0001477932-15-007241.txt : 20151120 0001477932-15-007241.hdr.sgml : 20151120 20151120100105 ACCESSION NUMBER: 0001477932-15-007241 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20150930 FILED AS OF DATE: 20151120 DATE AS OF CHANGE: 20151120 FILER: COMPANY DATA: COMPANY CONFORMED NAME: New Global Energy, Inc. CENTRAL INDEX KEY: 0001543083 STANDARD INDUSTRIAL CLASSIFICATION: FISHING, HUNTING & TRAPPING [0900] IRS NUMBER: 454349842 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-54609 FILM NUMBER: 151245295 BUSINESS ADDRESS: STREET 1: 109 EAST 17TH STREET, SUITE 4217 CITY: CHEYENNE STATE: WY ZIP: 82001 BUSINESS PHONE: 307-633-9192 MAIL ADDRESS: STREET 1: 109 EAST 17TH STREET, SUITE 4217 CITY: CHEYENNE STATE: WY ZIP: 82001 10-Q 1 ngey_10q.htm FORM 10-Q ngey_10q.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


FORM 10-Q

 

x  QUARTERLY REPORT PURSUANTTO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2015

 

¨  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Transition Period From_______ to _______

 

333-179669
Commission file number

 

NEW GLOBAL ENERGY, INC.

(Exact name of small business issuer as specified in its charter)

 

Wyoming

45-4349842

(State of incorporation)

(IRS Employer Identification Number)

 

109 East 17th Street

Suite 4217

Cheyenne, WY 82001

(Address of principal executive office)

 

(307) 633-9192

(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 Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to the filing requirement for at least 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). x Yes    ¨ No

 

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

¨

Smaller reporting company

x

(Do not check if a smaller reporting company)  

 

 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o  No   x

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common Stock, par value $.0001 per share 14,000,579 outstanding shares as of November 19, 2015.

 

 

NEW GLOBAL ENERGY, INC.

 

 

PART I - FINANCIAL INFORMATION  

 

 

 

 

 

 

 

 

 

Item 1.

Financial Statements-unaudited

 

 

3

 

 

Condensed Consolidated Balance Sheets as of September 30, 2015 (unaudited) and December 31, 2014

 

 

3

 

 

Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2015 and September 30, 2014 (unaudited)

 

 

4

 

 

Condensed Consolidated Statements of Cash Flows for the Nine months Ended September 30, 2015 and September 30, 2014 (unaudited)

 

 

5

 

 

Condensed Consolidated Statement of Stockholders' Equity for the period ended September 30, 2015 (unaudited)

 

 

6

 

 

Notes to Condensed Consolidated Financial Statements (unaudited)

 

 

7

 

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

 

 

12

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

 

 

16

 

Item 4.

Controls and Procedures

 

 

16

 

 

 

 

 

 

 

PART II – OTHER INFORMATION  

 

 

 

 

 

 

 

 

 

 

Item 1.

Legal Proceedings.

 

 

17

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

 

 

17

 

Item 3.

Defaults Upon Senior Securities

 

 

17

 

Item 4.

Not Required

 

 

17

 

Item 5. 

Other Information

 

 

17

 

Item 6.

Exhibits

 

 

18

 

Signatures

 

 

 

19

 

 

 
2
 

 

ITEM 1. FINANCIAL STATEMENTS

 

New Global Energy, Inc.

Condensed Consolidated Balance Sheets

 

 

 

September 30,
2015

 

 

December 31,
2014

 

 

 

(unaudited)

 

 

 

 

Assets

Current assets:

 

 

 

 

 

 

Cash

 

$19,301

 

 

$25,008

 

Accounts receivable

 

 

-

 

 

 

3,661

 

Inventory

 

 

6,000

 

 

 

43,043

 

Total current assets

 

 

25,301

 

 

 

71,712

 

 

 

 

 

 

 

 

 

 

Property & equipment, net

 

 

5,256,711

 

 

 

5,400,251

 

 

 

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

 

 

 

Goodwill

 

 

16,182,601

 

 

 

16,182,601

 

Deposits

 

 

6,238

 

 

 

6,238

 

Total other assets

 

 

16,188,839

 

 

 

16,188,839

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$21,470,850

 

 

$21,660,802

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable-trade

 

$284,545

 

 

$170,685

 

Accrued expenses

 

 

577,068

 

 

 

486,052

 

Due to related parties

 

 

295,757

 

 

 

295,558

 

Current portion of long-term debt

 

 

342,523

 

 

 

812,108

 

Derivative liability

 

 

41,906

 

 

 

560,110

 

Total current liabilities

 

 

1,541,799

 

 

 

2,324,513

 

 

 

 

 

 

 

 

 

 

Notes payable, net of current portion

 

 

501,322

 

 

 

182,157

 

Total liabilities

 

 

2,043,121

 

 

 

2,506,670

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

Preferred stock-20,000,000 shares authorized $0.0001 par value

 

 

 

 

 

 

 

 

20,000 shares issued and outstanding (liquidation preference of $3,000,000)

 

 

2

 

 

 

-

 

Common stock-100,000,000 shares authorized $0.0001 par value

 

 

 

 

 

 

 

 

13,900,579 shares issued & outstanding (13,097,365 at December 31st)

 

 

1,348

 

 

 

1,310

 

Additional paid-in capital

 

 

44,018,124

 

 

 

34,108,982

 

Preferred stock subscriptions receivable

 

 

(390,794)

 

 

-

 

Accumulated deficit

 

 

(24,272,156)

 

 

(21,972,929)

Total New Global stockholders' equity

 

 

19,356,524

 

 

 

12,137,363

 

Non-controlling interest

 

 

71,205

 

 

 

7,016,769

 

Total stockholders' equity

 

 

19,427,729

 

 

 

19,154,132

 

 

 

 

 

 

 

 

 

 

Total Liabilities & Stockholders' Equity

 

$21,470,850

 

 

$21,660,802

 

 

See notes to unaudited condensed consolidated financial statements.

 

 
3
 

 

New Global Energy, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

 

 

 

Three Months Ended September 30,
2015

 

 

Three Months Ended September 30,
2014

 

 

Nine Months Ended September 30,
2015

 

 

Nine Months Ended September 30,
2014

 

 

 

 

 

 

(restated)

 

 

 

 

 

(restated)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$18,162

 

 

$10,808

 

 

$47,800

 

 

$10,808

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs & Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of goods sold

 

 

36,326

 

 

 

43,943

 

 

 

179,350

 

 

 

43,943

 

Depreciation & Amortization

 

 

47,857

 

 

 

41,091

 

 

 

143,541

 

 

 

41,091

 

General & administrative

 

 

503,331

 

 

 

361,128

 

 

 

765,267

 

 

 

547,465

 

Total Operating Costs & Expenses

 

 

587,514

 

 

 

446,162

 

 

 

1,088,158

 

 

 

632,499

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (Income) Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative valuation (gain) charge

 

 

(289,401)

 

 

(370,361)

 

 

(518,204)

 

 

1,634,273

 

Interest expense & amortization of debt discount

 

 

27,596

 

 

 

35,195

 

 

 

97,399

 

 

 

4,520,868

 

Interest income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(12,780)

Loss on settlement of debt

 

 

-

 

 

 

-

 

 

 

1,992,732

 

 

 

-

 

Consolidation of equity method investee

 

 

-

 

 

 

(2,642,913)

 

 

-

 

 

 

(2,642,913)

Net loss from equity method investment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

93,626

 

Total Other (Income) Expense

 

 

(261,805)

 

 

(2,978,079)

 

 

1,571,927

 

 

 

3,593,074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before income taxes

 

 

(307,548)

 

 

2,542,725

 

 

 

(2,612,286)

 

 

(4,214,765)

Provision for income taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net loss

 

 

(307,548)

 

 

2,542,725

 

 

 

(2,612,286)

 

 

(4,214,765)

Net loss attributable to non-controlling interest

 

 

86,425

 

 

 

104,142

 

 

 

313,058

 

 

 

104,142

 

Net Income (loss) attributable to New Global

 

$(221,123)

 

$2,646,867

 

 

$(2,299,228)

 

$(4,110,623)

Per share amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$(0.02)

 

$0.34

 

 

$(0.17)

 

$(0.89)

Diluted

 

$(0.02)

 

$0.33

 

 

$(0.17)

 

$(0.89)

Weighted average number of share outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

13,304,123

 

 

 

7,862,817

 

 

 

13,162,732

 

 

 

4,643,290

 

Diluted

 

 

13,304,123

 

 

 

8,026,794

 

 

 

13,162,732

 

 

 

4,643,290

 

 

See notes to unaudited condensed consolidated financial statements.

 

 
4
 

 

New Global Energy, Inc.

Condensed Consolidated Statement of Cash Flows

(unaudited)

 

 

 

Nine Months Ended September 30,
2015

 

 

Nine Months Ended September 30,
2014

 

 

 

 

 

 

(restated)

 

Cash flows from operating activities:

 

 

 

 

 

 

Net Loss

 

$(2,612,286)

 

$(4,214,765)

Adjustments required to reconcile net loss

 

 

 

 

 

 

 

 

to cash used in operating activities:

 

 

 

 

 

 

 

 

Net loss from to equity method investment

 

 

-

 

 

 

93,626

 

Consolidation of equity method investee

 

 

-

 

 

 

(2,642,913)

Derivative valuation charge (gain)

 

 

(518,204)

 

 

1,634,274

 

(Gain) Loss realized upon conversion of debt

 

 

1,992,732

 

 

 

-

 

Amortization of debt discount

 

 

-

 

 

 

459,089

 

Depreciation and amortization

 

 

143,541

 

 

 

41,091

 

Stock issued for services

 

 

283,944

 

 

 

120,000

 

Derivative based interest charge

 

 

-

 

 

 

4,018,076

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Decrease in accounts receivable

 

 

3,661

 

 

 

1,437

 

Increase in interest receivable

 

 

-

 

 

 

-

 

(Increase) Decrease in inventory

 

 

37,043

 

 

 

-

 

Increase in accounts payable

 

 

113,700

 

 

 

12,807

 

Increase in accrued expenses

 

 

91,376

 

 

 

305,723

 

Cash used in operating activities:

 

 

(464,493)

 

 

(171,555)
 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Advances to equity method investee

 

 

-

 

 

 

(440,000)

Cash used in investing activities

 

 

-

 

 

 

(440,000)
 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of preferred and common stock

 

 

268,406

 

 

 

547,350

 

Proceeds from related party notes payable

 

 

259,800

 

 

 

-

 

Proceeds from convertible note advances

 

 

-

 

 

 

150,000

 

Payments on long-term debt

 

 

(69,420)

 

 

(63,728)

Cash provided by financing activities

 

 

458,786

 

 

 

633,622

 

 

 

 

 

 

 

 

 

 

Change in cash

 

 

(5,707)

 

 

22,067

 

Cash-beginning of period

 

 

25,008

 

 

 

19,076

 

Cash-end of period

 

$19,301

 

 

$41,143

 

Cash paid during the period for:

 

 

 

 

 

 

 

 

Interest

 

$-

 

 

$-

 

Income taxes

 

$-

 

 

$-

 

Supplemental Cash Flow Disclosure of non-cash activity:

 

 

 

 

 

 

 

 

Fair value of preferred/common stock issued upon settlement of debt

 

$2,333,530

 

 

$14,046,443

 

Derivative liability eliminated upon debt conversion

 

$-

 

 

$14,057,284

 

Note principal converted to common/preferred stock

 

$340,800

 

 

$500,000

 

Net gain on conversion of notes payable and derivative liability

 

$-

 

 

$510,841

 

Debt discount recorded at issuance of convertible debt and warrants

 

$-

 

 

$150,000

 

Fair value of common stock issued upon exercise of warrants

 

$-

 

 

$2,994,935

 

Derivative liability eliminated upon exercise of warrants

 

$-

 

 

$2,892,825

 

 

See notes to unaudited condensed consolidated financial statements.

 

 
5
 

 

New Global Energy, Inc.

Condensed Consolidated Statement of Stockholders' Equity

(unaudited)

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Additional paid-in Capital

 

 

Accumulated  

Deficit

 

 

Subscription 

Receivable

 

 

  Non-Controlling Interest in Variable 
Interest Entity

 

 

   

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

 

 

 

 

 

 

 

 

Total Equity

Balance at December 31, 2014

 

 

-

 

 

$-

 

 

 

13,097,365

 

 

$1,310

 

 

$34,108,983

 

(21,972,928)

 

 

$-

 

 

$7,016,769

 

 

$19,154,134

Preferred stock issued to settle debt

 

 

6,816

 

 

$1

 

 

 

-

 

 

 

-

 

 

 

2,333,530

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,333,531

Preferred stock issued for cash

 

 

13,184

 

 

 

1

 

 

 

-

 

 

 

-

 

 

 

659,199

 

 

 

-

 

 

 

(390,794)

 

 

-

 

 

 

268,406

Fair value of warrants issued for services

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

283,944

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

283,944

Stock and warrants issued to acquire controlling interest in Variable Interest Entity

 

 

 

 

 

 

 

 

 

 

380,434

 

 

 

38

 

 

 

6,632,468

 

 

 

-

 

 

 

-

 

 

 

(6,632,506)

 

 

-

Net Loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,299,228)

 

 

-

 

 

 

(313,058)

 

 

(2,612,286)

Balance at September 30, 2015

 

 

20,000

 

 

$2

 

 

 

13,477,799

 

 

$1,348

 

 

$44,018,124

 

(24,272,156)

 

 

($390,794)

 

 

$71,205

 

 

$19,427,729

 

See notes to unaudited condensed consolidated financial statements.

 

 
6
 

 

NEW GLOBAL ENERGY, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015


 

Note 1. Organization and Nature of Operations

 

Background

 

New Global Energy, Inc. ("NGE" or the "Company") was organized on January 24, 2012. NGE's executive offices are located in Brevard County, Florida. The Company is focused on the development of its Global Energy Plantation ("GEP") Platform which combines alternative energy production, sustainable agriculture and aquaculture. It anticipates the use of non-centralized power plants, primarily concentrated solar power, Jatropha based biofuels and aquaculture operations to produce power for its own use and to feed into the power grid serving local power needs while producing farm grown fish and shrimp as food products. Management has begun to execute this plan through the purchase of a controlling interest in Aqua Farming Tech, Inc. ("AFT"). The Company is in the process of raising additional equity capital to support the completion of its acquisition and development activities. The Company's activities are subject to significant risks and uncertainties, including failing to secure additional funding to operationalize the Company.

 

Going Concern

 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company has earned no revenue earned since inception, and lacks any operational history. As of September 30, 2015, the company had a working capital deficit $1,516,497 and an accumulated deficit of $24,272,154. These matters, among others, raise substantial doubt about our ability to continue as a going concern.

 

While the Company is attempting to commence operations and generate revenues, the Company's cash position may not be significant enough to support the Company's daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company's ability to further implement its business plan and generate revenues.

 

The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern

 

Basis of Presentation

 

The accompanying condensed consolidated balance sheet as of September 30, 2015, which was derived from unaudited financial statements, and the unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. These financial statements should be read in conjunction with the audited financial statements and related notes for the fiscal year ended December 31, 2014, included in the Company's Annual Report on Form 10-K covering that period.

 

In the opinion of management, the information furnished in these interim financial statements reflect all adjustments necessary for a fair statement of the financial position and results of operations and cash flows as of and for the three and nine-month periods ended September 30, 2015 and 2014. All such adjustments are of a normal recurring nature. The financial statements do not include some information and notes necessary to conform to annual reporting requirements. The results of operations for the periods presented are not necessarily indicative of the results for the full fiscal year or any future period.

 

 
7
 

 

Note 2. Summary of Significant Accounting Policies:

 

Principles of Consolidation: The consolidated financial statements include the accounts of New Global and as of July 15, 2014, the accounts of AFT. All significant inter-company balances and transactions have been eliminated.

 

Estimates: The preparation of these financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related intangible assets, income taxes, insurance obligations and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other resources. Actual results may differ from these estimates under different assumptions or conditions.

 

Earnings per Common Share: We compute net (loss per share in accordance with FASB ASC 260, Earning per Share. FASB ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period. For the interim periods ended September 30, 2015 and 2014, the following potentially dilutive securities have been excluded from the calculation of diluted loss per share (excluding the impact of the treasury stock method) because their impact was antidilutive.

 

 

 

September 30,
2015

 

 

September 30,
2014

 

Convertible Preferred Stock

 

 

2,965,116

 

 

 

-

 

Warrants

 

 

592,150

 

 

 

150,833

 

Total

 

 

3,557,266

 

 

 

150,833

 

 

Reclassifications:  Certain amounts in prior years' financial statements have been reclassified to conform to the current presentation.

 

Recent Accounting Pronouncements

 

The Company has implemented all new relevant accounting pronouncements that are in effect through the date of these financial statements. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

 

Note 3. Stockholders' Equity:

 

Current Authorization

 

We are currently authorized to issue up to 100,000,000 shares of $0.0001 par value common stock and 20,000,000 shares of preferred stock. All issued shares of common stock are entitled to vote on a 1 share/1 vote basis.

 

Recent Issuances

 

Common shares issued to acquire controlling interest in Aqua Farming Tech: On August 11, 2015, the Company completed the acquisition of an additional 760,877 common shares of Aqua Farming Tech, Inc., a California corporation ("AFT") from unrelated third parties, giving it a total ownership of in excess of 99% of the outstanding shares of AFT. Prior to the acquisition of this block of common shares and since July, 2014 the company concluded that it was the primary beneficiary due to the combination of ownership interests and other rights held in AFT. As a result, the financial position and operating results and cash flows of AFT had been included in the company's consolidated financial statements since July 2014.

 

 
8
 

 

This transaction was completed for and in consideration of Three Hundred Eighty Thousand Four Hundred Thirty Four (380,434) shares of New Global Energy, Inc. common stock, plus warrants to purchase 380,434 shares of New Global Energy Inc. common stock at a price of $2.00 per share for a period of five years from the date of the transaction. These warrants include cashless exercise rights and shall be exercisable after six months from the date of the transaction.

 

Preferred Shares issued in settlement of debt: In February and March 2015 we issued a total of 6,816 shares of Series "A" Preferred stock in settlement of $340,800 of principal due on notes payable. The shares were valued at fair value using an Option Pricing model coupled with the Equity Allocation method. The resultant value of $2,333,532 was derived using the following significant assumptions:

 

Risk free interest rate

 

.49% to .70%

 

Expected volatility

 

82% to 90%

 

Expected years to liquidity

 

2 years

 

Expected dividend yield

 

  0%

 

Each share of Series A Preferred Stock shall be convertible, at the option of the holder, at any time into such number of fully paid and non-assessable shares of Common Stock as is determined by multiplying the number of issued and outstanding shares of the Corporation's Common Stock by .0000110. Provided however, that such number of common shares into which each share of Series A Stock may be converted shall not exceed 220. As of September 30, 2015 each share would convert into approximately 148.3 common shares. The shares are entitled to a liquidation preference of $150 per share and dividends on a pro-rata basis with the common if and when declared.

 

Preferred Shares issued for cash: In 2015 the company issued a total of 13,184 shares of Series "A" Preferred stock in exchange for $659,200 or $50.00 per share as stipulated in the Feb, 2015 stock purchase agreement. As of September 30, 2015 $268,045 has been received.

 

Warrants issued for services: In September, 2015 the company issued a total of 100,000 warrants to purchase common stock. The warrants for issued as consideration for services. The warrants are exercisable at $0.001 and expire September 11, 2022. We used the Black-Scholes-Merton pricing model and inputs described below to estimate the fair value of $283,944.

 

Risk free interest rate

 

  .11%

Expected volatility

 

  154%

Expected years to liquidity

 

7 years

 

Expected dividend yield

 

  0%

 

 
9
 

 

Note 4. Derivative Warrant Liabilities:

 

The aggregate fair value of the derivative liability arising from the warrants was determined to be $41,906 at September 30, 2015.

 

The Company values its warrant derivatives using the Black-Scholes option-pricing model. Assumptions used include:

 

 

·

risk-free interest rate- 0.15%-.0.36%

 

·

warrant life is the remaining contractual life of the warrants,

 

·

expected volatility-154%,

 

·

expected dividends-none

 

·

exercise prices as set forth in the agreements,

 

·

common stock price of the underlying share on the valuation date, and

 

·

number of shares to be issued if the instrument is exercised

 

The following table summarizes activities related to the derivative liabilities for the nine months ended September 30, 2015:

 

 

 

Warrants

 

Fair value at December 31, 2014

 

$560,110

 

Adjustments to fair value at September 30, 2015

 

 

(518,204)

Fair value at September 30, 2015

 

$41,906

 

 

Note 5. Current Loan Activity:

 

During the quarter ended March 31, 2015 the Company borrowed $259,800 from a related party through a series of three $100,000 unsecured promissory notes. The notes bear interest at 4% and are payable one year from the date of issuance. During the quarter ended March 31, 2015 $137,500 of previously issued notes and $203,300 of the new notes were settled by the issuance of 6,816 shares of preferred stock valued at $2,333,532.

 

On March 10, 2015 the Company executed an extension and new loan agreement with First General Bank consolidating the existing principal balance of $466,312 and accrued interest and other fees of $39,866 for a total of $506,178. The note bears interest at 6.5% and requires monthly payments of $3,449. The entire amount is due on March 10, 2017 and is secured by the property and equipment of AFT.

 

Note 6. Fair Value Measurements:
 

The following table summarizes assets and liabilities measured at fair value on a recurring basis as of September30, 2015:

 

 

September 30, 2015

Description of assets:

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

None

 

$-

 

 

$-

 

 

$-

 

 

$-

 

Description of liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives

 

$-

 

 

$-

 

 

$41,906

 

 

$41,906

 

 

 
10
 

 

Note 7. Restatement:

   

Thecompany has restated its consolidated statements of operation for the three and nine-month periods ended September 30, 2014 to report AFT on a consolidated basis as a Variable Interest Entity as of July, 2014 and correct for the accounting of the conversion of debt. The restatements are as follows:

 

 

 

Restatement Adjustments

 

 

 

 

 

Adjustment 1

 

 

Adjustment 2

 

 

Adjustment 3

 

 

 

 

 

 

Three Months Ended September 30, 2014 As Reported

 

 

Effect of Consolidation of AFT

 

 

Elimination of gain on Conversion of Debt

 

 

Eliminate Intercompany Transactions

 

 

Three Months Ended September 30, 2014 As Restated

 

Summarized Statement of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$-

 

 

 

10,808

 

 

 

-

 

 

 

-

 

 

$10,808

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs related to sales

 

 

-

 

 

 

43,943

 

 

 

-

 

 

 

-

 

 

 

43,943

 

Operating expenses

 

 

199,107

 

 

 

203,112

 

 

 

-

 

 

 

-

 

 

 

402,219

 

Derivative valuation (gain) charge

 

 

(370,361)

 

 

 

 

 

 

-

 

 

 

-

 

 

 

(370,361)

Interest expense & amortization of debt discount

 

 

315

 

 

 

45,065

 

 

 

-

 

 

 

(10,185)

 

 

35,195

 

Interest income

 

 

(10,185)

 

 

-

 

 

 

-

 

 

 

10,185

 

 

 

-

 

Gain on conversion of debt

 

 

(199,207)

 

 

-

 

 

 

199,207

 

 

 

 

 

 

 

-

 

Consolidation of equity method investee

 

 

-

 

 

 

(2,642,913)

 

 

-

 

 

 

-

 

 

 

(2,642,913)

Net loss attributable to equity method investment

 

 

98,580

 

 

 

(98,580)

 

 

-

 

 

 

-

 

 

 

-

 

Total costs and expenses

 

 

(281,751)

 

 

(2,449,373)

 

 

199,207

 

 

 

-

 

 

 

(2,531,917)

Net income before taxes

 

 

281,751

 

 

 

2,460,181

 

 

 

(199,207)

 

 

-

 

 

 

2,542,725

 

Income taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net Income

 

 

281,751

 

 

 

2,460,181

 

 

 

(199,207)

 

 

-

 

 

 

2,542,725

 

 

 

 

  Restatement Adjustments

 

 

 

 

 

Adjustment 1

 

 

Adjustment 2

 

 

Adjustment 3

 

 

 

 

 

 

Nine Months Ended September 30, 2014 As Reported

 

 

Effect of Consolidation of AFT

 

 

Elimination of gain on Conversion of Debt

 

 

Eliminate Intercompany Transactions

 

 

Nine Months Ended September 30, 2014 As Restated

 

Summarized Statement of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$-

 

 

 

10,808

 

 

 

-

 

 

 

-

 

 

$10,808

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs related to sales

 

 

-

 

 

 

43,943

 

 

 

-

 

 

 

-

 

 

 

43,943

 

Operating expenses

 

 

385,444

 

 

 

203,112

 

 

 

-

 

 

 

-

 

 

 

588,556

 

Derivative valuation (gain) charge

 

 

1,634,273

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

1,634,273

 

Interest expense & amortization of debt discount

 

 

4,485,988

 

 

 

45,065

 

 

 

-

 

 

 

(10,185)

 

 

4,520,868

 

Interest income

 

 

(22,965)

 

 

-

 

 

 

-

 

 

 

10,185

 

 

 

(12,780)

Gain on conversion of debt

 

 

(956,173)

 

 

-

 

 

 

956,173

 

 

 

 

 

 

 

-

 

Consolidation of equity method investee

 

 

-

 

 

 

(2,642,913)

 

 

-

 

 

 

-

 

 

 

(2,642,913)

Net loss attributable to equity method investment

 

 

192,206

 

 

 

(98,580)

 

 

-

 

 

 

-

 

 

 

93,626

 

Total costs and expenses

 

 

5,718,773

 

 

 

(2,449,373)

 

 

956,173

 

 

 

-

 

 

 

4,225,573

 

Net loss before taxes

 

 

(5,718,773)

 

 

2,460,181

 

 

 

(956,173)

 

 

-

 

 

 

(4,214,765)

Income taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net Loss

 

 

(5,718,773)

 

 

2,460,181

 

 

 

(956,173)

 

 

-

 

 

 

(4,214,765)

 

 
11
 

 

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION.

 

The following discussion and analysis is intended as a review of significant factors affecting our financial condition and results of operations for the periods indicated. The discussion should be read in conjunction with our consolidated financial statements and the notes presented herein. In addition to historical information, the following Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. Our actual results could differ significantly from those anticipated in these forward-looking statements as a result of certain factors discussed in this Form 10-Q.

 

Overview and Financial Condition

 

New Global Energy, Inc. ("NGE" or the "Company") is a sustainable agriculture and aquaculture company organized as a Wyoming corporation on January 24, 2012 with executive offices located in Brevard County, Florida. The Company focuses on the use of advanced technology and farming techniques with the goal of increasing production and decreasing costs. The Company is focused on internal growth and growth through the acquisition of high-growth firms, assets and properties in the Green market space; industry segments include sustainable agriculture, aquaculture, solar, biofuels and carbon credits. Management is targeting growth stage assets, operations and companies that possess proprietary market edge and demonstrate solid opportunity to scale their business. We expect to pursue special opportunities that are anticipated to accelerate shareholder value by consolidating certain tiers of the $5 Trillion per year fragmented Green and Renewable Energy industry.

 

The first portion of the Company's development included the development of its Global Energy Plantation ("GEP") using its Global Cell concept which combines alternative energy (source of usable energy intended to replace fuel sources without the undesired consequences of the replaced fuels) production, sustainable agriculture (practice of farming using principles of ecology, the study of relationships between organisms and their environment) and aquaculture (the farming of aquatic organisms such as fish, crustaceans, molluscs and aquatic plants). It uses non centralized power plants, primarily solar power and aquaculture operations to produce power for its own use and to feed into the power grid serving local power needs while producing farm grown fish and shrimp as food products.

 

The Company is focused on internal growth and growth through the acquisition of high-growth firms, assets and properties in the Green market space; industry segments include sustainable agriculture, aquaculture, solar, biofuels and carbon credits. Management is targeting growth stage assets, operations and companies that possess proprietary market edge and demonstrate solid opportunity to scale its business. The Company expects to scale its business through the development of the acquisition of existing farms and through the acquisition of additional farms. The Company believes that it can lower the costs of operations in anticipated acquisition through the construction of the solar generating systems and algae based feeding programs. The Company anticipates that if it is able to improve the metrics associated with the cost of production it will be able to attain a competitive advantage other farms in that market space.

 

Aqua Farming Tech, Inc. ("AFT") continued during the reported period to replace its existing brood stock used in its Tilapia production. It addition, in furtherance of the development of its feed development program, AFT planted Moringa on available acreage in Mecca to be used and has been using it as a component of the feed used in its own aquaculture operations

 

By the end of 2013, the Company had completed incremental acquisitions of Aqua Farming Tech, Inc. ("AFT") bringing its total ownership to 36.69%. AFT is a California corporation with aquaculture and agriculture operations in the Coachella Valley in Southern California that operates a large aquaculture operation on two parcels of land totaling 118.9 acres. On July 15, 2014 the Company acquired a 43.66% Net Revenue Interest in and to the net revenues from the operations of AFT's aquaculture operations in Southern California. Cash allocable to the Net Revenue Interest is calculated and distributed on a quarterly basis within forty five (45) days after the end of each calendar quarter. The Company has determined that the acquisition of this 43.6% Net Revenue Interest, considering its previously held equity interest (PHEI), The outstanding debt owed by AFT to the Company, and implicit variable interest resulting from the acquisition of Net Revenue Interest resulted in the Company being the Primary Beneficiary of AFT and consolidating AFT as of July 15, 2014.

 

August 11, 2015 the Company completed the acquisition of an additional 760,877 common shares of Aqua Farming Tech, Inc., a California corporation ("AFT") from unrelated third parties, giving it a total ownership of in excess of 92% of the outstanding shares of AFT. 

 

 
12
 

 

This transaction was completed for and in consideration of Three Hundred Eighty Thousand Four Hundred Thirty Four (380,434) shares of New Global Energy Inc. common stock, plus warrants to purchase 380,434 shares of New Global Energy Inc. common stock at a price of $2.00 per share for a period of five years from the date of the transaction. These warrants include shareholder appreciation rights and shall be exercisable after six months from the date of the transaction.

 

The Company had previously acquired these shares in a 2013 transaction which was rescinded due to delays in providing sufficient accounting information. These issues have been resolved and the Company has elected to proceed with the transaction.

 

The Company had previously entered into agreements associated with health care systems but based upon the lack of progress associated with the acquisition, during the reported period it completed agreements providing for mutual rescission of the following agreements.

 

1.

An exclusive license through New Global Medical, Inc. from VIP-PATIENT, LLC to its VIP Patient Management Software System.

2.

An exclusive license through New Global Medical, Inc. to Canacard Patient Management Systems Software, from ALTERNATE HEALTH, INC

3.

A 20 year renewable Service Agreement through New Global Medical Inc. with ALTERNATE HEALTH, INC. to maintain this licensed property.

4.

An associated Management Consulting agreement through New Global Medical, Inc. with Howard Mann related to the operation of these systems.

 

All of these agreements were executory; no money or shares had been exchanged and no business pursuant to the agreements had transpired.

 

Forward-looking statements such as this are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by a forward-looking statement. These risks and uncertainties include, without limitation: (1) the potential acquisitions or mergers may not be consummated in a timely manner, if at all; (2) any merger agreement may be terminated in circumstances that require the Company to pay a termination fee or reimburse certain expenses; (3) the diversion of management's attention from the Company's ongoing business operations; (4) the ability of the Company to retain and hire key personnel; (5) the effect of the announcement of any acquisition or Merger on the Company's business relationships, operating results and business generally; (6) competitive responses to any proposed Merger; and (7) the failure to obtain any requisite approvals to any Merger, such as stockholder approval. The Company expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

 

Results of Operations for the Three Months ended September 30, 2015 compared to September 30, 2014

 

The Company had revenues for the three month period ended September 30, 2015 of $18,162 up from revenues of $10,808 for the same period the prior year. Selling, general and administrative expenses for the same three months ended September 30, 2015 were $503,331, up from $361,128 for the same period the prior year. The increases were significantly associated with the consolidation of the Company's financial statements with Aqua Farming Tech, Inc. 

 

Results of Operations for the Nine Months ended September 30, 2015 compared to September 30, 2014

 

The Company had revenues for the nine month period ended September 30, 2015 of $47,800 up from revenues of $10,808 for the same period the prior year. Selling, general and administrative expenses for the same nine months ended September 30, 2015 were $765,267, up from $547,465 for the same period the prior year. The increases were significantly associated with the consolidation of the Company's financial statements with Aqua Farming Tech, Inc. 

 

We charge the initial valuation of the conversion feature and warrants by offsetting the carrying value of the note up to the principal. Initial derivative values in excess of note principal are immediately charged to interest expense. Derivative valuation charged was ($518,204) for the nine months ended September 30, 2015 decreasing the fair value of warrants to $41,906 as of September 30, 2015 with the decrease substantially due to the conversion and payment of notes prior to the reported period

 

 
13
 

 

Emerging Growth Company:

 

We qualify as an "emerging growth company" under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, we can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period.

 

The Company has implemented all new relevant accounting pronouncements that are in effect through the date of these financial statements. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

 

 

 

Cash Flows Nine Months Ended

 

 

 

September 30, 2015

 

 

September 30, 2014

 

 

 

 

 

 

 

 

Net Cash Used by Operating Activities

 

$(464,493)

 

$(171,555)

Net Cash Used by Investing Activities

 

$(0)

 

$(440,000)

Net Cash Produced by Financing Activities 

 

$458,785

 

 

$633,622

 

 

 

 

 

 

 

 

 

 

Cash Ending Balance

 

$19,301

 

 

$41,143

 

 

 

Although consolidated financials with Aqua Farming Tech, Inc. show revenues, the Company's cash position may not be significant enough to support the Company's daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company's ability to further implement its business plan and generate revenues.

 

Liquidity and Capital Resources

 

Financing Activities

 

During the Nine months ended September 30, 2015, The Board of Directors of the Company approved the designation of 25,000 shares of the Company's Preferred Stock as "Series A Redeemable Convertible Preferred Stock" providing for redemption, conversion and preferences a set out in the Certificate of Designation of Rights, Privileges, Preferences and Restrictions of Series A Redeemable Convertible Preferred Stock of New Global Energy, Inc. file as Exhibit 4.1 with this Form 8-K filed January 22, 2015.

 

In February and March 2015, the Company settled debt for 6,816 shares of the Company's Series A Redeemable Convertible Preferred stock and later issued 13,184 shares for $659,199. The Company has designated a total of 25,000 shares of Series A Preferred Stock. The Company showed a loss upon the settlement of this debt of $1,992,732 based on the fair value of the preferred stock.

 

For the nine months ended September 30, 2015, net cash provided from financing activities was $458,786.

 

The Company has historically met its cash needs through a combination of cash flows from operating activities along with long and short term borrowings and through the sale of its stock.

 

During the nine months ending September 30, 2015, the Company borrowed an additional $259,800 from Bio-Global Resources, a private unrelated company, for operating capital under three Promissory Notes carrying interest at the rate of 4% and due and payable one year from the date of the notes. These notes carried no conversion or warrant provisions. Also during this period, the Company raised $259,800 through the private sale of its preferred stock.

 

 
14
 

 

Contractual Obligations

 

The company has acquired Net Revenue interests and crop leases (see Overview of Financial Condition above). In addition, the Company has been reviewing various real property to utilize in its business plan and has been exploring the use of project finance structures to fund such acquisition and development of business activities. The Company expects to enter into such transaction or transactions during the next 12 months. There are currently no transactions under contract and there is no assurance that the company will be able to complete such transactions.

 

During the previous reported period, on May 11, 2015, the Company's Board of Directors approved the acquisition of certain technologies through three agreements including an exclusive license to VIP Patient Management Software System (Electronic Medical Records (EMR) and Electronic Health Records (EHR) Platforms) an exclusive license to Canacard Patient Management Systems Software, a HIPAA compliant platform that manages end-to-end transactions involved in providing safe access to controlled substances. The exclusive license from ALTERNATE HEALTH, INC., and is for a period of 20 years for the United States and Puerto Rico. This software is included under the International Patent Application PCT/CA2014/050890. The Company agreed to issue 1,500,000 commons shares for these licenses as well as warrants to purchase an additional 1,100,000 at a price equal to 50% of the market price on the day of issue.

 

During the reported period, the Company entered into a mutual rescission agreement with these two companies rescinding and terminating this transaction which had remained an executory agreement with no shares being transferred, money paid or services rendered.

 

During the reported period the Company retained CIM Securities LLC under and investment banking agreement to act as financial advisor and represent the company as placement agent in the private placement of shares. The Company has paid $12,500 of the initial retainer under the agreement and has agreed to issue a Financial Advisors Warrant for the purchase of 100,000 shares of the Company's common stock over a period of 7 years at a price of $.001 per share. The Company has not yet issued these warrants and nor paid the balance of the retainer provided for.

 

Commitments and Capital Expenditures

 

The Company had no material commitments for capital expenditures as of September 30, 2015.

 

Off-Balance Sheet Arrangements

 

The Company does not have any relationships with entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet financial arrangements.

 

 
15
 

 

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

 

Not required for smaller reporting companies.

 

ITEM 4. Controls and Procedures

 

We maintain "disclosure controls and procedures," as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. We conducted an evaluation under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report pursuant to Rule 13a-15 of the Exchange Act. Based on this Evaluation, our Principal Executive Officer and Principal Financial Officer concluded that our Disclosure Controls were not effective as of the end of the period covered by this report.

 

The limited size of the company including a limited staff makes it extremely difficult to segregate duties in a way that will allow disclosure controls and procedures to be implemented in an effective way. To the extent that the Company is able to add other executives and professional staff with increased business, it will continue its efforts to create an effective system of disclosure controls and procedures.

 

a)

The Company lacks the financial infrastructure to account for complex transactions which may result in a greater than normal risk that material errors may occur in the financial statements and not be detected timely.

b)

The Company currently relies upon independent financial reporting consultants for review of critical accounting areas and disclosures and material non-standard transactions.

c)

Lack of sufficient segregation of duties. Specifically, this material weakness is such that management must rely primarily on detective controls and controls could be strengthened by adding preventative controls to properly safeguard company assets.

 

Changes in Internal Controls

 

We have also evaluated our internal control for financial reporting and there have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of their last evaluation.

 

 
16
 

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

There are no pending legal proceedings. The Company may subject to other legal proceedings that arise in the ordinary course of its business and from prior management activities. Other than as previously disclosed, in the opinion of present management, the aggregate liability, if any, with respect to these other actions will not materially adversely affect our financial position, results of operations or cash flows.

 

ITEM 1A. RISK FACTORS

 

Not required for smaller reporting companies.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

August 11, 2015 the Company completed the acquisition of an additional 760,877 common shares of Aqua Farming Tech, Inc., a California corporation ("AFT") from unrelated third parties, giving it a total ownership of in excess of 92% of the outstanding shares of AFT. 

 

This transaction was completed for and in consideration of Three Hundred Eighty Thousand Four Hundred Thirty Four (380,434) shares of New Global Energy Inc. common stock, plus warrants to purchase 380,434 shares of New Global Energy Inc. common stock at a price of $2.00 per share for a period of five years from the date of the transaction. The Company agreed to include shareholder appreciation rights and shall be exercisable after six months from the date of the transaction. Those rights have not been further defined and the warrants have not been issued yet.

 

The Company had previously acquired these shares in a 2013 transaction which was rescinded due to delays in providing sufficient accounting information. These issues have been resolved and the Company has elected to proceed with the transaction.

 

Shares issued in settlement of debt: In February and March 2015 we issued a total of 6,816 shares of Series "A" Preferred stock in settlement of $340,800 of principal due on notes payable and later issued 13,184 shares for $659,199. (see Note 3 to the Financial Statements)

 

In August, the Company's Board of Directors has authorized the sale of 8,184 shares of Series "A" Preferred stock for $409,200 in cash to BioGlobal Resources, Inc.

 

ITEM 3. DEFAULTS ON SENIOR SECURITIES

 

None.

 

ITEM 4. OTHER INFORMATION

 

None

 

 
17
 

 

ITEM 5. EXHIBITS

 

a)

 

Exhibits

 

31.1

Section 302 Certification By Chief Executive Officer and Principal Financial Officer

 

 

 

32.1

Section 906 Certification of Principal Executive Officer and Principal Financial Officer

 

 
18
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

NEW GLOBAL ENERGY, INC.

 

    
Date: November 20, 2015By/s/ Perry West

 

 

 

Perry West

 

 

 

CEO and Director

 

 

 

 

 

 

 

 


EX-31.1 2 ngey_ex311.htm CERTIFICATION ngey_ex311.htm

 EXHIBIT 31.1

 

NEW GLOBAL ENERGY, INC.

OFFICER'S CERTIFICATE PURSUANT TO SECTION 302

 

I, Perry West, the Chief Executive Officer and Chief Financial Officer of New Global Energy, Inc. certify that:

 

1.

I have reviewed this Form 10-Q of New Global Energy, Inc.

2.

Based on my knowledge, this 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 this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

4.

The small business issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our 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 small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)

Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

 

5.

The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer'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 small business issuer's internal control over financial reporting.

 

    

Dated: November 20, 2015

By/s/ Perry West

 

 

 

Perry West

 

 

 

Chief Executive Officer and
Chief Financial Officer

 

 

 

 

 

 

EX-32.1 3 ngey_ex321.htm CERTIFICATION ngey_ex321.htm

EXHIBIT 32.1

 

NEW GLOBAL ENERGY, INC.
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 Quarterly Report of New Global Energy, Inc. (the Company) on Form 10-Q for the period ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Perry West, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. ss.1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 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 fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

A signed original of this written statement required by Section 906 has been provided to New Global Energy, Inc. and will be retained by New Global Energy, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

 

    
Date: November 20, 2015By/s/ Perry West

 

 

 

Perry West

 

 

 

Chief Executive Officer and
Chief Financial Officer

 

 

 

 

 

 

EX-101.INS 4 ngey-20150930.xml XBRL INSTANCE DOCUMENT 0001543083 2014-01-01 2014-09-30 0001543083 2014-09-30 0001543083 2014-12-31 0001543083 2015-01-01 2015-09-30 0001543083 2014-07-01 2014-09-30 0001543083 2015-09-30 0001543083 us-gaap:CommonStockMember 2014-12-31 0001543083 us-gaap:AdditionalPaidInCapitalMember 2014-12-31 0001543083 us-gaap:RetainedEarningsMember 2014-12-31 0001543083 us-gaap:NoncontrollingInterestMember 2014-12-31 0001543083 us-gaap:PreferredStockMember 2014-12-31 0001543083 us-gaap:MinimumMember 2015-01-01 2015-09-30 0001543083 us-gaap:MaximumMember 2015-01-01 2015-09-30 0001543083 us-gaap:FairValueInputsLevel1Member 2015-09-30 0001543083 us-gaap:FairValueInputsLevel2Member 2015-09-30 0001543083 us-gaap:FairValueInputsLevel3Member 2015-09-30 0001543083 2013-12-31 0001543083 2015-11-19 0001543083 2015-07-01 2015-09-30 0001543083 NGEY:SubscriptionReceivableMember 2014-12-31 0001543083 us-gaap:PreferredStockMember 2015-01-01 2015-09-30 0001543083 us-gaap:PreferredStockMember 2015-09-30 0001543083 us-gaap:CommonStockMember 2015-01-01 2015-09-30 0001543083 us-gaap:CommonStockMember 2015-09-30 0001543083 us-gaap:AdditionalPaidInCapitalMember 2015-01-01 2015-09-30 0001543083 us-gaap:AdditionalPaidInCapitalMember 2015-09-30 0001543083 us-gaap:RetainedEarningsMember 2015-01-01 2015-09-30 0001543083 us-gaap:RetainedEarningsMember 2015-09-30 0001543083 NGEY:SubscriptionReceivableMember 2015-01-01 2015-09-30 0001543083 NGEY:SubscriptionReceivableMember 2015-09-30 0001543083 us-gaap:NoncontrollingInterestMember 2015-01-01 2015-09-30 0001543083 us-gaap:NoncontrollingInterestMember 2015-09-30 0001543083 NGEY:ReportedMember 2015-01-01 2015-09-30 0001543083 NGEY:ReportedMember 2015-07-01 2015-09-30 0001543083 NGEY:EffectOfConsolidationOfAFTMember 2015-01-01 2015-09-30 0001543083 NGEY:EffectOfConsolidationOfAFTMember 2015-07-01 2015-09-30 0001543083 NGEY:EliminationOfGainOnConversionOfDebtMember 2015-01-01 2015-09-30 0001543083 NGEY:EliminationOfGainOnConversionOfDebtMember 2015-07-01 2015-09-30 0001543083 NGEY:AdjustmentEliminateIntercompanyTransactionsMember 2015-01-01 2015-09-30 0001543083 NGEY:AdjustmentEliminateIntercompanyTransactionsMember 2015-07-01 2015-09-30 0001543083 NGEY:RestatedMember 2015-01-01 2015-09-30 0001543083 NGEY:RestatedMember 2015-07-01 2015-09-30 0001543083 NGEY:WarrantsIssuedForServicesMember 2015-01-01 2015-09-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure 100000000 100000000 0.0001 0.0001 13097365 13900579 13097365 13900579 NEW GLOBAL ENERGY, INC. 10-Q 2015-09-30 false --12-31 No No Yes Smaller Reporting Company Q3 2015 0001543083 -4214765 -2612286 2542725 -307548 -2299228 -313058 -5718773 281751 2460181 2460181 -956173 -199207 -4214765 2542725 0.0001 0.0001 20000000 20000000 20000 20000 20000 20000 3000000 3000000 2333531 1 2333530 560110 41906 41906 0.0049 0.0070 0.0011 0.82 0.90 1.54 P2Y P7Y 0.00 0.00 560110 41906 -518204 41906 14000579 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The resultant value of $2,333,532 was derived using the following significant assumptions:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</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%"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify"><font style="font-size: 10pt">Risk free interest rate&#160;</font></td> <td style="text-align: justify">&#160;</td> <td colspan="2" id="hdcell" style="text-align: right"><font style="font-size: 10pt">.49% to .70</font></td> <td style="text-align: justify"><font style="font-size: 10pt">%</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify"><font style="font-size: 10pt">Expected volatility&#160;</font></td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="text-align: right"><font style="font-size: 10pt">82% to 90</font></td> <td style="text-align: justify"><font style="font-size: 10pt">%</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify"><font style="font-size: 10pt">Expected years to liquidity&#160;</font></td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="text-align: right"><font style="font-size: 10pt">2 years</font></td> <td style="text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; width: 86%; text-align: justify"><font style="font-size: 10pt">Expected dividend yield&#160;</font></td> <td style="vertical-align: bottom; width: 2%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td id="ffcell" style="vertical-align: bottom; width: 10%; text-align: right"><font style="font-size: 10pt">0</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">%</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"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We used the Black-Scholes-Merton pricing model and inputs described below to estimate the fair value of $283,944.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Risk free interest rate</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 9%; text-align: center"><font style="font-size: 10pt">&#160; .11%</font></td> <td style="vertical-align: bottom; width: 1%">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Expected volatility</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt">&#160; 154%</font></td> <td style="vertical-align: bottom">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Expected years to liquidity</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="text-align: center"><font style="font-size: 10pt">7 years</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Expected dividend yield</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: center"><font style="font-size: 10pt">&#160; 0%</font></td> <td style="vertical-align: bottom">&#160;</td></tr> </table> 13097365 20000 13477799 19154134 19427729 1310 34108983 -21972928 7016769 2 1348 44018124 -24272156 -390794 71205 6816 13184 268406 1 659199 -390794 1516497 268045 148.3 5400251 5256711 71712 25301 43043 6000 3661 21660802 21470850 16188839 16188839 -6238 -6238 16182601 16182601 2506670 2043121 182157 501322 2324513 1541799 812108 342523 295558 295757 486052 577068 170685 284545 21660802 21470850 7016769 71205 12137363 19356524 -21972929 -24272156 -390794 34108982 44018124 1310 1348 2 10808 47800 10808 18162 632499 1088158 446162 587514 5718773 -281751 -2449373 -2449373 956173 199207 4225573 -2531917 547465 765267 361128 503331 41091 143541 41091 47857 43943 179350 43943 36326 43943 43943 43943 43943 -4110623 -2299228 2646867 -221123 104142 313058 104142 86425 -4214765 -2612286 2542725 -307548 -5718773 281751 2460181 2460181 -956173 -199207 -4214765 2542725 3593074 1571927 -2978079 -261805 -93626 192206 98580 -98580 -98580 93626 -1992732 -956173 -199207 956173 199207 12780 -22965 -10185 10185 10185 -12780 4520868 97399 35195 27596 4485988 315 45065 45065 -10185 -10185 4520868 35195 -1634273 518204 370361 289401 1634273 -370361 1634273 -370361 -0.89 -0.17 0.33 -0.02 -0.89 -0.17 0.34 -0.02 4643290 13162732 8026794 13304123 4643290 13162732 7862817 13304123 -171555 -464493 305723 91376 12807 113700 37043 -1437 -3661 4018076 120000 283944 459089 1992732 1634274 -518204 -440000 41143 25008 19301 19076 22067 -5707 633622 458786 63728 69420 150000 259800 547350 268406 2892825 2994935 150000 510841 500000 340800 14057284 14046443 2333530 283944 283944 380434 38 6632468 -6632506 2642913 2642913 -2642913 -2642913 -2642913 -2642913 150833 3557266 150833 592150 2965116 10808 10808 10808 10808 385444 199107 203112 203112 588556 402219 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Background</b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">&#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">New Global Energy, Inc. (&#34;NGE&#34; or the &#34;Company&#34;) was organized on January 24, 2012. NGE's executive offices are located in Brevard County, Florida. The Company is focused on the development of its Global Energy Plantation (&#34;GEP&#34;) Platform which combines alternative energy production, sustainable agriculture and aquaculture. It anticipates the use of non-centralized power plants, primarily concentrated solar power, Jatropha based biofuels and aquaculture operations to produce power for its own use and to feed into the power grid serving local power needs while producing farm grown fish and shrimp as food products. Management has begun to execute this plan through the purchase of a controlling interest in Aqua Farming Tech, Inc. (&#34;AFT&#34;). The Company is in the process of raising additional equity capital to support the completion of its acquisition and development activities. The Company's activities are subject to significant risks and uncertainties, including failing to secure additional funding to operationalize the Company.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></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"><b>Going Concern</b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></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">The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company has earned no revenue earned since inception, and lacks any operational history. As of September 30, 2015, the company had a working capital deficit $1,516,497 and an accumulated deficit of $24,272,154. These matters, among others, raise substantial doubt about our ability to continue as a going concern.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">&#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">While the Company is attempting to commence operations and generate revenues, the Company's cash position may not be significant enough to support the Company's daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company's ability to further implement its business plan and generate revenues.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">&#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">The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">&#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"><b>Basis of Presentation</b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></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">The accompanying condensed consolidated balance sheet as of September 30, 2015, which was derived from unaudited financial statements, and the unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (&#34;U.S. GAAP&#34;) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. These financial statements should be read in conjunction with the audited financial statements and related notes for the fiscal year ended December 31, 2014, included in the Company's Annual Report on Form 10-K covering that period.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In the opinion of management, the information furnished in these interim financial statements reflect all adjustments necessary for a fair statement of the financial position and results of operations and cash flows as of and for the three and nine-month periods ended September 30, 2015 and 2014. All such adjustments are of a normal recurring nature. The financial statements do not include some information and notes necessary to conform to annual reporting requirements. The results of operations for the periods presented are not necessarily indicative of the results for the full fiscal year or any future period.</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"><b><i><u>Principles of Consolidation</u></i>:&#160; </b>The consolidated financial statements include the accounts of New Global and as of July 15, 2014, the accounts of AFT. All significant inter-company balances and transactions have been eliminated.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></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"><b><i><u>Estimates:</u></i></b>The preparation of these financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related intangible assets, income taxes, insurance obligations and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other resources. Actual results may differ from these estimates under different assumptions or conditions.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></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"><b><i><u>Earnings per Common Share</u>:</i></b>We compute net (loss per share in accordance with FASB ASC 260, Earning per Share. FASB ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period. For the interim periods ended September 30, 2015 and 2014, the following potentially dilutive securities have been excluded from the calculation of diluted loss per share (excluding the impact of the treasury stock method) because their impact was antidilutive.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td colspan="2" id="hdcell" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>September 30,</i></b><br /> <b><i>2015</i></b></font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>September 30,</i></b><br /> <b><i>2014</i></b></font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Convertible Preferred Stock</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td id="ffcell" style="vertical-align: bottom; width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,965,116</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Warrants</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">592,150</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">150,833</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">3,557,266</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">150,833</font></td> <td style="vertical-align: bottom; text-align: justify"><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; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></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"><b><i><u>Reclassifications:</u>&#160; </i></b>Certain amounts in prior years' financial statements have been reclassified to conform to the current presentation.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></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"><b>Recent Accounting Pronouncements</b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company has implemented all new relevant accounting pronouncements that are in effect through the date of these financial statements. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.</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"><b><i>Current Authorization</i></b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">&#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">We are currently authorized to issue up to 100,000,000 shares of $0.0001 par value common stock and 20,000,000 shares of preferred stock. All issued shares of common stock are entitled to vote on a 1 share/1 vote basis.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></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"><b><i>Recent Issuances</i></b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">&#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"><u>Common shares issued to acquire controlling interest in Aqua Farming Tech:</u> On August 11, 2015, the Company completed the acquisition of an additional 760,877 common shares of Aqua Farming Tech, Inc., a California corporation (&#34;AFT&#34;) from unrelated third parties, giving it a total ownership of in excess of 99% of the outstanding shares of AFT.&#160;Prior to the acquisition of this block of common shares and since July, 2014 the company concluded that it was the primary beneficiary due to the combination of ownership interests and other rights held in AFT. As a result, the financial position and operating results and cash flows of AFT had been included in the company's consolidated financial statements since July 2014.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">&#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">This transaction was completed for and in consideration of Three Hundred Eighty Thousand Four Hundred Thirty Four (380,434) shares of New Global Energy, Inc. common stock, plus warrants to purchase 380,434 shares of New Global Energy Inc. common stock at a price of $2.00 per share for a period of five years from the date of the transaction. These warrants include cashless exercise rights and shall be exercisable after six months from the date of the transaction.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">&#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"><u>Preferred Shares issued in settlement of debt<i>:</i></u> In February and March 2015 we issued a total of 6,816 shares of Series &#34;A&#34; Preferred stock in settlement of $340,800 of principal due on notes payable. The shares were valued at fair value using an Option Pricing model coupled with the Equity Allocation method. The resultant value of $2,333,532 was derived using the following significant assumptions:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Risk free interest rate</font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td id="hdcell" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">.49% to .70%</font></td> <td style="text-align: justify"><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">Expected volatility</font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">82% to 90%</font></td> <td style="text-align: justify"><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">Expected years to liquidity</font></td> <td style="width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">2 years</font></td> <td style="width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Expected dividend yield</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">&#160; 0%</font></td> <td style="vertical-align: bottom"><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; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></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">Each share of Series A Preferred Stock shall be convertible, at the option of the holder, at any time into such number of fully paid and non-assessable shares of Common Stock as is determined by multiplying the number of issued and outstanding shares of the Corporation's Common Stock by .0000110. Provided however, that such number of common shares into which each share of Series A Stock may be converted shall not exceed 220. As of September 30, 2015 each share would convert into approximately 148.3 common shares. The shares are entitled to a liquidation preference of $150 per share and dividends on a pro-rata basis with the common if and when declared.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><i>&#160;</i></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"><u>Preferred Shares issued for cash:</u> In 2015 the company issued a total of 13,184 shares of Series &#34;A&#34; Preferred stock in exchange for $659,200 or $50.00 per share as stipulated in the Feb, 2015 stock purchase agreement. As of September 30, 2015 $268,045 has been received.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">&#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"><u>Warrants issued for services:</u> In September, 2015 the company issued a total of 100,000 warrants to purchase common stock. The warrants for issued as consideration for services. The warrants are exercisable at $0.001 and expire September 11, 2022. We used the Black-Scholes-Merton pricing model and inputs described below to estimate the fair value of $283,944.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal"> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Risk free interest rate</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; width: 9%; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">&#160; .11%</font></td> <td style="vertical-align: bottom; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Expected volatility</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">&#160; 154%</font></td> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Expected years to liquidity</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">7 years</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Expected dividend yield</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">&#160; 0%</font></td> <td style="vertical-align: bottom"><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"><font style="font: 10pt Times New Roman, Times, Serif">The aggregate fair value of the derivative liability arising from the warrants was determined to be $41,906 at September 30, 2015.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">&#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">The Company values its warrant derivatives using the Black-Scholes option-pricing model. Assumptions used include:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal"> <tr> <td style="vertical-align: top; width: 3%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: top; width: 3%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#183;</font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">risk-free interest rate- 0.15%-.0.36%</font></td></tr> <tr> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#183;</font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">warrant life is the remaining contractual life of the warrants,</font></td></tr> <tr> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#183;</font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">expected volatility-154%,</font></td></tr> <tr> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#183;</font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">expected dividends-none</font></td></tr> <tr> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#183;</font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">exercise prices as set forth in the agreements,</font></td></tr> <tr> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#183;</font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">common stock price of the underlying share on the valuation date, and</font></td></tr> <tr> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#183;</font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">number of shares to be issued if the instrument is exercised</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></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">The following table summarizes activities related to the derivative liabilities for the nine months ended September 30, 2015:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; font-size-adjust: none; font-stretch: normal"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td colspan="2" id="hdcell" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Warrants</b></font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Fair value at December 31, 2014</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td id="ffcell" style="vertical-align: bottom; width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">560,110</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Adjustments to fair value at September 30, 2015</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(518,204</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Fair value at September 30, 2015</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">41,906</font></td> <td style="vertical-align: bottom; text-align: justify"><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"><font style="font: 10pt Times New Roman, Times, Serif">During the quarter ended March 31, 2015 the Company borrowed $259,800 from a related party through a series of three $100,000 unsecured promissory notes. The notes bear interest at 4% and are payable one year from the date of issuance. During the quarter ended March 31, 2015 $137,500 of previously issued notes and $203,300 of the new notes were settled by the issuance of 6,816 shares of preferred stock valued at $2,333,532.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">&#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">On March 10, 2015 the Company executed an extension and new loan agreement with First General Bank consolidating the existing principal balance of $466,312 and accrued interest and other fees of $39,866 for a total of $506,178. The note bears interest at 6.5% and requires monthly payments of $3,449. The entire amount is due on March 10, 2017 and is secured by the property and equipment of AFT.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes assets and liabilities measured at fair value on a recurring basis as of September 30, 2015:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="text-align: justify">&#160;</td> <td>&#160;</td> <td colspan="14" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b><i>September 30, 2015</i></b></font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 10pt"><b><i>Description of assets:</i></b></font></td> <td style="text-align: justify">&#160;</td> <td colspan="2" id="hdcell" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Level 1</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Level 2</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Level 3</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Total</b></font></td> <td style="text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">None</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td id="ffcell" style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt"><i>Description of liabilities:</i></font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Derivatives</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">41,906</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">41,906</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Thecompany has restated its consolidated statements of operation for the three and nine-month periods ended September 30, 2014 to report AFT on a consolidated basis as a Variable Interest Entity as of July, 2014 and correct for the accounting of the conversion of debt. The restatements are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="text-align: justify">&#160;</td> <td id="ffcell" style="vertical-align: bottom; text-align: right">&#160;</td> <td colspan="18" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Restatement Adjustments</b></font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" id="hdcell" style="text-align: center">&#160;</td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Adjustment 1</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Adjustment 2</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Adjustment 3</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td style="text-align: justify">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Three Months Ended September 30, 2014 As Reported</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Effect of Consolidation of AFT</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Elimination of gain on Conversion of Debt</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Eliminate Intercompany Transactions</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Three Months Ended September 30, 2014 As Restated</b></font></td> <td style="text-align: justify">&#160;</td></tr> <tr> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt"><i>Summarized Statement of Operations</i></font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Sales</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">10,808</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">10,808</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Costs related to sales</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">43,943</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">43,943</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Operating expenses</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">199,107</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">203,112</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">402,219</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Derivative valuation (gain) charge</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(370,361</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(370,361</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Interest expense &#38; amortization of debt discount</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">315</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">45,065</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(10,185</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">35,195</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Interest income</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(10,185</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">10,185</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Gain on conversion of debt</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(199,207</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">199,207</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Consolidation of equity method investee</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(2,642,913</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(2,642,913</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Net loss attributable to equity method investment</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">98,580</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(98,580</font></td> <td style="vertical-align: bottom; padding-bottom: 0.75pt; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 11.25pt; text-align: left"><font style="font-size: 10pt">Total costs and expenses</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(281,751</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(2,449,373</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">199,207</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(2,531,917</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; padding-left: 11.25pt; text-align: left"><font style="font-size: 10pt">Net income before taxes</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">281,751</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,460,181</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(199,207</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,542,725</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Income taxes</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Net Income</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">281,751</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,460,181</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(199,207</font></td> <td style="vertical-align: bottom; padding-bottom: 2.25pt; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,542,725</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td colspan="18" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt">&#160; <b>Restatement Adjustments</b></font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Adjustment 1</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Adjustment 2</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Adjustment 3</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td style="text-align: justify">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Nine Months Ended September 30, 2014 As Reported</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Effect of Consolidation of AFT</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Elimination of gain on Conversion of Debt</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Eliminate Intercompany Transactions</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Nine Months Ended September 30, 2014 As Restated</b></font></td> <td style="text-align: justify">&#160;</td></tr> <tr> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt"><i>Summarized Statement of Operations</i></font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Sales</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">10,808</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">10,808</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Costs related to sales</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">43,943</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">43,943</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Operating expenses</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">385,444</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">203,112</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">588,556</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Derivative valuation (gain) charge</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,634,273</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,634,273</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Interest expense &#38; amortization of debt discount</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">4,485,988</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">45,065</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(10,185</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">4,520,868</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Interest income</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(22,965</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">10,185</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(12,780</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Gain on conversion of debt</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(956,173</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">956,173</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Consolidation of equity method investee</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(2,642,913</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(2,642,913</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Net loss attributable to equity method investment</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">192,206</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(98,580</font></td> <td style="vertical-align: bottom; padding-bottom: 0.75pt; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">93,626</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 11.25pt; text-align: left"><font style="font-size: 10pt">Total costs and expenses</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">5,718,773</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(2,449,373</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">956,173</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">4,225,573</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; padding-left: 11.25pt; text-align: left"><font style="font-size: 10pt">Net loss before taxes</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(5,718,773</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,460,181</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(956,173</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(4,214,765</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Income taxes</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Net Loss</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(5,718,773</font></td> <td style="vertical-align: bottom; padding-bottom: 2.25pt; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,460,181</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(956,173</font></td> <td style="vertical-align: bottom; padding-bottom: 2.25pt; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(4,214,765</font></td> <td style="vertical-align: bottom; padding-bottom: 2.25pt; text-align: justify"><font style="font-size: 10pt">)</font></td></tr> </table> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The consolidated financial statements include the accounts of New Global and as of July 15, 2014, the accounts of AFT. All significant inter-company balances and transactions have been eliminated.</font></p> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The preparation of these financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related intangible assets, income taxes, insurance obligations and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other resources. Actual results may differ from these estimates under different assumptions or conditions.</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">We compute net (loss per share in accordance with FASB ASC 260, Earning per Share. FASB ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period. For the interim periods ended September 30, 2015 and 2014, the following potentially dilutive securities have been excluded from the calculation of diluted loss per share (excluding the impact of the treasury stock method) because their impact was antidilutive.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td colspan="2" id="hdcell" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>September 30,</i></b><br /> <b><i>2015</i></b></font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>September 30,</i></b><br /> <b><i>2014</i></b></font></td> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Convertible Preferred Stock</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td id="ffcell" style="vertical-align: bottom; width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,965,116</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Warrants</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">592,150</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">150,833</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">3,557,266</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">150,833</font></td> <td style="vertical-align: bottom; text-align: justify"><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">Certain amounts in prior years' financial statements have been reclassified to conform to the current presentation.</font></p> <p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company has implemented all new relevant accounting pronouncements that are in effect through the date of these financial statements. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the interim periods ended September 30, 2015 and 2014, the following potentially dilutive securities have been excluded from the calculation of diluted loss per share (excluding the impact of the treasury stock method) because their impact was antidilutive.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" id="hdcell" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b><i>September 30,</i></b></font><br /> <font style="font-size: 10pt"><b><i>2015</i></b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b><i>September 30,</i></b></font><br /> <font style="font-size: 10pt"><b><i>2014</i></b></font></td> <td style="text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Convertible Preferred Stock</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td id="ffcell" style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">2,965,116</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Warrants</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">592,150</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">150,833</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Total</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">3,557,266</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">150,833</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes activities related to the derivative liabilities for the nine months ended September 30, 2015:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" id="hdcell" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Warrants</b></font></td> <td style="text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Fair value at December 31, 2014</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td id="ffcell" style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">560,110</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Adjustments to fair value at September 30, 2015</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(518,204</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt">Fair value at September 30, 2015</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">41,906</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes assets and liabilities measured at fair value on a recurring basis as of September 30, 2015:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="text-align: justify">&#160;</td> <td>&#160;</td> <td colspan="14" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b><i>September 30, 2015</i></b></font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 10pt"><b><i>Description of assets:</i></b></font></td> <td style="text-align: justify">&#160;</td> <td colspan="2" id="hdcell" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Level 1</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Level 2</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Level 3</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Total</b></font></td> <td style="text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">None</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td id="ffcell" style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: justify"><font style="font-size: 10pt"><i>Description of liabilities:</i></font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 11.25pt; text-align: justify"><font style="font-size: 10pt">Derivatives</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">41,906</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">41,906</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Thecompany has restated its consolidated statements of operation for the three and nine-month periods ended September 30, 2014 to report AFT on a consolidated basis as a Variable Interest Entity as of July, 2014 and correct for the accounting of the conversion of debt. The restatements are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="text-align: justify">&#160;</td> <td id="ffcell" style="vertical-align: bottom; text-align: right">&#160;</td> <td colspan="18" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Restatement Adjustments</b></font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" id="hdcell" style="text-align: center">&#160;</td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Adjustment 1</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Adjustment 2</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Adjustment 3</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td style="text-align: justify">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Three Months Ended September 30, 2014 As Reported</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Effect of Consolidation of AFT</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Elimination of gain on Conversion of Debt</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Eliminate Intercompany Transactions</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Three Months Ended September 30, 2014 As Restated</b></font></td> <td style="text-align: justify">&#160;</td></tr> <tr> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt"><i>Summarized Statement of Operations</i></font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Sales</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">10,808</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">10,808</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Costs related to sales</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">43,943</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">43,943</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Operating expenses</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">199,107</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">203,112</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">402,219</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Derivative valuation (gain) charge</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(370,361</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(370,361</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Interest expense &#38; amortization of debt discount</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">315</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">45,065</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(10,185</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">35,195</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Interest income</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(10,185</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">10,185</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Gain on conversion of debt</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(199,207</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">199,207</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Consolidation of equity method investee</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(2,642,913</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(2,642,913</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Net loss attributable to equity method investment</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">98,580</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(98,580</font></td> <td style="vertical-align: bottom; padding-bottom: 0.75pt; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 11.25pt; text-align: left"><font style="font-size: 10pt">Total costs and expenses</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(281,751</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(2,449,373</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">199,207</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(2,531,917</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; padding-left: 11.25pt; text-align: left"><font style="font-size: 10pt">Net income before taxes</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">281,751</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,460,181</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(199,207</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,542,725</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Income taxes</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Net Income</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">281,751</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,460,181</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(199,207</font></td> <td style="vertical-align: bottom; padding-bottom: 2.25pt; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,542,725</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td colspan="18" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt">&#160; <b>Restatement Adjustments</b></font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Adjustment 1</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Adjustment 2</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Adjustment 3</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td style="text-align: justify">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Nine Months Ended September 30, 2014 As Reported</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Effect of Consolidation of AFT</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Elimination of gain on Conversion of Debt</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Eliminate Intercompany Transactions</b></font></td> <td style="text-align: justify">&#160;</td> <td style="text-align: justify">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Nine Months Ended September 30, 2014 As Restated</b></font></td> <td style="text-align: justify">&#160;</td></tr> <tr> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt"><i>Summarized Statement of Operations</i></font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td colspan="2" style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Sales</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">10,808</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td> <td style="vertical-align: bottom; width: 1%; text-align: justify"><font style="font-size: 10pt">$</font></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><font style="font-size: 10pt">10,808</font></td> <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Costs related to sales</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">43,943</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">43,943</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Operating expenses</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">385,444</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">203,112</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">588,556</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Derivative valuation (gain) charge</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,634,273</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,634,273</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Interest expense &#38; amortization of debt discount</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">4,485,988</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">45,065</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(10,185</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">4,520,868</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Interest income</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(22,965</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">10,185</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(12,780</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Gain on conversion of debt</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(956,173</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">956,173</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Consolidation of equity method investee</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(2,642,913</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(2,642,913</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Net loss attributable to equity method investment</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">192,206</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(98,580</font></td> <td style="vertical-align: bottom; padding-bottom: 0.75pt; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">93,626</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 11.25pt; text-align: left"><font style="font-size: 10pt">Total costs and expenses</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">5,718,773</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(2,449,373</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">956,173</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">4,225,573</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; padding-left: 11.25pt; text-align: left"><font style="font-size: 10pt">Net loss before taxes</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(5,718,773</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,460,181</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(956,173</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(4,214,765</font></td> <td style="vertical-align: bottom; text-align: justify"><font style="font-size: 10pt">)</font></td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Income taxes</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: justify">&#160;</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: left"><font style="font-size: 10pt">Net Loss</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(5,718,773</font></td> <td style="vertical-align: bottom; padding-bottom: 2.25pt; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,460,181</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(956,173</font></td> <td style="vertical-align: bottom; padding-bottom: 2.25pt; text-align: justify"><font style="font-size: 10pt">)</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: justify">&#160;</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(4,214,765</font></td> <td style="vertical-align: bottom; padding-bottom: 2.25pt; text-align: justify"><font style="font-size: 10pt">)</font></td></tr> </table> -440000 EX-101.SCH 5 ngey-20150930.xsd XBRL TAXONOMY EXTENSION SCHEMA 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - Condensed Consolidated Balance Sheets link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - Condensed Consolidated Balance Sheets (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - Condensed Consolidated Statements of Operations (unaudited) link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - Condensed Consolidated Statement of Cash Flows (unaudited) link:presentationLink link:calculationLink link:definitionLink 00000006 - Statement - Condensed Consolidated Statement of Stockholders' Equity (unaudited) link:presentationLink link:calculationLink link:definitionLink 00000007 - Disclosure - Organization and nature of operations link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - Summary of Significant Accounting Policies link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - Stockholders' Equity link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - Derivative and Warrant Liabilities link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - Current Loan Activity link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - Fair Value Measurements link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - Restatement link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - Summary of Significant Accounting Policies (Policies) link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - Summary of Significant Accounting Policies (Tables) link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - Stockholders' Equity (Tables) link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - Derivative and Warrant Liabilities (Tables) link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - Fair Value Measurements (Tables) link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - Restatement (Tables) link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - Organization and nature of operations (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - Summary of Significant Accounting Policies (Details) link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - Stockholders' Equity (Details) link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - Stockholders' Equity (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - Derivative and Warrant Liabilities (Details) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - Derivative and Warrant Liabilities (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - Fair Value Measurements (Details) link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - Restatement (Details) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 6 ngey-20150930_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE EX-101.DEF 7 ngey-20150930_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE EX-101.LAB 8 ngey-20150930_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE Level 1 [Member] Fair Value, Hierarchy [Axis] Level 2 [Member] Level 3 [Member] Level 1 [Member] Level 2 [Member] Level 3 [Member] Land [Member] Property, Plant and Equipment, Type [Axis] Land [Member] Land [Member] Land [Member] NP# 1 Short-term Debt, Type [Axis] NP# 2 NP# 3 3.00 Debt Instrument [Axis] 6.00 Warrants [Member] Measurement Basis [Axis] Conversion Feature [Member] Aqua Farming Tech, Inc [Member] Related Party Transaction [Axis] Common Stock Equity Components [Axis] Additional Paid-In Capital Accumulated Deficit Non-Controlling interest in variable interest entity Preferred Stock Minimum [Member] Range [Axis] Maximum [Member] Subscription Receivable Customer One [Member] Customer [Axis] Customer Two [Member] Reported [Member] Restructuring Plan [Axis] Effect of Consolidation of AFT [Member] Elimination of gain on Conversion of Debt [Member] Adjustment 3 Eliminate Intercompany Transactions [Member] Restated [Member] Warrants issued for services Shareholders' Equity Class [Axis] 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 Common Stock, Shares Outstanding Document Fiscal Period Focus Document Fiscal Year Focus Statement of Financial Position [Abstract] Assets Current assets: Cash Accounts receivable Inventory Total current assets Property and equipment, net Other assets: Goodwill Deposits Total other assets Total Assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable-trade Accrued expenses Due to related parties Current portion of long-term debt Derivative liability Total current liabilities Notes payable, net of current portion Total liabilities Commitments and contingencies Stockholders' Equity: Preferred stock-20,000,000 shares authorized $0.0001 par value 20,000 shares issued and outstanding (liquidation preference of $3,000,000) Common stock-100,000,000 shares authorized $0.0001 par value 13,900,579 shares issued & outstanding (13,097,365 at December 31st) Additional paid-in capital Preferred stock subscriptions receivable Accumulated deficit Total New Global stockholders' equity Non-controlling interest Total stockholders' equity Total Liabilities & Stockholders' Equity Preferred stock: Preferred stock, Par Value Preferred stock, Shares Authorized Preferred stock, Shares Issued Preferred stock, Shares Outstanding Preferred stock, Liquidation Preference Value Common Stock, Par Value Common Stock, Shares Authorized Common Stock, Shares Issued Common Stock, Shares Outstanding Condensed Consolidated Statements Of Operations Revenue Costs and Expenses: Costs of goods sold Depreciation and Amortization General & administrative Total Operating Costs & Expenses Other (Income) Expense: Derivative valuation (gain) charge Interest expense & amortization of debt discount Interest income Loss on settlement of debt Consolidation of equity method investee Net loss from equity method investment Total Other (Income) Expense Income (Loss) before income taxes Provision for income taxes Net loss Net loss attributable to non-controlling interest Net Income (loss) attributable to New Global Per share amounts: Basic and diluted Diluted Weighted average number of share outstanding Basic Diluted Statement of Cash Flows [Abstract] Cash flows from operating activities: Net Loss Adjustments required to reconcile net loss to cash used in operating activities: Net loss from to equity method investment Consolidation of equity method investee Derivative valuation charge (gain) (Gain) Loss realized upon conversion of debt Amortization of debt discount Stock issued for services Derivative based interest charge Changes in operating assets and liabilities: Decrease in accounts receivable Increase in interest receivable (Increase) Decrease in inventory Increase in accounts payable Increase in accrued expenses Cash used in operating activities: Cash flows from investing activities: Advances to equity method investee Cash used in investing activities Cash flows from financing activities: Proceeds from issuance of preferred and common stock Proceeds from related party notes payable Proceeds of convertible note advances Payments on long-term debt Cash provided by financing activities Change in cash Cash-beginning of period Cash-end of period Cash paid during the period for: Interest Income taxes Supplemental Cash Flow Disclosure of non-cash activity: Fair value of preferred/common stock issued upon settlement of debt Derivative liability eliminated upon debt conversion Note principal converted to common/preferred stock Net gain on conversion of notes payable and derivative liability Debt discount recorded at issuance of convertible debt and warrants Fair value of common stock issued upon exercise of warrants Derivative liability eliminated upon exercise of warrants See notes to unaudited condensed consolidated financial statements Statement [Table] Statement [Line Items] Beginning Balance, Shares Beginning Balance, Amount Preferred stock issued to settle debt, Shares Preferred stock issued to settle debt, Amount Preferred stock issued for cash, Shares Preferred stock issued for cash, Amount Fair value of warrants issued for services Stock and warrants issued to acquire controlling interest in Variable Interest Entity, Shares Stock and warrants issued to acquire controlling interest in Variable Interest Entity, Amount Net loss Ending Balance, Shares Ending Balance, Amount Notes to Financial Statements Note 1. Organization and nature of operations Note 2. Summary of Significant Accounting Policies Note 3. Stockholders' Equity Note 4. Derivative and Warrant Liabilities Note 5. Current Loan Activity Note 6. Fair Value Measurements Note 7. Restatement Summary Of Significant Accounting Policies Policies Principles of Consolidation Estimates Earnings per Common Share Reclassification Recent Accounting Pronouncements Summary Of Significant Accounting Policies Tables Potentially dillutive securities excluded from the calculation Summary of shares issued in settlement of debt Derivative And Warrant Liabilities Tables Schedule Of the changes in the derivative liabilities Fair Value Measurements Tables Summarizes assets and liabilities measured at fair value on a recurring basis Restatement Tables Summary of restatements Organization And Nature Of Operations Details Narrative Working capital deficit Summary Of Significant Accounting Policies Details Convertible Preferred Stock Warrants Total Risk free interest rate Expected volatility Expected years to liquidity Expected dividend yield Stockholders Equity Details Narrative Series A Preferred Stock convert into common shares Cash received Derivative And Warrant Liabilities Details Fair value at beginning Adjustments to fair value Fair value at ending Derivative And Warrant Liabilities Details Narrative Aggregate fair value of the derivative liability Description of assets: None Description of liabilities: Derivatives Sales Costs related to sales Operating expenses Derivative valuation (gain) charge Interest income Gain on conversion of debt Net loss attributable to equity method investment Total costs and expenses Net income before taxes Income taxes Net Income Debt discount recorded at issuance of convertible debt and warrants. Derivative liability eliminated upon exercise of warrants. Note principal converted to common stock. Fair Value, Inputs, Level 1 [Member] Fair Value, Inputs, Level 2 [Member] Fair Value, Inputs, Level 3 [Member] Building Improvements [Member] Equipment [Member] Vehicles [Member] Assets, Current Deposits Other Assets Assets [Default Label] Liabilities, Current Liabilities Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest Stockholders' Equity Attributable to Parent Liabilities and Equity Other Expenses Weighted Average Number of Shares Outstanding, Diluted Increase (Decrease) in Accounts Receivable Increase (Decrease) in Accrued Interest Receivable, Net Net Cash Provided by (Used in) Operating Activities Net Cash Provided by (Used in) Investing Activities Repayments of Long-term Debt Net Cash Provided by (Used in) Financing Activities Shares, Outstanding Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value EX-101.PRE 9 ngey-20150930_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE EXCEL 10 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx M4$L#!!0````(`#Q0=$W-/B,M*4-REVD`5E$);Q7VXM4MB M>+;B2R!L-!J33%<>*C_TL4ZCK4 M12$RR'6V5F%)ZH,U7`0]&2RX]4]/XJ26\A?O`WS[?XVOA;TER/. MM;G^:>B-Z$ASZA$2)^5@2')<(LEQA23'-9(<8R0Y;I#DN$62XPY)#CK"$@0+ M42D6I%(L3*58H$JQ4)5BP2K%PE6*!:P4"UD9%K(R+&1E6,C*L)"582$KPT)6 MAH6L[).LI/D3:_8.4$L#!!0````(`#Q0=$=(=07NQ0```"L"```+````7W)E M;',O+G)E;'.MDLMNPD`,17\EFGUQ2B46$6'%AAU"_(`[XSR4S'CD,2+]^X[8 M@,)#K<32KWN/KKP.J:P.-*+V'%+7QU1,?@RIROW:=*JQ`DBV(X]IP9%"GC8L M'C67TD)$.V!+L"S+%4EK0VTPAGEN&;>5ADZ3SX MB?078VZ:WM*6[13@2=&AXD7U(V8# M$NTIO8+Z>@"%,;X[)9J4@B,WHX*[O]C\`E!+`P04````"``\4'1';;-OU%X! M``!^$0``&@```'AL+U]R96QS+W=OOI1#11>/>HCT74!@:?P__638MS[; M/\/:15"OS/&YY4TUL^Z7MIAM>A<8\/PZ$K3V_QJ M2S&<92OCIG/2X_[G[.1\.:3N?*$T>;&NE'!(WSIW]95(\&:\T6S88%B^]_*? M[;NBJ',Y=?EK(VWXH\)\;9":>!#'@Q@2-(\'S2%!BWC0`A*TC`-`* M$K2.!ZTA09MXT`82M(T';2%!E"DR9I@D#6N,UJ1P31BO20&;,&*30C9AS"8% M;<*H30K;A'&;%+@)(SK.C-&+U9T9M!9VWML(W1FQ6]&:,W M*WHS1F]6]&:,WJSHS1B]6=&;,7KS1&]?62>7Y^#JMO2/KODV7"V:X.W#_2:/ M3QFGJI_8$ZW#L).8\?IP%,>IGR'FUZ^6XP=02P,$%`````@`/%!T1V7[$WU? M`@``D0@``!````!D;V-0&ULO59-;]I`$/TK*U_:'AH;-PT2 M(I92H&HETJ!"R7E8CV'%>M?=7:.07Y^Q#:Y)#!$&]MN:]LT)L8 MG:%Q`BU[2J6R/4K>>BOGLI[O6[["%.P5013=3;1)P=&E6?HZ203'H>9YBLKY M81#<^/CD4,48?\[JHE[4+[K<99D4')S0*KH7W&BK$\=&3QQEWW\-*!E4>8H\ M-\)MHZ#"-%,E9LI!XH!Z10E(BQ7J7[+$#'2:@=KZU=58J+7]D\WT$!PV68K-H)]O!WD5F M)IQ$^Y!,P+C_)$6Y4RU$UVMLOR_!0,5LI!P=1_935:W(O*8D=330]%PHBS&C MR&HI8CIF,?L&$A1'=@'GRSFMG`>S!"6>2Y%*[12XW"#3 M"2O>%JV<:9ZF8+8%9BJ62I"%=&C8'>#6H%# M-&)#XVRP'.<1C"F*CP4LA!2N??']Z1M\S>O]E&ULS9--3\,P#(;_"NJ]2[-I'**N!T"*!?@,3@/`0W$JT-3VRB47V1;1"\8BVH+C8R35&%3 M[J`,R_K*0S1#5=NVDW9&=6E@SEZ7#T]T-KFQ$:55D%31".P\++)SYY?9 M[=WJ/JNF!9_GG.?38L4+47`QG[T=)_OF;S3<]$/\6\=G@[1=-%C#A;LEC:;E MTB>!-$05C$?C[$4XPGP1$RSNWS]`X>6@7DB7;0==ZX*.%=VO,3J^G+2RC0O= M*?4C^O:JJD]02P,$%`````@`/%!T1YE&UL[5I;<]HX%'[OK]!X9_9M"\8V@;:T$W-I=MNTF83M3A^% M$5B-;'EDD81_OTV23;J;/`0LZ?O.14?GZ#AY\^XN8NB&B)3R> M+]O6N[!3+UES@ M6QHO(];JM-O=5H1I;*$81V1@?5XL:$#05%%:;U\@M.4?,_@5RU2-9:,!$U=! M)KF(M/+Y;,7\VMX^9<_I.ATR@6XP&U@@?\YOI^1.6HCA5,+$P&IG/U9KQ]'2 M2(""R7V4!;I)]J/3%0@R#3LZG5C.=GSVQ.V?C,K:=#1M&N#C\7@XMLO2BW`< M!.!1NY["G?1LOZ1!";2C:=!DV/;:KI&FJHU33]/W?=_KFVB<"HU;3]-K=]W3 MCHG&K=!X#;[Q3X?#KHG&J]!TZVDF)_VN:Z3I%FA"1N/K>A(5M>5`TR``6'!V MULS2`Y9>*?IUE!K9';O=05SP6.XYB1'^QL4$UFG2&98T1G*=D`4.`#?$T4Q0 M?*]!MHK@PI+27)#6SRFU4!H(FLB!]4>"(<7K;YH]5Z%8 M2=J$^!!&&N*<<^9ST6S[!Z5&T?95O-RCEU@5`9<8WS2J-2S%UGB5P/&MG#P= M$Q+-E`L&08:7)"82J3E^34@3_BNEVOZKR2.FJW"$2M"/F(9-AIR MM1:!MG&IA&!:$L;1>$[2M!'\6:PUDSY@R.S-D77.UI$.$9)>-T(^8LZ+D!&_ M'H8X2IKMHG%8!/V>7L-)P>B"RV;]N'Z&U3-L+([W1]072N0/)J<_Z3(T!Z.: M60F]A%9JGZJ'-#ZH'C(*!?&Y'C[E>G@*-Y;&O%"N@GL!_]':-\*K^(+`.7\N M?<^E[[GT/:'2MSAD6R4)RU3393>*$IY" M&V[I4_5*E=?EK[DHN#Q;Y.FOH70^+,_Y/%_GM,T+,T.WF)&Y"M-2 MD&_#^>G%>!KB.=D$N7V85VWGV-'1^^?!4;"C[SR6'<>(\J(A[J&&F,_#0X=Y M>U^89Y7&4#04;6RL)"Q&MV"XU_$L%.!D8"V@!X.O40+R4E5@,5O&`RN0HGQ, MC$7H<.>77%_CT9+CVZ9EM6ZO*7<9;2)2.<)IF!-GJ\K>9;'!51W/55ORL+YJ M/;053L_^6:W(GPP13A8+$DACE!>F2J+S&5.^YRM)Q%4XOT4SMA*7&+SCYL=Q M3E.X$G:V#P(RN;LYJ7IE,6>F\M\M#`DL6XA9$N)-7>W5YYNTB42%(JP#`4A%W+C M[^^3:G>,U_HL@6V$5#)DU1?*0XG!/3-R0]A4)?.NVB8+A=OB5,V[&KXF8$O# M>FZ=+2?_VU[4/;07/4;SHYG@'K.'YA,L M0Z1^P7V*BH`1JV*^NJ]/^26<.[1[\8$@F_S6VZ3VW>`,?-2K6J5D*Q$_2P=\ M'Y(&8XQ;]#1?CQ1BK::QK<;:,0QY@%CS#*%F.-^'19H:,]6+K#F-"F]!U4#E M/]O4#6CV#30,9FV-J/D3@H\W/[O#;#"Q([A[8N_`5!+`P04````"``\ M4'1'U@#H=5@"``"V"@``#0```'AL+W-T>6QE@BR?+F=-?/UU\20Q9VC0M]8N./IWSG4]' MLH_#2FTHOE]AK$##**\BN%*J_.IY5;K"#%5346*N5W(A&5)Z*@NO*B5&666" M&/5FOC_W&"($(/IQ_^%,+=7,&W#CY.)GX M#QSKIU-?/7F:[.J*?/Y/^?^0CZJL]U*V[9NHB M1X'7)M!K:QN'N>!#B6?0`7%8/8(UHMH_,.ZIH$("I<]09[`(1PP[CUM$22*) M`7/$"-TX>&8`>^RM'R-<2)O;91CGF?I#)EDD$?3;Y^GIDH'=#F9[A-+=[6D@ M#DND%)9\H2>@M9>;4F^."XZ=2.MWP+N0:!/,+K<"[*#S)D)F6/:9`]A!<4AQ MKG2`),7*C$J41KI02C!M9`05@B-J*+N(UM"T*:;TWKQDO_,=[B8'SL>QPN:O$^@HU%9TLTW2@K.L!/KH(5H9X?H@SWT M<8@Z5K`2DCQJ?W,14@U@"<$:2T72;>2O1.42-ZJ]P5Z3[U-X[)9?4]/IJS:H MT5?PKS9DU0\^Q MJPHE^B=R)XLFRW".:JI^D;50=C&"@_W#R`_FO=>RIXC@8/_$&:G9%ZM@^%.- M_P%02P,$%`````@`/%!T1Z;1@5@4`P``!@H```\```!X;"]W;W)K8F]O:RYX M;6R5EEM/VS`4@/^*E9=M+VMBV@(511H4-B0N$T7P["9N>X1C9[9#@5^_XX2. MDV$B>(KMQ%]\?#Y?#MQD8^S]PIA[]E@J[29VFJR]KR:#@PTV+HZJD&% MRB@=)8,`VX;ZV[+<%+*%W:S!W;V\2%@AEZ)6_@8'N_WO-,GXD/-QRPB?W8+< M.`H,#4SD'A[DC5A,DS1AHO;F%)27=B:\_&E-78%>(2MA2[#.ST.XS9CO5#SW!JEFE[A1=,)_^#^M>`8/>2=#[U87(=,3)-QBL`' M<+``!?YIFC1E)4,D@_]"::;_M<1T,SG;%#.A"W:B/5+8F6Z3AU,3QH`?GQ7- MC^T$L&#/BJR=*@HZ-KJ0VLF"8Q3Z#B'E09<]0)E^)'GID89"&B/@/8B(&_R^[51!2ZI M+^SD3XTBD=[[I/?^V]XS:>%!A-751',GK`W#.`?1B$TM3*F&:62.:VN#S^=& M:(P#F=V19!V/(R*?"K#L5JA:L@LI'$YK6!^.(JC!643A:]RI6LDZ0Z>^9A%A M>Y.1#2F*&IM%E.U'464SZFP6D3:66?85]R@EW3<*HLYF$6E[DYSM4A2U-HMH M^TZ.ML.B*.IM%A&7Y"H:%34WBZC;NQ1Y2O<]JBZ/J-N;-)Y1%)681R2.)VTF MO0#5B8]W=N.(R[TD=DE1U&\>\;M7`$[]YM1O'O&['T7]YM1O'O'[79?:&"F* M&LXCAG=U%I=5>M-=.X@2T@*GMA.W;UR=8TGH)-\$V_S_?&#P9\I[Q M-U%2*L%[4[=B$Y12=L]A*(XE;8AX8AUMU9TSXPV1:LHOH>@X)2=C:NH00YB& M#:G:H,C-V@LOLW`0J&A=?J4DJ]$!9Y./I.54-; M4;$6<'K>!%OTO$>IEAC%SXKV8C(&.OD#8V]Z\OVT":#.@=;T*'4(HBXWNJ=U MK2,I\F\7](.IC=/Q$/VKV:Y*_T`$W;/Z5W62I&2U,+_@>!62-8,E``UYM]>J-=?>WHF1L_D-V!GP:,#IK"%RAF@TH-CLU&9F M]O6%2%+DG/5`=$2_;?2LY%P'49&!,-'4EH19W.K56P'S\*;#.`6>*'96@49% MJ&)[`3CPV;&QX\\!>ZN('@.B`1!-=Q`9>_S8'@_V>&J/C3VYSV^JV%E%^AB0 M>`&)L6?W@,0H6@NP"I3$$5PM>`RI%Y.:(*N9?5C%^C$@\P(RFR6<(3C)@K.R M\B)6UH]G$$ZRX#&MO8BU]<Z=!,80PR184 M"_)7/;)%C?\Y:.G=CIQFR4GS%SVR-8W3F7^700/_.]'AI&$TE%],(Q7@R*ZM MM/UB7!V;]1:;AO,A+_*.7.@/PB]5*\"!2=6V3(\Y,R:I2@`^J71*]3DQ3FIZ MEGJ8J3&W#=9.).N&[X7QHZ7X"U!+`P04````"``\4'1'/P>E+A4$```U$P`` M&````'AL+W=O"<8!9;_Y]!&J\V"-ZN!B0GY9>?;VTV%SJYGM[ M<*Y;_:S*4_NX/G3=^2%)VN>#JXKVD/3>NV`]!59F@ M$":IBN-IO=T,95^;[:9^Z\KCR7UM5NU;517-?SM7UI?'-:S'@F_'UT/7%R3; M37*-VQ\K=VJ/]6G5N)?']1=XR"7VR$#\?727=G*_ZL4_U?7W_N'/_>-:]!I< MZ9Z[OHK"7WZXW)5E7Y-O^5^J]%>;?>#T?JS]]Z&[7OY3T;J\+O\Y[KN#5RO6 MJ[U[*=[*[EM]^<-1'W1?X7-=ML/OZOFM[>IJ#%FOJN)GN!Y/P_42_DD%A<4# MD`+P&@"*#9`4(.\"DJ!LZ-=O15=L-TU]6;7GHI]M>/!XTU?B:UZU0VV^2^U0 M^*4O_;%%NTE^]/40@A-D1\@\D1.17I'$MQ\5@:,(.16!(3[[.%Z.\6H:+X=X M*6XEV@$YA4X$!#(I8)[*`X5:B`5]45$M*FBY:V6*[`BY&U$]%4*(,?"Q#AW5 MH4,-DAF3@!@A!*,D0$H*)3^68J)23)"BYEO9&1KX=]-SHR50%BS@QUIL5(L- M6C2C)2`:M;'`J2%."8%ZP32ET:6?TD1_')]%^Y.%>,OT)R!@($7##N\,.*L( M1%324.PUI8PF8@QR5!ZCYM5`7$TP)YEQ:N#:\S3ER'R.G%>%<57!\A2S\W;$ M("@K4LWMT2MIC$C%@KT!,KH8(?B?6C+W#8%R*\;8=,9@JK9A]F!,'5IA4 M+U`4]T$8#8Q3%!AM^Z8X1517:H1>,LIQ.X1@8XKS0V(PTU8S>SO_Q6F]9(_$ M31&"E7&SL2-&*M3(C&5.7`H(2UZBD,85!5]4AE-$#&2"P7+"M+U5WG;[(.8M`G%'Z-,,G8"&IAC%TP/VBHIR$VY\52Q?O^W*NPQT7DC<59$+]#;61ZI)9L3 MXXZ*AE(Q3LWHN@*\-RE.T9BO>@/+TB5C%'=5I`21MQ/C3B.#RF!$38*Q9ZL,=JBY1)88R/S\6>1>05>R M?UM-CF;SJN+N*I$.D=S9FTMD;\_?;"*;3#YPG(M7]U?1O!Y/[>JI[KJZ&CYL MO-1UYWQ-XK/O[<$5^^M#Z5ZZ_M;Z^R9\U0D/77T>/U)=OY1M_P=02P,$%``` M``@`/%!T1\VID&)&`@``?P@``!@```!X;"]W;W)K69[1JZBKEKPRCU^;!K-_>U+3?N=#?UQX MJRZE4`M!G@63[U0UI.45;3U&SCO_"6X+B)1$*WY7I.>SL:?@#Y2^J\G/T\X' MBH'4Y"A4""QO-U*0NE:19.:_0]#/G,HX'X_1GW6Y$O^`.2EH_:PRRX MJ3B#!,TD>R-!;D4Q*#:3))#YK1!HA`CG$,A`H._]X>A?S_VA\8?WB!LM:4T1 M1@)6``#HEA56F9-F;:59&YKU?9IH3F,DLJ_TSRTL'$(G460EB@Q1M$`4?29: MP+&IG"RQE24V+/$"2_P0BTWE9$FL+(EA2>ZS)',6(PEM&S77%7:=DV=C[8.- M#A(]\,]+K?6DII[-0A^DC_6!5>:D@<"*HY$+^879 MI6JY=Z!"GCKZB#A3*HB,!%8R;BF_!J9)3BFMV,?^\%66>UN:Q?%]7US)+#ZU1?EX#(=$Z3T^7Y7;3MGTKMYOBHSZ? M+MFWGI;/ M]#$!U2`M\=RS,;S_W7G_K95KAO^25EEJC&2U9+@[96_IQKK\7M]\SU"`: MAZ_%N6H_%Z\?55WDG_[/?ITG[?[#^2H)G;`-``>H.^'[!!J(40]KJ[V=N7U:I]M-6=P6U35M]A-]-'C9.#&>%U7KS4Q:U38^ M-ZT_MQ(VZY^-'T3@#MDAPOS(WB*T)]:F?^<@8.GJ`5KSP!AB2T@>&,.DD^2+ M$^\P63=,=C]7S-J+:7O>V?-[>V[MH^$098M<[$Q8A"H:@9^*D2***#^UMQ27 MBA`_E;A\>74)Y[P(JTM.VT?.>8FL_4B+N)\7B["(0>2G8DMQICGS4WM+4:F9 M('XL<3GS"I-.8=(*TP%ALELD(0/"D*)$TX`P2U'.!`]@B.`-=Z6APESK/:-AMY,,,#=!8[8 M#ID5*,U):/D[D$EB]D!@DCI04`4D,.D)@C1B'.2,DTO!K=(F"\4#P1H9D$(' M8GJ,&!-4BT"X1DQ+I@,!(T&,"R`JFA&R*7/KL\E,C49TS^R08>!GXAG,WL,, MTA`R*PKR+JSX5;DS++793$4A57R&*CPPQ/F&4TB^Z* M#;\H=^JG-LLJ'8H?LIM`JD@@-,0]J,WA&)<3PTV)-8"0U&S+D$B)04DS,JE(\$#!&B,(PD1N"(9*U4\

*NB08Y218$'G]N<7Z*Y4`.N&4*6" MS`K`U-DLM)!8TD0\4N-*>[B0O4>3_\:E^W`AD>24D@AFI`EPOWV#K1#TG*W@ MK@[`)N)QL:8',V69%7D@X,=BQ,@#XWYJ_^F,2C^6?&)J1F$/[AH!!):/(7%B MGCC1B6,A<6*>./&_Q$7NM<>4/*/>!7<^!IOO0J7U#AG*F#F1XV,RC`3X9J\B M4&/UPU#0N32O@%^JQ&$PP-?RB#/0,RI@<"=D4,YM,-2I9NOL7O3-:_@H_8=?8RIHWU/'Q-[ M_?SI?KNYIN_9GVGY?KI4BY>BKHN\O25]*XHZ,V,F#T;!,4L/_<,Y>ZN;G[)9 M"WL);1_JXMK=J?<7^]O_`%!+`P04````"``\4'1'0>]>$^,$``!J&```&``` M`'AL+W=O/]+/)C_;C8-\WI8;6J7_99D=9?RE-V;']Y+:LB;=K'ZFU5GZHLW?65BGP% MOA^LBO1P7&S6?=G7:K,NWYO\<,R^5E[]7A1I]5^2Y>7Y<6$68\&WP]N^Z0I6 MF_7J4F]W*+)C?2B/7I6]/BZ>S,.6L)/TBK\/V;F^^NYUYI_+\GOW\.?N<>%W M'K(\>VFZ$&G[\2/;9GG>16I;_I>#?K395;S^/D;_O>]N:_\YK;-MF?]SV#7[ MUJV_\';9:_J>-]_*\Q\9]\%V`5_*O.[_>B_O=5,68Y6%5Z0_A\_#L?\\#[]$ M/E>3*P!7@$N%2SMR!>0*^%&!^IX.SOI^_98VZ69=E6>O/J7=;)N'5EYU0=K( M7MU':[M4]X5/7>F/C?']]>I'%X@U<*5)6'-1K-KH8A.PD*I#7QUN-[`=%"'= M;P''%O"Z$\B=<+!(8P"Z#D`<8&8R[#7'H1N#9@F!`8B"V\(M"PD,A8&];\F* M?;)L">\'",0^!1R`IE:O-A!L[0F@OG@3>:98P5(X/+JQJ*AF`TI+U3"FCB&<#Y" MU[&V\7P0;WHQOFBF+^[<:%/%HKF3R="PAFSL1[&#'2/;&<`3QLK8L,806C+* MV\,Z,G[L0`D#LB'@\8DT1\R["&,BS1$':W?7*_K>MH2RI9%]L39E>']YL89\ M$_FAPU(W%Y).L&48I<:E2U;N$J//&&V4!Q$&@:+:CJ$(0P<[,D<-@]0H2R\Q M,DDGR_.SYK85&:0F9"NHC0RS-/0)-3>?D'O;C7$2M'U^;*=9! MY+M,E0Q3PZ0T5G,TB-I-)`RT]<`T]6T(#ML-R$0%)JK1^,ZB)05$,2J>1J$) MC;4.F048<8T",],XC#3()`2&EXF41<$B%3NL61*Y81!D#`)CT&@8!`<,LL;= MCXQ!H!'N#B%D#`*S"S0,L@B"B+048LLZ2R%:%TLR"H%1"%J>S"*P<31?\1,` M@3L.0<8A,`Y!X5P"BDXYM4/.3'*"2T@\O5`#!',_:RNKG"+K'KKK[9K[Z5\/S;#]>JE]')]_@3=%?"L/#$/V^$2 M_"/,9GU*W[*_TNKM<*R]Y[)IRJ*_#7XMRR9KO?E?VI';9^GN\I!GKTWW-6R_ M5\-5^/#0E*?Q9O_R[X7-_U!+`P04````"``\4'1'N:6D>Y\#```-$```&``` M`'AL+W=O)C M+SK3Z<7>UR268Z:`O('$[=M7(,D!;TGD)H#\K:5?_P(=LKS*YE=[%J*+?E=E MW3XMSEUW>8SC]N4LJKS](B^B5K^<9%/EG7IL7N/VTHC\.`1598P`8'&5%_5B MM1S:?C2KI7SKRJ(6/YJH?:NJO/F3B5)>GQ9P81M^%J_GKF^(5\OX%G%E_AXP'B'AF(?PIQ;4?W42_^6BS#QS?V^R[8;A*_G/>BK4L_RV.W5FI!8OH*$[Y6]G]E-># M,&.@?<(76;;#W^CEK>UD94,6497_UM>B'JY7_4L"3)@[`)D`=`N`+!B`30#^ M",#!`&("R"T`\6``-0'T(R`\!F8"V$<`"09P$\!O`30\AL0$)'>#CG4YAF)N M\BY?+1MYC=I+WK_B\%'A39]$98[:(9NJ8SLT?NU;WU>0@&7\WB0!IX"G`6OV\Z(.&D$L(8#-.Y@X'4R,@P$I63+[ZJW=R,1"C:`$I_=+ MT<3"^C4SF-*<>KWNIT[W4N$?]XUYK!B>`?&;FA,#9T=#<]\3\(UH; M""=^9F,8QC`B++!Z;&VR4"$\S&2),@VR6]_T@#FC/# M!-_F3S`;#S-9JPWS@%":HN!:[Y,=:WVA'?6QJ,SS"5_ M%=_SYK6HV^A9=NHX-)Q=3E)V0F4"7U3)SNIL?GLHQ:GK;[FZ;_1I53]T\F(/ MW[?_`*S^`E!+`P04````"``\4'1'3EO(3Z4!``"Q`P``&````'AL+W=OFN-"T+&+MR90%#DX*#4^&V$$I;OY> M0.)XHBE="L^B[5PHL+)@*Z\6"K05J(F!YD3/Z?&2!T0$_!(PVDU,@OH7>?- M)I34T/!!NF<-E87`DMN=A=NG1PTT0\H^>17KV,7VWT'=;A[NI^R'Y6"!?!/*M0#X+I.^WN,5< M%LS_+MGF3!68-EX=2RHG\^UD3"8T+X2#+MS\/8/$\4A3NA1>1=NY4&!EP59>+11H M*U`3`\V1GM+#.0^("/@E8+2;F`3O%\2WD/RHCS0)%D!"Y8("]\L5'D'*(.0; M_YDU/UL&XC9>U)_B;KW["[?PB/*WJ%WGS2:4U-#P0;I7')]AWL(^"%8H;?R2 M:K`.U4*A1/'W:14ZKN/T9Y_.M-N$;"9D*^$AB<:G1M'F=^YX61@UYF%UZ M\'`31+PRL5'-.[2Q>`K5:YG>[PIV#4(S)MM@SC-F13"O?K-%1F_1LTC/OJ;O M%OINZW`W.TR^%L@7@7PKD,\"^;];W&+."V;_7Q.V.5,%IHU7QY(*!^VF(UVK MZ^T\97$FG_"RZ'D+/[EIA;;D@LY/-HZA073@VR=W>THZ_W[61$+C0OC-QV:Z M4E/BL%\>R/I*RP]02P,$%`````@`/%!T1_:^V,.D`0``L0,``!@```!X;"]W M;W)K*E!-"@>49FWFE4*"M0$T,5$=Z6AW.FX"(@#\">KN(2?!^ M07P+R:_R2)-@`204+BAPOUSA":0,0K[Q^ZCYV3(0E_&D_B/NUKN_<`M/*/^* MTC7>;$))"17OI'O%_B>,6]@&P0*EC5]2=-:AFBB4*/XQK$+'M1_^K).1=IN0 MCH1T)CQ&`AL:19O/W/$\,]@3V_(PN]7!PTT0\,(_?FK#%F2HP=;PZEA38:3<&UL MA5/;;J,P$/T5RQ]0$T+;;420DJY6NP\K57W8/CLP@%7;P]HFM']?VUQ*JTAY MP3/#.6?.^)(/:%YM"^#(FY+:[FGK7+=CS)8M*&YOL`/M_]1H%'<^-0VSG0%> M19*2+$V2.Z:XT+3(8^W)%#GV3@H-3X;87BENWH\@<=C3#9T+SZ)I72BP(F<+ MKQ(*M!6HB8%Z3P^;W3$+B`CX)V"PJY@$[R?$UY#\J?8T"19`0NF"`O?+&1Y! MRB#D&_^?-#];!N(ZGM5_Q6F]^Q.W\(CR152N]6832BJH>2_=,PZ_81KA-@B6 M*&W\DK*W#M5,H43QMW$5.J[#^"?;3K3+A'0BI`OA1Q*-CXVBS9_<\2(W.!#; M\7!VFYV'FR#BE8F-:MZAC<5#J)Z+S=U#SLY!:,*D*\QQPBP(YM4OMDCI)7H: MZ>EU^G:F;]<.MY/#Y+I`-@MD:X%L%+A/OHZXQAQGS/V! M=L[U>\9LU8'B]@9[T/ZD0:.X\ZYIF>T-\#J2E&1IDMPQQ86F91%C+Z8L<'!2 M:'@QQ`Y*WJVT+-MA=F4_2[Y7B!?!/*M M0#ZWF'UM<8LY+9C\OR1L&ULA5/;;J,P$/T5RQ]0$W);100I:56U#RM5?=A]=F``J[:'VB9T_WYM M;,-@",?2FI[I(US[8$Q6S2@N+W#%K3_4Z%1W/G4 MU,RV!G@924JR-$EV3'&A:9[%VHO),^R<%!I>#+&=4MS\.X/$_DA7="J\BKIQ MH<#RC,V\4BC05J`F!JHC/:T.YTU`1,`?`;U=Q"1XOR"^A>2Y/-(D6``)A0L* MW"]7N`_6:+ ME-ZBIY&>_DQ?3_3UTN%ZZ+Y+?A;83`*;I*C!U MO#J6%-AI-VSI7)UOYRD>(ON$YUG+:_C-32VT)1=T_F3C,52(#GS[Y&Y+2>/? MSYQ(J%P(]SXVPY4:$H?M]$#F5YK_!U!+`P04````"``\4'1'?L3W#J4!``"Q M`P``&0```'AL+W=OBX]\/).AEIEPGI2$AGPC82V)`HEGG/'<\S@SVQ+0^S6^T\W`01KTQL5/,5 MVA@\A.@Y7]UN,W8.0B,F76".(V9&,*]^,45*+]'32$]_IZ\G^GI9X7K(?I/\ M+K"9!#9+@Y4@:GCT[&DP$Z[X4KGZ/PZ#VFPU]N:J$M.:'SDXUCJ!`=^/3)U34EC?\_LR.A;7!D%V0$``$4%```9````>&PO=V]R:W-H965T MU%9"GO%6U:>!%(]HP1\><"E`\G M+_"FPFM3U.3A>$H.P@%\-#'(Q1R;[E?,WL_A1 MG#S?1``*N3(*1`\W>`)*C9`V?G>:GY:&N)Q/ZM_L:77Z*Y'PQ.GOIE"U#NM[ MJ("2]%2]\N$[N"/$1C#G5-HORGNI.)LH'F+D8QR;UH[#N!-'CK9."!TAG`F) M;X./1C;F,U$D2P4?D.R(N;O@J.'"B&AE)*V:3BAM\6RJMRQ(@A3?C)##A`O, MQ6%F!-;JJQ:AMT8/+3WR^'G&)N4R8:-LD M7C6)G4!\QV3"[+=-]JLF>R=PN&,R89)MD\.JR<$)/-XQ<9A'?]LD635)G$!P MQV3"_'OQ>/&?,Q"5;6>)?\"SM2`4_B:B:5J(K5[K; M;&N4G"O0]OY#[*%:OVGS@D*IS/2@YV)L\W&A>#<]6O/+F?T%4$L#!!0````( M`#Q0=$>:[97FI0$``+$#```9````>&PO=V]R:W-H965TFN-"T+&+MR90%#DX*#4^&V$$I;OY>0.)XHCNZ%)Y%V[E08&7! M5EXM%&@K4!,#S8F>=\=+'A`1\$O`:#ZOW,(CRM^B=ITWFU!20\,'Z9YQ_`[S%O9! ML$)IXY=4@W6H%@HEBK].J]!Q':<_AVRFW2>D,R%="9^3:'QJ%&U^Y8Z7A<&1 MV)Z'V>V.'FZ"B%8RXQ9$&ULC53;;J,P$/T5RQ]0$QJ:-B)( M2:NJ^[!2U8?=9P>&BVI[J&U"]^_7-I>R*Z3T!<\,YYPY9FS2'O6[J0$L^91" MF0.MK6WWC)F\!LG-#;:@W)L2M>36I;IBIM7`BT"2@L51=,K.(B?=^1GSWR8_B0"-O`03DUBMPMUS@$83P0J[QQZCYU=(3E_&D_AQV MZ]R?N8%'%+^;PM;.;$1)`27OA'W#_@7&+02'.0H3GB3OC$4Y42B1_'-8&Q76 M?GBSW8VT=4(\$N*9^VB*F:_0XT./K]-N)OETZO!T=WO_K<(DY M39B'ZTVVJTVV@\&PO=V]R M:W-H965TU#I=4^ MM,_$'MMH@7$!Q]N_+^#+>JM(^V)FQN><.3!0C&A?7`?@R:M6QIUHYWU_9,Q5 M'6CA'K`'$_XT:+7P(;4M<[T%42>25HQGV2>FA32T+%+MR98%#EY)`T^6N$%K M8?]>0.%XHCNZ%)YEV_E88&7!5EXM-1@GT1`+S8F>=\=+'A$)\$O"Z#8QB=ZO MB"\Q^5&?:!8M@(+*1P41EAL\@E)1*#3^,VN^M8S$;;RH?TN[#>ZOPL$CJM^R M]ETPFU%20R,&Y9]Q_`[S%@Y1L$+ETI=4@_.H%PHE6KQ.JS1I':<_AWRFW2?P MF2I[Q@MVB MT(SA&\QEPNQ6!`OJ=UMP>H_.IQ8?T_<+?;]UN)\=[C\6R!>!?"N0SP+Y^RUN M,9<%<_BO"=NROM+R'U!+`P04````"``\ M4'1''Z92@:8!``"Q`P``&0```'AL+W=O$0!O`D:SBHGW?D'\\,G/ZD@3;P$DE-8K<+=])\ZNE)Z[C6?TI[-:YOW`#CRC?165;9S:AI(*:#]*^XO@,TQ;NO6") MTH0O*0=C4&P6;/[CE1:YQ)*;G M?G;IP<&U%W'*Q`0UY]"$XLE7KT66/.3LZH4F3+;"G",F71#,J=]LD=%;]"RV M^)Z^F>F;M-_"+ZT9TAES0NLF&,=2(%ES[Y.Z>DM:]GR614%L? M[ERLXY6*B<5^?B#+*RW^`E!+`P04````"``\4'1'C)Q;GZ4!``"Q`P``&0`` M`'AL+W=O&>=>[4"!5259>PR4HR[5"!MH#/N;[4Q$0$?#" M8;*;&`7O9ZU?0_*K.>`L6``!M0L*S"\7>``A@I!O_'?6_&@9B-MX4?\9=^O= MGYF%!RW^\,;UWFR&40,M&X5[UM,CS%NX#8*U%C9^43U:I^5"P4BRM[1R%=\*@?6P6]F M.JXL.FOG)QO'T&KMP+?/;FXQZOW[61,!K0OA-Q^;=*52XO2P/)#UE5;O4$L# M!!0````(`#Q0=$=8`0$3M@$``",$```9````>&PO=V]R:W-H965TV$]N_7 M-H9EJS2]X)GQ>V_>R#;Y(-6K;@`,>A>\T[NH,:;?8JP/#0BF;V0/G=VII1+, MV%0=L>X5L,J3!,R0PKJ771'MF7J$![PNX5!+V+DO.^E?'7)KVH7Q9'#3P@CK)S@07+MO^APTD:*B1(AP=['M>W\.HP[Z]M`NTR@@4!G`DFO$I)` M2#X1\.C,S_7`#"MR)0>D>^8.FVPM7#D1JXRT5[,C:5^\<]5S00G-\=D)!0Q= M8.X#YFM$&1"W,P1;`Q==T,E%LG1!@XOD>X%D$DB7`DD02/\WF7E,-XXQ8LB* MK---]GVC]&*CU(NLUE?ZC)`?-*49)=>0Y80DFXQNZ.:3)[PXSYX=X8FI8]MI MM)?&7@U_CK64!JQ2?+.*4&-?[)QPJ(T+,QNK\1*/B9']]"3G_T+Q%U!+`P04 M````"``\4'1'_\:K2/^59R@9)V@Y>.1(#I9C_.0%AX\'QG3GPUM:- MU`$W2]V%5[84.M&R#G&H#L[1W^>)1AC`SQ9&L=HC[?W,V+L^?"\/CJ54.&!R#W,.MJ;))AHVX1@(@0+8I>]%"$R98 M84X6XR\(5ZEOI@B<+7I@4]Q.D%O$+GJ<(9PSA.LBPJF(Y+%`-`M$:X%H$MA] M-AD;3&?+F#`O2>RO$OVGE5M<&#SV$F]ZB2\6$S\HKZ;=QN66YC"/(?A M8SO)IIW$:D3W7HW%A'&\"Y+DCI_DMA]W]?-2X+5I:H$*-G32_EA+=)D;1]-> M_\1/:I[8]K_*9&F/:_B!>=UV`IV95*UE^J!B3()RYCTIGXV:>,N!0"7U=J?V MW`X!>Y"LGT?:,E>SOU!+`P04````"``\4'1',9U(9RD"``#/!P``&0```'AL M+W=O9)"2V"L8+).[^_7*SZU:HX<7`\9R9@2,XU<#%FVP(4>"=T4YNDT:I M?I.F\M@0AN4#[TFG_YRY8%CII;BDLA<$GVP2HRG*LD7*<-LE=65C+Z*N^%71 MMB,O`L@K8UC\VQ/*AVT"DS'PVEX:90)I7:53WJEEI),M[X`@YVVR@YL]+`W$ M(GZW9)"S.3#F#YR_F<7/TS;)C`="R5$9"JR'&WDDE!HFK?S7DWYHFL3Y?&1_ MLMO5]@]8DD=._[0GU6BW60).Y(RO5+WRX9GX/5B'1TZE_8+C52K.QI0$,/SN MQK:SX^#^Y-"GA1.03T!3`BJL<2=D;?[`"M>5X`.0/3;%@QL-%X9$,P-IV;1# M:8,[$[W5"*ZK]&:(/`;-,'N'@1,BU>Q!"92$TI&30-E]@GPD*.8>NW[B%XOW8/J<>7O\'4$L#!!0````( M`#Q0=$>2#;3FG0$``*0#```9````>&PO=V]R:W-H965T2 MX"1+DA41E$EC.;(Y_]J-3%%[_K'4Y\!.!PLEZ!NN$&!^#< M"SGCOU'ST](3Y_-1_2GLUJ4_4@,'Q=]9;5L7-L&HAH9>N7U5_3/$+2R]X$EQ M$[[H=#56B9&"D:`?P\AD&/MA995&VGU"%@G91,C6(?A@%&+^HI96I58],AWU M=Y=N'5Q[$:>,3%!S"4UH/OKNK9O4?4$L#!!0````(`#Q0=$&PO=V]R M:W-H965T>*4:IGG4+8-`K9T(?HM:8?H^QKEK@ M5-_)'H1]4TO%J;%'U6#=*Z`73^(,DSC.,:>=B,K"UQY56A."J2@/D3'9'_*'<(#?G4PZM4>N>QG M*9_=XS2;4OGATU6M)TKC`5RT5-J#]2H5&<>=#SDT+#LR'VK!0WGUN0V&YH2H?$BSC6+B18D;.QKA0*M!6H MB8%J0V_3]786%%'P*J"UDSD)WO>(IQ`\EAN:!`L@X>`"@?OA`CN0,H!\X_>> M^=TR%$[G`_T^[M:[WW,+.Y1OHG2U-YM04D+%S]*]8/L`_186`7A`:>.7',[6 MH1I**%'\HQN%CF/;K2R&LK\+LKX@&PNRSGC7*-J\XXX7N<&6V(:'NTO77FX" MQ).)C33OT,;D;BFR^S-DE@'I--M%L!TTZ:ICG_]DD&YK,IDVR'K#Z'S`; M`/,I8-8#KG^Z7$6-[EQVFGEZDRQ_M6&3@VGX$9ZX.0IMR1Z=/^-X(!6B`T]) MKA:4U/XECX&$RH7IRL]-=[E=X+`9GNKXOQ1?4$L#!!0````(`#Q0=$&PO=V]R:W-H965T0/6'M\2[)R+&U25>U#I=4^M,\D(;&UV+A`XNW?%S!.[15IR(N!\9DS!X^. MH>@9?Q<5(1)]-+05ZZ"2LGL.0[&O2(/%$^M(J]X<&6^P5$M^"D7'"3Z8I(:& M<13E88/K-B@+$WOE9<'.DM8M>>5(G)L&\S\;0EF_#B`8`V_UJ9(Z$)9%>,T[ MU`UI1T:%>:+]64C6C"D!:O#',-:M&?OA39K:-'=";!/B:P+\/R&Q"%9QK$L6,A&%36Q(F^**CES).5T5XT406$T\P&XNY MC=A:Q/(*"94`IXIX5)%,5<1#?A;=)TA&@G1*D%@"F(N<8C8#)HGOUTB=(E-; MPX,@\3+)S?8^'? MM*53P=*C:4OOIJV<(E?^38/(J=*$'6V;R;0@'YT`[C+60UGF0>%V$3Q@(W#[ M"'R,!/Y.`K>5X`$O@=M,<,--Y!X?8)/&`4<#L%?*P"_EX! MMUG@`;?$;K?$-]PR^\E9T/PO-U0*)X=8AT_D!^:GNA5HQZ0Z#\WA=61,$D43 M/64!JM0]Y;J@Y"CU=*'F?#BYAX5DW7@1N=Z&RK]02P,$%`````@`/%!T1^0' M)RRA!P``6#(``!D```!X;"]W;W)K&ULE9M-<]LV M$(;_BD9W1<0WZ'$\$WUTVD-G,CVT9\6F;4TDT17I./WW)0E`$G>QA&[?ZO/WYKFJVMG/X^'4?)X_M^W+S7+9W#]7QUWSJ7ZI3MW_/-;G MXZ[M_CP_+9N7<[5[&$XZ'I:R*.SRN-N?YG>WP[&OY[O;^K4][$_5U_.L>3T> M=^?_5M6A?OL\%_-TX*_]TW/;'UC>W2XOYSWLC]6IV=>GV;EZ_#S_(FZV?D`& MXN]]]=9<_3[KQ7^KZ^_]'W\\?)X7O8;J4-VW_1"[[L>/:ET=#OU(W97_C8/^ MNF9_XO7O:?3?AG`[^=]V3;6N#__L']KG3FTQGSU4C[O70_M7_?9[%6,P_8#W M]:$9_IW=OS9M?4RGS&?'W<_PH'Z= MH,D3=#Q![N]ER_S9J77?\\B9L./_>#="//FF&T M[J8UP\$O_=$?=]*XV^6/?J#(R"MF%1BG<&03$'$AEIT`4(6<0U>0005^@74@ MG"8T3`ZR'0V"RE1)IKZ^62K>+)]?PPW,*802&&65M#BU#I16I58XM0F4<*4R M!8YM