) a thinly-traded or nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for the Company to estimate the expected volatility of its share price, the appropriate industry sector index that it has selected, the reasons for selecting that particular index, and how it has calculated historical volatility using that index.  The Company uses the average historical volatility of the comparable companies over the expected contractual life of the share options or similar instruments as its expected volatility.  If shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.

 

 

[] Expected annual rate of quarterly dividends.  An entity that uses a method that employs different dividend rates during the contractual term shall disclose the range of expected dividends used and the weighted-average expected dividends.  The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments.

 

[] Risk-free rate(s). An entity that uses a method that employs different risk-free rates shall disclose the range of risk-free rates used.  The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the share options and similar instruments.

 

Generally, all forms of share-based payments, including stock option grants, warrants and restricted stock grants and stock appreciation rights are measured at their fair value on the awards’ grant date, based on estimated number of awards that are ultimately expected to vest.

 

The expense resulting from share-based payments is recorded in general and administrative expense in the statements of operations.

  

Stock-Based Compensation – Non Employees

 

Equity Instruments Issued to Parties Other Than Employees for Acquiring Goods or Services

 

The Company accounts for equity instruments issued to parties other than employees for acquiring goods or services under guidance of Sub-topic 505-50 of the FASB Accounting Standards Codification (“Sub-topic 505-50”).

 

Pursuant to ASC Section 505-50-30, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.  The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur.  If the Company is a newly formed corporation or shares of the Company are thinly traded the use of share prices established in the Company’s most recent private placement memorandum (“PPM”), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.

 

The fair value of share options and similar instruments is estimated on the date of grant using a Black-Scholes option-pricing valuation model.  The ranges of assumptions for inputs are as follows:

 

[] Expected term of share options and similar instruments: Pursuant to Paragraph 718-10-50-2(f)(2)(i) of the FASB Accounting Standards Codification the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and holder’s expected exercise behavior into the fair value (or calculated value) of the instruments.  The Company uses historical data to estimate holder’s expected exercise behavior.  If the Company is a newly formed corporation or shares of the Company are thinly traded the contractual term of the share options and similar instruments is used as the expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term.

 

[] Expected volatility of the entity’s shares and the method used to estimate it.  Pursuant to ASC Paragraph 718-10-50-2(f)(2)(ii) a thinly-traded or nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for the Company to estimate the expected volatility of its share price, the appropriate industry sector index that it has selected, the reasons for selecting that particular index, and how it has calculated historical volatility using that index.  The Company uses the average historical volatility of the comparable companies over the expected contractual life of the share options or similar instruments as its expected volatility.  If shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.

 

 

[] Expected annual rate of quarterly dividends.  An entity that uses a method that employs different dividend rates during the contractual term shall disclose the range of expected dividends used and the weighted-average expected dividends.  The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments.

 

[] Risk-free rate(s). An entity that uses a method that employs different risk-free rates shall disclose the range of risk-free rates used.  The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the share options and similar instruments.

 

Pursuant to ASC paragraph 505-50-25-7, if fully vested, non-forfeitable equity instruments are issued at the date the grantor and grantee enter into an agreement for goods or services (no specific performance is required by the grantee to retain those equity instruments), then, because of the elimination of any obligation on the part of the counterparty to earn the equity instruments, a measurement date has been reached. A grantor shall recognize the equity instruments when they are issued (in most cases, when the agreement is entered into). Whether the corresponding cost is an immediate expense or a prepaid asset (or whether the debit should be characterized as contra-equity under the requirements of paragraph 505-50-45-1) depends on the specific facts and circumstances. Pursuant to ASC paragraph 505-50-45-1, a grantor may conclude that an asset (other than a note or a receivable) has been received in return for fully vested, non-forfeitable equity instruments that are issued at the date the grantor and grantee enter into an agreement for goods or services (and no specific performance is required by the grantee in order to retain those equity instruments). Such an asset shall not be displayed as contra-equity by the grantor of the equity instruments. The transferability (or lack thereof) of the equity instruments shall not affect the balance sheet display of the asset. This guidance is limited to transactions in which equity instruments are transferred to other than employees in exchange for goods or services. Section 505-50-30 provides guidance on the determination of the measurement date for transactions that are within the scope of this Subtopic.

 

Pursuant to Paragraphs 505-50-25-8 and 505-50-25-9, an entity may grant fully vested, non-forfeitable equity instruments that are exercisable by the grantee only after a specified period of time if the terms of the agreement provide for earlier exercisability if the grantee achieves specified performance conditions. Any measured cost of the transaction shall be recognized in the same period(s) and in the same manner as if the entity had paid cash for the goods or services or used cash rebates as a sales discount instead of paying with, or using, the equity instruments. A recognized asset, expense, or sales discount shall not be reversed if a share option and similar instrument that the counterparty has the right to exercise expires unexercised.

 

Pursuant to ASC paragraph 505-50-30-S99-1, if the Company receives a right to receive future services in exchange for unvested, forfeitable equity instruments, those equity instruments are treated as unissued for accounting purposes until the future services are received (that is, the instruments are not considered issued until they vest). Consequently, there would be no recognition at the measurement date and no entry should be recorded.

 

Revenue Recognition

  

Revenue is recorded when all of the following have occurred: (1) persuasive evidence of an arrangement exists, (2) asset is transferred to the customer without further obligation, (3) the sales price to the customer is fixed or determinable, and (4) collectability is reasonably assured.

 

Cost of Sales  

 

Cost of sales represents costs directly related to the purchase of goods and third party testing of the Company’s products.    

 

Related Parties

 

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

 

Pursuant to Section 850-10-20 the related parties include a. affiliates of the Company; b. Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

 

The consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

 

Contingencies

 

The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

 

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

 

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, consolidated financial position, and consolidated results of operations or consolidated cash flows.

 

Subsequent Events

 

The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements are issued.

  

Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR.

 

 

Recently Issued Accounting Pronouncements 

 

In May 2014, the FASB has issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”.  The guidance in this update supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition.”  In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (for example, assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this Update.  Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  The amendments in ASU No, 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted.  We do not believe the adoption of this update will have a material impact on our financial statements.

 

 Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

 

Re-Classifications

 

Certain amounts in 2015 were reclassified to conform to the 2016 presentation. These reclassifications had no effect on consolidated net loss for the periods presented.

 

The fair value of the warrants on the date of issuance and on each re-measurement date of those warrants classified as liabilities is estimated using the Black-Scholes option pricing model using the following assumptions: contractual life according to the remaining terms of the warrants, no dividend yield, weighted average risk-free interest rate of .59% at June 30, 2016 and weighted average volatility of 141%. For this liability, the Company developed its own assumptions that do not have observable inputs or available market data to support the fair value. This method of valuation involves using inputs such as the fair value of the Company's various classes of preferred stock, stock price volatility, the contractual term of the warrants, risk free interest rates and dividend yields. Due to the nature of these inputs, the valuation of the warrants is considered a Level 3 measurement. The warrant liability is recorded in other liabilities on the Company's Consolidated Balance Sheets. The warrant liability is marked-to-market each reporting period with the change in fair value recorded on the Consolidated Statement of Operations and Comprehensive Loss until the warrants are exercised, expire or other facts and circumstances lead the warrant liability to be reclassified as an equity instrument.

XML 18 R9.htm IDEA: XBRL DOCUMENT v3.5.0.2
4. CONVERTIBLE DEBT
6 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
4. CONVERTIBLE DEBT

NOTE 4- CONVERTIBLE DEBT

 

These debts have a price adjustment provision. Therefore, the Company accounted for these Notes under ASC Topic 815-15 “Embedded Derivative.”  The derivative component of the obligation are initially valued and classified as a derivative liability with an offset to discounts on convertible debt. Discounts have been amortized to interest expense over the respective term of the related note. In determining the indicated value of the convertible note issued, the Company used the Black Scholes Option Model with a risk -free interest rate of ranging from 0.05% to 1.06%, volatility ranging from 141% of 221%, trading prices ranging from $.056 per share to $0.1 per share and a conversion price ranging from $0.03 per share to $0.04 per share. The total derivative liabilities associated with these notes are $3,164,025 at June 30, 2016.

 

  June 30, 2016  December 31, 2015
Convertible note - related party, Due December 31, 2017 (2)   500,000    500,000 
Convertible note - 12% due January 1, 2017 (3)   58,556    58,556 
Convertible note - 12% due January 1, 2017 (3)   28,278    28,278 
Convertible note - 12% due January 1, 2017 (3)   186,316    186,316 
Convertible note - 12% due January 1, 2017 (3)   -0-    126,000 
Convertible note - 12% due January 1, 2017 (3)   117,113    117,113 
Convertible note - 12% due January 1, 2017 (3)   117,113    117,113 
Convertible note - 12% due January 1, 2017 (3)   55,895    55,895 
Convertible note - 12% due January 1, 2017 (3)   67,074    67,074 
Convertible note - 12% due January 1, 2017 (3)   23,442    23,442 
Convertible note - 12% due January 1, 2017 (3)   23,442    23,442 
Convertible note - 12% due January 1, 2017  (3)   27,116    27,116 
Convertible note - 12% due January 1, 2017 (3)   116,966    116,966 
Convertible note – 10% due January 1, 2017 (3)   25,000    25,000 
Convertible note – 10% due January 1, 2017 (6)   50,000    -0- 
Convertible note – 10% due January 1, 2017 (5)   100,000    -0- 
Convertible note – 10% due September 21, 2017 (4)   50,000    50,000 
Convertible note – 10% due September 21, 2017 (4)   100,000    100,000 
Convertible note – 10% due September 21, 2017 (4)   50,000    50,000 
Convertible note - stockholder, 10%, due April 30, 2013, unsecured (1)   25,000    25,000 
Convertible note – 10% due April, 1, 2016 (7)   23,500    23,500 
Totals   1,745,811    1,721,811 

 

 

(1)   At the option of the holder the convertible note may be converted into shares of the Company’s common stock at the lesser of $0.40 or 20% discount to the market price, as defined, of the Company’s common stock. The Company is currently in discussions with the lender on a payment schedule.

 

Accrued interest on this note that was charged to operations for the quarter ended June 30, 2016 totaled approximately $935. The balance of the convertible note at June 30, 2016 including accrued interest and net of the discount amounted to $14,325.

 

The Company valued the derivative liabilities at June 30, 2016 at $18,477. The Company recognized a change in the fair value of derivative liabilities for the three months ended June 30, 2015 of $1,788, which were credited to operations.  In determining the indicated values at June 30, 2016, the Company used the Black Scholes Option Model with risk-free interest rates ranging from 0.018% to 0.02%, volatility ranging from 141% to 336%, a trading price of $.07, and conversion prices ranging from $.05 per share. 

 

(2)   At December 31, 2013 the Company was indebted to an affiliated shareholder of the Company for $840,955, which consisted of $737,100 principal and $103,895 accrued interest, with interest accruing at 10%. On January 2, 2014 the Company entered into a Debt Modification Agreement whereby the total amount of the debt was reduced to $750,000.00 and there is no accrued interest or principal due until December 31, 2017. $500,000 of the debt is convertible into 50,000 Series C Convertible Preferred Shares of AFAI, which if converted are subject to resale restrictions through December 31, 2015. The two-year note in the aggregate amount of $500,000 is convertible into the Company’s preferred stock at a conversion rate of $10.00 per share of preferred. At a conversion rate of 433.9297 common shares to 1 preferred share, this would result in a total of 21,696,485 common shares issued if all debt was converted. The market value of the stock at the date of issuance of the debt was $0.04. The debt issued is a result of a financing transaction and contain a beneficial conversion feature valued at $500,000 to be amortized over the life of the debt. Total amortization for the quarter ended June 30, 2016 was $49,727. As of June 30, 2016, the balance of the debt was $500,000. The net balance reflected on the balance sheet is $199,454. The remaining $250,000 is not convertible. The company has imputed interest on both the convertible debt and the non-convertible debt. The company used an interest rate of 4% for calculation purposes. The net balance of $250,000 of the non-convertible portion is reflected on the balance sheet.  

 

(3)  

On December 31, 2015 the Company renegotiated twelve (12) convertible and non-convertible notes payable. The Total face value of the notes issued was $888,500 the six month notes were due on December 31, 2015. The new notes are convertible after January 1, 2016 and are convertible into the Company’s common stock at a conversion rate of $0.03 per share. The market value of the stock at the date when the debt becomes convertible was $0.087. The debt was issued is a result of a financing transaction and contain a derivative liability feature. As of December 31, 2015, the balance was $947,311. The beneficial conversion feature in the amount of $947,311 will be expensed as interest over the term of the note (one year). In determining the indicated value of the convertible note issued, the Company used the Black Scholes Option Model with a risk-free interest rate of ranging from 0.05% to 1.06%, volatility ranging from 141% of 221%, trading prices ranging from $.056 per share to $0.1 per share and a conversion price ranging from $0.03 per share to $0.04 per share. The total derivative liabilities associated with these notes are $3,449,588 at June 30, 2016

 

(5)  

On March 31 of 2016 the Company received $100,000 from the issuance of convertible debt. Interest is stated at 12% The Note and Interest is convertible into common shares at $0.03 per share. Note is Due in January of 2017. 

 

(6)  

In January of 2016 the Company received $50,000 from the issuance of convertible debt. Interest is stated at 12% The Note and Interest is convertible into common shares at $0.03 per share. Note is Due in January of 2017.

 

(7)  

On July 27, 2015 the company issued a note payable for $28,500 The Company agrees to pay to the Holder $28,500 plus accrued interest pursuant to the following schedule:

An initial payment of $5,000 is due no later than December 1, 2015. This amount represents the balance of the security deposit due for the lease of Commercial/Manufacturing Space occupied by MJAI Oregon 1, LLC, a majority-owned subsidiary of the company.

 

A final payment of $23,500 principal, plus any accrued Interest at 10% is due no later than April 1, 2016. This amount represents the balance of accrued rent due for the initial monthly lease payments from August 1, 2015 through June 30, 2016

 

The note is convertible after June 30, 2016 and is convertible into the Company’s common stock at a conversion rate of $0.10 per share or 20% discount to the thirty day moving average stock price.

 

XML 19 R10.htm IDEA: XBRL DOCUMENT v3.5.0.2
5. NOTES PAYABLE
6 Months Ended
Jun. 30, 2016
Notes to Financial Statements  
5. NOTES PAYABLE

Note 5 NOTES PAYABLE

 

A) Non-Related Party 

    30-Jun-16    31-Dec-15 
Note 1   77,188    95,422 
Note 2   77,188    95,422 
Note 3   75,000    -0- 
Note 4   75,000    -0- 
Total Notes Payable   304,376    190,844 

 

1)On September 8, 2015 the Company received a total of $100,000 from an accredited investor in exchange for a two year note in the aggregate amount of $100,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 3,161,583 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $100,000 10% promissory note due September 9, 2017 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or September 9, 2017.

 

2)On September 9, 2015 the Company received a total of $100,000 from an accredited investor in exchange for a two year note in the aggregate amount of $100,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 3,161,583 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $100,000 10% promissory note due September 9, 2017 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or September 9, 2017.

 

3)On  May 17, 2016 the Company received a total of $75,000 from an accredited investor in exchange for a two year note in the aggregate amount of $75,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 2,371,187 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $75,000, 10% promissory note due May 17 2018 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or May 17, 2018.

 

4)On May 9, 2016 the Company received a total of $75,000 from an accredited investor in exchange for a two year note in the aggregate amount of $75,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 2,371,187 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $75,000, 10% promissory note due May 9, 2018 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or May 9, 2018.

B) Related Party

 

     June 30,
2016
  December 31,
2015
                 
 
Loan payable - related party , Due December 31, 2017 (1)
  $ 250,000     $ 250,000  
                 
    $ 250,000     $ 250,000  

 

(1)   At December 31, 2013 the Company was indebted to an affiliated shareholder of the Company for $840,955, which consisted of $737,100 principal and $103,895 accrued interest, with interest accruing at 10%. On January 2, 2014 the Company entered into a Debt Modification Agreement whereby the total amount of the debt was reduced to $750,000.00 and there is no accrued interest or principal due until December 31, 2017. $500,000 of the debt is convertible into 50,000 Series C Convertible Preferred Shares of AFAI, which if converted are subject to resale restrictions through December 31, 2015. The two-year note in the aggregate amount of $500,000 is convertible into the Company’s preferred stock at a conversion rate of $10.00 per share of preferred. At a conversion rate of 433.9297 common shares to 1 preferred share, this would result in a total of 21,696,485 common shares issued if all debt was converted. The market value of the stock at the date of issuance of the debt was $0.04. The debt issued is a result of a financing transaction and contain a beneficial conversion feature valued at $500,000 to be amortized over the life of the debt. Total amortization for the quarter ended June 30, 2016 was $49,727. As of June 30, 2016, the balance of the debt was $500,000. The net balance reflected on the balance sheet is $199,454. The remaining $250,000 is not convertible. The company has imputed interest on both the convertible debt and the non-convertible debt. The company used an interest rate of 4% for calculation purposes. The net balance of $250,000 of the non-convertible portion is reflected on the balance sheet.  

 

 

 

 

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.5.0.2
6. STOCKHOLDERS EQUITY
6 Months Ended
Jun. 30, 2016
Equity [Abstract]  
6. STOCKHOLDERS EQUITY

NOTE 6 – STOCKHOLDERS’ EQUITY

 

The Company has 10,000,000 shares of preferred stock authorized with a par value of $0.001, of which 100,000 shares have been designated as Series C convertible preferred stock (“Series C” or “Series C preferred stock”). The Board has the authority to issue the shares in one or more series and to fix the designations, preferences, powers and other rights, as it deems appropriate.

 

Each share of Series C has 433.9297 votes on any matters submitted to a vote of the stockholders of the Company and is entitled to dividends equal to the dividends of 433.9297 shares of common stock. Each share of Series C preferred stock is convertible at any time at the option of the holder into 433.9297 shares of common stock.

 

The Company has 250,000,000 shares of common stock authorized with a par value of $0.001. Each share of common stock has one vote per share for the election of directors and all other items submitted to a vote of stockholders. The common stock does not have cumulative voting rights, preemptive, redemption or conversion rights.

 

In January of 2016 the Company received $100,000 from the sale of 2,222,222 restricted common shares of Kaya Holdings, Inc. stock to an accredited investor that is a current shareholder of the company.

 

In February of 2016 the Company issued 4,200,000 restricted common shares of Kaya Holdings, Inc. stock to an accredited investor that is a current shareholder of the company. As a conversion of $126,000 Note Payable due January 1, 2017.

 

In February of 2016 the Company issued

 

  · An aggregate of 200,000 shares to our two non-employee directors (100,000 shares each) for services as directors;

 

  · An aggregate of 1,435,000 shares to consultants for services rendered.

 

In April of 2016 the Company issued 150,000 restricted common shares of Kaya Holdings, Inc. stock to an accredited investor that is a current shareholder of the company. As a payment of interest on a Note Payable due January 1, 2017.

 

In April of 2016 the Company issued 1,200,249 common shares of Kaya Holdings, Inc. stock to an accredited investor that is a current shareholder of the company. As a conversion of preferred stock of 2,766 shares. On the same date the shareholder returned 2,454 preferred shares to be cancelled.

 

In June of 2016 the Company authorized the issuance of 100,000 restricted common shares of Kaya Holdings, Inc. stock as payment of consulting fees. The shares were valued at $7,610.

  

XML 21 R12.htm IDEA: XBRL DOCUMENT v3.5.0.2
7. DERIVATIVE LIABILITIES
6 Months Ended
Jun. 30, 2016
Notes to Financial Statements  
7. DERIVATIVE LIABILITIES

 

Note 7 Derivative Liabilities

 

The Company identified conversion features embedded within convertible debt and issued in 2013 and subsequent periods. The Company has determined that the features associated with the embedded conversion option, in the form a ratchet provision, should be accounted for at fair value, as a derivative liability, as the Company cannot determine if a sufficient number of shares would be available to settle all potential future conversion transactions.

 

Additionally, due to a recognition of tainting, due to shares not being held in reserve in 2014 all convertible notes are considered to have a derivative liability, therefore the Company accounted for these Notes under ASC Topic 815-15 “Embedded Derivative.”  The derivative component of the obligation is initially valued and classified as a derivative liability with an offset to discounts on convertible debt. Discounts are amortized to interest expense over the respective term of the related note. In determining the indicated value of the convertible note issued, the Company used the Black Scholes Option Model with a risk-free interest rate of ranging from 0.05% to 1.06%, volatility ranging from 141% of 221%, trading prices ranging from $.056 per share to $0.1 per share and a conversion price ranging from $0.03 per share to $0.04 per share.

 

As a result of the application of ASC No. 815, the fair value of the ratchet feature related to convertible debt and warrants is summarized as follow: 

 

Balance as of March 31, 2016   $ 3,446,588  
Change in Derivative Values     (282,563
Balance as of June 30, 2016   $ 3,164,025  

 

The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as June 30, 2016:

 

 

The Company recorded the debt discount to the extent of the gross proceeds raised, and expensed immediately the remaining fair value of the derivative liability, as it exceeded the gross proceeds of the note.  

 

The Company recorded a derivative expense of $-0- and $129,340 for the three and six months ended June 30, 2016

  

The Company recorded a change in the value of embedded derivative liabilities income/(expense) of $ 282,563 and $ 1,713,670 for the three and six months ended June 30, 2016, respectively.

XML 22 R13.htm IDEA: XBRL DOCUMENT v3.5.0.2
8. WARRANTS
6 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
8. WARRANTS

 

NOTE 8 Warrants

 

On May 9, 2016 the Company received a total of $75,000 from an accredited investor in exchange for a two year note in the aggregate amount of $75,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 2,371,187 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $75,000, 10% promissory note due May 9, 2018 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or May 9, 2018.

 

On May 17, 2016 the Company received a total of $75,000 from an accredited investor in exchange for a two year note in the aggregate amount of $75,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 2,371,187 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $75,000, 10% promissory note due May 17 2018 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or May 17, 2018.

 

Warrants issued to Non-Employees    
           
        Weighted Weighted
        Average Average
      Warrants Exercise Contract
      Issued Price Terms Years
Balance as of December 31, 2015  6,323,166 0.0316297  1.75
Granted      4,742,374 0.0316297  2.00
Exercised      -     -     -   
Expired      -     -     -   
Balance as of June 30, 2016  11,065,540 0.0316297  1.79

 

XML 23 R14.htm IDEA: XBRL DOCUMENT v3.5.0.2
9. RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2016
Related Party Transactions [Abstract]  
8. RELATED PARTY TRANSACTIONS

NOTE 9 RELATED PARTY TRANSACTIONS

 

The Company has agreements covering certain of its management personnel. Such agreements provide for minimum compensation levels and are subject to annual adjustment.

 

The Company’s Chief Executive Officer holds 50,000 shares of its Series C preferred stock. These shares can be converted into 21,696,485 shares of the Company’s common stock at his option.

 

The Company’s largest stockholder has from time to time provided unsecured loans to the Company, which is due on demand and bear interest at 10%. See Note 4 and 5 for the detail of the convertible and non-convertible debt with a face value of $750,000 

 

XML 24 R15.htm IDEA: XBRL DOCUMENT v3.5.0.2
10. SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2016
Subsequent Events [Abstract]  
10. SUBSEQUENT EVENTS

NOTE 10 SUBSEQUENT EVENTS

 

On July 19 of 2016 the Company received $50,000 from the issuance of convertible debt. Interest is stated at 12% The Note and Interest is convertible into common shares at $0.03 per share. Note is Due in January of 2017

XML 25 R16.htm IDEA: XBRL DOCUMENT v3.5.0.2
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND BASIS OF PRESENTATION (Policies)
6 Months Ended
Jun. 30, 2016
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements of the Company and the notes thereto have been prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). The December 31, 2015 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited financial statements and the notes thereto that are included in the Company’s Annual Report on form 10-K for the year ended December 31, 2015 filed with the SEC on May 5, 2016.

   

The accounting policies applied by the Company in these condensed interim financial statements are the same as those applied by the Company in its audited consolidated financial statements as at and for the year ended December 31, 2015. The quarterly information presented should be read in conjunction with the annual report filed on Form 10-K with the Securities and Exchange Commission.

Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.

 

Such estimates and assumptions impact both assets and liabilities, including but not limited to: net realizable value of accounts receivable and inventory, estimated useful lives and potential impairment of property and equipment, the valuation of intangible assets, estimate of fair value of share based payments and derivative liabilities, estimates of fair value of warrants issued and recorded as debt discount, estimates of tax liabilities and estimates of the probability and potential magnitude of contingent liabilities.

 

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future non-conforming events. Accordingly, actual results could differ significantly from estimates.

Risks and Uncertainties

Risks and Uncertainties

 

The Company’s operations are subject to risk and uncertainties including financial, operational, regulatory and other risks including the potential risk of business failure. 

 

The Company has experienced, and in the future expects to continue to experience, variability in its sales and earnings.  The factors expected to contribute to this variability include, among others, (i) the uncertainty associated with the commercialization and ultimate success of the product, (ii) competition inherent at other locations where product is expected to be sold (iii) general economic conditions and (iv) the related volatility of prices pertaining to the cost of sales. 

Fiscal Year

Fiscal Year

 

The Company’s fiscal year-end is December 31.

Principles of Consolidation

Principles of Consolidation

 

The consolidated financial statements include the accounts of Kaya Holdings, Inc. and its subsidiary, Alternative Fuels Americas, Inc. (a Florida corporation) and Marijuana Holdings Americas, Inc. (a Florida corporation) which is a majority owned subsidiary.  All inter-company accounts and transactions have been eliminated in consolidation.

Non-Controlling Interest

Non-Controlling Interest

 

The company owns 55% of Marijuana Holdings Americas, Inc.

Cash and Cash Equivalents

Cash and Cash Equivalents

 

Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less. The Company had no cash equivalents.

Inventory

Inventory

 

Inventory will consist of finished goods purchased, which are valued at the lower of cost or market value, with cost being determined on the first-in, first-out method.  The Company will periodically review historical sales activity to determine potentially obsolete items and also evaluates the impact of any anticipated changes in future demand.  

Property and Equipment

Property and Equipment

 

Property and equipment is stated at cost, less accumulated depreciation and is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  

 

Depreciation of property and equipment is provided utilizing the straight-line method over the estimated useful lives, ranging from 5-7 years of the respective assets. Expenditures for maintenance and repairs are charged to expense as incurred.

 

Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the statements of operations. 

Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level.

 

The following are the hierarchical levels of inputs to measure fair value:

 

  Level 1 – Observable inputs that reflect quoted market prices in active markets for identical assets or liabilities.

 

  Level 2 - Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

  Level 3 – Unobservable inputs reflecting the Company’s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

The carrying amounts of the Company’s financial assets and liabilities, such as cash, prepaid expenses, other current assets, accounts payable & accrued expenses, certain notes payable and notes payable – related party, approximate their fair values because of the short maturity of these instruments.

 

The Company accounts for its derivative liabilities, at fair value, on a recurring basis under level 3. See Note 6.

Embedded Conversion Features

Embedded Conversion Features

 

The Company evaluates embedded conversion features within convertible debt under ASC 815 “Derivatives and Hedging” to determine whether the embedded conversion feature(s) should be bifurcated from the host instrument and accounted for as a derivative at fair value with changes in fair value recorded in earnings. If the conversion feature does not require derivative treatment under ASC 815, the instrument is evaluated under ASC 470-20 “Debt with Conversion and Other Options” for consideration of any beneficial conversion feature.

Derivative Financial Instruments

Derivative Financial Instruments

 

The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of it financial instruments, including stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income.

 

For option-based simple derivative financial instruments, the Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period.

Beneficial Conversion Feature

Beneficial Conversion Feature

 

For conventional convertible debt where the rate of conversion is below market value, the Company records a "beneficial conversion feature" ("BCF") and related debt discount.

 

When the Company records a BCF, the relative fair value of the BCF is recorded as a debt discount against the face amount of the respective debt instrument (offset to additional paid in capital) and amortized to interest expense over the life of the debt.

Debt Issue Costs and Debt Discount

Debt Issue Costs and Debt Discount

 

The Company may record debt issue costs and/or debt discounts in connection with raising funds through the issuance of debt.  These costs may be paid in the form of cash, or equity (such as warrants). These costs are amortized to interest expense over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed.

Original Issue Discount

Original Issue Discount

 

For certain convertible debt issued, the Company may provide the debt holder with an original issue discount.  The original issue discount would be recorded to debt discount, reducing the face amount of the note and is amortized to interest expense over the life of the debt.

Extinguishments of Liabilities

Extinguishments of Liabilities

 

The Company accounts for extinguishments of liabilities in accordance with ASC 860-10 (formerly SFAS 140) “Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities”. When the conditions are met for extinguishment accounting, the liabilities are derecognized and the gain or loss on the sale is recognized.

Stock-Based Compensation - Employees

Stock-Based Compensation - Employees

 

The Company accounts for its stock based compensation in which the Company obtains employee services in share-based payment transactions under the recognition and measurement principles of the fair value recognition provisions of section 718-10-30 of the FASB Accounting Standards Codification. Pursuant to paragraph 718-10-30-6 of the FASB Accounting Standards Codification, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.  

 

The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur.  

 

If the Company is a newly formed corporation or shares of the Company are thinly traded, the use of share prices established in the Company’s most recent private placement memorandum (based on sales to third parties) (“PPM”), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.

 

The fair value of share options and similar instruments is estimated on the date of grant using a Black-Scholes option-pricing valuation model.  The ranges of assumptions for inputs are as follows:

 

[]

Expected term of share options and similar instruments: The expected life of options and similar instruments represents the period of time the option and/or warrant are expected to be outstanding. Pursuant to Paragraph 718-10-50-2(f)(2)(i) of the FASB Accounting Standards Codification the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and employees’ expected exercise and post-vesting employment termination behavior into the fair value (or calculated value) of the instruments.  Pursuant to paragraph 718-10-S99-1, it may be appropriate to use the simplified method, i.e., expected term = ((vesting term + original contractual term) / 2), if (i) A company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its equity shares have been publicly traded; (ii) A company significantly changes the terms of its share option grants or the types of employees that receive share option grants such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term; or (iii) A company has or expects to have significant structural changes in its business such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term. The Company uses the simplified method to calculate expected term of share options

and similar instruments as the company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term.

 

[] Expected volatility of the entity’s shares and the method used to estimate it.  Pursuant to ASC Paragraph 718-10-50-2(f)(2)(ii) a thinly-traded or nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for the Company to estimate the expected volatility of its share price, the appropriate industry sector index that it has selected, the reasons for selecting that particular index, and how it has calculated historical volatility using that index.  The Company uses the average historical volatility of the comparable companies over the expected contractual life of the share options or similar instruments as its expected volatility.  If shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.

  

[] Expected annual rate of quarterly dividends.  An entity that uses a method that employs different dividend rates during the contractual term shall disclose the range of expected dividends used and the weighted-average expected dividends.  The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments.

 

[] Risk-free rate(s). An entity that uses a method that employs different risk-free rates shall disclose the range of risk-free rates used.  The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the share options and similar instruments.

 

Generally, all forms of share-based payments, including stock option grants, warrants and restricted stock grants and stock appreciation rights are measured at their fair value on the awards’ grant date, based on estimated number of awards that are ultimately expected to vest.

 

The expense resulting from share-based payments is recorded in general and administrative expense in the statements of operations.

Stock-Based Compensation - Non Employees

Stock-Based Compensation – Non Employees

 

Equity Instruments Issued to Parties Other Than Employees for Acquiring Goods or Services

 

The Company accounts for equity instruments issued to parties other than employees for acquiring goods or services under guidance of Sub-topic 505-50 of the FASB Accounting Standards Codification (“Sub-topic 505-50”).

 

Pursuant to ASC Section 505-50-30, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.  The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur.  If the Company is a newly formed corporation or shares of the Company are thinly traded the use of share prices established in the Company’s most recent private placement memorandum (“PPM”), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.

 

The fair value of share options and similar instruments is estimated on the date of grant using a Black-Scholes option-pricing valuation model.  The ranges of assumptions for inputs are as follows:

 

[] Expected term of share options and similar instruments: Pursuant to Paragraph 718-10-50-2(f)(2)(i) of the FASB Accounting Standards Codification the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and holder’s expected exercise behavior into the fair value (or calculated value) of the instruments.  The Company uses historical data to estimate holder’s expected exercise behavior.  If the Company is a newly formed corporation or shares of the Company are thinly traded the contractual term of the share options and similar instruments is used as the expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term.

 

[] Expected volatility of the entity’s shares and the method used to estimate it.  Pursuant to ASC Paragraph 718-10-50-2(f)(2)(ii) a thinly-traded or nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for the Company to estimate the expected volatility of its share price, the appropriate industry sector index that it has selected, the reasons for selecting that particular index, and how it has calculated historical volatility using that index.  The Company uses the average historical volatility of the comparable companies over the expected contractual life of the share options or similar instruments as its expected volatility.  If shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market.

  

[] Expected annual rate of quarterly dividends.  An entity that uses a method that employs different dividend rates during the contractual term shall disclose the range of expected dividends used and the weighted-average expected dividends.  The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments.

 

[] Risk-free rate(s). An entity that uses a method that employs different risk-free rates shall disclose the range of risk-free rates used.  The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the share options and similar instruments.

 

Pursuant to ASC paragraph 505-50-25-7, if fully vested, non-forfeitable equity instruments are issued at the date the grantor and grantee enter into an agreement for goods or services (no specific performance is required by the grantee to retain those equity instruments), then, because of the elimination of any obligation on the part of the counterparty to earn the equity instruments, a measurement date has been reached. A grantor shall recognize the equity instruments when they are issued (in most cases, when the agreement is entered into). Whether the corresponding cost is an immediate expense or a prepaid asset (or whether the debit should be characterized as contra-equity under the requirements of paragraph 505-50-45-1) depends on the specific facts and circumstances. Pursuant to ASC paragraph 505-50-45-1, a grantor may conclude that an asset (other than a note or a receivable) has been received in return for fully vested, non-forfeitable equity instruments that are issued at the date the grantor and grantee enter into an agreement for goods or services (and no specific performance is required by the grantee in order to retain those equity instruments). Such an asset shall not be displayed as contra-equity by the grantor of the equity instruments. The transferability (or lack thereof) of the equity instruments shall not affect the balance sheet display of the asset. This guidance is limited to transactions in which equity instruments are transferred to other than employees in exchange for goods or services. Section 505-50-30 provides guidance on the determination of the measurement date for transactions that are within the scope of this Subtopic.

 

Pursuant to Paragraphs 505-50-25-8 and 505-50-25-9, an entity may grant fully vested, non-forfeitable equity instruments that are exercisable by the grantee only after a specified period of time if the terms of the agreement provide for earlier exercisability if the grantee achieves specified performance conditions. Any measured cost of the transaction shall be recognized in the same period(s) and in the same manner as if the entity had paid cash for the goods or services or used cash rebates as a sales discount instead of paying with, or using, the equity instruments. A recognized asset, expense, or sales discount shall not be reversed if a share option and similar instrument that the counterparty has the right to exercise expires unexercised.

 

Pursuant to ASC paragraph 505-50-30-S99-1, if the Company receives a right to receive future services in exchange for unvested, forfeitable equity instruments, those equity instruments are treated as unissued for accounting purposes until the future services are received (that is, the instruments are not considered issued until they vest). Consequently, there would be no recognition at the measurement date and no entry should be recorded.

Revenue Recognition

Revenue Recognition

  

Revenue is recorded when all of the following have occurred: (1) persuasive evidence of an arrangement exists, (2) asset is transferred to the customer without further obligation, (3) the sales price to the customer is fixed or determinable, and (4) collectability is reasonably assured.

Cost of Sales

Cost of Sales  

 

Cost of sales represents costs directly related to the purchase of goods and third party testing of the Company’s products.    

Related Parties

Related Parties

 

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

 

Pursuant to Section 850-10-20 the related parties include a. affiliates of the Company; b. Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

 

The consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

Contingencies

Contingencies

 

The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

 

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

 

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, consolidated financial position, and consolidated results of operations or consolidated cash flows.

Subsequent Events

Subsequent Events

 

The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements are issued.

  

Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements 

 

In May 2014, the FASB has issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”.  The guidance in this update supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition.”  In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (for example, assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this Update.  Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  The amendments in ASU No, 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted.  We do not believe the adoption of this update will have a material impact on our financial statements.

 

 Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

Re-Classifications

Re-Classifications

 

Certain amounts in 2015 were reclassified to conform to the 2016 presentation. These reclassifications had no effect on consolidated net loss for the periods presented.

 

The fair value of the warrants on the date of issuance and on each re-measurement date of those warrants classified as liabilities is estimated using the Black-Scholes option pricing model using the following assumptions: contractual life according to the remaining terms of the warrants, no dividend yield, weighted average risk-free interest rate of .59% at June 30, 2016 and weighted average volatility of 141%. For this liability, the Company developed its own assumptions that do not have observable inputs or available market data to support the fair value. This method of valuation involves using inputs such as the fair value of the Company's various classes of preferred stock, stock price volatility, the contractual term of the warrants, risk free interest rates and dividend yields. Due to the nature of these inputs, the valuation of the warrants is considered a Level 3 measurement. The warrant liability is recorded in other liabilities on the Company's Consolidated Balance Sheets. The warrant liability is marked-to-market each reporting period with the change in fair value recorded on the Consolidated Statement of Operations and Comprehensive Loss until the warrants are exercised, expire or other facts and circumstances lead the warrant liability to be reclassified as an equity instrument.

XML 26 R17.htm IDEA: XBRL DOCUMENT v3.5.0.2
4. CONVERTIBLE DEBT (Tables)
6 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
Convertible Debt

  June 30, 2016  December 31, 2015
Convertible note - related party, Due December 31, 2017 (2)   500,000    500,000 
Convertible note - 12% due January 1, 2017 (3)   58,556    58,556 
Convertible note - 12% due January 1, 2017 (3)   28,278    28,278 
Convertible note - 12% due January 1, 2017 (3)   186,316    186,316 
Convertible note - 12% due January 1, 2017 (3)   -0-    126,000 
Convertible note - 12% due January 1, 2017 (3)   117,113    117,113 
Convertible note - 12% due January 1, 2017 (3)   117,113    117,113 
Convertible note - 12% due January 1, 2017 (3)   55,895    55,895 
Convertible note - 12% due January 1, 2017 (3)   67,074    67,074 
Convertible note - 12% due January 1, 2017 (3)   23,442    23,442 
Convertible note - 12% due January 1, 2017 (3)   23,442    23,442 
Convertible note - 12% due January 1, 2017  (3)   27,116    27,116 
Convertible note - 12% due January 1, 2017 (3)   116,966    116,966 
Convertible note – 10% due January 1, 2017 (3)   25,000    25,000 
Convertible note – 10% due January 1, 2017 (6)   50,000    -0- 
Convertible note – 10% due January 1, 2017 (5)   100,000    -0- 
Convertible note – 10% due September 21, 2017 (4)   50,000    50,000 
Convertible note – 10% due September 21, 2017 (4)   100,000    100,000 
Convertible note – 10% due September 21, 2017 (4)   50,000    50,000 
Convertible note - stockholder, 10%, due April 30, 2013, unsecured (1)   25,000    25,000 
Convertible note – 10% due April, 1, 2016 (7)   23,500    23,500 
Totals   1,745,811    1,721,811 

 

XML 27 R18.htm IDEA: XBRL DOCUMENT v3.5.0.2
5. NOTES PAYABLE (Tables)
6 Months Ended
Jun. 30, 2016
Notes Payable Tables  
Non-related party

 

      30-Jun-16       31-Dec-15  
Note 1     77,188       95,422  
Note 2     77,188       95,422  
Note 3     75,000       -0-  
Note 4     75,000       -0-  
Total Non-Convertible Debt     304,376       190,844  
Related Party

     June 30,
2016
  December 31,
2015
                 
 
Loan payable - related party , Due December 31, 2017 (1)
  $ 250,000     $ 250,000  
                 
    $ 250,000     $ 250,000  

 

XML 28 R19.htm IDEA: XBRL DOCUMENT v3.5.0.2
7. DERIVATIVE LIABILITIES (Tables)
6 Months Ended
Jun. 30, 2016
Derivative Liabilities Tables  
Derivative Liabilities

Balance as of March 31, 2016   $ 3,446,588  
Change in Derivative Values     (282,563
Balance as of June 30, 2016   $ 3,164,025  

 

XML 29 R20.htm IDEA: XBRL DOCUMENT v3.5.0.2
8. WARRANTS (Tables)
6 Months Ended
Jun. 30, 2016
Warrants Tables  
Warrants
Warrants issued to Non-Employees    
           
        Weighted Weighted
        Average Average
      Warrants Exercise Contract
      Issued Price Terms Years
Balance as of December 31, 2015  6,323,166 0.0316297  1.75
Granted      4,742,374 0.0316297  2.00
Exercised      -     -     -   
Expired      -     -     -   
Balance as of June 30, 2016  11,065,540 0.0316297  1.79

 

XML 30 R21.htm IDEA: XBRL DOCUMENT v3.5.0.2
2. LIQUIDITY AND GOING CONCERN (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2016
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Net Loss $ 400,923 $ 169,425 $ (1,581,379) $ 3,225,397
Working Capital Deficiency     $ 2,369,035  
XML 31 R22.htm IDEA: XBRL DOCUMENT v3.5.0.2
4. CONVERTIBLE DEBT - Convertible Debt (Details) - USD ($)
Jun. 30, 2015
Dec. 31, 2014
Dec. 30, 2014
Convertible Debt $ 1,745,811 $ 1,721,811  
Convertible Note 1      
Convertible Debt [1] 500,000 500,000  
Convertible Note 2      
Convertible Debt [2] 58,556 58,556  
Convertible Note 3      
Convertible Debt [2] 28,278 28,278  
Convertible Note 4      
Convertible Debt [2] 186,316 186,316  
Convertible Note 5      
Convertible Debt [2] 0 126,000  
Convertible Note 6      
Convertible Debt [2] 117,113 117,113  
Convertible Note 7      
Convertible Debt [2] 117,113 117,113  
Convertible Note 8      
Convertible Debt [2] 55,895 55,895  
Convertible Note 9      
Convertible Debt [2] 67,074 67,074  
Convertible Note 10      
Convertible Debt [2] 23,442 23,442  
Convertible Note 11      
Convertible Debt [2] 23,442 23,442  
Convertible Note 12      
Convertible Debt [2] 27,116 27,116  
Convertible Note 13      
Convertible Debt [2] 116,966 116,966  
Convertible Note 14      
Convertible Debt [2] 25,000 25,000  
Convertible Note 15      
Convertible Debt [3] 50,000 0  
Convertible Note 16      
Convertible Debt 100,000 0  
Convertible Note 17      
Convertible Debt 50,000 50,000  
Convertible Note 18      
Convertible Debt 100,000 100,000  
Convertible Note 19      
Convertible Debt 50,000 50,000  
Convertible Note 20      
Convertible Debt [4] 25,000   $ 25,000
Convertible Note 21      
Convertible Debt [5] $ 23,500 $ 23,500  
[1] At December 31, 2013 the Company was indebted to an affiliated shareholder of the Company for $840,955, which consisted of $737,100 principal and $103,895 accrued interest, with interest accruing at 10%. On January 2, 2014 the Company entered into a Debt Modification Agreement whereby the total amount of the debt was reduced to $750,000.00 and there is no accrued interest or principal due until December 31, 2017. $500,000 of the debt is convertible into 50,000 Series C Convertible Preferred Shares of AFAI, which if converted are subject to resale restrictions through December 31, 2015. The two-year note in the aggregate amount of $500,000 is convertible into the Company’s preferred stock at a conversion rate of $10.00 per share of preferred. At a conversion rate of 433.9297 common shares to 1 preferred share, this would result in a total of 21,696,485 common shares issued if all debt was converted. The market value of the stock at the date of issuance of the debt was $0.04. The debt issued is a result of a financing transaction and contain a beneficial conversion feature valued at $500,000 to be amortized over the life of the debt. Total amortization for the quarter ended June 30, 2016 was $49,727. As of June 30, 2016, the balance of the debt was $500,000. The net balance reflected on the balance sheet is $199,454. The remaining $250,000 is not convertible. The company has imputed interest on both the convertible debt and the non-convertible debt. The company used an interest rate of 4% for calculation purposes. The net balance of $250,000 of the non-convertible portion is reflected on the balance sheet.
[2] On December 31, 2015 the Company renegotiated twelve (12) convertible and non-convertible notes payable. The Total face value of the notes issued was $888,500 the six month notes were due on December 31, 2015. The new notes are convertible after January 1, 2016 and are convertible into the Company’s common stock at a conversion rate of $0.03 per share. The market value of the stock at the date when the debt becomes convertible was $0.087. The debt was issued is a result of a financing transaction and contain a derivative liability feature. As of December 31, 2015, the balance was $947,311. The beneficial conversion feature in the amount of $947,311 will be expensed as interest over the term of the note (one year). In determining the indicated value of the convertible note issued, the Company used the Black Scholes Option Model with a risk-free interest rate of ranging from 0.05% to 1.06%, volatility ranging from 141% of 221%, trading prices ranging from $.056 per share to $0.1 per share and a conversion price ranging from $0.03 per share to $0.04 per share. The total derivative liabilities associated with these notes are $3,449,588 at June 30, 2016
[3] On March 31 of 2016 the Company received $100,000 from the issuance of convertible debt. Interest is stated at 12% The Note and Interest is convertible into common shares at $0.03 per share. Note is Due in January of 2017.
[4] At the option of the holder the convertible note may be converted into shares of the Company’s common stock at the lesser of $0.40 or 20% discount to the market price, as defined, of the Company’s common stock. The Company is currently in discussions with the lender on a payment schedule. Accrued interest on this note that was charged to operations for the quarter ended June 30, 2016 totaled approximately $935. The balance of the convertible note at June 30, 2016 including accrued interest and net of the discount amounted to $14,325. The Company valued the derivative liabilities at June 30, 2016 at $18,477. The Company recognized a change in the fair value of derivative liabilities for the three months ended June 30, 2015 of $1,788, which were credited to operations. In determining the indicated values at June 30, 2016, the Company used the Black Scholes Option Model with risk-free interest rates ranging from 0.018% to 0.02%, volatility ranging from 141% to 336%, a trading price of $.07, and conversion prices ranging from $.05 per share.
[5] On July 27, 2015 the company issued a note payable for $28,500 The Company agrees to pay to the Holder $28,500 plus accrued interest pursuant to the following schedule: An initial payment of $5,000 is due no later than December 1, 2015. This amount represents the balance of the security deposit due for the lease of Commercial/Manufacturing Space occupied by MJAI Oregon 1, LLC, a majority-owned subsidiary of the company. A final payment of $23,500 principal, plus any accrued Interest at 10% is due no later than April 1, 2016. This amount represents the balance of accrued rent due for the initial monthly lease payments from August 1, 2015 through June 30, 2016 The note is convertible after June 30, 2016 and is convertible into the Company’s common stock at a conversion rate of $0.10 per share or 20% discount to the thirty day moving average stock price.
XML 32 R23.htm IDEA: XBRL DOCUMENT v3.5.0.2
5. NOTES PAYABLE - Non-related party (Details) - USD ($)
Jun. 30, 2015
Dec. 31, 2014
Non-related party $ 304,376 $ 190,844
NotePayable1Member    
Non-related party [1] 77,188 95,422
NotePayable2Member    
Non-related party [2] 77,188 95,422
Note Payable 3    
Non-related party [3] 75,000 0
Note Payable 4    
Non-related party [4] $ 75,000 $ 0
[1] On September 8, 2015 the Company received a total of $100,000 from an accredited investor in exchange for a two year note in the aggregate amount of $100,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 3,161,583 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $100,000 10% promissory note due September 9, 2017 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or September 9, 2017.
[2] On September 9, 2015 the Company received a total of $100,000 from an accredited investor in exchange for a two year note in the aggregate amount of $100,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 3,161,583 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $100,000 10% promissory note due September 9, 2017 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or September 9, 2017.
[3] On May 17, 2016 the Company received a total of $75,000 from an accredited investor in exchange for a two year note in the aggregate amount of $75,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 2,371,187 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $75,000, 10% promissory note due May 17 2018 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or May 17, 2018.
[4] On May 9, 2016 the Company received a total of $75,000 from an accredited investor in exchange for a two year note in the aggregate amount of $75,000 with interest accruing at 10%. The note holder is entitled to subscribe for and purchase from the company 2,371,187 paid and non-assessable shares of the Common Stock at the price of $0.0316297 per share (the “Warrant Exercise Price”) for a period of five (5) years commencing from the earlier of such time as that certain $75,000, 10% promissory note due May 9, 2018 has been fully repaid or the start of the Acceleration Period as defined in “The Note” or May 9, 2018.
XML 33 R24.htm IDEA: XBRL DOCUMENT v3.5.0.2
5. NOTES PAYABLE - Related party (Details) - USD ($)
Jun. 30, 2016
Dec. 31, 2015
Notes Payable - Related Party Details    
Loan payable - related party , Due December 31, 2017 [1] $ 250,000 $ 250,000
[1] At December 31, 2013 the Company was indebted to an affiliated shareholder of the Company for $840,955, which consisted of $737,100 principal and $103,895 accrued interest, with interest accruing at 10%. On January 2, 2014 the Company entered into a Debt Modification Agreement whereby the total amount of the debt was reduced to $750,000.00 and there is no accrued interest or principal due until December 31, 2017. $500,000 of the debt is convertible into 50,000 Series C Convertible Preferred Shares of AFAI, which if converted are subject to resale restrictions through December 31, 2015. The two-year note in the aggregate amount of $500,000 is convertible into the Company’s preferred stock at a conversion rate of $10.00 per share of preferred. At a conversion rate of 433.9297 common shares to 1 preferred share, this would result in a total of 21,696,485 common shares issued if all debt was converted. The market value of the stock at the date of issuance of the debt was $0.04. The debt issued is a result of a financing transaction and contain a beneficial conversion feature valued at $500,000 to be amortized over the life of the debt. Total amortization for the quarter ended June 30, 2016 was $49,727. As of June 30, 2016, the balance of the debt was $500,000. The net balance reflected on the balance sheet is $199,454. The remaining $250,000 is not convertible. The company has imputed interest on both the convertible debt and the non-convertible debt. The company used an interest rate of 4% for calculation purposes. The net balance of $250,000 of the non-convertible portion is reflected on the balance sheet.
XML 34 R25.htm IDEA: XBRL DOCUMENT v3.5.0.2
7. DERIVATIVE LIABILITIES (Details)
Jun. 30, 2016
USD ($)
Derivative Liabilities Details  
Balance as of March 31, 2016 $ 3,446,588
Change in Derivative Values (282,563)
Balance as of June 30, 2016 $ 3,164,025
XML 35 R26.htm IDEA: XBRL DOCUMENT v3.5.0.2
8. WARRANTS (Details)
6 Months Ended
Jun. 30, 2016
$ / shares
shares
Number of Warrants  
Number of Warrants Outstanding, Beginning 6,323,166
Number of Warrants, Granted 4,742,374
Number of Warrants, Exercised
Number of Warrants, Expired
Number of Warrants Outstanding, Ending 11,065,540
Weighted Average Exercise Price  
Weighted Average Exercise Price, Beginning | $ / shares $ 0.0316297
Weighted Average Exercise Price, Granted | $ / shares 0.0316297
Weighted Average Exercise Price, Ending | $ / shares $ 0.0316297
Weighted Average Contract Term Years 1 year 9 months 14 days
EXCEL 36 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx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end XML 37 Show.js IDEA: XBRL DOCUMENT /** * Rivet Software Inc. * * @copyright Copyright (c) 2006-2011 Rivet Software, Inc. All rights reserved. * Version 2.4.0.3 * */ var Show = {}; Show.LastAR = null, Show.hideAR = function(){ Show.LastAR.style.display = 'none'; }; Show.showAR = function ( link, id, win ){ if( Show.LastAR ){ Show.hideAR(); } var ref = link; do { ref = ref.nextSibling; } while (ref && ref.nodeName != 'TABLE'); if (!ref || ref.nodeName != 'TABLE') { var tmp = win ? win.document.getElementById(id) : document.getElementById(id); if( tmp ){ ref = tmp.cloneNode(true); ref.id = ''; link.parentNode.appendChild(ref); } } if( ref ){ ref.style.display = 'block'; Show.LastAR = ref; } }; Show.toggleNext = function( link ){ var ref = link; do{ ref = ref.nextSibling; }while( ref.nodeName != 'DIV' ); if( ref.style && ref.style.display && ref.style.display == 'none' ){ ref.style.display = 'block'; if( link.textContent ){ link.textContent = link.textContent.replace( '+', '-' ); }else{ link.innerText = link.innerText.replace( '+', '-' ); } }else{ ref.style.display = 'none'; if( link.textContent ){ link.textContent = link.textContent.replace( '-', '+' ); }else{ link.innerText = link.innerText.replace( '-', '+' ); } } }; XML 38 report.css IDEA: XBRL DOCUMENT /* Updated 2009-11-04 */ /* v2.2.0.24 */ /* DefRef Styles */ ..report table.authRefData{ background-color: #def; border: 2px solid #2F4497; font-size: 1em; position: absolute; } ..report table.authRefData a { display: block; font-weight: bold; } ..report table.authRefData p { margin-top: 0px; } ..report table.authRefData .hide { background-color: #2F4497; padding: 1px 3px 0px 0px; text-align: right; } ..report table.authRefData .hide a:hover { background-color: #2F4497; } ..report table.authRefData .body { height: 150px; overflow: auto; width: 400px; } ..report table.authRefData table{ font-size: 1em; } /* Report Styles */ ..pl a, .pl a:visited { color: black; text-decoration: none; } /* table */ ..report { background-color: white; border: 2px solid #acf; clear: both; color: black; font: normal 8pt Helvetica, Arial, san-serif; margin-bottom: 2em; } ..report hr { border: 1px solid #acf; } /* Top labels */ ..report th { background-color: #acf; color: black; font-weight: bold; text-align: center; } ..report th.void { background-color: transparent; color: #000000; font: bold 10pt Helvetica, Arial, san-serif; text-align: left; } ..report .pl { text-align: left; vertical-align: top; white-space: normal; width: 200px; white-space: normal; /* word-wrap: break-word; */ } ..report td.pl a.a { cursor: pointer; display: block; width: 200px; overflow: hidden; } ..report td.pl div.a { width: 200px; } ..report td.pl a:hover { background-color: #ffc; } /* Header rows... */ ..report tr.rh { background-color: #acf; color: black; font-weight: bold; } /* Calendars... */ ..report .rc { background-color: #f0f0f0; } /* Even rows... */ ..report .re, .report .reu { background-color: #def; } ..report .reu td { border-bottom: 1px solid black; } /* Odd rows... */ ..report .ro, .report .rou { background-color: white; } ..report .rou td { border-bottom: 1px solid black; } ..report .rou table td, .report .reu table td { border-bottom: 0px solid black; } /* styles for footnote marker */ ..report .fn { white-space: nowrap; } /* styles for numeric types */ ..report .num, .report .nump { text-align: right; white-space: nowrap; } ..report .nump { padding-left: 2em; } ..report .nump { padding: 0px 0.4em 0px 2em; } /* styles for text types */ ..report .text { text-align: left; white-space: normal; } ..report .text .big { margin-bottom: 1em; width: 17em; } ..report .text .more { display: none; } ..report .text .note { font-style: italic; font-weight: bold; } ..report .text .small { width: 10em; } ..report sup { font-style: italic; } ..report .outerFootnotes { font-size: 1em; } XML 40 FilingSummary.xml IDEA: XBRL DOCUMENT 3.5.0.2 html 60 157 1 true 25 0 false 3 false false R1.htm 00000001 - Document - Document and Entity Information Sheet http://AFAI/role/DocumentAndEntityInformation Document and Entity Information Cover 1 false false R2.htm 00000002 - Statement - Balance Sheets (Unaudited) Sheet http://AFAI/role/BalanceSheets Balance Sheets (Unaudited) Statements 2 false false R3.htm 00000003 - Statement - Balance Sheets (Parenthetical) Sheet http://AFAI/role/BalanceSheetsParenthetical Balance Sheets (Parenthetical) Statements 3 false false R4.htm 00000004 - Statement - Statements of Operations (Unaudited) Sheet http://AFAI/role/StatementsOfOperations Statements of Operations (Unaudited) Statements 4 false false R5.htm 00000005 - Statement - Statements of Cash Flows (Unaudited) Sheet http://AFAI/role/StatementsOfCashFlows Statements of Cash Flows (Unaudited) Statements 5 false false R6.htm 00000006 - Disclosure - 1. ORGANIZATION AND NATURE OF THE BUSINESS Sheet http://AFAI/role/OrganizationAndNatureOfBusiness 1. ORGANIZATION AND NATURE OF THE BUSINESS Notes 6 false false R7.htm 00000007 - Disclosure - 2. LIQUIDITY AND GOING CONCERN Sheet http://AFAI/role/LiquidityAndGoingConcern 2. LIQUIDITY AND GOING CONCERN Notes 7 false false R8.htm 00000008 - Disclosure - 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND BASIS OF PRESENTATION Sheet http://AFAI/role/SummaryOfSignificantAccountingPolicesAndBasisOfPresentation 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND BASIS OF PRESENTATION Notes 8 false false R9.htm 00000009 - Disclosure - 4. CONVERTIBLE DEBT Sheet http://AFAI/role/ConvertibleDebt 4. CONVERTIBLE DEBT Notes 9 false false R10.htm 00000010 - Disclosure - 5. NOTES PAYABLE Notes http://AFAI/role/NotesPayable 5. NOTES PAYABLE Notes 10 false false R11.htm 00000011 - Disclosure - 6. STOCKHOLDERS EQUITY Sheet http://AFAI/role/StockholdersEquity 6. STOCKHOLDERS EQUITY Notes 11 false false R12.htm 00000012 - Disclosure - 7. DERIVATIVE LIABILITIES Sheet http://AFAI/role/DerivativeLiabilities 7. DERIVATIVE LIABILITIES Notes 12 false false R13.htm 00000013 - Disclosure - 8. WARRANTS Sheet http://AFAI/role/Warrants 8. WARRANTS Notes 13 false false R14.htm 00000014 - Disclosure - 9. RELATED PARTY TRANSACTIONS Sheet http://AFAI/role/RelatedPartyTransactions 9. RELATED PARTY TRANSACTIONS Notes 14 false false R15.htm 00000015 - Disclosure - 10. SUBSEQUENT EVENTS Sheet http://AFAI/role/SubsequentEvents 10. SUBSEQUENT EVENTS Notes 15 false false R16.htm 00000016 - Disclosure - 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND BASIS OF PRESENTATION (Policies) Sheet http://AFAI/role/SummaryOfSignificantAccountingPolicesAndBasisOfPresentationPolicies 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND BASIS OF PRESENTATION (Policies) Policies 16 false false R17.htm 00000017 - Disclosure - 4. CONVERTIBLE DEBT (Tables) Sheet http://AFAI/role/ConvertibleDebtTables 4. CONVERTIBLE DEBT (Tables) Tables http://AFAI/role/ConvertibleDebt 17 false false R18.htm 00000018 - Disclosure - 5. NOTES PAYABLE (Tables) Notes http://AFAI/role/NotesPayableTables 5. NOTES PAYABLE (Tables) Tables http://AFAI/role/NotesPayable 18 false false R19.htm 00000019 - Disclosure - 7. DERIVATIVE LIABILITIES (Tables) Sheet http://AFAI/role/DerivativeLiabilitiesTables 7. DERIVATIVE LIABILITIES (Tables) Tables http://AFAI/role/DerivativeLiabilities 19 false false R20.htm 00000020 - Disclosure - 8. WARRANTS (Tables) Sheet http://AFAI/role/WarrantsTables 8. WARRANTS (Tables) Tables http://AFAI/role/Warrants 20 false false R21.htm 00000021 - Disclosure - 2. LIQUIDITY AND GOING CONCERN (Details Narrative) Sheet http://AFAI/role/LiquidityAndGoingConcernDetailsNarrative 2. LIQUIDITY AND GOING CONCERN (Details Narrative) Details http://AFAI/role/LiquidityAndGoingConcern 21 false false R22.htm 00000022 - Disclosure - 4. CONVERTIBLE DEBT - Convertible Debt (Details) Sheet http://AFAI/role/ConvertibleDebt-ConvertibleDebtDetails 4. CONVERTIBLE DEBT - Convertible Debt (Details) Details 22 false false R23.htm 00000023 - Disclosure - 5. NOTES PAYABLE - Non-related party (Details) Notes http://AFAI/role/Non-convertibleDebtDetails 5. NOTES PAYABLE - Non-related party (Details) Details 23 false false R24.htm 00000024 - Disclosure - 5. NOTES PAYABLE - Related party (Details) Notes http://AFAI/role/NotesPayable-RelatedPartyDetails 5. NOTES PAYABLE - Related party (Details) Details 24 false false R25.htm 00000025 - Disclosure - 7. DERIVATIVE LIABILITIES (Details) Sheet http://AFAI/role/DerivativeLiabilitiesDetails 7. DERIVATIVE LIABILITIES (Details) Details http://AFAI/role/DerivativeLiabilitiesTables 25 false false R26.htm 00000026 - Disclosure - 8. WARRANTS (Details) Sheet http://AFAI/role/WarrantsDetails 8. WARRANTS (Details) Details http://AFAI/role/WarrantsTables 26 false false All Reports Book All Reports afai-20160630.xml afai-20160630.xsd afai-20160630_cal.xml afai-20160630_def.xml afai-20160630_lab.xml afai-20160630_pre.xml true true ZIP 42 0000721748-16-001610-xbrl.zip IDEA: XBRL DOCUMENT begin 644 0000721748-16-001610-xbrl.zip M4$L#!!0 ( &]W%DG&.[G)CJ0 #'S!0 1 869A:2TR,#$V,#8S,"YX M;6SLO6ESV]C5(/Q]JN8_8/S8SRO5D#0IB5KL=*9D64Z4;B^Q[.3)3$U-@>"E MB#8(L+%HR:]_SW)7 *2HE9"%+-T4"=SEW+/=L_[I?UW.(N]?']M'MX>G1R\L+[7W_^[__-@__\Z7]TN]Z'4$3C-][[).B> MQ)/DK??)GXDWWE]$+%(_3]*WWC_\J,!OD@]A)%+O*)G-(Y$+^(%G>N/M] 9; MOM?MKC#N/T0\3M+O7T_TN-,\G[]Y_?KBXJ(7)^?^19+^R'I!LMIPITF1!D*/ MU=_?&@QVO5\/_W7H#?I_/^Q=3F #[_T\6)2].SU M5K\_>/U?'W\[#:9BYG?#.,O].! OU%M1&/^H>V]P<'#PFGY5CU:>Q,G5'-NO M\>>1GYF1<8%+GJ^L!'X=Y_H%^^'A:_[1>32L?727'PW5HV-1>BX30>\L.7\- M/\#S@YUN?]#='JC'4S%9N.3=U_"K>C#,DIVMP=ZR_?$3ZH4BZY[Y_ER_,/&S M$3TL?\#%#-W%P"]I$HFL]AWZI>:E.(GC8E:_KG&>OLZOYN(U/-2%IT0:!OJ] MZU]R7X UX-?UJZ-?:E9W^.'P1+^ ?^ SN_W=[?X+11.(1V\RPM:O8N(1"KZ9 MTL'X$S_LJA=ZE]GXA?P9I_OE118BHWCAO59#,8T$29R+R]P+Q[^\^) F,[6J M_B!/^/-NU\RO7Q-Q'N97^EO]?3C&7R8A<"9:I7# IM#KZ.37%W\&:AT,M_M[ M.[M_>EU^V4SWNG8^.=L<0)Z,JZL VDESY#-_-MM1(YG?*J\!,[1>PGV;Z,P_^ '803+/KP,LQ=_1JWH376K?WI= M.ZJ]HM?U2WI*_+T]ZO4>]8-*J6NI>NOY'/76VH]ZO53='O6SH>KMYW/4VVL_ MZO52=7O4/S=5'R7QN4CS$/:/H/C95;/Z[3XOZFZ/_+E3^<^NJM5O]UE3>7OD MSX[*?W;5K7Z[SYK*VR-_=E2^\[R.?&?M1[Y^*F^/_-E1^?!Y'?EP[4>^?BIO MC_S94?GN\SKRW;4?^?JIO#WR9T?E>\_KR/?6?N3KI_+VR)\=E>\_KR/?7_N1 MKY_*VR-_=E1^\+R._&#M1[Y^*F^/_-E1^:#_O,Y<[?=9TWE[Z#\EI3_-+"HW M@?'!*>-IID Y[.-1'\V.D=B^.]__9'<[5K3XO MS:<]ZI]7W[GF9O/^C/D-*?603X8/TAX V@]/;0GR&E2T/. MHI^?69#X8/U1X@U@!"U.- PG&L G?O:[WH+]/F]&T![Z,Z3T9Q9+/EA_,'D# M*+T]]&=(Z<\LGGRP_H#R!E!Z>^C/D-*?64SY8/U!Y0V@]/;0GR&E/[.X\L'Z M \L;0.GMH3]#2G]FL>6#]0>7-X#2VT-_?I2^])3>'GIC#ET> MR#HI_9D%6VVM/]AJ_3*]/?2G+].+..03_W[ZOG*.,^%G12K^+%L"OH%GU&#J M)W<*'&W!^*=3/Q79PBDDO.BA6\\!Z_NR8)YQ> X(5(4MOOL)&P1B"\\J_MP M!N4UUHUJ3?I>Q,DLC*^;]GJXE.>M&UC][D"A#J!C$;XY)N3\*L["+$\!N["O MIR>1YRNV,US6M>M7_\KW_II$V$HUZW@G<=#[T^M%HU9G/0+*2/WH)!Z+RU_% MUU4HX6C MV=,=PJ]C?.)#Y)^M/,W$CS+!,S@#V",?%6F*7X=9X$?_$GYZT[UT%:=:-EH5 M ?XIHNC7.+F(3P')DUB,3[*L +:]ZK2?$AL!%HQ6G?8?253$N9]>4>O>[);3 ME4:I06^&PUJ;_?N62P25D19/AQAVL\GP<]UT>J2:LTQF MLR0^S9/@!\NHA_R6?I"BRAN+( 1@9[^\./GT ;G,8&]_ MN+N_XYSUDMG4VI0^\Z[(PEADV7N1!6DXST'9.8S'[_PLA)5\@7=A>SY^^PV6 M^"Z"(5>&TW]&^=NYE^57$>AN$WCIC3?HS_/7<9+"#KQOH%QEWB=QX7U-9G[< MX2\ZWBFCA;UX_",_CS=] NP\G5B_\\R]_B!"/\\.GS MMV-OX/VG/YN__8_!$%[Y_/4OAY]._O?AMY//G[S#3^^]3X??OG\]_L__&&R_ M_?S!^_;78^_=]].33\>GISC*ZY$:[_6L,PYHWQ M1G;[C[XD#=<"/WQ.S_PX_#>=/ZVD:,%DP%2COG@??CWT-@ZC7*2@5(7G@E;R MH1!1YAU29VE?/KGIA9GG>U-^'6B*V&7/^S85BG=Z%W[FA7&0I,!4@6V.X0]O M<'"P[0$I>U/X4<1G_AE_[WMQ07>69.*-)$V+K.>=Y!FM(4;%# <,IGZ,[R2Q M]]&_\@:#CK?5[^]Y>0+ R$_G?B!@@7(#20R0*FUQP_?>B\B_ ,;BJ;7!@YO> MACR/G;VW:B3US?[;S9X>GM;C!W\4(=REX$SZKW#1%M"\.H#AO!^B) W'OCLM M;/YO?ER ),5N]'T&1H;,KSM)TNZ,KW(A;DEDN8<*9>8'A-*T$(!EB))^[.UV MAKM[G:V=/8]U:%Q60+R4QR.XPWH[V*'>/((8 Y^.D#&J*Z W3\5$I+A!?A7 M*^"R2+*17L63![G?HT4X7P(%G37.F!NL4D>R^S;S""DFP,+=LUEZ_+"B58ZJ%D5ZY8TLVR@M9?EF M/_II,,6M#F^PU5NOGA8$ZZRA^Y8E,DNTN1>.MPAL7 MDOK%-(3S!L9Y =0377F@K(MQA\@24"'\O?!C1CP^\WWX[ZGD=Y\LM_-+]:AN_8GA8W^[0VRV. MEK1&_!"2^@A7H93X$3(/I1'3XD*M\(S,,M>V_J:"U"9[1G>!!&,HI&/HDU:T M@$8["X@4SL7/O7F1@IC.O)D8PRL1HOGK)/52$:1"":LH#$0,BH\'HI].\RQ- M+F"F#@CD)(!311'!+])",C^B@Y]I]@&4]WN1AAG,P41[,06Z]-!JF'F1...) M/=CE#-0&DO4%G$?JP=T(%^!?9*S%F=VST )@EZ363DN3$H%.;*@LY>5204$A MH7@H U[R.EO:;'HC.*^8\,"?H_F==0B)"JAS)*/[6U*\30+TF:1X#E'34[8CQ"5OQ1 .)$UH8F1:2H#F9FC5K-KFB0 M)S4REA2HTZD?_/CVTLNZC"#(@+EC0F)[Z'IN>![ M#?!19I!Z%.3Q+;> MI>]P=,6CJU: &A?]<,97Y-("X(H,[P (,H%OX>3?XQ ?1 .HR)P+-]\X -4D M<#*!2ISW\>-[T$CA R_;8*^R-VV_M2CIM "8P9TO%9NE^]@0_SX%@3/K:+;Q M'D0- 5_[3A7%R*D*$M0C\R2""1B+E=5/AA<&6!',8%++8_F:)P 1I#$\#4( MJHET6];1> \DL+-:9K62 1BL80 [0M= &\5IIH@4[T\A #ND,QH):>M$K1C5 MYR02T956A.DXO-^8#Q/,89PP#J)BK/@*\$8X1V0!S+2=SV)EBYH K M.:S:Q[L_7$=\K:H[_-S2SZ+_^IY^BF,D^IU_#LVF>W<[\FV-5*2\0493- ??BLU]> M]%_0WW,\!_FWRP '\]P[ EXV2L,.",;H7""9 ]>#(^U*UG<1CO/I&[(=O?5& M20IK[P9P)?3GF7CCJ4\O#+?%M:1J(L4Y%,<<)7F>S,S3""AZ ^7U1>K/?WG! M_WZ!0\-.XE]>[.AERYUT4X33&V_8VYGG;SWU;20FYLL(#JT+'/3W7ND+ M">Z]*@B62P!Z69V3LF&A&2^)N\>S>91<"<&W&!Q17V3R\2H;O;?-N0*P"9/3 MQ_3^<4..('%S!U%SK>!31-*0=>PW9!V#QBQDV)2%/"!$'IC8?D;^U$[^T)/? M2>#2:&*\=L'ZH)MHR;:=O'&3WP7C#P%I_3/QI*E6[L%KJ;:=_-$OF$^:PN[M8 M+#V%#?5[_>W![M;!WI/>A3F606]O>*^*0AUY7DS#7#RN!G$7Z/R% R?6?L+/ M0!%Y4-S>Z>SM;'6V]W9:EK/^79ACV>KU^P_.'G>&.O$,\$VIR+X'/9-..F>I@E?.N812O*;C8 M^:H1Z1TF2OO6,=:5(AT=N5/90^FPU[QPG7CI!S)C!I,6BM@OQI3?@ID6E$M!*W&R2"9A M#!(GA!5DF'6!^?>9RGY5&128SH!_QPGF!D;]BWAX6Q:/A#%.^1@"]P\J_BK(@XK>BT^U]J M.:!:*(X*>"V!U0+<9/H*G%!$N29!E& IMLQ+!=>^ MH)6,K@A^3-< 5G@IG$?PU)F(14JI,_"[F,OZ'Y4,)EE& ;,C><,U*.!=>_PR MG9'6._;PM&&N;)H4$28=PHI]FAW&^;V( Z[$H(YZ*4#J\8C2&SD_2$X9QC+' MI[9ZPV$<%S NEY?"TB43B4F_ZKRT*^&GGHAQK,J1R\0,Y8"V-]T-AN4/A:QEB?.+:2)E'6/[YGH,,Z>].HE4+[JD@,LP M+]4_$ZK S\S_(3RAT0CQUL^R8C9G+8&%PF0B@ES+ G^&PV>2(HP(7"AK'&V( MA$Y36?NCH\!I$4R7@#\$L$G(CQ(X?+&BT%O C87A?^FU,]S/RJ(-"6B9+)R /W(R;7G *4$4_O5TI@]%YF8%%A: MX%RN=0Z'&6,R,:TT3 FK8.1YBBG!.:NLB'AS_(6SJ7%ZC>\@6K!&%,U,>S-3 M$CG F'J]7!P$ZW2!3HAR:>Y?&20C?="G"E(.: QPR^.!&NGF:>(P*=Z\4;"0 MBCG*24E$*%DC<4XZ*,/^I3T7;]:>+B<"3T;\R%4)9#/_#)1&5$:IIAE1+,+/ M&K*E$TDG'_T?B-T&NC7LC!D4UG1C[ZZ7P3!4N R ^GLQIE+>6'V/2D>I_/.4 M*LL"[E_!T: R@I@,ETJ&$:%#,L M\QD(R4NIX!RB%T\PM@:OXY\J;]]BVJ@TA6.9ZTY*-]W1 #JH6JD5RQL5*CE2 M"Y%<.D;="52CF3<&*L!T_!A6D'JS!.AJ4E#5I3B)NTK:(-21'60][Y#NE/ - M%M3"R@:D%F5%E*/^@5.-0P!0:@->UI&@6YH^O5HUR%5HRNK.;W V1XI&@JOW MUM6M>:K/US#[P>S@.YQ\BJ4$D)I;#6A)D2K[:FE7TDBI:M/O6@%)O!2@2\ M M;.!:,E 34L>,A'^D;,[ (LKX>H(W7QK-?IEXMN;1-)=5OI.1V0\CP+Q>$XN. MZ?NIN[;UFL/L\H/B$IL;4-V2CM0VM&8IV0\^@E7Z\D2*1694YLT.R/ T5%)5 M7BJIS@G+8#^-X2BS7IT'#->#95F2-),3<84&G"D-07T2"L_R*<@)=R(RC'10 M \:2+H@_ (N-<).PQJ#C%2HS"6!@;ELXJ%Y+BG@IR_1(6Y@ IYOOF_EB[NM ,,[B6RRJPZ(;&='9G*L-D]C>5MADTQGLD MT&00JYKF@8U[M62WC+26DN&I50[R<_H9I==)C/7JZ,".K!.EU@GP%(_>0'K% MLDZ4 II$$4J\$UD-KR76>F*5Y6@O0+T8#JG$?+6N**W'I8YKT>^V*%7!4S^; M'L9C_!>&!)R#Q@+O-U]NX(*)ONF#M?0F(F+CKB@:>@%^$ 9Z=/L,_!30BK41 M/V=MEBV%TIW$KX%2/J72C6,Q8WOD/,E0D,PC/U#7@)$?PV4S2:7.;@06NN;# MO##5(]$_/0W/IM&5%X6P(K;*2H0V#BHLMYJ&L$&R)V*M25;&\VDJA ?7E'Q* M\X%&X=;5I-*U<5+9,)L"9I\ER9A1F/ 0MGU0M-LY2A5%I_6#^4;N9.MI<1&9EB/E8>66:3YY? M;&^27G<3:;5QHNU+K2,.[Q-T14*RE)Z"+.^0E,#[0D$N!4%"+!5HQU+6JC"3 M]"(X&L-R^UU,12S.@;C978"T;2&WZPH!T'&_&>5IX46 I"4?,7N8RG1\%FC2^[).-.1*?-2Y -JF530$ ;-)$\V:<4? 17/2QI^*X]9M* M'/@^Q_X+U% #NW+D82K*/GI6;*M^>F7EU0KO8L:0XM.S1(=C.G86>A6DWAD5 MU$9#=98Q'YE$;):V/ !N\*OQ UUC-EY5N%6,R(!/_T#-X_/D@]+%3RA*=F8T MW 9*1%RW]P\5QZ"7[EEK;Z)X7+\)0JF!L@5SMB"B1EWVK'@1#CDA,6@<*N(R MS-GQP?$B$])49="C+SN'L-WP#.YPQ,DP4M8,*Q?B./OUS3(KQ5RQN+PPH8NR MX8=4C57C'"TT@=J 8Q*3),,?^N9]O4]TXK.*"I= 01)V)#H4/(Z$.J;PR7)K MOI'(+]!:*-7VN9^R+LL! F@V#:8=9X,TK 6^,D]6?B(DE_L!BB=TBT1I%A>RYT88SPL\Z8(#:ZUHJ%P$TQBN^HC4R%%AKX#" MJ*+!W03X(%RMZ'82@7X5M0+.(NI)$D7444H'(U: M+X\RD7*(IZ( 9+Y2"?/^*!*49XH7LRN?THB(F_+WLE\*(BLW>V/9:;%B';+8 M^'S!G?UYWI):2VKW0VI;7A=T;R*K$D5)4EJ!<)#<%)WI7"PT>3 -OJT9,0MG M8>2GB\=SR?>M(GWV/L D<6E0/6]BV(5*NJF=Y"W^;3,4GRR8G)HGLP_(5DKW M0C0))6F:C!+=+LJ:2#(?RO ;7=&30F8?:H\)R.SXWEG,P+"8ZW!(\YB6=[2\ MXWYXQ[8EILT6OL=)16)+UJ),5.]S-1E%-(P.O/?/?>!C9,]MIO)@0AA<$W4Y1=LZBU(^ M8[V=H4/W9;R&HQ^VP]E@X5B9-.%W9GMDU61 4HZ,-J[-_2O"$)YX>_\M_I06 MPAJ"3>LW61U.N8A(MVU'?ZR5FQ[.1&(_%V/JJ@094M4J,L0292D4+/@CJ M.=Y(RVGC'(LVQAI_MU!@#318F0]*T)*$X.A"TF20Y5"6'>/HX>F1MS\86FV) M;2Q";O57,4;'DM6AV!%>%U,A55MQW5HVLDTK"WP43HHTX"A2Y<&8)M365J&^ M3F4M*(,"<3&3.OT5*NUY2PD/+7 MGCC'QJ^T2 >0':OLA_+[JL.2&9WZ\9V]?G>K[X!^)"6Z12,( PJO\SZS/+=. M8D+J/2>G::C %!^GIAO#U4D1_/XD%GD MT_'B-)H7:2I!;:0D.2W- ]G&%'@))1O)/,)<1L--HN2B(]78#EX] ;$%3"JU ML."*<\;<<#K# S%R#^W,>2F\3\[YXS*V<,*:HKT% MW^$!'' !T$4U3_-;TK;_* !H$TQ*TDR1%F&]W,-Z%C9'J5V[4=XK?-#12BBS MU8SE,B#=?MKE@C P*CL6_Y3Q)C!8##RO:^+(A,].,J9TRJ'M5+@MQ8J9P72Q M M2U*78 <:Z,=QE0D8)O#/-1*N62L)"G$B(SW?9?Y>%LWDD:O&D3&%.ZW2D M1G8UOHO\X$?W-)@FE.3"@RL/WRP9@XX*Y\!GMA"-*'T;SDK,=6 29D. 7%0! M+>:R.S8MY8,(?6H3V?T;B;1^=+N>@M(H*M1G5Y Q)0/*/F0F#D'EY3H<]=#% M2UR6F9!(@;FHDS)6YD< FL77*.Q- ME)'KIUO2M&).?:[JV^2.UM$%J:Q"8&EG(=[I01"6XG-MFF:\1Q586A]VWB[5 M]/13JCP'4[+U_%R4JIX0 M%S[ZP,S(<"[?A;;G8[Q6EDLY&@@K*+,4PT?O63)^(YE,5)@&\'*T.DLT)-L6 M7O_\>9C[$>?'P;B F?]F>V(H$ZAT4)\.-00-1B\?9W0XXPTY7/4",7H"8=!T M(:.N;G#RF30FTI?OY:&UG'!IS)>O2$6B+($2PQLSQ7E>DQ)LD4$F!) K@+H?F1HDAQ MOB2F&@94G4F_9):BS.6H_\]FH&_#T]&56M4B-:="E8Y&\UDF/A%)*!)H/AFK M94M2;FEWJ18C_185!89+=G6T"F,3N0QEUZCM<95GKY(QQQS *!@+RH4L>-X) MQ"0YJD1>J7 8W"^+0'GM:F0INF#4;??>I.$JU%$ILJ0B*K\*]#T*58VIL7'0 MQY=X]RG";*ICQG^S;F -)*E&&\\W22F=I6:K5@'-CB0VJ\8?&]V X,]B)%.]&'S027&P@[*EKLVOU J[ MY:17)M13E+/OT"2#1P>L@2P:;)(_C,L>S>917T66 $Y.<' %IC)" 4L6H89XEY&M,?4 M3?IXFOA 2?FN#G!5I3RN9.Z5M*M99\S))[XQ&QZ)14O'>&^P# M3P$$56\#2WGG64SD-(=9?;P&'R5C;>3K>5] 406=7%]'L=KN6>K/IV;([N[- M!NV0C=^!@P8M)4-[5 )2@E'%I#NN,67[YOP-%6)G7Q^DQE\V^+N&=YU548)G M,JE.::6+I.:B47FG,J]2M7B#E.$)[(S*1:8"66.DTFG:C,P52->B"Z[^60G! MTCKMZHDZQN,# 6%22QG;1)^4X(.9;;0)"["2,.3=K MC(1)EVT.ON(+N(SF-?E-ND9W3X$.('5DY(N38)%MVE[#D9["@+ M&-*]RE0V'PEB-ZQJ81@:O".3QV-[\V,_K!_0Y[PT!=% W=MPS6PQY$8!TNK, MY29]+T(W(9S#G'H$R,PW39VC<"SK=?^ ERB.6L;W^<$/:4U7@9%X4E2AE]?+ M-O76H&WG<#F\3MJ15-"IK 6HPMUMF1AF5A*Z%(2JJ/(9FLB\@FQU_G+/H_$7 MD@]RH2D@)?^RN@O9<:T3$PC/V7LR+2U[O*2RNQ_S;8LB2/9$R!>5/@!LN;>@+]]*=\9AOWNUL9D9W6^*T#/#;1*_)8+9IOM.0T)5)28"QV8&!>2<>Q>YE A:Q*9NB7E M5W/6RS4VJV1:NF#7ODKZ)SV%@]= U5D-09A+'GE1$J,6>F-@NP"F1#TN^FW M@O78R?RIZZWS\1MHN8R)N@<66##<"K0+J<4>E\>_?IMWV9J+/K7;=(,R==19 MA= XV%,RA H[=EEP25EZ-/&ZD&]GJIP\7>4%"G M%NX-Z_1"_O9I:\$'KQJR ZWNNGT/.(0SA[]LJXH44M:4**+!T7YJ$NBS_9 T:EHIR<@9*I?$>V@ ]#::0GL*@K:B;0)ZA>?&K_LO$8X\> M#8+KK6L _]VM5D;Y287FSVHX.GB"F]725?7;E49(0MZ)?PO!)Z! M&'>5(*B^L%"85![UKD(1DMI/ MU[*9-;MA_Z+T<8YOPL"$3!O#NB:F3+5=MM,D.>[,,7EV3']ESNF"@PGI)/GA M,_,;?X':OZXI362KHC0I8D;E2X9I)7*),<6_0&>+Y5A@O.+T8(VCQEL<%]15 M#N\V]*;);E8]&66&@G*0H,6]==I;3GL5ELY-@'7!]T4(XZ2< 7FK[I-T:1K/ ML)](GG+*FAI9,H'%9<%K0FEO$1Q[I_C:]V%*YHFG%V=K%1[#<_H$7S4Z\+9Q MP?,X0:@^%'2-80^55<*#\WS&TH^L,\.YBLHWM')HF),,/ RPO L2TU]4+.FI MC"6E/19ZMV&S3F?]_*@^CZ$22,N!C?I49.B:7153."?BZQ.I1O=R +2I-C[Q M3HM1%W3R,/"&_6%WN"A@F1:Q($3 BJ$KCV8%U+6B2#6Y*5G+3V7,.$,,F"TI M-!RX=Y>@;>_. =NTAKL$;=\@)GA9P+8,ZUP:M+U:L/(-%U4-5-;QE'<+5O;N M&*A\8KINKQ2DZZT>H'NW^%P^JF4QNIX=G_M@T;>V<5Z>V1JB;VU#.\<#M]&W M;?1M&WW[.$;$X1.TJ]W:B#AL7-S!M6&V;FCMHT:P-B1J]?XB5;EF@.U/J<:I M/ES,:26.P(H=4'%;VGESDZ4N47Y6RTZZJ>*S"-ZKX4NH7&G97;!.OEVI$?GH M47(_E3&Z%5>MN&K#Y-HPN39,K@V3:\/D?HXPN59DMK%O;>Q;&_O6W@-:IM8& MM+4!;4_:LU&^'IKD;>D9WAIV]V0_CHDW*5"3Q1@OO"?!O; +!S@1(;.W!=Y= MZ=64YS]6-SE" (P<@(.DSX(NOT):"K&3^1E@'GGOE%NXZH3>B!,/JVRCGEUV MANHF?++9O)H%1D\%E4P%HLKJUKU)E\#8RBTWS=NT,U9@$G:L#:=<* X@++]A M3,;+HKF7H9,[I69Q=+'UT[C>$TQE@RN.9;Q;4BIWBGT0'+(]9/!(D#+]ZVJ* M"^; O<+VYH":1"')FL+&IEQK2A62N:>?C\4KR2IL=ZD:BQ'Q- KH7X/B_ M9;,2TL:ZO$5:A%USCY! !\9I!#? DYB^,^P.-F&R.6EHJC2EPJV)'TBK=Q"F M03%#:WJ 73,64A MQ!H;SU2=$"9WPZHQ-%3ZX1'?Y>Y-C(W/=6\)1ASE@(2V M:6."#'T(\7-> $(A2W7HE-:Q JWJT,[[(=AJQ @M9(,;*MZ8:*EJ*!WJ]=1K M$<8I%0-7L"7"D/#($95 1LXC_ZH&C9SY$UTNKCH;I]/GLC:KK%!*.$R7=3Q, MD4PVW0&8H3JM4I!DJ94QBTO2P?V(P))-A&0&]+ M;23/@F OLL7(7)/87N72?Q#(4RY\@J_$5XZ@I?L+XHBN4N$)+^:8H MW%%&5NEIF6;E &IFD+&AP*9A>D:.U+;XE:F5;,OB^,K$XY/LDXNQD%;2^T@8 M*:WCFS)_IKR^V("1BIY;O\#,L12U:(2UO08@%\;<)X&;M$E;>E5K@L]D@:#' M4C'BIFQXT>"2A;I\.YX6&B=)<%)O Z2Q#@^ Q9^--E3#& _MW1&_ZBBY3T.4 M)C,\D.""/180*F@P=LK%U*O^*N JK^I:4VG3H(LM:5[* ML>K58-LI[12ZGFZIF2!.:;"KXC^3@KIUVE64'9%2Q(J)+&<@'4<%J,A4EFC" MERWMBE@J-AROK",XYD4Z3S)"@CR,.$2AM$#NQ2U5K0UVW&3ESJ'TF%8N5& % MQ7/2M'IXYI&@-A_!,]R0#1.*2%,P#1/BQ*T7G==+0ZE.P=_HW"(=F2-H3 N.D;Y4R0KT"J<2&^FM4VO\.(7+-G+;HQV1P[^[=PFSPHV!2T[.0DNAC* M1IZY[LF# 85(5!0V0J'$0 %OO VX68%( WZ24>H2&9 Y)AR5\Y3,4X34XC+, MD+(WMC:ETH[AT*Y>2@P>EI?,9,>2I$#M(]5W4',/AX&V-Z7P1&'#7K_R&##% M)+QD;[=61('GL&MW8V>3K*Y EI5R$R(RQ5%6:8+Z.Q:XBA3$_:M^CPYQ=4V MGXR.I'I#R_5*6-H$6FIR9I0"'F.F%?;'C:K&Q'1U#UAV'DO,U;UPT9)*ZAT[ MDU29:="A9>E#-P#-]O^ 1CPN M33#$3*1UA"YL6XZ72=^LJ+E:E=EJ?XBM;.PK^XHQLCI#"'?K])Q5V*[2SA"Y MI3NCX.9I]A-7CCG@T?7W)AR0K:NKU"X^%VQ8SW;02'>T5V -I0'2[Z'5"20; MW0-=CO'6&_6\8[Q>AC+53^82D8XN(U#I>AKJ/,),@-SG%ZS^7VS7 Y$ZRLQU M#,N1_PMW_0;ZRIHF4G,^_KK6\-3=[NH&]]'G9D0+3..9.* M2ZH,#W(/TN,FO^3=4IE=NFF_]8(>8%V1R01*]IAC;\W<*7K:\50W0E2QU>45 M."\\V,5++044T#CF_DH)_7[LG[$5E"Y$"@+T+ P\#>P6H%W7)F[I3R>V5NV>/>\ MSPY<:/Y;[M$K[Z]F\7P4*<]#ZC2VY:-CQ3Q2W:#P!)QB3E= =YJ\H#)YR1R4SQ<2,B,V8.Z"/#6*F% MPK)CV_B=1EC6G2S35CN\[R47Y/CJ: ,QCZ -;]I7SE9C)B6?H=T-9N+"C/I[ST8P63W\5/2Q=CAICY)Y MAGT[-E@=@+]!R8EKB;EYMZ4"<6-I6 _0*EIQ08 DT3F6W09QBGVDLR -Y[;< M)M;(B$^]L^V;?83 MXN[6:?2\(],&6?4O11V5[(DE4K'B5*X1LE8\A*P5(5ND8S$GZNW*C4RE64;M M?E3D\FDNJ1!S9@*\1D* ;*<5U4HZ'4AWRMAVBK_!?2@B9SS597!J]Z-]%/_' M7%G#([>[L5ILFQ_G$)YX2J&#D?*:D'3*6/N3OC$ V._%^(R(WCN)Y>L(?=JR M W[/LD]%X@Q@"'><0!!WLZ0XAM90KCMV@<*R]T_JQTW,P DPT;KRY3!IE55X#-Y 6Y:1^ALW'E#^3Q">-6[W4[ %IX*K.%%*;AK66,C$%8U^6ZJB:^47X) M677 %,A\ZV&5>$W*D^V7-"IF"52[B$?-OER>,8:F,!\(^Q00SYJ*1.\L\+G@!BZE4BQ MAL&A'%NB?ZT[''/'8^=VF$G_.+O,?+8^ &(30X=SSM%H13(3%Z8.'EUL5/^0 M0D+P+Q,C5T-M(0^@HG=A]D.5,J8PBWR>MISC$!I6<6K_?ZHIN MI; BFC0I*N"85 %^O/G:L5FWQPMOHH;<."=@G=+,A*5".EE3-%;](6=MW[ @ MB;)2N\:6S)P9ZYT]-P%$K0Q)DI:A=*OJFS!ZBFJ-N9"JT'$SY#4J=B.9>7,< M.X>GWST@[7ZW?V ?/BUDA8;LN7-S0+%\>GP$7#$2J185G-6]P%Q&44QNTL % MO$2IEUBX&-0&J1-Q([_4VP/R=]!8904P[KEFL%&?7,BFKK M,P)M6N4+=IF570MPSL\:D5T\Y!&6Q6HA4_$26P8"85R M698 5._(?*(RJ1FXOHG)VB C[J6/!2VEHL9CU$7Y,UBV=_L=I!* +%X^,'0Q MYSL(EAR>SX3Z,XR!1Y[1Q>/Z088NUA+1AQ6'(0;G)U/9AL MK._[5KD&VJ8CX+F"J0GTQ!N/%>6Y8;D"I,D* !;BG37V),IL2BL.8]AWPC ; M$;]K_W$,5*5F[G@FBE]F5YF<,86,5,@4X)!7SA>NBS,,F%Z0Z(/%Q32IX%'' MZJXM&X%.(NZH.2W7<]5.#BNRW>J_.9)?1GS#=B*'V8%#"U(&)9V64B),.B%- M5RA;/R4=Q0S8YT2W# I8IK0GKCM MDACM$>[ K"CF,Q:E*+P'C@X5]*.M)2)?*5H1GM+_C\E<@M)+1#UAU-@*PF=+)DI29"+ITCZ^Y\:U:M M( )9A8?LZHI6R^8) ;?5$]^4RV7A@PT9;TLD1KR#%!7]9O/RH# ME$A=.X<60H4R.KK^CZ[NMJCL!@S8&QZ\PER@OQ6Q\+!J/R$\@K$RBEL8;K S M>-7S/A RAP9P5R:#3Y?^!!$5@0H\UJ%:%AQ8=DG-@I,\N!0:ZM*RNC0J2^=^ M&-%W7(],EPB%:P_YCKD*K.5L\,Z]Z9BIVV:Z8E/6\ M]X5.0G%<*9F*/<0=\M0&#&7""AT3O^_]A@=G>,&V?8U@Q[%\U7)SE=H-L4)B M497T4I= >F1SRG=*52"')WM5XS0U)!]KP/=0?>:+(Q[M/G;\RF$>.I7VY;#?Z??[ MGHR/OS;X;?C]]Z7PZ_?_N5]^WKXZ?3PZ-O)YT\M92SU\*$) M6M>D0.P$Y%0Y#X&\^LARQE;J %J*DS@64<_C>C9F!+NL!78'G!4S-XX[0J6 M117*M:P8_4ZN\T09M'S-M!LD=QIS8G9G!HO/=8^2JR MXJZT<.,Z$'&W+#657P4T5F%N2"_W&%6?B.O03J=?67HZ*B[LO0.ZS?U(DH;12=%I%01 W2%S M9,P"I>X!KML)7K](O"ND9RK8%ZJ2B2"HSZA*BXXR5<,362KBYS5@U"B9G9@3 MD%)+PTE.Q'47V?%%II019_=(]]385 70^K0JM+_5V=X;= ;[>UP>2C$+CC0E M.PU+%SL^_XA%R:D2)9RR$K)R3AKS8'?K8,^HS5@91UAN:8F6*#$YHOP+OFTU MW).P,W6\)G@MWQAN$BB-0,.P.=4XF7R"NC,B&X&((_LJ)5.J41+0'82E]%5F M27K%$$5F;!!CW\0'<[*B+$>9F(J6<-TPA3P/@T!$REO)5V&5,-_=I" MZ/=;G7Z4Y'DRJRU0'R<7J3__Y07_^P4.#3N)?WFQHY=]@XKU$1QM=RKX0:SX M?O?J[?\TAGC5)_L3$*7;'GZ%ZO3EC=[;YEP<:<+D4;4(^[W@AEO@?Z=_LVX& M]P\^120-6<=^0]8Q:,Q";MCOXDE"Y(&)[6?D3^WD#SWYG02N#'%8NV!]T$VT M9-M.WKC)[X+QAQR0]*2I5N[!:ZFVG?S1+YA/FG*4]>A);T+E@+7TWTZ^8'(R MU(TQ,I'LBF^X\!DNZ4$P$E\N\ /GB=+6"HV)CT)GZ]HQFZ&?T8:_43CYO\BF M?OVV;\&)WGHC/_AQEB:P(33F)ND;[S^.CHZ//WRXF6EVNR'\6L4D<]TOG9&W M/2"3_?!)RR+#SW8[VUO;G<'N[F*Q]!0VI%U13WH7YE@&O;WAO2H*=>1Y,0US M\;@:Q%V@\Q>J$K1^R\TS4$0>%+=W.GL[Z(S>:5G.^G=ACF6KU^\_.,NYB4;0 M"/BHJV?+=IXZV^G6%F1R-_;TJ;C=Y;)=/D_%Z9BR#UL.]A-;<&Y&&L_$YM$" MY8&!TIJ)RF8BIZ;"OF8R3Z5.9[J,FQA$\2A+II@:ZQHA=DK9CS MA3LJ"X;*:_E8S2:84D.AY#S,Z %9--+NIL@I(;E5D*=#94Y@=1JA2K6'9 D? MM179>$#OAHK; 0 PT3I$ ,0%^7(P>80SHDW?!5UU"--KJ&41=:C631-4CQ5K MLVMM'=I4K#Z4M6&Q]'Z'DFVP7D"I!"SGUF E4A!N^BEY)ESN$+-^IB(B7,:R M:>FYD&B]0P=CHS_F]7#M':NH$0PH*QDNQA]J+3#!#CI.A6L'(ZFT$N7Q9+*9 MYN'ID2SPNC\8=@=#*^7G6-&$88)6.5VK1?(WRLA6SZATIWD26\TU32MRS/\* M$7K4T(!H@S.Y2A6!:K_U(UR3%@LM M_9O!JO/.56L_+$4ARYAEM'JM(FD]F7%$C#UB(JV8R6 %K>\!7N>-#K[[[J MV&71[&>I0!H5>-D:P%/ %K@S&\8:9.Z3+V'$72MM#L9^V>\-K&\HP]_B,K00 MSKUS1W+KSLB1^CM6*9J6)4F6E!$#H@Y0JM^251,7O@**IJ5@3>]]:O1;6QA. MR3$I&NW.5;72V"ZWEA4S6"J1$%:%H$*!;YY(#86GFQUX4[.#FV&SATE8M'VD>YY:%T-JQ+YR<+*<]NZH++D*0PV@1]H"\B:J M 7D?Q'+=#(^#LAM;^UN=X>[VO0!X\T'Q= 5NO!X.?"N3[KUA:@,X[6-QU\'N M3J>_M7)@Y2U _#3-D(]A?[)T7&GV"73S.=VEO::ZMJEM7E,.K>82BE7LJ [[ MR*=F@7/5J5L7S+9J%OI6S6B@121$6HD&^7:$L'FF$0V%,HM*PB(BRQ3S7;Q.LVEE?%^)>T/8R^O425VL-0CP+>1'B$B>2:RQ-+H<@.T83^KP]J3-WK%/RZ)2EYV6WWZ4C?3G8 M.NAL[_0U?\FG:*LA0W9XZ)E6#\J2NRV3%564<+\!,JM+RKC,U#>.7TV^>C7__Z^;?WQU]/C:0F(![__?O) MMW\UT3O7"-FZK!KS@.J@NF5[I;G6J=;K^44^3=CV)ZW0<]^22FBW[0\Z^)%+ MO@[<4.@4.^X-RIO$/N54 6>NZ'QQO RM2Q;H,P0W]+QO-0*_7$FP!C8-G,^T/5 MKR.7(+ [ OR17& W..KZPJVO4/7/I.2&-\4L0[-NFLS3D'K8-0:1URL&CK%3 M!OL( ,'T^>+)[6QO]PXPB(6D 'FXJ(O@E>ZGG14C;A3'7CQ\1BE!5J'CUJ]U.FN5(!?]DUC=T"JH>O9UZVBU^UJ>N#5LP3=G(\8=%#,BHAU M)G@?[QZ*0\VQY/XAD%.(2M\CIJV?_6O?.^O<-1P8FE,6;95^[!IQ>W!FH/]($;IPI-E%S^M9:>S)0_VP4_/JYZ< MCLO T_/(CVP'.TWPNKI+JZ/8MR^P#'( Q=3F,L>O+WV[&]V]D\'6C=RAUL^ M[E4=V7DR7\%5O;4SO[RM9Q???>L93_UK-*=?XZZ_SO!_>C4;)9&]HOWME4.D M*[$#JZQH^<5XF7\"<(90YLOIQV^=S-3MBJTJWH2JCEH#G 7[&F/U;ZRG+63I M7J-M>!NE>QSVK./"UZJQ-)6.5L_?=QCUP-#&=9#3Q-'B?(OS-LX/.CO;PQ+6 M8XQE$>44V.0@D#3U=7"#->&OG8 TH *HPWZ5+ZG#9"$/7 MK[W=7;FVGOSF> NS=I**"=*15ZDF(>PU=D9[M@#:OZ#GQE+37+'-SI@@4:C,4&I&P@SZL0TFBBC_ '\2O?D4+I3UJ#V1O%5ONL=??[T MC^.OWT[>_7;LO3]^]ZT$4D=E6(8/C[;XA:??F*5R(TB,I6"6+'->.&/ -.@T MN5=$DYSUXB91/%C:"P-E0>J+MRSM!2VZ]Y7WHB),%N6^>.6\%^-VN\?L%UK% M]1DP=6T:[RO[Q:H$@'DPRN6Q.!?&>_ \&'4VU^3">+?+@R$AQ$V^%@0V^/4I MCIF=6O921RJB \F)/:FY\#QM[F7N]_9]OGS?=T.>JZD:I92.F^UAU9CB978" MG+%[(6-$X6H^KO>LJ21[%;0]L$-(S,UUZ;C+QKB'PD>K6A%JRF2L"(12X/H[ M-W#]'I%2Q_S@LIWHK07X67<"S07WH\%15:8UL+0KU%X+R_N(W4_/1AM;_9W. MUO9^9VLXW%S!9C?<7912Y:CDW;VMWFZU 9_>P\Y*:645UPNB=>NEM9S;!/< M\=Z#+"[7 -[S-K8V5\-3W41K'=A9S4.R 8\0?915U2YFJRY]Z^[+&?)=]F9K M:1)@6DQI,>7!^/4_;Y$3>*_,EIBLGKN+AUMG'O8VMJ_AK^NCD?43QD,0PWYG M.%R;\&Q[RU.WF\( -I#?W:'_J J7GOA]LS;.HFCVJ;<6 MN)8"'HX"!GN=P6!QP:Z&0* ]]>=WZH_M*6Y98$L,C26&]M2?XZFO2_6K;0#S MH.$O+3-L!ED,AYW]@\4U,1L"@/;0G]VA-T ;;+GB-2Q1:VI=AJ-E6TA_X,#[U5$%NNV!)(>^CMH;<*HLT*#9Q:IOC( M]($6]H;'C;6'_@P/O5456U5Q;00"U-$YV&TXA;2G_AQ/_;DHBU:'FD&_Y8I- MH(^M8?,#<=M#?X:'_@QUQ578XV[+'A^34H8W*!K2LL>?Y- ;GX_4ZHN&(0Y; MAOBH]ZF;E%%J.>)/+:*:15&]M3;^BIMZICRR,;02U/08MH#_T9'OIS41V[GM4 OH.LL4.\D=OS MR=85VQVOB#,1%-BD;F/0LLC'I):GX+AL#_T9'GJCE$BK24X#-$OBGAWIL-GU M-O96;*72D)8_SK"S/Q@T6]%IS_W^SWUKT/QS+_.RU]0RU'SU^$U/ERS[ M%LU8N2WFXRZKVGW5[K9:[L8J5_.@+5;S9+Y,ULBYM_KS2W.Q2+G3Z$YO:%\W ME #>+0O@>R*;99:7YFBH.<^QCK"=/N"6T;"[-AJWZ/M,S_\H; MZ>_%&-M>)]Q/.5/OR_[3]GL[ M?2]) 7->Z7[0_! YMWKN8'?OL9B$,?:\7FU:;O>L>F.'\&.1ID#- M$?P1TVQ%ALVD,[TX95DJ-SK'Q."#N%?5-SX*I&!>1J/9X;AIK>\PE'09! M6C!64-]P6@' +9\"P F!\BD<_P4<7P X<\:MTY.Y2'W$P$RUF/?^*'Q K]1# MR(_=KMK\AF/_,B/ ]4KG990P>-RJVY8<1 5 MU)?<+^V!VHW'0O>AUXCIS_!?O(67@YW.]M:P:1V_[U?XW=^]P2)7G)QZVW.O M^D6=V,OG!5^\'.QW=O;V7,).19"&_!;6(G_KQF4#ZQJ$G?IAZ-!4>I9F( MEF!/II PGZ8"& _L;)K58.(0AWD)BMG^?L>[F(;!U+L C/&"5(S#O(S:/:O2 MP0DP' '8-0MCQ#B<*XS'(&%5IWE:9777'9O1>44F8<:WZ], &#>\])F9^<=D M+"+F86F8_>A.<"\:IV%1\&@*X,$%3-)DYO5[_<'^*U@TK0#^VGK5\OV]#I$.TQZR5OZU-"T\./0 2BQ$ M>C=$V3(*=B?^+(RNWJQ"'/>OQG9!,2*JD7\J[:;_XC[)[JGHK4]>97UPY71) MN_"ER]S[V97314WLMQT&B&H$=H8?26;K@X(VF0"WHD[MQ$^D+NNJB,3@7^[O M]#L'PZ%BW<"FLC##%Y%[[6WO=0 1D6/%03CW([T29&DO!_UM+,E;T14ZS'"- MZH"_DU*1HZ.CYWV.=6K*%NUHQUD84:G2JGT PRA'1AY.4#8 !]6K.#P#=DZ* MZ,44WAA=LFKT&F"2,-)'I8X(Y/%+V43;60)JW)861COD5=#1 TX<>78WAB^IF(@4@7&J M;Q>''PY/Y'GI5803ZS8"#WI9,?I=!'1O@-= 4\1_Y2!Y6,,$H9X49]/*NJ7R MF%\DW2OAIZPF2LW!/P-PG_FH-VK8JDV:A=1L<,&]9*[WIF]$OBTG43JSKUG>WMWL'6P9Z^!S$@85T#>PGX;8=5](NDB,8(KR+* MSL#TO#A5E&^#+Q_,B0B48[?3@,7WF-TVH80LBY%H[E MXG%82XTW \(ML;_#@TG$XOE!79(K-_=:6),'MT08A_0L4#PRG_! :2:Y3[L< MB1ANDT$(6[6.82+\O "H2_4454Z%V0##$6$#G#;JFLFYO#%'X438=UJU=%BP M(DY\A:AYI=L.;7GGH+.W!91U2&10HQ.Z=QZ:T=QC<02Y<(8;WF;4&X '$9 + M[B%VALJF0A#9OAP<''1VAA+FJ9CYK+:^W)+TRW<[&_OYT!HN$0$KQ#,>@V@$@1%Q."?%^D\ MR416!0K2GMJ=!&EY"7,\1Q@DS*X!H:W2WHL-M:DWR%LI?:NNYJUGJ8?WJ_1M MOUJ[E7))-9/E5LI7:]0#Y1H.=LTB'@TO/QMIM^ _%?GN*%HI,/RS)&=-,;\0 MT;GP-@9;FPX+(L-/B>Q1+/3^_CZZ ML%DFAI=L>9#/D64!XV2 Q=A;NVX%1K.) 9P\%FH2SCXG*'SD.W;EC7@!BH#Z,'7XH36(T8"EB-46/MNE)JAY+V%41V)3XM^V!GK[,]&-#"KUO![-GK?,+.8>?\6>RV?DV,>N M6\7*YC-_D0$-5U,VH0W)+#;H]7=?74N;2XUKJ')O#5YU7--:C?%LU[H?X-VN MWQN8;U9!1[]BHBM-XA*EG*2_4Z93OBK4&W"O74>6)0%S8^5VR83%KEYB+=^# MSG!_OV(47::8J.$=V;2ZRJ&E&"L$\._UZ5G+=<1;ZT!K5GR6E.5PU_OX:LZZ M=9J/?AI,@>F;A2-+( >8Z^\00&MDD^+["M$L\4[K!EV]/)TH3@9R+%UIYE#@ET.!1=<7V^3$GK!KO) MMM@F8<=8^.A\(C\"/*GBL_Y*GK;KEJ"&FT=%5G4US8L4V:..^9HD491AA.>B11M Z\_@BB8^$$. M;P+\3^=HOTJ"H)B'<&*C*^_CWPY/O,^I. ,! VOZ[;(Y-#:XZ),.41BP.P4-_QC93GO+E=B01(D%+0M3* M!+NKZS&1TYREE7 5-%0K4+-@U"6-J]!/D0+9.X%%,3K*]6>L/!T69P @S]AR MV8N[LB6@Q:F[K.O;5-O9*O&4TGKL1N?%XYOXPU>U#0_Z) M^?[\#0:@O ?@1DE6I.(;H-:[" #XY__^WU"8_TD]]L[/PNSSY L3/SE7#^/Q M*> @1:[$^6% YP,G\26)PB 4F1Z+K.'PQU7%!R!U1*!N?P#_RQ/^O-O= M[K_X\P)8OHZ3= ;,8U60+J<0 LNGS]^.O6VOZYU^__CQ\.N_O,\?O-.3OWPZ M^7!R=/CIFW=X=/3Y^Z=O)Y_^0H?\Y?-O)T?'I][AI_?>N\/3DU-\_LO7X]/C M3]\.OYU\_E0"^&I,Z5[V);_$("D#J*8N3#RQB+V"PY8!E([V1$.A;$'.?P]MH!>F8/5@JSR*,LSPM IT) M0*OX /L&"'3_3L,?XFT6I,F XC*^BC,5RW':_2^UG%-6=REL'%XYOI1AX*C< MAI3CX6THZ;/W]O3X2/VQ_W:3/1D5EYN"!T/'2P0'T7 >@L!8*A)KS'DQQN2/(DSER8Q(99,<56ETZ+PZ$S'(N2BB MW[%4UU@Y]+['M(#3G *_,98.%'W@S;SA&A3PKCU^>8VA]8X]/.T0;4T40C;" M0"&?9H=Q?B]BCKK21[T4(/5X1)DC/KDHY90AWZ06*!6'<5S N%\%1NIX'&U% MF/2K5CPIT(^#KJKA I,PLKQ1'N )#O(1=(JAU'V;PW<<+G,C#N3^NBY>I#!9 M*@>8VA/)>Z9*X=&96[%T#AI,)?M!.%N 3.BQQ$NP/Q/HLLZG";SL3N!9@X?X MCB$&30)\8:Z=@4RKB+2KX!43G(SXH^0SQ$L9D,:"CH(REY 1+<60$N-YRGC. M6 MC?=#8;E#X6L;8()1NKH+RG6TEQ_ 3YIYE351$UD_6+.Q]E5BZ1( @:B,- MH(6*%,)M>]H9!=X(]1^&^R5^L0(8DHF73$^2J8+XS/ 4I)>M71 M2V.^7F1B4D0P]KE$R) MD>F8P[8HM$T93:R1E*4N]R_=[$OC%3(F@NRF0\7_QRU6/9R(L4B M_*PA6SJ1=/+1_X'8;:!;P\Z8026>N$3;?(;!H=JR H.-S_"AGG="3F!@:V@_ M)<+(DAAP_PJ.!J0[HB)Q/3P\&Q?I;^*$'->(BE6(>-R!B?+")!Z!=I-Q'G00 MID$Q VX8!T+R4G')V5.E-(Y%_%.E75E,FS*PQC+_B;1UNMP!=% G4RN65S'4 MCMSTWAB5+HP>)-LRYM[& I.79@G0U:2@Z$89S4O2!J&.["#K>8=T&85O(N , MZ/,@?0HC/=$VB5.-0P!0:@,^X@!#NM[ITVO1NJPL?0VS'\Q O@.NI!CW2O& MK,A'^D;#D!44BO)WC)IM'L MEXG+:ZY.AX51?:2PX?]C.K M5#A"XD@*I:P E3]3F@8M K2-<1'D.$6X25YDD8><@!6C@2@FIR7C<90$DF0H M.=:3[Z)TM+<)EVNXW8]Q1!A2WC<\4)/B9!8&1@P2)&D1&^'YI@%?3MEP$4>G MFU!NTA(I5'O.,"!22N2^,Y*?=$"-))J&B(T/H)S"B/\"_&U%Q8JB8L(P0^-3 M5TB,Q= ^8X%JU9,RGGTQ=@0*?U'V/N5I:O&NA'"=QT&/!AT)+QPIUO,,(%/F8+[T?"A%EREVA7MKPO0]1DL(Z8$7I/&'- M9I,&^PARZO<"[A6T%#7;JB/PM822O50PDU<.9K(X-RPU8@-T5P73Z0V3'\.D MAC%HC#M,H"DC]J6A*;!QKT&$VC@MRKCIX3)WA*I*$D4H8U7T4DNX]83+V FX MG'G#(268:4K1-$GK<2EE/8?<$/EPY&=3HF/Z\L9BQ/92"6$&]COQ 72I& M?@Q7UR25-P CF#"F(,P+K<>38WT:GE&<80@K8JMPEAOAQ4F?,8P6GE$DY0Q3 M8Z5J[]2$@_FPBJ5;@6[J8]9X9JDX#P% 4]A6@K(F M4C8+T)3.D=3@PJR788Q0\&8R C5)8"@J*)R*I+/$$^Q^X8 1V[^$-FT*3LI# MC'LFOSX9CC,R,[.=A7G+XE(M+5+:=R;+!W:L?&!-I.+&"<0OM>Y#)]U/^C>P MEAS*%KQ-%.0($23Z4H&V-&4QH^)#2$F"@T\L9R76PQ!8E8&='$CU%MJ[#AQ5 M94'[AW@1()_)LVV*06"%/?1F4AUH],92@$J U1^X'DI+/PO/_KU]> M=RA^BN+="L^&]ECL_@/HFY=MT(^2*S8%-\0SNU/=NAW7'+.0R[>V0CTHY< M4+;0*(IW;795VY,P8Y23P-DD[J8LZX-P>1 J MLCUNT'5VO3CP?8YI#EB3$."9BCQ,13FR@-7A:G2!LC1K-7DQ8TBI2ENBHT\= M*PR]"O+P#"O0H *;9)E;Q,SR0KBQOE8QXR:2=^.XO;%F8W3&/U1TQ@=].3FA M@.=94^^3ZS=:* 5R)GP.@ZZ/$U)72"L*A@-I2$P:IX^X#&4' :N!@(H!]0M@ MIG#-8ZOC&=P,.85"W%"&$S66RF23!:[-Y&K$T*%8>B3D,463EBM1C41^@;9&U3W!3UD+YK ' M-+H&TXZS06[P8,!7CIFK&4EN$60.K@;A2UJ#W)8*'='[X.ORC<&-T@V4#+S^ M9!RE0O5Z P#I>*)GPH01+O<;F[Q%E MG:BJNF$\+_"D"XXSMF*\MA#Z/95UN+Z\N834 M " UZ.^]\HY@X%$:=KR_8FU$G M@!+RE*P'U -5FE"_S@*%XXZH+NBJZ>QI+ M7[W+MN\MN_8WQ'AO8'=%_3S*1,J!JXH"D/E*)@H'M[*N&FRVIM:1V5U+;\KJ@>Q-9E2A* MDM(*A(/DINA,IZ:A281I\&W-B%DX"R,_73R>2[YO%>FS3X.*+[B#ZGD3PRY4 M#E+M)&_Q;YNA^*G0F8JZ,@3HD71O1)-1DJ;)")WCK"A;$TGF0PF/\ L^*60R MIO;#@,R.[YW%# R+N0Z'2HGT+>]H><==><>V):;-%K['245B2]:B3'YFCPI&D:G M$_CG/O"Q45WSNV8H#R;HP35A+VE1R-',VC)3;V?HT'T9K^'HW>UPCELX5B9/ M^)W9GFPMJ#-_M/%-5=;BB;?WW^JB.'H(-KUSY*A;;5S6([>_L31&91_$@T13 M@6F.ASL&)#&8DF']:[_(3(&H*::.NFYN0"49RJ5M5.TMML8TI<^6=(8\6])8 MKN,Y-JH.=Y0LFQX*:C89,;/IP:JX\J/7V'SS]=E5CV=O;?O-4DP M2_VK&*,_RM3=<&7:Q51(C5=D:DCDXP@H8<(V*.JT2?M+)%MZ)7:;>J:^O"WU(L6Q/G(.,I3@D M%Y =JSB*KPY+IJ_KQG;U^=ZOO@'XD!;U%(PB#SP1BKG:?62) MDHN.U'@[>$L%9![)EA-^.Q/ MP]Y:&(@&8.]4.# %I)G!=+4&W50: <9J-'7BI?/'Z]6L95.*L! GN.M[EUU] M63B;1Z(63\H45NE"G)DV*EW51D4.KIR!,VJG N? 9[80C2A_'A^TUUR73;.SLD:F6W*BVC0GUV[1U3,Z'L;F;B0"&. MURT*H.CB?2_+3-REB*F;: FK.1"R1<6RQ'QG%(RJ/M]$<;E^$B9%+.:D[JHZ M3DYL'9.@ZJA:REN(E@"0B:5XX%(K R !U)"ES6+G[5)%4#^E:NS!QW=''_3G M31W?I P63C&2EBKDZ?X396/]00 X.SI(DVWNY^7N]L20CSXP7S),S'>A[?D8 M!9;E4J0&HM0[V(H,Y%:K1MQO)).)"N[ 7L5CSI6FNM,A)[3Y\S#W(\[),YU2 M21;+,M,J5+#H> M3$&5F>),KTE?ML@DD_F9L;"J6*9^F%&0$5R^35?II7(L,G6#(MB9I%!M<6(M >0QK)'*L>K%QTX5FR]0[1\T]DA?A$J]E19A-=:3[;]9E MKX'$UF@[G>,0$RYLE3BIQ+VXQ<#)\+W;[P[ZW@9*00IM/OUP>.H-=OJ;EG7; M]!6@V;[)J&G6BF#YYVQ]<(+N#\DIJZ\A[NF7#U_;Q7N>ULCMPD I)>'4;-4J M5MJ19&C54V3['K""LQ@)6"\&'W02,^Q0<:G+\RNML"R3\2F:6[OOR)J%N A< MD*U!7>]X-H^2*]%,8FZ.;EQQ9;,%FPR$;$^UP0I8ROD/MDQ-1BB#T1K-$/!M[RSK.XR6D.L_IXWSY*QMJPV/.^R YE2GQCB>.SU)]/S9#= MW9L-VB&_@@,'#5K*\O:H[J8$HPJ9=UQTRM[.Z26ZK9)U#Y%7A[*3P37VZZ2/ M$CQ-TVW+*VBR65)S8ZF\4YE7=^JF#5*"*O UJM&9"N21D("XW916QK;%:V4LT(V@2VW;"%V M$L:<.C9&PJ1;.\>&\4U>!AN;]"M=&+TFI'&64.EA5/WQQ7-$ 2K4HEGW3 "U M R,L9MZ&YCA<_8$K3:8IIS\2!"[89T+H^3@'9G['MN;'_MA_8 ^I\TIB ;J:H=K9KLXMW60 MYFVNV.E[$;HFX1SFU-%!)N9IZAR%8UDD_0>\1&'>,OS0#WY(L[V*V\23HK+( MO%XVWK<*H9UBYO Z:9!2,;&R-***QK=E8IA9.?12$*I*UF=H:_,*,OKYR[V= MQD=)?L^%UH*4?-KJ4N1;8;<3$Z?/R84R:RY[O)RWNQ_S;:/IWWHCRF?M!K!G M?YZ)-Y[Z=+^!]MNO3)B]['@\[.W8'8\C,3%?-B(*_?_\W]N%W1_LW62S+O J M;;X?@FZ/=6E>P7;O"MFJ!!IG71;YOJ%8 )WMK0Q?-2,X1%_J6LKN>1*4L 7Z M*M'1".@;D&9W(DPUF;,D#K1/@'A1X0?(FGL#_O:E?&<8]KM;&Y/-C:U-K)]\ MH\L#ZVDER#F+60C%6\%@\0@V-*H0<.'#/0]DB_I2J*&\:8",XSK\"AO<&$A9 MW5K?Z[4&8B?[RVX)W)PBR[M8YHW*_M-K6B'1RR*%F1A MKC&I0_6HV&E63% M0LW%JO>ECX<2R! 8TA3OFU03H4+BY^;:D;B=(-1ZW!U) MI8OM;MPOIH32U%*"[S]2C[/Z%!:@YP9:)7[+- M,'.HD#6)3-V2\JLYZ^4:FU6N+UVP:U\E_9.>PL%KH.JLAB#,%9N\*(E1"[TQ ML%T 4QXAUTTW8,&2]F0'U27K^?@-M%S&1+T>"ZRY;@7WA=00D3L,7+_-NVS- M19_:;;J!H#K2K4)H'& J&4*%';LLN*0L/9IX7.HW_B8!5%UE*A^\:GQR\YK MA"/W913T[M$@N-ZR"_#?W94+MS0O_N1I"N^?U8!U\ 0WJZ6\ZM(LC1"X!F(<5<)I.H+"X5:Y5'O*A01.1X=)W2-@TG55BB]*?GVB$+@ MK.:6( )^KYT*.3;;!'0^ O1I;F);%78*$7NJ%S1,*U$4#&F^!?H]+$<'(Q7 MG!JM<=1XK>."FOWA'8O>-)G=JKVF3+E0CAJT_+?! U;P@(J@YP[0NF[^(H1Q M"+B_L'[.*EG BTEAZL74N/->2^88V%@USDGR' 1:Y01+ZBXID/961 MK+3'0N\V;-;IK)\+U:=35,)X.:Q2GXH,G+-+A@KG1'Q](M788@Z_-J78)]YI M,>J")AX&WK _[ X7A4O3(A8$*%@1?.71K'"^1K*\=1Q]V59_*B/6&6+=[3ZI M,1PV>)>0<>_.X>*TAKN$C-\@(GE9N+@,*ET:,KY:J/0-%U4-D];1G'<+E?;N M&"9]8MJFKQ0B[*T>'GRWZ& ^JF41PIX='?Q@L;^V:T">V1IB?VTS/TQO&_O[.*;#X1.TIMW:=#AL7-3#M4&^;F#OH\;/-B1F]O[B9+FH@>U%J4;) M/ES$:R6*P8I<4%%CVF5SDZ4N47Y6RXVZJ>*S"-ZKX4NH'&C97;!.OEVIBOGH M,7H_E0FZ%5>MN&J#]-H@O39(KPW2:X/TVB"]5G3_-**[C;QK(^_:^TC+U'X& MIM:&T[6\HUG^:9/"+CW46\/NGNR$,O$F!6K4&&&&]S6XGW;A "$;<>)A47/4]\M. M6=TI<71E9A1T"4@%U98%HLKJUKU)E]'8RK W'?:T4UA@*GJL#;A<+@\@++]A M3,9+J[D?HK,]I8Y^=,'VT[C>(TU5F"L.;KSC4D)[BATH'+(]9/!(D#+]Z^*2 M"^; ?@(T_Y5]3!O8!Q==NH%/'1#50]9IH&>-V,&8CFJ3:FEB@(H$/S>8) MV[T#:MF%)&OJ1)NZMBD5G.;&BS[6\B3KM-TS;"Q&<,,W;3RP*PSH7H#C_Y9M M8D@;Z_(6:1%VY4%" AV6IQ'< $]B^LZP.]B$R>:DH:E*G0JW)GX@K>]!F ;% M#*WZ ?8K64A!M!!K;#Q3=4*8X@ZKQL!4&0^ ^"YW;V)]?"X03##B: LDM$T; M$V0(1HB?\P(0"EFJ0Z>TCA5H50>6W@_!5B-7:"$;W/7RQD1+153I4*^G7HLP M3JFVNH(M$8:$1XZH!#)R'OE7-6CDS)_HHGG5V;BH0"Y+U7)1V"O"83(:X&&* M9++I#L ,U6E2@R1+_:997)(.[D<$EFPJ1*[6J@:B'>'D #0=XQ5FND &>GUJ M(XH6!)V134CN0K:7K8TZ0XE^R14>ZH^YIX*<*A2VW5>N"FO)RC4OK'HMRHV> MU\7YD*G2WIE&7$N#R()D+BUK )/38D2!:FU@18W8UY;IS)+Y^SJVPGQW8,E# M7ZNIR,JD,G=3[4 ?G/1HL=_*I?LDEB%A_@19C:\81TT)&,877:?%%5K*1T9A MES+"2T_+-"L'4#.#C T%MFO3,W*1\)( M:1UGE?DSY7W&=IA4'=[Z!6:.I:A%8[#MO0"Y,.:V$]P>3]KTJUH3?"8+!#V6 MBA&WP\.+!A=NU'7N\;302$J"DUI%((UU> "LA6VTH1K&>&COCOA51\E]&J(T MF>&!!!=L68%00<.U4S2G7O57@5]Y5=>:2IL&76Q)\U(>5%A-F%*HK/JJK<2] M\M5@VREP%;H>=ZF9($YIL*L22).">J?:M:0=D5+$BHDL9R =1P6HR%26:,*7 MS02+6"HV'#>M(TGF13I/,D*"/(PX5**T0&Z8+E6M#78@9>4^KO285BY4@ ?% ME=*T>GCFD: V'\$SW H/TYE(4S"=)>+$K9J=UTM#J4[!W^AD(QV9(WE-;XH6 MH\M9)U^!N<2%\+X: #V-J7*CD'9KE9* M[!V6E\QD8Y>D0-TCU3=0A$4<.^Q_(8,,4DO&2?NU9#@>.P@WEC M9Y-LKJ#3:D4A,X$V5Q3KF;945J6R(ZG[G!+LFY 8]832MQ3P&'&MV$1N"C8& MM27(=6M>]G!+Q-8MBM',2KH?>YI4)6Y0L&5U2#=*SG8.@;H\+@)4X@Q$RD?8 M'MPU0H9/1676-1#KUQ_=K]1%&1*/W8$YI6Q_B/V";$/ BA' .O\)=^OT$%9D MHI+JD"JDDZ3@#G?V$U>.D>'1N7L3#LB^ :C$-3Z7[E9?6E<)8'PQEF -I5G3 M[Z$M"R0FW2Y=5O/6&_6\8[RTAC*1469*D>8OXVOITAOJ+,E,@#[!+UCMU]A: M"*)ZE)E+(!KGY7JK[63D+=*8B#_@;_^@WS[S;Z?8HUJ_K[>^-319R8.^]7G8 MD>'>.J-.*D2I,F?(/4@_GOR2=TLEC.G^_M8+>H!U12;30]D/C]UY@;,=3 M+2/Q+JVNQ,"RX<$N7I4I3('&,;=B*E+@Q_X9VU;IFJ4@0,_"P--PCA/Q8W@* M;[UQSY/->0"EDHL8NW&5SU+TK%^'O4D5 M+3E9I1S+UW9.:C]M020H80,"/ !H6?OK;_<\@ $(D !4I"%5"JA2&"ZI]_3 MT].S(?$DKTCSZF715H N! M?^ NH,?I2"*.V_'<12;4..#.&U9@U3K+ MB;AS4+AD3%CK)5DN$->1T1W93IMD:6?;J#0.^A9LG7\E.I'C3SK)(,W))^^H:@%73C]=69]M8V3Y5 M_@S=,1+)6B#X&_2>RO M1;]79$O>"J=(CXB9XC#*+O4E]>?440N?/($48 <\WR4X&! 4>#*'!>;N%U+H@60DR'#6Y=MEWCL[ M6<7WULC6V;;Y(_74[$Q[!<^HVT668&E5G).@)#9\LB)'6D\XJ_H3D$7/Q]*? MO)J8Q@GH]/E!;%YZ2/8W:'B!=I!7"8D2//<(52ANU-& &^?3PCIH\FK$-E-+ M47%&/WY:EC"XN!>938?Q8T%N#4#!)UR\(_URO4'O!^F.PV^VQ;16Y5I?>(1^F3*!?)+0KHK M\&Z AK#RF7O$Y@F^'[0_@)>=&6:;1"N0Y-RX;Z/)"MJV,0#IN?. CV[]B&1C.[M&'/NF>&!+ MHPT&RMF%'=D)9/8#V5WRP]'0%N]<%.24G9#BDH9KF04:!D]81%=UN./=D&06_B@0T#!;/R%/+4Z0(M3UN6#BSD(J5SQP%PB44%HA8Q.T>%IS0>4YR M"O,ZZG&'A^O.AVV;+&QWQ]XJ8GX/[7!^1A!YG!$3C&^ =P*1_7#F$Z2;C4N+ M;\A:A;DU+$2E=2S9KU7,R5=^="/=3]A>/-V@-S0(YT>2?D)_I77XU4H%U]X3NK\.T@=B1 F/%(N/DC]3*EA)%UE"D_1"4I#1KSM+]!#ZVW[,?"T]C% M;$R2\XR&H$+YG(@9:B=!@X=9VV_"Z#%&./F*E5>LYT/NB;8'J5/#V?F9??E# M4F5@ONR(S">([!6 8K3LDJC_R_MS,)"!%V=>@QYJK\FGD>*IXEF%.WB)G/C$ M;LT00;#PB-ZB& O[(UPX^A65O]%DH;G[.0SV\([9T54B?3R*\F]F++Y*N_M*-AUDDT0W NMS-^L M%]2LKTFU+UU'LZ(6"E4L@BP?O+K899:$D':/JS ,EBV;*$]02H"PNCSX%+N9B,0+%1M#KEX(WL#>4M=H3._#4.2S8V7]&>AP!LD64DA"8:9)J% MN(/VEQ58/[GH=\ B3YQYP'0]KNNK#S'_BY@X[6A#@ MJ0Z:_%C06I \4YQ;)+(PI!OD>7['AS!F3D0MVL35B971Z91+EW[/JA4(Y*S# M7@'_)E@;)$)!]W%3F M^U!\:Q<^@HDU)+)+#XK$Z)TOC\"UX/8ZWT-">\SW<@E/R)Y/(K[+>$6.EN$Y MDTQK"@FJ$'231#X\/N+6/-LH'I#^//S.Y793^NP6(FJ/J*5D6>RLDS\&0W@Y M$.['Q]YTZRP0&0M=?C9:+@&X&A:VZHKML7EC/*_8"YOZ15I/POMADR[8P@OY MH0\W[WG]9KO)'1K8F,9M$8N@5R"ZY OQQ"9''0^09IV&""*DK<@DZY:4]>2K M:U(" YX9S@L\.?7;)O0DO&N!"#R2<6N48CL_15=>G$F_$&'V<\+=Y^<=LX:M MX,("")$760F:0 ?JVUCD00_%T 9V&&NSGN 83'US_8!\1[O(98U=85E$=J.+ M%:RTGI(<_,[K1/(^Y=D&*V42 Y-G1*K$C\WFOQ/X&A1WPR2'5GR!#K/3-^0* MK G]'ZVH) =JU78J"M=#44#%D&KV#Y[B:3GHJ5\ MQ^IHOF =3;(#$!&%Q32-IDPHF-H7(^)\!945$-%U:L[B#.,,,0&=+SS 07I= MY3L0R ><0>S=8HDQ2"[9],F/2.;7IN7GMS'@HB=J^7*#4JBF=X84X-'BM)( M=&4CNC"6/-PZ!3H@QY(A\O?7FV1ZX[KK-^^P"_/5\I/@8V?AXDM>,YMGM#ZQ MZMVO,/J[ #3LY__[?["'U=_Y6+C3 93#'=F+:'.=SJZC3?IK!*\"2^=>'&9O M$@V$/SY[RY^>_0(K4[1[4UF!?].(?C:GFOSLY]/%@1^OOKZ75&DJ?;C\?W]< M7EQ^_:F?!5+@Q(C5I*27Q.4WJ(5 M)IU>>5.M[_Q/FK0I.D_BQ4AY RV5I7;%)?!O(MKNAP@C;4#.*YF(0*[6058J M$WLPM_]DIIHEGGBE1%X9B#^*<0O=05W!6E\\)<*V>@F)JZJ"Q4VEO"PC#UOA MX>>2+LL31]6J25-%"[)1C(/D51$XD#9156.B.58VTKWGQFR$+!^B*604XTR: ME0,4,;ZX)6T9[J*8W!TP=]=^BGWV/=H7?G[/.U(]5R>:Z4QDS: Y/4P.I60[ MFW8T\FB*#(,4P<;&+E9?L5&+9** @6-A:7.:S'K^5QC=!=[BIE@=DU2]@/54 MM"::UU31F@!V9@'WQ[]Y6U-D^<<024?+U<[(!B^&N+BELRJF%5@V@85G\FY9FD/#7+ADU+ M%V2M "H7,R_+[L. RPUV]RK+ XOB:0Q?%G403V)["@B@L&1GW7[8FWSR+IE[ M&V0^1-=2K5W7T@#T?'KKT0>QZV?W#IY>%XS@R+3&_5 -1^< M=,3/NP%M Y$K* OPR4+0 QN6'_N;!H/5)Y.JD0/2R-(*KQJ6<$ M(7D=T<.3[ 0CVY;V^-%BGEZ@"W9R883[C>>NL$9^$^- Y5P+[2;"W4+%L=:J M&D :0(Q".@HIO$PS'YEHE,_;D?".5S,7,U85$B;*(4D"9R'**&ZCN.'+)4OE M8K?KFN?8RMFY&&/+Q?/ M0+?G/LPVP;#[9\54'-W*T2D,VAJB,574J:;LA*@JAFSJ#2%^HGV:W]-SV[-P M06I\Z"N'3EG59%G.X>\"T16=)O109.-0="Y#K$B.XON/WL$"H.NZJ>;@Q2'; M@FLR6ULV#:L9N',WN87YX_^P?NP;1.ZPJ)^EYVX<8]4$;:!RX+0=7;>-'(]& ML'I#L)%8J)HC6QTQ[*8HNFS)JEG6U.8PFDQ3-W5'V[(&91A]:+UNR):3 ]JA M5CTHM:H[MB4W@G;AD8QDTFUZFJ*8@K04!VT/LMD<5=EL"I*7A9*B4)#CK"*T M@^E2%U?89XSXA8O\,-2A<:)FV*(K. SZ$2?12.[4@L4Z MX20Z"JFN6+*AM<.\@]QTE6=;4U2]%VS[(Z%J:+)C"]ZB+^#-!,]T=*4-;-$ MLKZ>K*WGQRB<=R6%7%@!-8'5%WZ-Y.>H^#&"@Q1VIZ3B.+JA-\&T"FK_.#=; M;S:E;A.X8IBJFAO9#_]T/HQB^ MYX'[P3/75$L5LV/E@0\!W&C2$)XXEM8<\&=R'YJW>._&6%"?0#RW66V([[@@ MA6*'T\"Q+,42-60_K'ZP:T0HL)^*8BA=L"L:GR_D)GGT?YT8V2)&-_G">914>GUQ_<1F>LS*_0SV7;LG >F%54SU^ M!S0:T<@R#%V,7AJB<1ZM5E'8W8$KLF*)B8#RN(? ;;1O8-M&"[!%T8%X]BHF M!P^HJ'SR8B)-C8GPB0J?B-/EQU^>_7PFRTJ=O-8![0_52KH=$U6!ZB(\^7*S<.%"O#LC4Q M^5@!YE!4VHH2D,8T[*/ATDI\5-TL+'KZQ*6U!;)T1VN'RA6_L^J2W):2-93N M*"Q3RY1!7H1"KVTX!Z+25EBFAJ59CG,D5%K)RE3%,D_U&*BT%96IHIFR)A^& M"BO"[452;-E0K2KN<" '8=%62"P+PLDJ:G3%HI5\:([IB+N0_6#15C04PS;5 M*B&MP^)7VE@>ZU<6*S_$7L NGB1GS_<2TV"66:#,'I ]8-@ZO%$=653MDV#8 M+M"1;47T5,?'L*WD6;(N[K6V1!#T,V9Z^62XB1XN1NCT65 M76!T$[!]H=IZ&6;@8N#!<&TEGI9MV?+#H-HZSM(=V^F&*BX,\6(EW*#ZQ>O' ME9J*K!;W"8LP#L&AK<1IMF/91N\XM O)%5D6TQY]X-!61$Q-E5NP(@^Z$![6 MU+)&((N\%1A$[U?+K^[W64I[[6-AVM?H,^]#]IYV).XC>(<(0-%$9>P-O9/. MN[6U-!U=3!T]VEFW6Y3HH"VJ]MBGW7H!9%JZ8ELGF#:\5!S[L^<&[TG'GLOL MEO5/>>>$XN!8?AB16[<#LCBKJ&@Z6,UM6.WCI_AC0;88.Z"E:[AT@O;*)R3%NN7X8S> MW-3'!D.QVTQ;%(XQA;8"-CSTN_KVG@2A9<1O]2H)V4%Y6#I<>+'_C6QAD!?Y M6;+[W^F%!XNK\#/VV(S!7I)V]7^$^2T5E^1N!;Q*+\1&8 2E7UT_1%-[29O? M+BY#HE>%ZP+ZW=?'#A6J4'DQG-D]+KJW=AZ*I6BFN$,]G/D].LJWK=E0#=%Q M#F=ZCXOPK3?93,O0'P7=WW_'Y._&3VXQ^W.UO/"NT_XB$Q6KEX1U43VT;GBU M-TFJ62B8/R)B70.)UAQJ)ZFM.33[97;Y)A=BX5!YCS4SFJ%;>")R+[!.6+5> MYJN.AJN@HV-UJ,P3-Z:=['#=YD<[4DYTN$XR7H M_.:S<''A!YO4.^!T0=TA%UUWB@5YAR%TO&GM%L&::3FPN)%M11OTM';(=?U1 M*=UP5+''S-#FM5M=ZJ30<&RG<-BGGVGQGA7\D')G+=IQ8GHJG\E".G\/Z!XP MW6N;ZS"53XSE;ON]BYXGQ72OH=^%J7(PIH6-Z/Z*OL1*_ *(UO"[%E]U@UZ< M_?XV&IJJ&IIC]3CY5N%'N01K)W3X)89UKG?AT?]?ADT:2?:2),=3G86]G@,0 M.=YTVH>=BF:8QY\/S26PIH';K:4/55A55>2=W-B&VQ>N[?>^'%/I&U7>([\G MX9YJMJ5KNY 4 ';&KG5=M:DX1F_(%2]3Z(5Z9N&@P3Z0?:!X0,*JL+/3%$>R M1B?']VF+@U^BN,\R3(4@M0/(@7BT)8\C-\0C._; PA1OT?L)&UTO<*H:TN'X MM#[;)3OMT9FML"B87JQ[M?R%WUB*![D3$M+S(>@>,>Z^;W@@SOE#M!/!/_#&X3ZSU#L!'8S-H=GI MEMBL8QBD-_.G%0YFBZ.WA=PZRG '?_1T+V3_FA\5EV:W,_0;IF*$JQ(+\A^'X1;\T6S=0M4:U[ M1YR>/^B?XJ6HN3GT?O%N37#55E6]#[QA\4^N38=0&-Z>XRWQB!-\7FSF60W" MH<3>MW7= 7H/M?P<^M=H-O_?C1][/CEQ;Y2ZMNZ! MV0N2K6/:K=ZR';"LO>;LX+KK6MQVW776!J7V33.ZXW2>7]V&U3_]K/'KT2J! MZXA9GP3;@QDJ=W6[S08)*\L0[ZW"H9H.KS?9$C(41S]L^$;IMNV+5IL3Y[!K M4JO&_P0+W&A13@KT8AM5S;:+"%0#ZX96^[BP>(E*<[R$(TMXI<"QSVK60^GE MC":_2_&($]D-HH=9"'GJBPT6^U)&T@[SFWA^"UR\6O88J!:/AK0!WS?J':A' M4OP$$*N,8:V;OT9?O#0-O-*F9S\9K7QSH3GD'A'N2JX_H_@O3$;32T3H#39> M.*^Y3JE)R;#IR)K!2%(W>EEH/D1N>,#-M_X"Z!!%Z526IW(9D9+O%D&T!5_C MET3P2@?PYX&; * _W3AVP_0J_HRU7KVU$U=DTS#$U.\^<'V@U[BKN*FIFB)6 MJ+;%KGK/:H9OWWBXDGUWGS_"%K>S.S=>7*U)BO!7!)-??[1T2QI)4!:$RUSB6R!U"POZE4 M4O%Z/_.N6S/OL[=R_9!LSH=I[,[3C1O@[?1J4VK^_$GYI_.[HE^4"'5:; L1 MWCLWP$08*LYOF]#39$3WT,4]2($NJSR\JQRZ )P?(<^WFTFX>_#5P=FAU9VC M;T4PQ5S-5[(-"-#?!2TRD3__5Y"^74M)>A]X/SU;N?&-'[Z1Y+<2OCQU _\& M_OSW)DG]Y?VS_[I)W^+S2QB;OX*?WTB*O$ZEK_X*:/#1NY,^1RLWG- O)M(7 MF,@R>_F:?WB=?\)!LC_6Y-/?%(W]![Y+:0SK!<':7:#,(-G(W\G:G?._&4;7 M4;SPXND\"@)WG7AO)/[IK73G+]);Q%9^\59JAWF&2LSA$.+/W8!3Z3I*TVB5 M/XW,(F\L1%I-[XBXX^/!HDCFN8=K\+<2F^.4#@@HKM.,>J_3!?^X<]Q=8QS. M/G>U?OLWQ90KN,;P*DT<2 \<"G]ZICUK203&18[_N\ %H8992$D4^(L>11%U M/$-;DR<2:L; M<(&Z'L5OI/CF^J4JZQ-5LR>J8;S:I8O,%!CFBTI;Q[[TPX6'Q)A:ZIFY3G.] M"KPE?$V_[4Y$P91GZ(91ZDE3*:9WV0/@.+V?2!<;3^*4YA2VI)?JJV9RRF9M MOW@(Z2SBH)0(CQ0]"5:5R*@E;&*T3]W1,61Y(LMR.UR&1)A14D9).9J]_O/6 M3[U=1OHH0:A@;(F1S6!/D;G2 BSL;VZX<>-[*;.OVA[[^G Z\O"*<0QEL">& M8;8'?UH"C$Q_="-;./^F@?QX!Q9/J39_H3CAE'L_C@&C*&C2/7!\KU,70< M;>0@M.4Q1!$CTY\@TY]*Z#B%X:+Y7[=1L/#B"9K&";&-LW7L!_SJ"FTB;<+$ MFV]B;R&]5$83>4IM>0P;ER/3GR#3!Q5$"I?D#""R)-9SPC9L3.FEU? JE8%< M^<.@[+[F9PCW9[3!L+^#&$93S:P4SH>GVBAEHY0-V2D\3 /)KU'J!LD8Y9PP MRE$FEFY,;$49=J S\KU_OJO*\/E>MF6OR96A^5?\^]-==;H#;7+#J7 Y_*Z+ M7+>N"9[?>HM-X%TM/].; 3_AQ8!?8S=,W#FY6O>$%\%6W=6Z;PQZP6?]$%OC M-"7[6ZD#UOD-L^*-LN4;9UMC5+APMO9BVF<%T>URP^P.0OYL/D1N".;\G,6[I2G&I]D[Q'7N'/=]]U%I(.D-\ MWF%IW]NVT>ZM]4=/XY&K@Z#Q#V7:!D+3AX;X@+L=CX Z3P'B* $/9>7V)D8> MSO0]BDWC4FZF.V)MO7Z;7- 7#9..PL!F%ZI$)586!+N_1!=TV?9KM2AT\ M<'&*I2V\MKMRY5V]#U%X\]6+5V3_K]O671?*Y4GHZ^,2\S2P=OME O8C5@4: MTL>KK^^_2)]F_YR]^_#^(9$Z+;2C*/SCF,'L%<'N8Q1.FP ".PK%-&T =T M:0_O5\="S<8H:O+TMTTX;=J%>%"UFJ.@/29!4Z87WGRJ-+PZ;U""=I*B8.9_ M#//%D;S[1_%*Y8:EBPPI>PB[L2^&H#D<&?4X6\.6-5%LNQTJ0Z++*"@G$A3' MF.AJP_M4!D"7 9RUZ\> 2GMH_G#2__ B_\#V<#Q>\8,PO8UM>\P&[6'.B1$K MIHT"?4HK]@A.PX],'_NOGCPF.U*>LK#2;7@K]9A"&GP*J8T9'53^:)2R1R1E MC>WVH$3LX?M]]2K2I)E!A@7:\T3Z1(OU1T7[011-@[A!L\:-IU',CBIFBB-/ M;/WP*' X-KVR?\-8@].A!J=5[&UXMU9F4 M4_ORF6KXX;.=HKW]*#O,5O5P SY=A5+>@-@F!^0,*;WUI/-HM7;#>RGVYI[_ MS5M(+LP W+D4+:7GK+VTM(RCE>2&DCN?Q]["QU(C/_SF)6D4PP?)^SZ_=<,; MNHI;PG+1 M"2 *#^-$"1UX"2_ &)D++!+%?>2&*>CXC^"'P 2H\G6SFMU(*\BRY M"?P&:,Y!.%T_),ADE,:^@6MXW4^2*+ZG5"UVJ';8"4J@G73M>:&TW 0!R@@A M%N"(@)/4C5-.G]D<]-"+7:P4E3Y1_.'EA;?T0R(M5!TR4B [R<(_FSP.NX7! M68V1K;.OQ[-S%<6SHW7*'U7[LT[.:)U&ZS1:I]$Z]6>=M([6J2K*G2;^?[PW MDLW7D-6QK/2[>R\I%FO-N]>DL:0IL1+-K)K4UJ)1$ T,&L&BB5&3]ALT=:)9 MRD2QK0,,&L&CB5&3CFS0"")-C1HG]*36H%')0,&PFYLR@L->U@^3C8."YM1J!Z94%48Z$??&+7# M%M)16Q,6:@OVB\!67I<(:+9YI8)A7(VFL,OLF#G MJP=NBK:8SBS=2IIHA8*).S>1,"=^G=(:!*R/6"[]P"?)%U(%P(H5\B("\B+N M\C^W=7GB&,8$<_;S6^R1F_@)ODAJ(C1K J*#)0;AW%^[ :E0>*[(VL1V#%H= M03;7:;G$9%_UQ%4H_>:&&S?&R@>7U/7J=E(GDI!WZ'Y""4@?$V0TAE1Z(2UP/-S2;BH5/H4 M>TLOQLE_R0H^9K_,+CE?_"4?#RMC .UD<_UO;Y[BO.!Q%X9 M&.?MD<&1"#> MO+G=PM>@)2SI731M5A;#)UG@S'!H7 3P))A#*^XTM(/75IRD^9ML(D88UMKE\SJV@L] MT!4?IB;0;>FYZ0:H2Y!<(&(94X%FUX3;P-7_H,[#.P2]P%\64 4$N9+AHU0; MEZP.YW]!H4%K0'T7, ;N(N/N,:WL(E/4G8FE@J;,B%@7'IB0$:[=H)HX#%%6 M=P64YD\"GP,0?\0Y+ R1W'H>4;_GBN-,=(/1-O960",DWW,6SU#%3T6IIH_R MVBRL/?)7ZTU:, LAKNIN61%7K@\$96942 E7^TAV)GB]8QPQ/'GDI:[3UZ!; MQHFJ04?PC>.AG:W_*UOW;]W:O5D!H/NKY26I_L2((+E"=_[UU@V%[RY#X?X M<+J]W07P.HSB%=C#T]89-R\9:]+G^Q@U8P?FN@(_]*:W'BX'$"'K1>LXO/L( M^U;6QX=0L32J =IE#;V_;??(HP?GT=Z.U]TIW%,FNVFIEV%7-Z<^"OU(H\+Z M/M4[$44\N\N1T#BWO\'*;7B/)X![FJ>>;LXC-V[V=C7M=+L!J_H0R/-8"'R0]@[1DY]48>O;##]U>=K3RW*XY'DL!-[5QG$PVCHT!UO? M)6U<##Y1?7\J#'H4]F(PWIUN).%%D>+^)Z9[1PMRM)3?[G:IHPEY: [MZS1Z M%#.2[]@)-R]WW5G9VJK)KG*^@-E^G$J7Q6:)3R-/=J>+%4.?UU3)_QCNU4NZ2 X'7BV?2PIO[ M0) $0[R?8I?F#9D M%[,HOY,BY3+6_@)"_RA*2=A?FH1E*;;]8/0]; Y*:0Z.H:OJD/B@[IN#.GP^ M-)C#X/F@[9N#MLT'0Y;E(?&AP1S*?'@ _.MYH._#7Q\^#QK,H5\>5'GC\WK, MS0:>5#%55;,= :T=0+HB9#1PGYKC%+QG5W1V,[<1B0Q=,35S#TXMV;9/;_83 M2C<,73@'$+;'&^^9]+H[H$9RHIJRDD]^-Y R M2MTFO#,4[0]Z$RH8EJK(K8#/A#-&&.!?IQ=^,L<#:9]B;^5O5E6I84-(#=?$ MY_NDX""X52GI7>28@C7392,GR%ZH?:&IMT)3TU7;E$^-IB&@>2 7?W7],/D0 M80/MJ_#]]]0/;S9^7X3SVW,2[\.C_+\,9/07,7_A, M6M&CJ?KH]2,WCB8+"XUV"/2/?EO:6HHLKO6ZH?_96[OW=']Q*1[ZZH/.Q3B\ M#E(7C-J23C-UTVZ.$A%?DL"Z6M*>__18^"4Y'3Q##TJU]IC:V15^6QHYN>:V M ;TCFMOB7HL,GF+IAJU4!W!5TM, ;*/D',1+/8,MK7%+@>C>O)6QM1G;/XJ[J;@WZV1N4]$V#/-T1&R X181^\9P-PWW9HS,J5K"4+55 MRSX=#1M@J!T;P]TTW)OQ,:=ZV>+8IJ:<4! ;H&@<'<7=5#3VHVC6Y\V.3< & MV%E[5@+')J"Y'T6[C*)B*8IV.BHV0-$Y.HJ[J6@U,-EEKW)J,C;!L>Q73DU' MNP&.9<]B&+9CG(Z,35 LNY;>4=Q-1:^B ' L^YA3T[$)CF4GEWW7J07#:0Z>:!<+#"M/#(+6'4C6+@ >5J ?!:4_&>F^0;V\9^"/Y MR2XH;H5]IW63ZMX0W]FFHF:<4OB:H+A%Q58H5M9U'5RNI.NF42@IKAJ=HQ#X MX5]OEC +;&3] ?Z0OI.OTONU]],S $^:$C]CW\81GF&X3=/UF]>O[^[NSKY? MQ\%9%-^\5F59>XT_O\8'G['A.8 @FA?&A;_=-(KYL+^+UTIVG4SXB?QUO?R\A MP0!%]&M\>"H#UN3HUT_/E&X$4&IHJW2GK5)#VYJA3TM;I9ZV5E^T56MHJW:G MK5I#VYJA3TM;M9ZV=E^TU6IHJW6GK59#VYJA3TM;K9ZV3E^TU6MHJW>GK5Y# MVYJA3TM;O9:VN"?4#VV-&MH:W6EKU-"V9NC3TM:HEUNM+]J:-;0UN]/6K*%M M+T.KQQM:.][0^O&&-HXWM'F\H:WC#6T?;VCGB"IS3'4\HCXJ1U1(Y8@:J1Q1 M)94CZJ1R1*54CJB5RA'54CFB7JI'U$OUF'[RB'JI'E$OU2/JI=I*+T\;\YGU M,9_>5\QGU<1\5G?B6C4Q7\W0IZ6M54];HR_:VC6TM;O3UJZA;B%TS^^//MYO#%TO#'T$=P8^C=;5:SQNM#QNM#QNM!'>%WHWU\7 M/-V#.4"UV@$BPM&:S(5-E7FT,B<(EBOW'B4[MY?$6"697:TR6US_1?4-O"2A M7A/T5)?1):CR"VG!.A](S (R,P#>8@XV!^1F 7H8>HM)$UB4K]P!HI&E;32" M>[15"&J3),2B$]=*T0J),T>E9^>.I82UT#N3V#^S+7\64G-(*)3>NLRB 5%N MJ'>,P!2[U'DTT6UB1%&.U^LX^NZO0(0!Y^>.QCQ,2:NWF 0(% <$7QML%B1: M*...JH6BSRT$9P!U4\RY*_I$4XV, 6Z,NM'S4O6FC40RANVT$%+J=@3W;** M+(J]>703$H/I(OE8QU<<>NGZ<>X-:@!QVH*#]D!VP'S?)A4$-JB/G%BVS4. M.XQ6YN#>_+3,,9CU)4B+!_1:44.'(" HQ, )'B9(;4]R4HB^B%G"+]Z15JY? MYJ!C\-(5U3N(P[R "F'L)W]-EXA^P8*!D0%J(' ,NB5P;8K] O&$3^J+B?0M M0IL&9+@O/JCH"GE,TTQXRD471\2 *!0APYEL3;BWXXZ-_%H""0\:>40Q&*.F MC5']&-6/4?T8U8]1_1C5/\6H7J]P@%?AMA4KN V(@KV;**7^+KW#FS2DEXKZ MJL C$AF6Z(,P$XR,W8S_5-*7[MPKZC5]E.DGD4X;XBT#U0BUWO]. S3V' G MT&E$%;AS5MZQA]'X%3!=HCYQ/ZGP*#-<;#U9:X3+:Y1J"PS&1Q."H!8V#;QO MF"OK-02Z*Z_H'[AULRW!O)%(I8.)JPB4[[F%XP9FB]Q%(T/P8.D;T,H0ZX!C"@WO>U%Q*-3@1+P6TIQMFB#$DO(S" Z'I?G36(Q&L7 M192,!X;E;EU@CN#*H;E!0F[E3#;W1>;H454%GBK$Y161MRFX?8S+Y#-%^(9( M^E8 7QJE*+ML%%DOBS-U]74KN22)YM1J\"5SX@E*^1QO.7'PEI.M]=!0[*51 M;2_Y33F$)60-7ER7>D *$L=3]T%(2J1/"%2V?5C6\PN4-TD)W3"P5U\04G\D M:W7@G?C8EK4JQED8CI2MT$&B+A/H^.T'O!N@C[/Z,EA-\)=K:K"NH2;[Z)T6HL/ AG_)0,ST/( )L(XI/8]LV+T12__AW8CMMT M\!9@_F6-#CF:SS=K'^8*Z[[??YM=2E>P7 %A GP^?#C'A,#*_7>$8*;178C+ M@,UUXB]\)CX",_+4544A<7-5+S5;U?/P]^9I, M1%@"R<<$9.JG 4VHH'[-8_^:P0<9 >,#&(%<9BZ%FS^\TT8!7PJVWO4763CN M8E/:A)C"K;0[2M$7,?;,\WSH-!03\P"Y"+W$1U *5?GMGVX&F\(M2C$NS18#2;!_P0^#2'EFS N:;^BMR* M1!+D*AOCM?."0@8(A;.D='3;F#D23M M$?>>,-OU[L;:.NYC$"S.6ZWGY^MYMG[?E/_=L*,!!Z&\: M6K:3?_M5OZ&^M:[<^OQ\[']?[MAG';]NW&JQ$U>^-8CF6,$?<[\RT:&QN=NT_5F MK4Z[+;?^N!D:D5\C=CQ?.I1]+7.7S\[.6I$U=2UX+B>>DX;NMKAY@GVRC@Q6 M*O"GS \PL[;\[6!=(>M\W(J-6ZZTU/4D=J6IJTUR?CZQFC/WJ04&\)>/I+8L M=>74/?2E&<:+=94I]B=1Z,3 JQP7JGBN0_S2.I&EI!)S&0OGY>S8@=<*5@O2 M B<)O(A'K76]ERMM5P ,O+@<760I0:=<*=JZ O_"?4[:)UV^@CAD3EAPY7KS M 9GBT($N^Q9BATXIL1LHP-Z,!'R4^PMLD1U1TBF"&7-A)L&JD93PLL6"PE2! M@G]<\#%USCDT 2GB'V"IV([)"ULPOT*.2F&VR@(:K/AD\^91Y :B]F5#Z,'; M@I:CUFPRI8Q&D)(I+2,)I=6S'S&S41P+98)=M/)A,L%#G]@Z^R7ZO/"(#V&B M2D,H2"HF+CLJ6=BQ0N>P.ALHI562@I3E@WCO88=/8>.1D,"/B=XN$C/; 3KY M2DH2:I.Z**Z,/MPQ'-HT(/9/]67U%GN0SR,)** LH7C;+N:[^P+?6['JQ?F: M%E^?Z@NN=:"59$COL(FY/LIQO0F"W"G:A*GM*,^RVL?^XY7C/I<0OC&)^3X6 M\LVCH"A,;?G6O1EF].\(#^R"(Q"P'M&GO="GC/@)\R\YB?O@A&^/(&T=UX=J M\$5N(GU\K8RT/Q53TT=(&0W02#'OQBK2KY#Y246].T,;J891JZX8TF\AA2&X M HJO73B.]5U8AKU$JNRTBLG_F">_TT1#[?<[;:"9#Q'SU[HVND9]?=17QZ-: M$6Z$\SGV5OK4H#,&2M7"H 0MRPU!OK'9K>M0B_A =P_[%-:V&"/!$OH!.'#,@DB+LL7RCNAK-\-QPU^4RY5\>FUANJ M:*#VS%IQ.G(# N)RA8&_F-"M$B&;!UM> M0NSZFYC+;I[+TR;ZHHS'L)?5B[TQ 2S$AN-UL#*!.1];F>/E3JN8W:,\NV=- M-%:'BJD.8)4=@^8S@6E#Z7,Y4"^^C7#BDV\AI*$^D?6H+92*^3TN'&;:7)GU M#%AD064A]5ZMVSC^#A4<&=X2CZ-K(:?4C;K]?#@YR8-KD&]$MU M=F(2]T[AK%JBMM&'.%2]B,Z*["S+)>5BB@OGRKP$KR>_I9HP2[3(0X43I49/5E/2G<]*AR0 %/''W%V^5 6/U@L>(N[H7 * M%3]H1!^2^&C=0+TZ*;=!2KGO"3NEF^DN7W$'%-O80>6$ _NQ><_M. 'P-IVPD;>2-D#<:XK7O 2=TCAQ%S2 M(>/_=T:Y1MKJ"*&'N!,*QVJ!2JHE^ZDDVB(\7RCFN'#XW1)*_WNL\O_XU<,Q MF:+HRN(YO]EVV? IOYO:2,H>/3*];. IIE)Z$>TO2*VYG#NI"P\MN+(8]4^> MC:3A- 3VK$*4PI5*".(N^(9"_%8*/@T0T(!7SS[S0+P=& FMMTC9P9-#4X8J MQ/F!N0YY_#=-$D;?H4GF!NP/2K6_:>5-$X:I233>YZMG: MW/5,ON?O@UY XJX7(%:X4"JZ4!Q?A1ZZ5A1*4(5_D])Z$B^2Y([4E9M+W]X@ M/03$AH;#0*3U7@%">*UY!XK2.OR#M*F\;_O".]*B]DLKMH@3^&F)M GU&C3% M^\VOAQ/%>@6>/:YV[S-2LC5'<44^5,[X4)%/OA/,ZX"\A"*Y*1[I%RYO_NH1 M!JN!1;$3'SWYVR)7)+IB%CU57YED&?0G;Q72RIRU8*W?8)QD\WG)J0J);'[' MCC%GOE=&KLJFHRP5A?',4)++Q.2"-V#:)[[.#@4QHD"87V^8N M@W./MWJ#U*)[.]&LM:]<3V,! :T>I$GMM%8UG>@U-'UJ/&( &@,W78,$H-^2 MWV0W]\#B% ^J4=6TO[C>5_X,'"]H@)U!M,\09JW62\-N^XLIQ9(R*&1D><3^ M@2DE[W,HOC[]+62DV^;'@_5>NL-8U63ZCYC-B,8VBT0T[-9+M\!>U92T^2*$ M'3*_8A2+7S]G?G &R?YM,[L$YE<^?OD-QZKD6([=^0 M^81XZZ%89GGM)FR[;G7P9NX%<(!R8:4HMU8-=T>(NT+C M(X>L*\1=W7%R),1]5%GI$/=I97&?"7&? M51:WW!9O/.T*(7\D=*HNB17RQQ#Z= H"VLNA%[J\>P:95Q&W<9<9WAUM^LO) M-M1"Z;OC',,9F_\DLHVS4/KN..-':?D!NU7V[A@S6OEHIXJNKLJ07Y#1U=71 MLEA(R]55TK)82LO5U=*R6$S+%1[G8CDM5U=/RV)!+5=740SL5VD-%?VY2@9@>MM:_C^WGBY-/:4Z' MYQA[0!3*9F\DR'S3O0+)S?@-K;B[F]X%:YQ 0O MN!9&YCZNE4MP^YW2?$Z[K)5+XSO^1D+RAD<^];>,6#FZ1*\D[36NJY]B[B6@ M72.[2HEC 33 M#[\]+'WK#G-!&/UXTFFV3RQ,7>81NOAXXYQ8(D#40SZC^.,)92>_ M_>>?_[#@WX=_-1K6!<&^=V[UF=MPZ)S]:HW0$I];EYABC@+&?[4^(S^4W[ + MXF-N]=ARY>, PQ\V#SZW7C<[I\AJ-#3Z_8RIQ_CUQ'GL]S8(5N>MUOW]?9.R M.W3/^#?1=)E>=U,6XB5J$"KA?_^?2OZ MZZYIJN7##?=WSSAK[=AY[!G^2A3M]S@1Y%Q$[ V9BX+(N@H?8^6VD)\:NV8- M^56C<]HXZS0?A'>R4WZD0@9<((HW\Q&J5Y*Z+ M?*G!Z2W&@2AB)[/Q$9]_A3@(>XL#XB*_%#.9E(=Q)AT(2^6+\7R\DK$%E%ZH M(C75\3CJ(7%[X;/[4@REB [C9\P7B)+_12*"A8X@X' \GG=#02@6A9QIDA_& MXY!\#XD'G@-/N&0PS/08& TO]+PBN@.1#)=+Q-?C^90L*)F#T8*/NRX+PMB)\VC.(R3/N;D#K"]PT.";HA/ M H(+_5))=!@_7Q#G8(^%+"3;'?;4"?8A!GHP1@3K&?0KD*L5RXOH#HT!-P)_ M#\'Y!G=80R=Y[6N+1-$?->SIB(\X:F2:28\OY%Y)=+PHI<=,/D4%<4*/)0W2 MX\0,/7:R6U>30_1Q@(@O1O*14@'/S2GR^CFJM3<2G[SM^I$L/7.R#E]+VNUR2L=J6#NJ_5\1]:Q-%U:LCZ.SG#TIC_%X"HP]S@/A M]RV)M:&Q7EU3%$)%N6HB64.1(WT3I**!H+ MA%8M /5-"_N!V'TC87[3:'>VRRD_;;_^VQ8"F.F%7,[D=P_PT0WVH\?^O6V7 M:-:JCV$YFP8[D?_)G/T.^3(MLX,>6.X:HGNT\I8OB"9Y4L ]B[&Y:S$.447G4RDJ/K[#"K MI>IZAN<<.5[",+PW22S,V+/:UFGKFZ7'W70<8B1\PT/LE9&I5"=U>TV^8$D/ M*J\:XRS3H0'F6 1;&0J1S&M?=XC0!DTML''XZ-C8!2(\FC/VB7!])D*NF$<_ MN\.ZIP5'=4N%RHPS@;TUY"&CBQGFRZQ-V(PEDR)"/4A?UP^II@J,@RYSF;@P MQJJI]$![4S]H.L(;A]@>JR-&W1+)VG[S&@78]XN]K9,GU^UYHAIG M43VV7#*J@TFZ9=W>K0U(GI#&H6%['I%R(_\*$<^A/;0BP=,9IXSUT#R"NO-H M;6P*1#8.HD^$,A[5"FY6XO.Q2;>L.V_6!B5/2./0B(?:Z2T";N79"9>3&^QU MP^":$B%"[)4:<(K[J3N+?N98I*L@XW">R,)@BKT!XI30A;!=-UR&T8R@C^?$ M)0H_U*'5P_-M_7CJ*\(X#/=2;9MZ95+98LJZ:Q1G=-PY&,QP7>8AOB2,4\HJTRS6]<=L3(4GG1>A93X] M)H+Q/&)3!BC,[^1!TRF$'M6,-I^F[H!;#$^QQ!D@-6JN*=^$';K8GD-059:G MF]9;7S['0D3SU NLXCO=LFY/SU5ZNIH\4T;C?!T"$^*0B7Q!BR@=&<\A\84, M0][]! +&SN]EAF,-ZKK]7Q>T,KHP#LC--5Z^K''SE@0FHL'F3/169D4B4$18 M]_*7+GR:&C .N4?Y'.JR)1XRH1/*]QL;$Q73$B0QRAB*C9RDZ8N4;Y[FI0SR M@(1&NA!O9D!->F$02S6LW26R5)U3@%Y=@$K?#B GP-GE8ODZEC1JDMJ]5:7M M8O8-'1@>2]-ALO@D0'3 :2?%^A-&LF3=&],)ECON$(>BZX"N*;L1,(^1Y1X. M784!S#Y=1ET@BO1YB0B500W"FQ]ZV'-HI$.9ZG!\"VJ!)^F,1R;Q6'NBHN'S M)NG+U&%J\""'TY"(6[G&-I[+6VGLI3S)D6^'*IJZMPIU[*)89N/"DS3CC1)] MG]W+U=O^=G]LAAXBB^[=(KH DRL"KWQ/=>\9ZD#Z7/V8YY# 'P^V%XYN3%,> MEI(\7W&\).$R'UH-TKKW"W6PU-: <5[Z%/ O0/ >DW<'AA!JGG8MNGC.^'9@ M ,O$H@^_B("XJG3[@$[K3LV/H)&\*:#6Z&K [+8"%60ZD7&1;+/TH$YI]]O4 M;:MI?E-SR,.1-#-D :];>^IBBI5[F;D$=?N9)GRYHA8XT(_9VE=?A![;*'^C MW"B7Q%9$;W"N>W"Y*S@U$&9/NH\#H,#G>E\ MHEG=X:\\0,E3+UEB&QKP=D$\RBRC.(Z]IS .DHSGC4C]*/HCK:XS^I[A![L(E4I7SCK*R/5QR[I&!+-]ZJ[B6U@]'-$MI 9'8+ M@9M"E-^QMU!L=N0TKWN9ZPA8*=1@'&@0-SA& O?QYG^'*M__D!F+]3JH>['K M&"&VC*J,@SJ^^G-!**)N= N]"&2=R&XI2'4/H'8/=:^&'0QV6649AW9TL*,+ M9NII%D'EM-=#\A=SD50KHOIMZJCBW8E.U%PPKDAN9>N\QGHHO#,0!954AKI. M.M#'[\HN,Q@F*?6 ?&\@D-HBOAA4=Y=NE\QO8F2::POMEP1HAEY> )J;*H'M M?5<%%QKK46MB:_#"41DMO0"(=6["+ .Z7G^:9F#VXM !FJP^17*6JS"0(BES MHU0K36!,7-?)E,=0/Y0%64*N+&(QIED5/ODNIT&J":+!"S[:^C$.V-]*N7XT,7]1:T$ZFC/. '+T(!- <>#6868?==9,H'6TA3MC MMOL])!P#PU[H/M:MJDHIBDD-W6)4 )D\ZJ>K'@.K8;:L7S .3+L8>]$>6'E\ M"SLP=)>P/,J:JC(/ZQP-/*[/'A"P,ONHM\CK$:"]UQSD4Q@:?YX'X(MXX<$^PW(!6]:_C^=[MP?JP9A#:FA=PO/P M5*K'.& G>+4="\?SW2LXU*$UG\+0D@5]&(N485X>$,F+.6%>=$E@V1FLD37\QQ)BVCD*^A00%(8,6NL /NM?)/ZXXNLX$.G:8TGE_;(^.>.198_ZULB>74\&UOC" MFOT^L+K74V=V4:'P>3&9. M=SBP^H/NK +>,O/=?<8Z[21C;YK6:#P#'5[97VU@K9(+!'/O8XSQUDGR]A9L M8#;N_?'[>-@?3*;6 $Q\]K4"#M5%=C$F3Y-,_M($-"?.9["WSP-P0[OK#)V9 M,Z@B3'Q!G*/]BK 8:V=)UMXUK2_V9 ).4P4S>^_&6,^ +8'<_)LA.Z^3S+UO M6I/!T)X-^F!Z$XA;,V!T:O>DVU;!KKQ_&'\/(0P-9.E!#IMO4L-"6P:B[A1L M#X**-?@\J$:;!T34Z(^Y!IL:Z(X36:U7N\=6<>=H(LC.9$#+D2\U&&:$6NO5 MIH>C9-7X)FVX)61(C: I'VU8LD^^&?JLE1S[*I;@*;HT]D=.[\*/D-36^QN)/G+OM?%C^N(%9.'SS?U!+ P04 M" !O=Q9)V8ED6W0) "S70 %0 &%F86DM,C Q-C V,S!?9&5F+GAM;.U< M6W/J.!)^WZK]#UJFMNK,@\&"D MSLE,&G(QK.) !)[.9%Y@$VY 9!KX87M MWITWKF>2,AMH6@/X@>DN3 >[Z+SAXL:O__GG/P#Y^_HO20(7-G(6/3#$EJ2Y M2_P+&)LKU .7R$6>&6#O%W!C.FMZ!5_8#O+ *\>'!0@\L5KQSUPU(1M$TA2 MB79OD+O WO54V[1['P0/O5;KZ>FIZ>)'\PE[W_VFA0; \[ M:(J6@/XGXVG3JW*A:"UZL45\N%XA-U#H&=O!"'>JM0I $>-C*O8>6YPUS M:=H2'2#R<4>F7?U41C=X>2 3RK?I?&B 5D5T?=.A#,[N$0K\(CB9PC7V?V5Z MQ-A[%-B6Z50"DZFY&S(ZUQ EWY\L)P\T#!'2"RG*UZH/T<#T[R\<_%0)4$II M-SP3[\YT[?^%)I(1.B:QR4.397_MVR[R"Y&55-\-X\C^>VTOR,PA/5QBLB(- M,!DT7N',*]+;T9/KU.VB(YD$17H[X;AC&.$ D)KR8IOBA5#@Q?0T"<* >IA&H],:,IAC!4$(_+Q8%2%5JL\T/')%J::R=X]Z",U5G,Y++M MVG3?."(?&=SH.4#N BUBY+3!=];JR&6J&Q5>(9! K)5\:[H+\-H$8-JH&W%V M28Z!V":X-E4@\CY2 :\ZX,NU:Z[)K@0M?A8,+[M(QV#M%&!EFA" MZ!\QV ] MVL+ZI@OP$KQIBV4XO[[' .[F J;*(-06"[ALV8^!?DSGENU;#O:)-/D FV R MO53&VE^*KDW&0!D/P5C1KZJWH+ VR$ _V8;>;H*1 M]L>U-M3TVQ#WY40;7X+!9#Q0IV,!(Z2&BB!CT>FV19TFF%U_^Z9,;RGY,^UR MK%UH V6L V4PF%R/=6K?U62D#=19:'%?F6DS*GLU56?J6 ]]6+_EO-HB8\W9 MMC5'3>J+&W6J:_V1"H9J7Z\?6F;5,8D+RMNXNDTPGNB$P2OE5B'(1,02;AF2 M@0:WH1V3 :!/!K__-AD-U>D,J&1XZ[<"UN?X$0JM<;&5 IU:X_$T;^!(U"S;MBI]Q1;58QJ#4 M&_1P?>XG-<;#%V.#0Q8O!1W61DL6GUV),S\)N0(:;ZH2]G3=\=$??Q,B6'EX5 M\AEQAW,M2!),@#0 ]LBV\KP!Y3&&X5JFOQ1;H.SG%$#L=Y MSF!-3+NC+1^X/PR884%=+HFKP.\,;3OY+#2,Y[;.>]V6O@U&5W\CL2K3O2S\ M%MWH2'F"2F<+&[7[@;WG4HKCK>&.RX"N.U*5H[A=A>)(6,!8%\EQ$C679+$L M=ZJP' D;63%Q?UE.HN9&>;$L'U5A.1(VLD+8_K*<1,T-RF)9[E9A.1(VC@Z* MY21J'LM'8ED^KL)R)&QT#XKE)&H>RUVQ+)]483D2-HX/BN4D:A[+QV)9/JW" M&=@\ MHL\$$UTM^8L3*2@?%M,,;GXI43#7E;) N$FH#BL/9''S,T'!7%?*!6-I QY6 M-LCBYG(M."&$E3+"6-J AY43LKBY7 M."V&EO#"6-N!A988L;B[7@I-#6"D[ MC*4->%CY(8N;R[7@%!%6RA%C:0,>5I;(XN9R+3A1A)4RQ5C:@(>5*[*XN5P+ M3A=AI7PQEC;@866,+&XNUX*3QG:EI#&6-N!A98TL;B[7@O/&=J6\,98VVH>5 M-[*XN?=;WITWUG1;/?M8>L8==5;0./J@G4KI0T"9@'EN2-CRM;5E"NGH>^VG M0 N?$69.S*6.::=.@TJ MNF]'K &#_2$]>=YN<_S ME_L\+T?WOG0K&#WOD;_M30ON^3FY;,!U1Z=B6O/OC*0%]_UL' "BV,V_ZY'6G#?S\!Q$'.#[,?N589KI.-)<(^\Q!.I-O)) M"F6M/2^Q\*17RF+=#[OI6GJ_7]:&O)P\W[YBH&:>F*8>:J2!1>-%_I"?\^:7/D_4$L#!!0 ( &]W M%DF;?7#WP"P (%Y @ 5 869A:2TR,#$V,#8S,%]L86(N>&UL[7UM<]LX MEN[WK;K_ 3>[6]U=92>6G:23S/1.R;*20Y?;-=6UV4"-G D#>+HIQ>]ER#T>@%2C,O\KTPCO!/+Z+XQ=_^[?_\$R+_^^O_/3Y& MEP$._0_H(EX>CZ)5_!(, MDR_R'_Z 7K_LG7KH^-B@W,\X\N/D9CJJRKW+LO6'5Z^^?OWZ,HH?O*]Q\D?Z M+-\D25V6=O#OM]=ZB7_I?^JAW\O?^R\<5J<"%EY'O3D]Z;__U].+D M'?GC]'3>>_?A[.3#2>\_#'\H\[)-NOVAQY/B?[GZ7\,@^N,#_6/AI1B1;HG2 M#X]I\-.+6O6^GKV,D]M7IRO2CA5R>3;0"%?0Y(&'U(&[RI>>AECE_9GD%2"_M=Q M*79,/SKNG1Z?]5X^IOZ+LO%9"R9QB*=XA5@U/V1/:\+8-*"$>U%\=I?@E1A, MF"2OJ/ZK"-^2'O?I#[VG/]1[2W_HGXN/K[P%#E\@*DEH**W7^T99A=(KVV"O M<1+$_C#:#75;VQ%\,G:2[!D5J.M;K\(\SKQP)_!U3>NPQWBW%M_JV6]I,IW@ MW5JZIGD0V!D/N7/SBMLUI!]>D7\U(.+'C,R3V"]!TB(4%IC] IL8BK*KTN-E MH]R06O,X:=;=6WG!,9T=3]Z>G;#:]2_[H]\'7GIWG<1+C/WT$[Y?X$J-8?[I MA53J51L%E>\G)10O66KJ4TB\6L9D-EIGQV'>5#>6BOP>+JJR M\E8A/RN;K<"UWU(Y*C[AJ/CF]F+?Z."J)3\ZZMM0;MT M=0&6 5UYZ8*AW:3'MYZW)JA[;U[A,$O+3R@IWAR?](J9^I^+CW^?;19IX => M\C3S0CQ9S;)X^4?_,4A;%360MT$58]B4-%IAY_0Q1=@F$I5"\0HQ.?0;E?S/ MY_))8CI&489)=;-K+_#EID,D9Z!N'\11N@FS(+J=X>0A6&*5WR>5M>?]:>!N?4") M( P::-!Q_F ECDIY(%XA6:OC='!-BL0)(2GS,X0$,M*PZAGJH3=\0[FXL/B1G,GA@\U;)#I6&57GKH#7K) MQ>'02XN16W[4-+Y#N4[!L(.N1:YB+[KVGKQ%B'ORZ4PD96TBDT.LIC!>Q#D5 MU+C:W4\%42&)>C!,RH 8NR"[])9!2,BHL"0B09L&1 ZT;C=X*><1$8 M?2W%U>YK7O#P_:T8VR(I%_TM&]N\"+C^5H]M7O#P_7UFU-]G+OO[3-_?9T#[ M^TS;WY4M/SO!0_ET+50*NR^3=,4!F?T7BX'D@'H> MX#A@:2YX;..: V_,./ &, ?>=./ M&SL<>&O,@;>N.?#6C -O 7/@;3<.O+7#@1^-.?"C:P[\:,:!'P%SX,=N'/C1 M#@?>&7/@G6L.O#/CP#O ''C7C0/O['#@O3$'WKOFP'LS#KP'S('WW3CPWM(> MT8GY)M&):Q:TP4JWB4X \Z %3K]1='(H)MSA8#5\Q,M-%CS@R6H5+'&B8(-* MW!XC]*"WK)#+ F&&%B#'CKL KU"E@@J=?88-I'CY\C9^>.7C@$8,O*;_H.QY M70L4(!_]?H5OO7 89>(( :&$#98HH%%B"+YVS@4Y)NY$F$JA7.RP(0 LU"V/ M2I*;!(&0-4,@!5@-?T[">492A8Q8?1;+OYL(W$0 LW)[VDNQPFE'9*H#5E!HU(4 M*I%:^+14HO*'G7(F27 ;1%XHGV_:$M8F&S&T:J9I?NV\Q^68VKU<"L&P#X,$ MLY0:-"V).NBT)68YY%0(LA5PVI!QS@@-L#8MIG@=)QE+#W/8(3_%:4;S%,B' M?%O"VI 70ZN&?/-KYQTLQ\3W;2YTL$T%\F-8M8M0_][BM@$/J[9/L/T21D\* M$/$[ 53D\$&#BL !D92+H$%9P O J-WI;B408.6@@1Z':(&W8<-FL8-@@X< M[!HY:"ETL&<>.]AS'CS8!BME N3PP5['^,&>I0#"GGD$8<]Y"&$;K)0)D(,( M>QVC"'NV0LK-XPA[S@,)VV"E3 #E':C!Z9E@RT\PCR;L.0\G;(.5,@%R0&&O M8T1ASU)(8<\\IK#G/*BP#5;*!,AAA;V.<84]2X&%/?/(PI[ST,(V6"D3( <7 M]CI&%_8LA1?VS.,+>\X##-M@I4R '&+8ZQACV+,49-@SCS+L.0\S;(.5,@%R MH&&O8Z1ASU*HX:EYJ.&I\U##-ECI;43(H8:G'4,-3P\6:MC"9;['>.I\C[$- M5LH$R'N,IQWW&$\/M<=X$2\W]SC*^I&?A['1MR22>W8JV5^D6>(M,U%]S/3L M)5#M4(UM6E4#)1CLZ8"42\%:J"*B6T8JUK1=1*KF**;X-J#(HXP^7-*JM5S, M5LRJ"F09N"J2<4X8#; V/PI*;&79.S+N:#$@7$V\;7MK@@ E52H/X=B)X7 )). M%E3&92]7#P+1F"=%75IRMOM="+--@(80*":(D$DID0L3%\)G@6@NV-$G0'P* MYC+T;@7U:GUOBPU"6"4+&E^"Z'T1(BZ/>RF#J)"+OAYLDH1B#-*E%W[!7B(W M!G)16PS0@2W)(),#P0L-.&Z-FHNC7!Y1!:?&(7=6?L5A^$L4?XUFV$OC"/NC M--UP.QL&\G;=20WLIELI$09!(A.$W/,O:;DP]1#5//Z#JJ)2%^7*?W-'JL]Q MN(DR+WEB#XN*KE9*Y.R22 *S29Z6$"#2B)&IR%)I(*;BD"&%,D+&>P5 M5OGR2R)N>0VK!-U:R@IE ;%'"5!*HN]25&D43^>BHB2';&)L'I!Y]#9.Y#L@ M+2F[W!%";%*F(0*(*2)
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