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10-Q
2016-09-30
false
Nu-Med Plus, Inc.
0001543637
numd
--12-31
37241744
Smaller Reporting Company
Yes
No
No
2016
Q3
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Nu-Med Plus, Inc. is an emerging growth early stage medical device company principally engaged in the design, innovation, development, enhancement and commercialization of beginning, early, and selective later-stage quality medical devices. The Company's immediate focus is on a nitric oxide powder formulation that is 99% pure-with a one year shelf life, a "hospital" generator device with controls, plus built-in safety monitors, that delivers inhaled nitric oxide to replace expensive pressurized canisters, a compact mobile rechargeable device to deliver inhaled nitric oxide gas and a nitric oxide clinical unit, along with research into the application of nitric oxide in wound healing. The Company is incorporated in Utah. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>a. Basis of Interim Financial Statement Presentation</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The accompanying unaudited financial statements have been prepared by the Company pursuant to accounting principles generally accepted in the United States of America.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in accordance with rules and regulations of the Securities and Exchange Commission.  The information furnished in the interim financial statements includes normal recurring adjustments and reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of such financial statements.  Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim financial statements be read in conjunction with the Company’s most recent audited financial statements and notes thereto included in its December 31, 2015 financial statements.  Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>b. Revenue Recognition</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company is currently developing its products. It is anticipated that revenue will be recognized on product sales once the product has been shipped to the customers, persuasive evidence of an agreement exists, the price is fixed or determinable, and collectability is reasonably assured. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>c. Estimates</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>d.  Derivative Financial Instruments</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>In the 4<sup>th</sup> quarter of 2015 the Company issued a note payable which terms require that the transaction be accounted for as a derivative financial instrument.  The Company is accounting for this financial instrument in accordance with ASC 815, <i>Derivatives and Hedging</i>, which requires that every derivative instrument be recorded on the balance sheet as either an asset or liability, measured at its fair value as of the reporting date.  ASC 815 also requires that changes in the derivatives’ fair value be recognized in earnings.  The Company recorded the effective portion of the gain or loss on derivative comprehensive income for the three and nine months ended September 30, 2016 in the accompanying balance sheets and income statements.  (See Note 7).</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>e. Fair Value</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>All cash, accounts receivable, accounts payable and accrued liabilities are carried at cost, which approximates fair value due to the short-term nature of these financial instruments. Additionally, we measure certain financial instruments at fair value on a recurring basis. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB Accounting Standards Codification (“ASC”) Topic 820 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Level 1 - Quoted market prices in active markets for identical assets or liabilities;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Level 2 - Inputs other than level one inputs that are either directly or indirectly observable; and</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Level 3 - Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is observable.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-autospace:ideograph-numeric ideograph-other'>In applying the Black-Scholes option model at September 30, 2016, the Company again revalued the conversion features using the following assumptions:  stock price of $0.40, annualized volatility of 170%, and interest rate of 0.59% and determined that, during the three and nine month periods ended September 30, 2016, the Company’s derivative liability increased by $8,558 and decreased by $133,874, respectively to $63,019.  The Company recognized a corresponding gain on derivative liability in conjunction with this revaluation during the three and nine month periods ended September 30, 2016.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Liabilities measured at fair value on a recurring basis are as follows at September 30, 2016 and 2015:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <table border="0" cellspacing="0" cellpadding="0" style='margin-left:38.25pt'> <tr align="left"> <td width="276" style='width:207.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="175" colspan="4" style='width:131.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>Level 3 Carrying Value at</b></p> </td> </tr> <tr align="left"> <td width="276" valign="bottom" style='width:207.0pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="78" valign="bottom" style='width:58.5pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b><font style='background:white'>September 30, 2016</font></b></p> </td> <td width="13" valign="top" style='width:9.75pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="15" valign="top" style='width:11.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="69" valign="top" style='width:51.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b><font style='background:white'>September 30, 2015</font></b></p> </td> </tr> <tr align="left"> <td width="276" valign="bottom" style='width:207.0pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>Derivative liabilities:</font></p> </td> <td width="78" valign="bottom" style='width:58.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="13" valign="top" style='width:9.75pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="15" valign="top" style='width:11.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.75pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> </tr> <tr align="left"> <td width="276" valign="bottom" style='width:207.0pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>   Derivative Liability</font></p> </td> <td width="78" valign="bottom" style='width:58.5pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>63,019</font></p> </td> <td width="13" valign="top" style='width:9.75pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="15" valign="top" style='width:11.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font>0</p> </td> </tr> <tr align="left"> <td width="276" valign="bottom" style='width:207.0pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>   Total Liabilities Measured at Fair Value</font></p> </td> <td width="78" valign="bottom" style='width:58.5pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>63,019</font></p> </td> <td width="13" valign="top" style='width:9.75pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="15" valign="top" style='width:11.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.75pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font>0</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The following table shows the classifications of the Company’s liability at September 30, 2016 that are subject to fair value measurement and the roll-forward of these liabilities from December 31, 2015:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <table border="0" cellspacing="0" cellpadding="0" style='margin-left:13.5pt'> <tr align="left"> <td width="247" valign="bottom" style='width:185.15pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="142" valign="bottom" style='width:106.3pt;background:white;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>For the Nine Months Ended<font style='background:white'> September 30, 2016</font></b></p> </td> <td width="137" valign="top" style='width:102.6pt;background:white;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>For the Nine Months Ended  30, 2015</b></p> </td> </tr> <tr align="left"> <td width="247" valign="bottom" style='width:185.15pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>Balance at beginning of year</font></p> </td> <td width="142" valign="bottom" style='width:106.3pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>196,893</font></p> </td> <td width="137" valign="bottom" style='width:102.6pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font>0</p> </td> </tr> <tr align="left"> <td width="247" valign="bottom" style='width:185.15pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>Derivative liability added</font></p> </td> <td width="142" valign="bottom" style='width:106.3pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>0</font></p> </td> <td width="137" valign="bottom" style='width:102.6pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>0</font></p> </td> </tr> <tr align="left"> <td width="247" valign="bottom" style='width:185.15pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>Net change in fair value included in net income (loss)</font></p> </td> <td width="142" valign="bottom" style='width:106.3pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'> (133,874)</font></p> </td> <td width="137" valign="bottom" style='width:102.6pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font> <font style='background:white'>0</font></p> </td> </tr> <tr align="left"> <td width="247" valign="bottom" style='width:185.15pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>   Total Liabilities Measured at Fair Value</font></p> </td> <td width="142" valign="bottom" style='width:106.3pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>63,019</font></p> </td> <td width="137" valign="bottom" style='width:102.6pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font> 0</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>f. Cash and Cash Equivalents</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company considers all deposit accounts and investment accounts with an original maturity of 90 days or less to be cash equivalents. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>g. Fixed Assets</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Fixed assets are stated at cost. Expenditure for minor repairs, maintenance, and replacement parts which do not increase the useful lives of the assets are charged to expense as incurred. Expenditures exceeding $500 for new assets, or that increase the useful life of existing assets, are capitalized. Depreciation is computed using the straight-line method. The lives over which the fixed assets are depreciated are five to seven years.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>h. Earnings per Share</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The computation of earnings per share of common stock is based on the weighted average number of shares outstanding during the period of the financial statement as follows:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <table border="0" cellspacing="0" cellpadding="0" width="677" style='border:solid windowtext 1.0pt;text-autospace:none;width:507.9pt;border-collapse:collapse'> <tr align="left"> <td width="187" valign="top" style='width:1.95in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="106" valign="top" style='width:79.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>For the Three Months Ended September 30, 2016</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="115" valign="top" style='width:85.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>For the Three Months Ended September 30, 2015</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>For the Nine Months Ended September 30, 2016</p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="100" valign="top" style='width:75.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>For the Nine Months Ended September 30, 2015</p> </td> </tr> <tr align="left"> <td width="187" valign="top" style='width:1.95in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net income (loss) (numerator)</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="106" valign="top" style='width:79.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (716,807)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="115" valign="top" style='width:85.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (307,378)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (842,893)</p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="100" valign="top" style='width:75.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (823,228)</p> </td> </tr> <tr align="left"> <td width="187" valign="top" style='width:1.95in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Shares (denominator)</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="106" valign="top" style='width:79.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>38,029,013</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="115" valign="top" style='width:85.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>35,819,237</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>37,115,307</p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="100" valign="top" style='width:75.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>35,096,863</p> </td> </tr> <tr align="left"> <td width="187" valign="top" style='width:1.95in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net income (loss) per share</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="106" valign="top" style='width:79.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>  (0.02)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="115" valign="top" style='width:85.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>  (0.01)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (0.02)</p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="100" valign="top" style='width:75.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>  (0.02)</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Diluted earnings per share is computed using the weighted average number of common shares plus dilutive common share equivalents outstanding during the period. During the periods ended September 30, 2016 and September 30, 2015 there were no outstanding common stock equivalents.  Furthermore, due to the net loss for the three and nine months ended September 30, 2016 and 2015, common stock equivalents would not be included in the calculation of the net loss per common share, as their inclusion would be anti-dilutive. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>i. Income Taxes</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Deferred taxes are provided on an asset and liability approach whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>j. Equity Instruments Issued for Non-Cash Items</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>In accordance with ASC Topic 718, the Company records equity instruments issued for non-cash items at the grant-date fair value of the equity instruments issued. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>NOTE 3 - GOING CONCERN</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company acknowledges that the funds on hand as of September 30, 2016, will not be sufficient and funding through the sale of equity capital and short term related party and other shareholder loans in order to meet the planned expenditures for development, operations, and administrative cost over the next 12 months will be required. Planned expenditures are approximately $1,160,000 for the next twelve months.  The Company is currently funded through November 30, 2016. The Company is actively working to secure the funding needed to execute its business plan. Until such funding is secured, management will adjust any salaries and expenditures based on the need for successful continuous operations. If plans to obtain further financing prove to be insufficient to fund operations, continued viability could be at risk. These factors raise substantial doubt about the Company's ability to continue as a going concern.  No adjustments have been made in the financial statements that might result from this uncertainty. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>NOTE 4 - FIXED ASSETS</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Fixed assets and related accumulated depreciation consisted of the following at September 30, 2016, and December 31, 2015:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <table border="0" cellspacing="0" cellpadding="0" width="486" style='width:364.4pt;margin-left:63.9pt;border-collapse:collapse'> <tr style='height:38.7pt'> <td width="201" valign="bottom" style='width:150.5pt;padding:0in 5.4pt 0in 5.4pt;height:38.7pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> </td> <td width="138" valign="bottom" style='width:103.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:38.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>September 30, 2016</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:38.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="132" valign="bottom" style='width:98.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:38.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>December 31, 2015</p> </td> </tr> <tr style='height:42.7pt'> <td width="201" valign="bottom" style='width:150.5pt;padding:0in 5.4pt 0in 5.4pt;height:42.7pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Equipment</p> </td> <td width="138" valign="bottom" style='width:103.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:42.7pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$               49,373</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:42.7pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="132" valign="bottom" style='width:98.9pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:42.7pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$                      49,373</p> </td> </tr> <tr style='height:55.8pt'> <td width="201" valign="bottom" style='width:150.5pt;padding:0in 5.4pt 0in 5.4pt;height:55.8pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Accumulated depreciation</p> </td> <td width="138" valign="bottom" style='width:103.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:55.8pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(24,503)</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:55.8pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:-4.5pt;text-align:right;text-indent:4.5pt'> </p> </td> <td width="132" valign="bottom" style='width:98.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:55.8pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:-4.5pt;text-align:right;text-indent:4.5pt'>(19,143)</p> </td> </tr> <tr style='height:14.8pt'> <td width="201" valign="bottom" style='width:150.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.8pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Total Fixed Assets</p> </td> <td width="138" valign="bottom" style='width:103.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.8pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$                    24,870</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:14.8pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="132" valign="bottom" style='width:98.9pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.8pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$                      30,230</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Depreciation expense for the three months ended September 30, 2016 and 2015 was $1,787 and $1,855, respectively.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Depreciation expense for the nine months ended September 30, 2016 and 2015 was $5,361 and $5,429, respectively.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>NOTE 5 - PREFERRED STOCK</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>On October 19, 2011, the Company filed Articles of Incorporation with the State of Utah so as to authorize 10,000,000 shares of preferred stock having a par value of $0.001 per share.  No preferred shares are issued or outstanding at September 30, 2016. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>NOTE 6 - COMMON STOCK</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>In February 2016, the Company entered into a stock subscription agreement with an investor for them to purchase up to 17,500 shares of common stock at a price of $0.40 per share. In February 2016, the Company received $7,000 for the Stock Subscription Payable. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>In March 2016, the Company entered into a stock subscription agreement with an investor for them to purchase up to 100,000 of common stock at a price of $0.40 per share. In March 2016, the Company received $100,000 for the Stock Subscription Payable. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>On April 21, 2016, the Company issued 267,500 shares of its restricted common stock in full satisfaction of all obligations under the stock subscription agreements then outstanding.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>On June 13, 2016, the directors of the Company entered into an amended consulting agreement and authorized the issuance of 2,500,000 shares of its restricted common stock in payment of those services.  The agreement covers services to be provided through October 2016.  The stock issued has a valuation, based on the closing price of the date of authorization, of $1,000,000.  Of that amount, $773,371 was expensed in recognition of services received and the balance of $226,629 is recorded as a prepaid expense and will be amortized as the future services are rendered.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>On July 18, 2016 the Company entered into a stock subscription agreement with an investor for them to purchase up to 157,500 shares of restricted common stock at $0.40 per share.  The agreement has an expiration date of August 1, 2017.  On July 18 and July 27, 2016 the Company received $1,000 and $1,500, respectively, under this agreement.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>On August 5, 2016, Dr. Craig Morrison returned to the Company 2,000,000 shares of restricted common stock which is part of the 4,000,000 shares which had been issued to him for his services as a director and medical advisor.  The 2,000,000 shares of stock were retired at their par value of $2,000, reducing the number of shares issued and outstanding.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>NOTE 7 – DERIVATIVE LIABILITY</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company adopted ASC 815 which defines determining whether an instrument (or embedded feature) is solely indexed to an entity’s own stock. The exercise price of the newly issued and outstanding warrants are subject to “reset” provisions in the event the Company subsequently issues common stock, stock warrants, stock options or convertible debt with a stock price, exercise price or conversion price lower than exercise price of these warrants. If these provisions are triggered, the exercise price of the warrant will be reduced. As a result, the Company has determined that the exercise feature is not considered to be solely indexed to the Company’s own stock and is therefore not afforded equity treatment. In accordance with ASC 815, the Company has bifurcated the exercise feature of the warrants and recorded a derivative liability.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-indent:.5in'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>ASC 815 requires Company management to assess the fair market value of certain derivatives at each reporting period and recognize any change in the fair market value as another income or expense item. The Company’s only asset or liability measured at fair value on a recurring basis is its derivative liability associated with warrants.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-autospace:ideograph-numeric ideograph-other'>At origination, the Company valued the conversion features using the following assumptions:  stock price of $0.50 and annualized volatility of 232%.  The Company determined that at origination the liability related to the debt issued was $102,327, which was $47,327 greater than the transaction value and was expensed at the time of origination.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-autospace:ideograph-numeric ideograph-other'>At December 31, 2015, the Company revalued the conversion features using the following assumptions:  stock price of $0.94 and annualized volatility of 240%, and determined that, during the year ended December 31, 2015, the Company’s derivative liability increased by $94,566 to $196,893.  The Company recognized a corresponding loss on derivative liability in conjunction with this revaluation during the year ended December 31, 2015.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-autospace:ideograph-numeric ideograph-other'>The Company revalued the conversion features at September 30, 2016 using the following assumptions:  stock price of $0.40 and annualized volatility of 170%, and determined that, during the three and nine-month period ended September 30, 2016, the Company’s derivative liability increased by $8,558 for the three months and decreased by $133,874 for the nine month period to $63,019.  The company recognized a corresponding loss of $8,558 on derivative liability in conjunction with this revaluation during the three-month period ended September 30, 2016.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>During the nine-month period ended September 30, 2016 and the year ended December 31, 2015 we had the following activity in the accounts related to our convertible notes payable:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <table border="0" cellspacing="0" cellpadding="0" style='margin-left:36.9pt;border-collapse:collapse'> <tr style='height:33.75pt'> <td width="216" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt;height:33.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="118" valign="top" style='width:88.65pt;padding:0in 5.4pt 0in 5.4pt;height:33.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Derivative Liability</p> </td> <td width="113" valign="top" style='width:84.6pt;padding:0in 5.4pt 0in 5.4pt;height:33.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Debt Discount</p> </td> <td width="129" valign="top" style='width:96.9pt;padding:0in 5.4pt 0in 5.4pt;height:33.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Gain (Loss) on Derivative Liability</p> </td> </tr> <tr align="left"> <td width="216" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Derivative liability at inception of  new convertible debt</p> </td> <td width="118" valign="top" style='width:88.65pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$102,327</p> </td> <td width="113" valign="top" style='width:84.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$(55,000)</p> </td> <td width="129" valign="top" style='width:96.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$(47,327)</p> </td> </tr> <tr align="left"> <td width="216" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Loss on derivative liability</p> </td> <td width="118" valign="top" style='width:88.65pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>94,566</p> </td> <td width="113" valign="top" style='width:84.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="129" valign="top" style='width:96.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> (94,566)</p> </td> </tr> <tr align="left"> <td width="216" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Amortization of debt discount to interest expense</p> </td> <td width="118" valign="top" style='width:88.65pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="113" valign="top" style='width:84.6pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>4,583</p> </td> <td width="129" valign="top" style='width:96.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> </tr> <tr align="left"> <td width="216" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Balance at December 31, 2015</p> </td> <td width="118" valign="top" style='width:88.65pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$196,893</p> </td> <td width="113" valign="top" style='width:84.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$(50,417)</p> </td> <td width="129" valign="top" style='width:96.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$(141,893)</p> </td> </tr> <tr align="left"> <td width="216" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Gain on derivative liability</p> </td> <td width="118" valign="top" style='width:88.65pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> (133,874)</p> </td> <td width="113" valign="top" style='width:84.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="129" valign="top" style='width:96.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>133,874</p> </td> </tr> <tr align="left"> <td width="216" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Amortization of debt discount to interest expense</p> </td> <td width="118" valign="top" style='width:88.65pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="113" valign="top" style='width:84.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>20,625</p> </td> <td width="129" valign="top" style='width:96.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> </tr> <tr align="left"> <td width="216" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Balance at September 30, 2016</p> </td> <td width="118" valign="top" style='width:88.65pt;border:none;border-bottom:solid windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$63,019</p> </td> <td width="113" valign="top" style='width:84.6pt;border:none;border-bottom:solid windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$(29,792)</p> </td> <td width="129" valign="top" style='width:96.9pt;border:none;border-bottom:solid windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$(8,019)</p> </td> </tr> </table>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>NOTE 8 - COMMITMENTS AND CONTINGENCIES</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><u>Operating Lease Obligations</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company leases office space for which it incurred lease payments, on a month-to-month basis, beginning in February of 2012 for $1,000 per month.  The Company also had a one-year lease on lab space beginning April 1, 2012 and ending March 31, 2013, with a monthly lease payment of $388.  Pursuant to the lease agreement, at the end of one year, the term is month-to-month at the same rate of $388 per month. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:.75in;text-indent:-.75in'>NOTE 9 – RECENT ACCOUNTING PRONOUNCEMENTS </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2016-02, “L<i>eases.”  </i>This ASU requires lessees to put most leases on their balance sheets but recognize expenses in the income statement in a manner similar to current accounting treatment.  This ASU changes the guidance on sale-leaseback transactions, initial direct costs and lease execution costs, and, for lessors, modifies the classification criteria and the accounting for sales-type and direct financing leases.  For public business entities, this ASU is effective for annual periods beginning after December 15, 2018, and interim periods therein.  Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements.  The Company is currently evaluating the impact of this ASU on its financial statements and disclosures.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>In March 2016, the FASB issued ASU 2016-09, “<i>Improvements to Employee Share-Based Payment Accounting</i>.” This ASU simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows.  The guidance is effective for fiscal years beginning after December 15, 2016, although early adoption is permitted.  The Company is currently evaluating the impact of this ASU on its financial statements and disclosures.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position and cash flows.  Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations. </p>
<!--egx--> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>NOTE 10 - RELATED PARTY TRANSACTIONS</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><u>Contributed Services</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>During the three and nine months ended September 30, 2016 and 2015, the Company officers contributed services to the Company in the amount of $0 and $409, respectively. The Company officers received no compensation and have no expectation of compensation for these services, either now or in the future, and waive their rights to any such compensation.  </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><u>Compensation of Officers</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>In 2012 the Company agreed to compensate its Chief Executive Officer $3,600 per month.  Beginning in January 2013 the Company agreed to compensate its CEO $3,550 per month. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>In February 2015, the Company began compensating the Vice President of Technology and the Vice President of Scientific Development $2,000 per month for services provided to the Company. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>NOTE 11 - LOAN PAYABLE</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company received, during the year ended December 31, 2013, proceeds from a loan in the amount of $91,600.  The Lender agreed to loan the Company up to $10,000 per month effective September 2012, for up to one year. This loan was memorialized in writing on September 30, 2013. The loan is considered to be a demand note, with a maturity 30 days from the receipt of demand and the holder may not make demand for payment until six months from the date thereof. On June 30, 2014, the Company accrued additional interest on this note, at a rate of 8.0% in the amount of $5,161 for six months. The total loan balance and accrued interest is $130,100 and $13,842 respectively.  The note contains a conversion option.  The conversion price is one share for each $0.01 of principal and accrued but unpaid interest of the note subject to a beneficial ownership limitation. That limitation prevents the holder from owning more than 4.9% of the number of shares of the common stock outstanding after conversion. If the holder's ownership has not previously been reduced to less than 4.9% of the number of shares outstanding, then the limitation shall be 9.9%.  On November 18, 2015, the Company received $55,000 for which it issued a note payable.  As the note carries no rate of interest, in December 2015, 33,800 shares of restricted common stock were issued in consideration.  </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>NOTE 12 - SUBSEQUENT EVENTS</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company has evaluated subsequent events pursuant to ASC Topic 855 and has determined that there are no events that require disclosure as of the date of issuance.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>a. Basis of Interim Financial Statement Presentation</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The accompanying unaudited financial statements have been prepared by the Company pursuant to accounting principles generally accepted in the United States of America.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in accordance with rules and regulations of the Securities and Exchange Commission.  The information furnished in the interim financial statements includes normal recurring adjustments and reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of such financial statements.  Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim financial statements be read in conjunction with the Company’s most recent audited financial statements and notes thereto included in its December 31, 2015 financial statements.  Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>b. Revenue Recognition</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company is currently developing its products. It is anticipated that revenue will be recognized on product sales once the product has been shipped to the customers, persuasive evidence of an agreement exists, the price is fixed or determinable, and collectability is reasonably assured. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>c. Estimates</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>d.  Derivative Financial Instruments</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>In the 4<sup>th</sup> quarter of 2015 the Company issued a note payable which terms require that the transaction be accounted for as a derivative financial instrument.  The Company is accounting for this financial instrument in accordance with ASC 815, <i>Derivatives and Hedging</i>, which requires that every derivative instrument be recorded on the balance sheet as either an asset or liability, measured at its fair value as of the reporting date.  ASC 815 also requires that changes in the derivatives’ fair value be recognized in earnings.  The Company recorded the effective portion of the gain or loss on derivative comprehensive income for the three and nine months ended September 30, 2016 in the accompanying balance sheets and income statements.  (See Note 7).</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>e. Fair Value</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>All cash, accounts receivable, accounts payable and accrued liabilities are carried at cost, which approximates fair value due to the short-term nature of these financial instruments. Additionally, we measure certain financial instruments at fair value on a recurring basis. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB Accounting Standards Codification (“ASC”) Topic 820 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Level 1 - Quoted market prices in active markets for identical assets or liabilities;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Level 2 - Inputs other than level one inputs that are either directly or indirectly observable; and</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Level 3 - Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is observable.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-autospace:ideograph-numeric ideograph-other'>In applying the Black-Scholes option model at September 30, 2016, the Company again revalued the conversion features using the following assumptions:  stock price of $0.40, annualized volatility of 170%, and interest rate of 0.59% and determined that, during the three and nine month periods ended September 30, 2016, the Company’s derivative liability increased by $8,558 and decreased by $133,874, respectively to $63,019.  The Company recognized a corresponding gain on derivative liability in conjunction with this revaluation during the three and nine month periods ended September 30, 2016.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Liabilities measured at fair value on a recurring basis are as follows at September 30, 2016 and 2015:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <table border="0" cellspacing="0" cellpadding="0" style='margin-left:38.25pt'> <tr align="left"> <td width="276" style='width:207.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="175" colspan="4" style='width:131.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>Level 3 Carrying Value at</b></p> </td> </tr> <tr align="left"> <td width="276" valign="bottom" style='width:207.0pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="78" valign="bottom" style='width:58.5pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b><font style='background:white'>September 30, 2016</font></b></p> </td> <td width="13" valign="top" style='width:9.75pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="15" valign="top" style='width:11.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="69" valign="top" style='width:51.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b><font style='background:white'>September 30, 2015</font></b></p> </td> </tr> <tr align="left"> <td width="276" valign="bottom" style='width:207.0pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>Derivative liabilities:</font></p> </td> <td width="78" valign="bottom" style='width:58.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="13" valign="top" style='width:9.75pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="15" valign="top" style='width:11.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.75pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> </tr> <tr align="left"> <td width="276" valign="bottom" style='width:207.0pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>   Derivative Liability</font></p> </td> <td width="78" valign="bottom" style='width:58.5pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>63,019</font></p> </td> <td width="13" valign="top" style='width:9.75pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="15" valign="top" style='width:11.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font>0</p> </td> </tr> <tr align="left"> <td width="276" valign="bottom" style='width:207.0pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>   Total Liabilities Measured at Fair Value</font></p> </td> <td width="78" valign="bottom" style='width:58.5pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>63,019</font></p> </td> <td width="13" valign="top" style='width:9.75pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="15" valign="top" style='width:11.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.75pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font>0</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The following table shows the classifications of the Company’s liability at September 30, 2016 that are subject to fair value measurement and the roll-forward of these liabilities from December 31, 2015:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <table border="0" cellspacing="0" cellpadding="0" style='margin-left:13.5pt'> <tr align="left"> <td width="247" valign="bottom" style='width:185.15pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="142" valign="bottom" style='width:106.3pt;background:white;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>For the Nine Months Ended<font style='background:white'> September 30, 2016</font></b></p> </td> <td width="137" valign="top" style='width:102.6pt;background:white;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>For the Nine Months Ended  30, 2015</b></p> </td> </tr> <tr align="left"> <td width="247" valign="bottom" style='width:185.15pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>Balance at beginning of year</font></p> </td> <td width="142" valign="bottom" style='width:106.3pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>196,893</font></p> </td> <td width="137" valign="bottom" style='width:102.6pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font>0</p> </td> </tr> <tr align="left"> <td width="247" valign="bottom" style='width:185.15pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>Derivative liability added</font></p> </td> <td width="142" valign="bottom" style='width:106.3pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>0</font></p> </td> <td width="137" valign="bottom" style='width:102.6pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>0</font></p> </td> </tr> <tr align="left"> <td width="247" valign="bottom" style='width:185.15pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>Net change in fair value included in net income (loss)</font></p> </td> <td width="142" valign="bottom" style='width:106.3pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'> (133,874)</font></p> </td> <td width="137" valign="bottom" style='width:102.6pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font> <font style='background:white'>0</font></p> </td> </tr> <tr align="left"> <td width="247" valign="bottom" style='width:185.15pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>   Total Liabilities Measured at Fair Value</font></p> </td> <td width="142" valign="bottom" style='width:106.3pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>63,019</font></p> </td> <td width="137" valign="bottom" style='width:102.6pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font> 0</p> </td> </tr> </table>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>f. Cash and Cash Equivalents</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company considers all deposit accounts and investment accounts with an original maturity of 90 days or less to be cash equivalents. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>g. Fixed Assets</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Fixed assets are stated at cost. Expenditure for minor repairs, maintenance, and replacement parts which do not increase the useful lives of the assets are charged to expense as incurred. Expenditures exceeding $500 for new assets, or that increase the useful life of existing assets, are capitalized. Depreciation is computed using the straight-line method. The lives over which the fixed assets are depreciated are five to seven years.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>h. Earnings per Share</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The computation of earnings per share of common stock is based on the weighted average number of shares outstanding during the period of the financial statement as follows:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <table border="0" cellspacing="0" cellpadding="0" width="677" style='border:solid windowtext 1.0pt;text-autospace:none;width:507.9pt;border-collapse:collapse'> <tr align="left"> <td width="187" valign="top" style='width:1.95in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="106" valign="top" style='width:79.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>For the Three Months Ended September 30, 2016</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="115" valign="top" style='width:85.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>For the Three Months Ended September 30, 2015</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>For the Nine Months Ended September 30, 2016</p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="100" valign="top" style='width:75.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>For the Nine Months Ended September 30, 2015</p> </td> </tr> <tr align="left"> <td width="187" valign="top" style='width:1.95in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net income (loss) (numerator)</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="106" valign="top" style='width:79.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (716,807)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="115" valign="top" style='width:85.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (307,378)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (842,893)</p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="100" valign="top" style='width:75.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (823,228)</p> </td> </tr> <tr align="left"> <td width="187" valign="top" style='width:1.95in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Shares (denominator)</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="106" valign="top" style='width:79.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>38,029,013</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="115" valign="top" style='width:85.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>35,819,237</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>37,115,307</p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="100" valign="top" style='width:75.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>35,096,863</p> </td> </tr> <tr align="left"> <td width="187" valign="top" style='width:1.95in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net income (loss) per share</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="106" valign="top" style='width:79.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>  (0.02)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="115" valign="top" style='width:85.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>  (0.01)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (0.02)</p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="100" valign="top" style='width:75.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>  (0.02)</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Diluted earnings per share is computed using the weighted average number of common shares plus dilutive common share equivalents outstanding during the period. During the periods ended September 30, 2016 and September 30, 2015 there were no outstanding common stock equivalents.  Furthermore, due to the net loss for the three and nine months ended September 30, 2016 and 2015, common stock equivalents would not be included in the calculation of the net loss per common share, as their inclusion would be anti-dilutive. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>i. Income Taxes</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Deferred taxes are provided on an asset and liability approach whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>j. Equity Instruments Issued for Non-Cash Items</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>In accordance with ASC Topic 718, the Company records equity instruments issued for non-cash items at the grant-date fair value of the equity instruments issued. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>NOTE 3 - GOING CONCERN</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company acknowledges that the funds on hand as of September 30, 2016, will not be sufficient and funding through the sale of equity capital and short term related party and other shareholder loans in order to meet the planned expenditures for development, operations, and administrative cost over the next 12 months will be required. Planned expenditures are approximately $1,160,000 for the next twelve months.  The Company is currently funded through November 30, 2016. The Company is actively working to secure the funding needed to execute its business plan. Until such funding is secured, management will adjust any salaries and expenditures based on the need for successful continuous operations. If plans to obtain further financing prove to be insufficient to fund operations, continued viability could be at risk. These factors raise substantial doubt about the Company's ability to continue as a going concern.  No adjustments have been made in the financial statements that might result from this uncertainty. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <table border="0" cellspacing="0" cellpadding="0" style='margin-left:38.25pt'> <tr align="left"> <td width="276" style='width:207.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="175" colspan="4" style='width:131.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>Level 3 Carrying Value at</b></p> </td> </tr> <tr align="left"> <td width="276" valign="bottom" style='width:207.0pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="78" valign="bottom" style='width:58.5pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b><font style='background:white'>September 30, 2016</font></b></p> </td> <td width="13" valign="top" style='width:9.75pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="15" valign="top" style='width:11.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="69" valign="top" style='width:51.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b><font style='background:white'>September 30, 2015</font></b></p> </td> </tr> <tr align="left"> <td width="276" valign="bottom" style='width:207.0pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>Derivative liabilities:</font></p> </td> <td width="78" valign="bottom" style='width:58.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="13" valign="top" style='width:9.75pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="15" valign="top" style='width:11.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.75pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> </tr> <tr align="left"> <td width="276" valign="bottom" style='width:207.0pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>   Derivative Liability</font></p> </td> <td width="78" valign="bottom" style='width:58.5pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>63,019</font></p> </td> <td width="13" valign="top" style='width:9.75pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="15" valign="top" style='width:11.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font>0</p> </td> </tr> <tr align="left"> <td width="276" valign="bottom" style='width:207.0pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>   Total Liabilities Measured at Fair Value</font></p> </td> <td width="78" valign="bottom" style='width:58.5pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>63,019</font></p> </td> <td width="13" valign="top" style='width:9.75pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="15" valign="top" style='width:11.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="69" valign="bottom" style='width:51.75pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font>0</p> </td> </tr> </table>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <table border="0" cellspacing="0" cellpadding="0" style='margin-left:13.5pt'> <tr align="left"> <td width="247" valign="bottom" style='width:185.15pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="142" valign="bottom" style='width:106.3pt;background:white;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>For the Nine Months Ended<font style='background:white'> September 30, 2016</font></b></p> </td> <td width="137" valign="top" style='width:102.6pt;background:white;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>For the Nine Months Ended  30, 2015</b></p> </td> </tr> <tr align="left"> <td width="247" valign="bottom" style='width:185.15pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>Balance at beginning of year</font></p> </td> <td width="142" valign="bottom" style='width:106.3pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>196,893</font></p> </td> <td width="137" valign="bottom" style='width:102.6pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font>0</p> </td> </tr> <tr align="left"> <td width="247" valign="bottom" style='width:185.15pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>Derivative liability added</font></p> </td> <td width="142" valign="bottom" style='width:106.3pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>0</font></p> </td> <td width="137" valign="bottom" style='width:102.6pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>0</font></p> </td> </tr> <tr align="left"> <td width="247" valign="bottom" style='width:185.15pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>Net change in fair value included in net income (loss)</font></p> </td> <td width="142" valign="bottom" style='width:106.3pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'> (133,874)</font></p> </td> <td width="137" valign="bottom" style='width:102.6pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font> <font style='background:white'>0</font></p> </td> </tr> <tr align="left"> <td width="247" valign="bottom" style='width:185.15pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='background:white'>   Total Liabilities Measured at Fair Value</font></p> </td> <td width="142" valign="bottom" style='width:106.3pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font><font style='background:white'>63,019</font></p> </td> <td width="137" valign="bottom" style='width:102.6pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><font style='background:white'>$</font> 0</p> </td> </tr> </table>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <table border="0" cellspacing="0" cellpadding="0" width="677" style='border:solid windowtext 1.0pt;text-autospace:none;width:507.9pt;border-collapse:collapse'> <tr align="left"> <td width="187" valign="top" style='width:1.95in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="106" valign="top" style='width:79.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>For the Three Months Ended September 30, 2016</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="115" valign="top" style='width:85.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>For the Three Months Ended September 30, 2015</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="102" valign="top" style='width:76.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>For the Nine Months Ended September 30, 2016</p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="100" valign="top" style='width:75.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>For the Nine Months Ended September 30, 2015</p> </td> </tr> <tr align="left"> <td width="187" valign="top" style='width:1.95in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net income (loss) (numerator)</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="106" valign="top" style='width:79.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (716,807)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="115" valign="top" style='width:85.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (307,378)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (842,893)</p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="100" valign="top" style='width:75.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (823,228)</p> </td> </tr> <tr align="left"> <td width="187" valign="top" style='width:1.95in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Shares (denominator)</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="106" valign="top" style='width:79.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>38,029,013</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="115" valign="top" style='width:85.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>35,819,237</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>37,115,307</p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="100" valign="top" style='width:75.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>35,096,863</p> </td> </tr> <tr align="left"> <td width="187" valign="top" style='width:1.95in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net income (loss) per share</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="106" valign="top" style='width:79.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>  (0.02)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="115" valign="top" style='width:85.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>  (0.01)</p> </td> <td width="16" valign="top" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="102" valign="top" style='width:76.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (0.02)</p> </td> <td width="18" valign="top" style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="100" valign="top" style='width:75.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>  (0.02)</p> </td> </tr> </table>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <table border="0" cellspacing="0" cellpadding="0" width="486" style='width:364.4pt;margin-left:63.9pt;border-collapse:collapse'> <tr style='height:38.7pt'> <td width="201" valign="bottom" style='width:150.5pt;padding:0in 5.4pt 0in 5.4pt;height:38.7pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> </td> <td width="138" valign="bottom" style='width:103.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:38.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>September 30, 2016</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:38.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="132" valign="bottom" style='width:98.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:38.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>December 31, 2015</p> </td> </tr> <tr style='height:42.7pt'> <td width="201" valign="bottom" style='width:150.5pt;padding:0in 5.4pt 0in 5.4pt;height:42.7pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Equipment</p> </td> <td width="138" valign="bottom" style='width:103.2pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:42.7pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$               49,373</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:42.7pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="132" valign="bottom" style='width:98.9pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:42.7pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$                      49,373</p> </td> </tr> <tr style='height:55.8pt'> <td width="201" valign="bottom" style='width:150.5pt;padding:0in 5.4pt 0in 5.4pt;height:55.8pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Accumulated depreciation</p> </td> <td width="138" valign="bottom" style='width:103.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:55.8pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(24,503)</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:55.8pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:-4.5pt;text-align:right;text-indent:4.5pt'> </p> </td> <td width="132" valign="bottom" style='width:98.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:55.8pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:-4.5pt;text-align:right;text-indent:4.5pt'>(19,143)</p> </td> </tr> <tr style='height:14.8pt'> <td width="201" valign="bottom" style='width:150.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.8pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Total Fixed Assets</p> </td> <td width="138" valign="bottom" style='width:103.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.8pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$                    24,870</p> </td> <td width="16" valign="bottom" style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;height:14.8pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="132" valign="bottom" style='width:98.9pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.8pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$                      30,230</p> </td> </tr> </table>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <table border="0" cellspacing="0" cellpadding="0" style='margin-left:36.9pt;border-collapse:collapse'> <tr style='height:33.75pt'> <td width="216" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt;height:33.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="118" valign="top" style='width:88.65pt;padding:0in 5.4pt 0in 5.4pt;height:33.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Derivative Liability</p> </td> <td width="113" valign="top" style='width:84.6pt;padding:0in 5.4pt 0in 5.4pt;height:33.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Debt Discount</p> </td> <td width="129" valign="top" style='width:96.9pt;padding:0in 5.4pt 0in 5.4pt;height:33.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Gain (Loss) on Derivative Liability</p> </td> </tr> <tr align="left"> <td width="216" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Derivative liability at inception of  new convertible debt</p> </td> <td width="118" valign="top" style='width:88.65pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$102,327</p> </td> <td width="113" valign="top" style='width:84.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$(55,000)</p> </td> <td width="129" valign="top" style='width:96.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$(47,327)</p> </td> </tr> <tr align="left"> <td width="216" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Loss on derivative liability</p> </td> <td width="118" valign="top" style='width:88.65pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>94,566</p> </td> <td width="113" valign="top" style='width:84.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="129" valign="top" style='width:96.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> (94,566)</p> </td> </tr> <tr align="left"> <td width="216" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Amortization of debt discount to interest expense</p> </td> <td width="118" valign="top" style='width:88.65pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="113" valign="top" style='width:84.6pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>4,583</p> </td> <td width="129" valign="top" style='width:96.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> </tr> <tr align="left"> <td width="216" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Balance at December 31, 2015</p> </td> <td width="118" valign="top" style='width:88.65pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$196,893</p> </td> <td width="113" valign="top" style='width:84.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$(50,417)</p> </td> <td width="129" valign="top" style='width:96.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$(141,893)</p> </td> </tr> <tr align="left"> <td width="216" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Gain on derivative liability</p> </td> <td width="118" valign="top" style='width:88.65pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'> (133,874)</p> </td> <td width="113" valign="top" style='width:84.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="129" valign="top" style='width:96.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>133,874</p> </td> </tr> <tr align="left"> <td width="216" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Amortization of debt discount to interest expense</p> </td> <td width="118" valign="top" style='width:88.65pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> <td width="113" valign="top" style='width:84.6pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>20,625</p> </td> <td width="129" valign="top" style='width:96.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>0</p> </td> </tr> <tr align="left"> <td width="216" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Balance at September 30, 2016</p> </td> <td width="118" valign="top" style='width:88.65pt;border:none;border-bottom:solid windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$63,019</p> </td> <td width="113" valign="top" style='width:84.6pt;border:none;border-bottom:solid windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$(29,792)</p> </td> <td width="129" valign="top" style='width:96.9pt;border:none;border-bottom:solid windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$(8,019)</p> </td> </tr> </table>
133874
0
0
0
0
-133874
0
63019
0
-716807
-307378
-842893
-823228
38029013
35819237
37115307
35096863
-0.02
-0.01
-0.02
-0.02
1160000
49373
49373
-24503
-19143
24870
30230
1787
1855
5361
5429
10000000
0.001
17500
7000
100000
100000
267500
2500000
1000000
773371
226629
157500
0.40
1000
1500
4000000
2000000
2000
0.50
2.3200
0.94
2.4000
0.40
1.7000
133874
8558
102327
47327
94566
4583
196893
-50417
-141893
133874
20625
63019
-29792
-8019
1000
388
0
409
3600
3550
2000
91600
The Lender agreed to loan the Company up to $10,000 per month effective September 2012, for up to one year.
0.0800
5161
130100
13842
The conversion price is one share for each $0.01 of principal and accrued but unpaid interest of the note subject to a beneficial ownership limitation. That limitation prevents the holder from owning more than 4.9% of the number of shares of the common stock outstanding after conversion. If the holder's ownership has not previously been reduced to less than 4.9% of the number of shares outstanding, then the limitation shall be 9.9%.
55000
33800
0001543637
2016-01-01
2016-09-30
0001543637
2016-09-30
0001543637
2015-12-31
0001543637
2016-07-01
2016-09-30
0001543637
2015-07-01
2015-09-30
0001543637
2015-01-01
2015-09-30
0001543637
2014-12-31
0001543637
2015-09-30
0001543637
2015-06-30
0001543637
2011-10-19
0001543637
2016-03-31
0001543637
2016-01-01
2016-06-30
0001543637
2016-06-30
0001543637
2016-02-01
2016-02-29
0001543637
2016-03-01
2016-03-31
0001543637
2016-04-01
2016-04-30
0001543637
2016-07-01
2016-07-31
0001543637
2015-10-31
0001543637
2015-10-01
2015-10-31
0001543637
2015-01-01
2015-12-31
0001543637
2012-01-01
2012-12-31
0001543637
2013-01-01
2013-12-31
0001543637
2015-12-01
2015-12-31
0001543637
2016-11-09
shares
iso4217:USD
iso4217:USD
shares
pure