NOTE 2 — GOING CONCERN

As of March 31, 2017, the Company has incurred cumulative net losses from its inception of approximately $34 million and has incurred a year to date loss of approximately $2.2 million and used cash in operations of approximately $1.6 million. These circumstances raise substantial doubt as to the Company’s ability to continue as a going concern. In response to this uncertainty, Management has taken certain measures in 2016 and to date in 2017 and has plans for the remainder of 2017 and beyond, with the objective of alleviating this concern. They include the following:

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In the three months ended March 31, 2017, the Company raised approximately $287,000, net of offering costs, upon the issuance of common stock and has raised an additional approximate $112,000, net of offering costs, subsequent to March 31, 2017. The Company continues to seek funding in order to support its operations.

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In order to meet customers’ needs for consumer products, the Company is continuing to develop new products to complement existing products and expand overall product offerings, with the objective of increasing revenue and gross profit percentages. The Company introduced two new action sports camera in the third quarter of 2016 and will be introducing additional new action sports cameras in 2017.

While the Company believes it will be successful in obtaining the necessary financing to fund its operations, there are no assurances that such additional funding will be achieved and that it will succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might be necessary should the Company be unable to continue in existence.