10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

____________________________

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2016

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF

THE EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission File Number:  000-55030

              ____________________________

UMED HOLDINGS, INC.

 (Exact name of registrant as specified in its charter)

Texas	90-0893594
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

8851 Camp Bowie West Blvd, Suite 240

Fort Worth, TX  76116

(Address of principal executive offices)

(817) 346-6900

(Registrant's telephone number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days.

☑ Yes   ☐ No

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

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

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☑

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ☑   No

The number of shares of issuer's common stock, par value $0.0001 per share, outstanding as of April 30, 2016 was 188,552,419.  The number of shares of issuer's preferred stock, par value $0.0001 per share, outstanding as of April 30, 2015 was 15,126,938.  The registrant has no other classes of securities outstanding.  

UMED HOLDINGS, INC.

INDEX

PART I		FINANCIAL INFORMATION	Page Number
	Item 1 :	Condensed Financial Statements
		Condensed Consolidated Balance Sheets – March 31, 2016 and December 31, 2015 (Unaudited)	1
		Condensed Consolidated Statements of Operations - Three Months ended March 31, 2016 and 2015 (Unaudited)	2
		Condensed Consolidated Statements of Cash Flows – Three Months ended March 31, 2016 and 2015 (Unaudited)	3
		Notes to Condensed Consolidated Financial Statements (Unaudited)	4
	Item 2:	Management's Discussion and Analysis of Financial Condition and Results of Operations	16
	Item 3:	Quantitative and Qualitative Disclosures About Market Risk	21
	Item 4T:	Controls and Procedures	21
PART II		OTHER INFORMATION
	Item 1:	Legal Proceedings	22
	Item 1A:	Risk Factors	22
	Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	22
	Item 3:	Defaults Upon Senior Securities	23
	Item 4:	Submission of Matters to a Vote of Security Holders	23
	Item 5:	Other Information	23
	Item 6 :	Exhibits	23
		Signatures	23

UMED HOLDINGS, INC.

Condensed Consolidated Balance Sheet

(Unaudited)

	March 31,			December 31,
	2016			2015
Assets
Current Assets
Cash	$	10,295		$	0
Total Current Assets		10,295			0
Fixed assets
Property & equipment		4,015			4,015
Less depreciation		3,370			3,271
		645			744
Other Assets
Mine properties		0			0
Investment		0			0
Total Other Assets		0			0
Total Assets	$	10,940		$	744
Liabilities & Stockholders' Deficit
Current Liabilities
Accounts payable	$	77,173		$	85,545
Stockholder advances		166,756			102,214
Accrued management fees		1,820,602			1,793,617
Accrued expenses		238,365			229,763
Note payable		36,000			0
Derivative liability – warrants		100,262			60,164
Total Current Liabilities		2,439,158			2,271,303
Total Liabilities		2,439,158			2,271,303
Commitments and contingencies
Stockholders' Deficit
Common Class B stock, 20,000,000 shares authorized, par value $0.0001,
15,126,938 issued and outstanding at March 31, 2016 and
December 31, 2015		1,513			1,513
Common Class A stock 300,000,000 shares authorized, par value $0.0001,
188,552,419 and 183,882,132 issued and outstanding at
March 31, 2016 and December 31, 2015, respectively		18,857			18,389
Additional paid-in capital		10,504,183			10,167,670
Accumulated deficit		(12,952,771	)		(12,458,131	)
Total Stockholders' Deficit		(2,428,218	)		(2,270,559	)
Total Liabilities & Stockholders' Deficit	$	10,940		$	744

The accompanying notes to condensed consolidated financial statements

1

UMED HOLDINGS, INC.

Consolidated Statements of Operations – Unaudited

For the three months ended March 31, 2016 and 2015

	2016			2015
Sales	$	0		$	0
Expenses
General and administrative		289,493			315,493
Research and development		164,835			72,000
Depreciation		99			99
Total Expense		454,427			387,592
Operating loss		(454,427	)		(387,592	)
Other income (expenses)
Loss on change in fair value of derivative		(40,098	)		0
Interest expense		(115	)		(36,395	)
Total other income (expense)		(40,213	)		(36,395	)
Operating loss from continuing operations		(494,640	)		(423,987	)
Loss from discontinued operations, net of tax		0			(143,008	)
Loss before income taxes					(566,995	)
Provision for income taxes		0			0
Net loss	$	(494,640	)	$	(566,995	)
Net loss per share;
Basic and diluted net income (loss) per shares   Continuing operations	$	0.01		$	0.00
Discontinued operations		0.00			0.00
	$	0.01		$	0.00
Weighted average shares
Outstanding;
Basic and diluted		186,441,276			146,159,118

See accompanying notes to condensed consolidated financial statements

2

UMED HOLDINGS, INC.

Condensed Consolidated Statements of Cash Flows - Unaudited

For the three months ended March 31, 2016 and 2015

	2016			2015
Cash Flows from Operating Activities
Net Loss from operations	$	(494,640	)	$	(423,9875	)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation		99			98
Stock issued for services		40,480			0
Loss on derivative		40,098			0
Changes in operating assets and liabilities:
Accounts payable		(8,372	)		898
Accrued management fees		26,985			135,563
Derivative		0			0
Accrued expenses		8,602			7,910
Net Cash Used in Operating Activities		(386,748	)		(279,518	)
Cash Flows from Investing Activities		0			0
Cash Flows from Financing Activities
Shareholder advances, net		116,043			136,610
Proceeds - note payable		36,000			0
Decrease in convertible notes payable		0			(22,515	)
Proceeds from sale of common stock		245,000			108,001
Debt issuance cost		0			23,754
Net Cash Provided by Financing Activities		397,043			245,850
Cash Used in Discontinued Operations		0			(43,624	)
Net Increase (Decrease) in Cash		10,295			(77,292	)
Cash Beginning of Period		0			77,503
Cash End of Period	$	10,295		$	211
Supplemental Disclosure of Cash Flow Information:
Cash Paid during the period for interest	$	0		$	0
Cash Paid during the period for taxes	$	0		$	0
Conversion of shareholder advances to common stock	$	51,500		$	18,500

The accompanying notes are an integral part of these financial statements

3

UMED COMPANY HOLDINGS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

UMED Holdings, Inc. ("UMED" or the "Company") was organized on March 13, 2002 under the laws of the State of Texas as Dynalyst Manufacturing Corporation.  On August 18, 2009, in connection with a merger with Universal Media Corporation, a privately held Nevada company, the Company changed its name to Universal Media Corporation ("Universal Media").  The company changed its name to UMED Holdings, Inc. on March 23, 2011.

UMED's mission is to operate as a holding company through the acquisition of businesses as wholly-owned subsidiaries that meet some key requirements: (1) solid management that will not have to be replaced in the near future (2) the ability to grow with steady growth to follow and (3) an emphasis on emerging core industry markets, such as energy, metals and agriculture.  It is the Company's intention to add experienced personnel and select strategic partners to manage and operate the acquired business units.  

In September 2010, UMED acquired 1,440 acres of placer mining claims on Bureau of Land Management land in Mohave County, Arizona. See discussion in Note 4.  Due the Company not producing any revenues from its BLM mining leases since its acquisition of the leases, achieving a position of producing cash flow levels to fund the development of its BLM mining leases in December of 2010 and not having current resources for an appraisal, we recognized an impairment charge of $100,000 during the year ended December 31, 2014.

In October 2011, UMED acquired a 49% interest in Jet Regulators, LP, an aircraft maintenance company located at Meacham Field in Fort Worth, Texas.  See discussion in Notes 5 and 7.  Due to reduced growth expectations and the Company not receiving any revenues from its ownership in Jet Tech described in Note 7, we recognized an impairment charge of $90,000 during the year ended December 31, 2014.

In May 2012, the Company acquired 80% of Mamaki Tea & Extract of Hawaii, Inc. (nka Mamaki of Hawaii, Inc.) which owns and operates Wood Valley Plantation a 25 acre Mamaki Tea plantation located in the Kau district of the Island of Hawaii and lies at the foot of Mauna Loa, the Earth's largest volcano.   On December 31, 2012, the Company acquired the remaining 20% for 500,000 shares of restricted common stock and $127,800 of cash.  Mamaki of Hawaii, Inc. was sold in October 2015 as discussed further in Notes 3, 4 and 12.

In August 2012, the Company acquired 100% of Greenway Innovative Energy, Inc., which owns two patents and proprietary technology for the conversion of natural gas to diesel/jet fuels. 

NOTE 2 - BASIS OF PRESENTATION AND GOING CONCERN UNCERTAINTIES

Principles of Consolidation

The accompanying consolidated financial statements include the financial statements of UMED and its wholly-owned subsidiaries. All significant inter-company accounts and transactions were eliminated in consolidation.

  Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulations S-X.  Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.  The net assets and results of operations of Mamaki of Hawaii, Inc. have been reflected as discontinued operations for the three months ended March 31, 2015.  For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2015.

4

The accompanying condensed consolidated financial statements include the accounts of the following entities:

Name of Entity	%		Entity	Incorporation	Relationship
UMED Holdings, Inc.			Corporation	Texas	Parent
Mamaki of Hawaii, Inc.*	100	%	Corporation	Nevada	Subsidiary
Universal Media Corporation	100	%	Corporation	Wyoming	Subsidiary
Greenway Innovative Energy, Inc.	100	%	Corporation	Nevada	Subsidiary
Logistix Technology Systems, Inc.	100	%	Corporation	Texas	Subsidiary

*  Sold in November 2015

Going Concern Uncertainties

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying condensed consolidated financial statements, the Company sustained a loss of approximately $495 thousand for the three-month period ended March 31, 2016 and has an accumulated deficit of approximately $12.9 million at March 31, 2016. The ability of the Company to continue as a going concern is in doubt and dependent upon achieving a profitable level of operations or on the ability of the Company to obtain necessary financing to fund ongoing operations. Management believes that its current and future plans enable it to continue as a going concern for the next twelve months.

To meet these objectives, the Company continues to seek other sources of financing in order to support existing operations and expand the range and scope of its business. However, there are no assurances that any such financing can be obtained on acceptable terms and timely manner, if at all.  The failure to obtain the necessary working capital would have a material adverse effect on the business prospects and, depending upon the shortfall, the Company may have to curtail or cease its operations.

The accompanying condensed consolidated financial statements do not include any adjustment to the recorded assets or liabilities that might be necessary should the Company have to curtail operations or be unable to continue in existence.

NOTE 3 - RECLASSIFICATION

The March 31, 2015 financial statements amounts have been reclassified to reflect the operations of Mamaki of Hawaii, Inc. as discontinued operations, as follows;

Statement of Operations	As Previously Stated			Reclassification			As Reclassified
Sales	$	27,301		$	(27,301	)	$	0
Cost of sales		3,147			(3,147	)		0
Gross profit		24,154			(24,154	)		0
Expenses
General and administrative		422,299			(106,806	)		315,493
Research and development		72,000			0			72,000
Depreciation		29,839			(29,740	)		99
		524,138			(136,574	)		387,592
Operating loss Other expenses		(499,984	)		(111,492	)		(387,592	)
Interest expense		(67,011	)		30,616			(36,395	)
Operating loss from continuing operations		(566,995	)		143,008			(423,987	)
Loss from discontinued operations		0			(143,008	)		(143,008	)
Loss before income taxes		(566,995	)		0			(566,995	)
Provision for income taxes		0			0			0
Net loss	$	(566,995	)	$	0		$	(566,995	)
Basic loss per share
Operating loss							$	(0.00	)
Loss from discontinued operations							$	(0.00	)

5

Statement of Cash Flows Accounts	As Previously Stated			Reclassification			As Reclassified
Net Loss	$	(566,995	)	$	(143,008	)	$	(423,987	)
Depreciation		29,838			29,739			99
Stock issued for services		0			0			0
Warrants		0			0			0
Accounts receivable		(12,355	)		(12,355	)		0
Prepaid expenses		5,140			5,140			0
Accounts payable		(11,229	)		(12,127	)		898
Accrued management fees		135,563			0			135,5635
Accrued expenses		92,990			85,080			7,910
Net Cash Provided by Operations		(327,048	)		47,530			(279,518	)
Advances from shareholders		136,610			0			136,610
Proceeds from convertible note		(22,515	)		0			(22,515	)
Decrease in notes payable		1,077			(1,077	)		0
Proceeds from sale of common stock		108,001			0			108,001
Debt issue costs		23,754			0			23,754
Net Cash Provided by Financing		246,927			(1,077	)		245,850
Cash used in discontinued operations					(43,624	)		(43,624	)
Net Increase in Cash	$	(80,121	)	$	2,829		$	(77,292	)

NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of significant accounting policies applied in the presentation of the condensed consolidated financial statements are as follows:

Property & Equipment

Property and equipment is recorded at cost. Major additions and improvements are capitalized. The cost and related accumulated depreciation of equipment retired or sold are removed from the accounts and any differences between the undepreciated amount and the proceeds from the sale are recorded as a gain or loss on sale of equipment. Depreciation is computed using the straight-line method over the estimated useful life of the assets as follows.

Equipment 5 to 7 years

Impairment of Long-Lived Assets

The Company assesses the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, in accordance with ASC Topic 360, "Property, Plant and Equipment."  An asset or asset group is considered impaired if its carrying amount exceeds the undiscounted future net cash flow the asset or asset group is expected to generate.  If an asset or asset group is considered impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds its fair value.  If estimated fair value is less than the book value, the asset is written down to the estimated fair value and an impairment loss is recognized.

6

Discontinued Operations

On November 2, 2015, the Company consummated on the sale of its wholly owned subsidiary, Mamaki of Hawaii, Inc. ("Mamaki") to Hawaiian Beverages, Inc. ("HBI").   Under the agreement, HBI acquired 100% of the common stock of Mamaki in exchange for seven hundred thousand dollars ($700,000) and the assumption of eighty-four thousand two hundred seventy-five dollars ($84,275) of UMED debts.  HBI paid two hundred forty-five thousand five hundred dollars ($245,000) of the two hundred fifty thousand dollars ($250,000) due at closing and was scheduled to pay three installments of one hundred fifty thousand dollars ($150,000) on each of thirty, sixty and ninety-day anniversary of the closing date.  The Company has not received any payment on the $454,600 and determined that the account is doubtful and wrote it off, as of December 31, 2015, as a deduction from the gain calculated on the sale.

For the three months ended March 31, 2015, the results of Mamaki are presented as a separate line item in the consolidated statement of operations and the consolidated cash flow statement.  In accordance with Accounting Standards Codification Subtopic 205-10-45, the Company elected to not allocate consolidated interest expense to discontinued operations where the debt is not directly attributable to or related to discontinued operations. All of the financial information in the consolidated financial statements and notes to the consolidated financial statements has been revised to reflect only the results of continued operations. (See Notes 2 and 12).

Revenue Recognition

The Company has not, to date, generated significant revenues.  The Company plans to recognize revenue in accordance with Accounting Standards Codification subtopic 605-10, Revenue Recognition ("ASC 605-10") which requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded.

ASC 605-10 incorporates Accounting Standards Codification subtopic 605-25, Multiple-Element Arraignments ("ASC 605-25"). ASC 605-25 addresses accounting for arrangements that may involve the delivery or performance of multiple products, services and/or rights to use assets. The effect of implementing 605-25 on the Company's financial position and results of operations was not significant.

Use of Estimates

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States 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 amount of revenue and expenses during the reported period.  Actual results could differ materially from the estimates.

Cash and Cash Equivalent

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.  There were no cash equivalents at March 31, 2016 or December 31, 2015.

Mine Exploration and Development Costs

The Company plans to account for mine exploration costs in accordance with Accounting Standards Codification 932, Extractive Activities.   All exploration expenditures are expensed as incurred. Mine development costs are capitalized until production, other than production incidental to the mine development process, commences and are amortized on a units of production method based on the estimated proven and probable reserves. Mine development costs represent costs incurred in establishing access to mineral reserves and include costs associated with sinking or driving shafts and underground drifts, permanent excavations, roads and tunnels. The end of the development phase and the beginning of the production phase takes place when construction of the mine for economic extraction is substantially complete. Coal extracted during the development phase is incidental to the mine's production capacity and is not considered to shift the mine into the production phase. Amortization of capitalized mine development is computed based on the estimated life of the mine and commences when production, other than production incidental to the mine development process, begins.  Due to the Company not producing any revenues from its BLM mining leases since its acquisition of the leases, achieving a position of producing cash flow levels to fund the development of its BLM mining leases and not having current resources for an appraisal, we recognized an impairment charge of $100,000 during the year ended December 31, 2014.   During the three months ended March 31, 2016 and 2015, the Company did not incur any mine development costs.

7

 Mine Properties

The Company will account for mine properties in accordance with Accounting Standard Codification 930, Extractive Activities-Mining.   Costs of acquiring mine properties are capitalized by project area upon purchase of the associated claims.  Mine properties are periodically assessed for impairment of value and any diminution in value. The Company had 1,440 acres of placer mining claims at March 31, 2016, which were acquired in December 2010 in exchange for 5,066,000 shares of common stock valued at $100,000.  Due to the Company not producing any revenues from its BLM mining leases since its acquisition of the leases, achieving a position of producing cash flow levels to fund the development of its BLM mining leases and not having current resources for an appraisal, we recognized an impairment charge of $100,000 during the year ended December 31, 2014.

Income Taxes

The Company accounts for income taxes in accordance with FASB ASC 740, "Income Taxes," which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when it is more likely than not that some or all deferred tax assets will not be realized.

The Company has adopted the provisions of FASB ASC 740-10-05 Accounting for Uncertainty in Income Taxes. The ASC clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements.  The ASC prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  The ASC provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  Open tax years, subject to IRS examination include 2009 – 2015.

Net Loss Per Share, basic and diluted

Basic loss per share has been computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding for the period. Shares issuable upon the exercise of warrants (5,446,154) have been excluded as a common stock equivalent in the diluted loss per share because their effect is anti-dilutive.

Derivative Instruments

The Company accounts for derivative instruments in accordance with Accounting Standards Codification 815, Derivatives and Hedging ("ASC 815"), which establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities.  They require that an entity recognize all derivatives as either assets or liabilities in the balance sheet and measure those instruments at fair value.

If certain conditions are met, a derivative may be specifically designated as a hedge, the objective of which is to match the timing of gain or loss recognition on the hedging derivative with the recognition of (i) the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk or (ii) the earnings effect of the hedged forecasted transaction. For a derivative not designated as a hedging instrument, the gain or loss is recognized in income in the period of change.

See Note 7 below for discussion regarding a warrant agreement related to a convertible note, which was repaid on July 22, 2015.

Original Issue Discount

For certain convertible debt issued, the Company provides the debt holder with an original issue discount ("OID").  An OID is the difference between the original cash proceeds and the amount of the note upon maturity. The Note is originally recorded for the proceeds received. The OID was amortized into interest expense pro-rata over the term of the Note.

8

Fair Value of Financial Instruments

The Company's financial instruments, as defined by Accounting Standard Codification subtopic 825-10, Financial Instrument ("ASC 825-10), include cash, accounts payable and convertible note payable.  All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at March 31, 2016.

FASB ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

Level 1: Observable inputs such as quoted prices in active markets;

Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3: Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions

The Company's derivative was valued at level 3.

Stock Based Compensation

The Company follows Accounting Standards Codification subtopic 718-10, Compensation ("ASC 718-10") which requires that all share-based payments to both employees and non-employees be recognized in the income statement based on their fair values.  

At March 31, 2016, the Company did not have any issued or outstanding stock options.

Concentration and Credit Risk

Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash. The Company places its cash with high credit quality institutions.  At times, such deposits may be in excess of the FDIC insurance limit.

Research and Development

The Company accounts for research and development costs in accordance with Accounting Standards Codification subtopic 730-10, Research and Development ("ASC 730-10"). Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved as defined under the applicable agreement. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company incurred research and development expenses of $164,835 and $72,000 during the three months ended March 31, 2016 and 2015. 

Issuance of Common Stock

The issuance of common stock for other than cash is recorded by the Company at market values.

Impact of New Accounting Standards

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

9

 NOTE 5 – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment, their estimated useful lives, and related accumulated depreciation at March 31, 2016 and December 31, 2015, respectively, are summarized as follows:

	Range of
	Lives in		March 31, December 31,
	Years		2016			2015
Equipment		5		2,032			2,032
Furniture and fixtures		5		1,983			1,983
				4,015			4,015
Less accumulate depreciation				(3,370	)		(3,271	)
			$	645			744
Depreciation expense for the period ended			$	99		$	396

NOTE 6 – INVESTMENTS

Investments consisted of the following at March 31, 2016 and December 31, 2015;

	March 31,		December 31,
	2016		2015
Jet Tech LLC In October 2011, the Company acquired a 49% interest in JetTech LLC which is an aerospace maintenance operation located at Meacham Airport in Fort Worth, Texas.  The Company has impaired the investment at March 31, 2016 and December 31, 2014, respectively.	$	0	$	0
TOTAL INVESTMENTS	$	0	$	0

10

NOTE 7 – CONVERTIBLE PROMISSORY NOTE

On September 18, 2015, the Company issued a $158,000 convertible promissory note bearing interest at 10.0% per annum to an accredited investor, payable July 23, 2015, in monthly installments of $31,600 plus accrued interest beginning 6 months after the date of the promissory note.  The note was paid in full on July 22, 2015.  The holder had the right under certain circumstances to convert the note into common stock of the Company at a conversion price equal to 70% of the average of the 3 lowest volume weighted average trading prices during the 20-day period ending on the latest complete trading day prior to the conversion date. 

The Company evaluated the terms of the convertible note in accordance with ASC 815-40, Contracts in Entity's Own Equity, and concluded that the Convertible Note did result in a derivative. The Company evaluated the terms of the convertible note and concluded that there was a beneficial conversion feature since the convertible note was convertible into shares of common stock at a discount to the market value of the common stock. The discount related to the beneficial conversion feature on the note was valued at $158,000 based on its then intrinsic value. The discount related to the beneficial conversion feature ($78,463) and the warrants ($79,537) is being amortized over the term of the debt (10 months).  For the period ended March 31, 2016, the Company did not recognized any interest expense related to the amortization of the discount as the note was paid in full on July 22, 2015.

In connection with the issuance of the $158,000 note discussed above, the Company recorded debt issue cost and discount as follows:

	●	10.4% cash – which is equivalent to $16,500, and,
	●	Warrants – having a fair value of $107,212 and recorded on the balance sheet at $100,262 as of March 31, 2016 and $60,164 at December 31, 2015, which was computed as follows;
			Commitment Date
Expected dividends				0%
Expected volatility				189%
Expected term: conversion feature			3.5 years
Risk free interest rate				1.75%

The debt issue costs were capitalized and amortized through July 22, 2015, when the note was paid in full.

Amortization of debt issuance costs for the three months ended March 31, 2015 was $23,754.  There was no amortization of debt issue costs for the three months ended March 31, 2016, as the note had been paid in full.

The original issue discount pertains to discount taken by lender against the total convertible note of $158,000, resulting in a disbursement of $144,000 to the company.

The original issue discount of $14,000 was amortized during the year ended December 31, 2015, as the note had been paid in full on July 22, 2015.

NOTE 8 – ACCRUED EXPENSES

Accrued expenses consisted of the following at March 31, 2016 and December 31, 2015;

	2016		2015
Accrued consulting fees	$	238,250	$	229,000
Bank overdraft		0		763
Accrued interest expense		115		0
Total accrued expenses	$	238,365	$	229,763

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NOTE 9– CAPITAL STRUCTURE

The Company is authorized to issue 300,000,000 shares of class A common stock with a par value of $.0001 per share and 20,000,000 shares of class B common with a par value of $.0001 per share.  Each common stock share has one voting right and the right to dividends, if and when declared by the Board of Directors.

Common A Stock

At March 31, 2016, there were 188,552,419 shares of common stock issued and outstanding.

During the three-month period ended March 31, 2016, the Company issued 3,500,002 shares of restricted common stock to four individuals through private placements for cash of $245,000 at average of $.07 per share.

During the three-month period ended March 31, 2016, the Company issued 664,285 shares of restricted common stock for conversion of shareholder advances of $51,500 at average of $.0775 per share.

During the three-month period ended March 31, 2016, the Company issued 400,000 shares of restricted common stock for consulting services of $32,000 at average of $.08 per share.

During the three-month period ended March 31, 2016, the Company issued 106,000 shares of restricted common stock to a creditor for rent expense of $8,480 at average of $.08 per share.

Class B Common

At March 31, 2016, there were 15,126,938 shares of class B common stock issued and outstanding. Each class B share is convertible, at the option of the class B shareholder, into one share of class A common stock.

Stock options, warrants and other rights

At March 31, 2016, the Company has not adopted any employee stock option plans.

NOTE 10 - RELATED PARTY TRANSACTIONS

Shareholders have made advances to the Company in the amounts of $126,042 and $132,109 during the three months ended March 31, 2016 and 2015, respectively.  The shareholders have elected to convert advances of $51,500 and $18,500 to shares of common stock at market value ($.08 and $.118 per share) and received repayments of $10,000 and $0 during the three months ended March 31, 2016 and 2015, respectively.

NOTE 11 – INCOME TAXES

At March 31, 2016 and December 31, 2015, the Company had approximately $4.8 million and $4 million, respectively, of net operating losses ("NOL") carry forwards for federal and state income tax purposes.  These losses are available for future years and expire through 2033.  Utilization of these losses may be severely or completely limited if the Company undergoes an ownership change pursuant to Internal Revenue Code Section 382.  

The provision for income taxes for continuing operations consists of the following components for the three months ended March 31, 2016 and the year ended December 31, 2015:

	2015			2015
Current		$	-		$	-
Deferred			-			-
Total tax provision for (benefit from) income taxes		$	-		$	-

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A comparison of the provision for income tax expense at the federal statutory rate of 34% for the three months ended March 31, 2016 and the year ended December 31, 2015 the Company's effective rate is as follows:

	2016			2015
Federal statutory rate		(34.0	) %		(34.0	) %
State tax, net of federal benefit		(0.0	)		(0.0	)
Permanent differences and other including surtax exemption		0.0			0.0
Valuation allowance		34.0			34.0
Effective tax rate		0.0	%		0.0	%

The net deferred tax assets and liabilities included in the financial statements consist of the following amounts at March 31, 2016 and December 31, 2015:

	2016			2015
Deferred tax assets
Net operating loss carry forwards	$	4,806,093		$	4,028,702
Deferred compensation		2,544,213			2,409,213
Stock based compensation		4,930,968			4,898.968
Other		671,497			1,121,2480
Total		12,952,771			12,458,131
Less valuation allowance		(12,952,771	)		(12,458,131	)
Deferred tax asset		-			-
Deferred tax liabilities
Depreciation and amortization	$	-		$	-
Net long-term deferred tax asset	$	-		$	-

 The change in the valuation allowance was $494,640 and $4,028,702 for the three months ended March 31, 2016 and the year ended December 31, 2015, respectively.  The Company has recorded a 100% valuation allowance related to the deferred tax asset for the loss from operations, interest expense, interest income and other income subsequent to the change in ownership, which amounted to $12,952,771 and $12,458,131 at March 31, 2016 and December 31, 2015, respectively. 

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, historical taxable income including available net operating loss carry forwards to offset taxable income, and projected future taxable income in making this assessment.

NOTE 12 – DISCONTINUED OPERATIONS

In November 2015, the Company completed the sale of its wholly owned subsidiary, Mamaki of Hawaii, Inc, ("Mamaki") to Hawaiian Beverages, Inc. ("HBI").  Under the agreement, HBI acquired 100% of the common stock of Mamaki in exchange for seven hundred thousand dollars ($700,000) and the assumption of eighty-four thousand two hundred seventy-five dollars ($84,275) of UMED debts.  HBI paid two hundred forty-five thousand five hundred dollars ($245,500) at closing towards the first installment due of two hundred fifty thousand ($250,000) and was to pay three installments of one hundred fifty thousand dollars ($150,000) on each of thirty, sixty and ninety-day anniversary of the closing date.  The Company has not received any payment on the $454,600 and determined that the account is doubtful and wrote it off, as of December 31, 2015, as a deduction from the gain calculated on the sale.

13

The following are condensed statements of the discontinued operations (Mamaki of Hawaii, Inc.) for the three months ended March 31, 2015:

	2015
Sales	$	27,301
Cost of sales		3,147
Gross profit		24,154
Operating Expenses:
General and administrative expenses		106,806
Depreciation		29,740
Total Operating Expenses		136,546
Operating Loss		(112,392	)
Other Income (Expense)
Interest expense		(30,616	)
Loss from discontinued operations	$	( 143,008	)
Loss per share - discontinued operations	$	(0.00	)

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NOTE 13 – COMMITMENTS

Employment Agreements

In May 2011, the Company entered into employment agreements with its chief executive officer, president and chief financial officer.  The Agreements are for a term of 5 years with compensation of $180,000 the first year, $240,000 the second year, $300,000 the third year, $350,000 the fourth year and the fifth year at a salary commensurate with those in similar industries.  The employment agreements also provide for the officers to receive 1,250,000 shares of restricted common stock annually for each year of the employment agreement.  During the three months ended March 31, 2016 and 2015, with consent of management, the Company accrued a total of $90,000 and $135,000, respectively, as management fees in accordance with the terms of these agreements.  On April 8, 2015, the Company's chief executive officer resigned and relinquished his claim to receive $518,300 of deferred compensation, which the Company treated as debt forgiveness.

In August 2012, the Company entered into employment agreements with the president and chairman of the board of Greenway Innovative Energy, Inc. for a term of 5 years with compensation of $90,000 per year. In June of 2014, the president's employment agreement was amended to increase his annual pay to $180,000.  On April 30, 2015, accrual on the Greenway chairman of the board agreement was ceased due to his absence from the company for more than a year. During the three months ended March 31, 2016 and 2015, respectively, the Company accrued $45,000 and $56,250 towards the employment agreements.

Leases

In October 2015, the Company entered into a two-year lease for approximately 1,800 square feet a base rate of $2,417 per month. During the three months ended March 31, 2016 and 2015, the Company expensed $7,251 and $19,200, respectively, in rent expense.

The Company is obligated to pay approximately $11,800 in annual maintenance fees on its mining leases, in addition to 10% royalties based on production.

Legal

As dislosed below in Note 14 – Subsequent Event - On April 22, 2016, the Company filed suit in District Court, Dallas County, Texas against Mamaki of Hawaii, Inc. ("Mamaki"), Hawaiian Beverages, Inc.("HBI"), Curtis Borman and Lee Jenison for breach of Stock Purchase Agreement dated October 29, 2015.

NOTE 14 – SUBSEQUENT EVENTS

On April 22, 2016, the Company filed suit in District Court, Dallas County, Texas against Mamaki of Hawaii, Inc. ("Mamaki"), Hawaiian Beverages, Inc.("HBI"), Curtis Borman and Lee Jenison for breach of Stock Purchase Agreement dated October 29, 2015, wherein the Company sold its shares in Mamaki of Hawaii, Inc. to Hawaiian Beverages, Inc. for $700,000 (along with the assumption of certain debt).  The Defendants failed to make payments of $150,000 each on November 30, 2015, December 28, 2015 and January 27, 2016.

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Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward Looking Statements

Some of the statements made in this Form 10-Q constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to the safe harbor provisions of the reform act. Forward-looking statements may be identified by the use of the terminology such as may, will, expect, anticipate, intend, believe, estimate, should or continue or the negatives of these terms or other variations on these words or comparable terminology. To the extent that this report contains forward-looking statements regarding the financial condition, operating results, business prospects or any other aspect of our business, you should be aware that our actual financial condition, operating results and business performance may differ materially from that projected or estimated by us in the forward-looking statements. We have attempted to identify, in context, some of the factors that we currently believe may cause actual future experience and results to differ from their current expectations. These differences may be caused by a variety of factors including, but not limited to, adverse economic conditions, intense competition, including entry of new competitors, inability to obtain sufficient financing to support our operations, progress in research and development activities, variations in costs, fluctuations in foreign currencies against the U.S. dollar in countries where we source products, adverse federal, state and local government regulation, unexpected costs, lower sales and net income (or higher net losses, than forecasted), price increases for equipment, inability to raise prices, failure to obtain new customers, the possible fluctuation and volatility of our operating results and financial condition, inability to carry out marketing and sales plans, loss of key executives and other specific risks that may be alluded to in this report.

The following discussion and analysis of financial condition, results of operations, liquidity and capital resources should be read in conjunction with our audited consolidated financial statements and notes thereto appearing elsewhere in this report, which have been prepared assuming that we will continue as a going concern, and in conjunction with our Annual Form 10-K filed on April 14, 2016.  As discussed in Note 2 to the condensed consolidated financial statements, our recurring net losses and inability to generate sufficient cash flows to meet our obligations and sustain our operations raise substantial doubt about our ability to continue as a going concern.  Management's plans concerning these matters are also discussed in Note 2 to the condensed consolidated financial statements.  This discussion contains forward-looking statements that involve risks and uncertainties, including information with respect to our plans, intentions and strategies for our businesses. Our actual results may differ materially from those estimated or projected in any of these forward-looking statements.

Overview

UMED Holdings, Inc. ("UMED") was originally incorporated as Dynalyst Manufacturing Corporation ("Dynalyst") under the laws of the State of Texas on March 13, 2002.

In connection with the merger with Universal Media Corporation ("UMC"), a Nevada corporation, on August 17, 2009, the company changed its name to Universal Media Corporation.   The transaction was accounted for as a reverse merger, and Universal Media Corporation is the acquiring company on the basis that Universal Media Corporation's senior management became the entire senior management of the merged entity and there was a change of control of Dynalyst.  The transaction is accounted for as recapitalization of Dyanlyst's capital structure.  In connection with the merger, Dynalyst issued 57,500,000 restricted common shares to stockholders of Universal Media Corporation for 100% of Universal Media Corporation.

On August 18, 2009, Dynalyst approved the amendment of its Articles of Incorporation and filed with the Texas Secretary of State to change the Company's name to Universal Media Corporation and approved the increase in authorized shares to 300,000,000 shares of common A stock, par value $.0001 and 20,000,000 shares of common B, par value $.0001.

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On March 23, 2011, Universal Media Corporation approved the amendment of its Articles of Incorporation and filed with the Texas Secretary of State to change the Company's name to UMED Holdings, Inc.

UMED Holdings, Inc. a Texas corporation, (hereinafter "UMED" or "the Company") is a holding company with present interest in energy and mining.  The Company has established its corporate offices at 8851 Camp Bowie West, Suite 240, Fort Worth, Texas  76116 consisting of approximately 1,800 square feet.

The Company will be unable to pay its obligations in the normal course of business or service its debt in a timely manner throughout 2016 without raising additional debt or equity capital.  There can be no assurance that the Company will raise additional debt or equity capital.

The Company is currently evaluating strategic alternatives that include the following: (i) raising of capital, or (ii) issuance of debt instruments.  This process is ongoing and can be lengthy and has inherent costs.  There can be no assurance that the exploration of strategic alternatives will result in any specific action to alleviate the Company's 12 month working capital needs or result in any other transaction.

Energy Interest

In August 2012, UMED acquired Greenway Innovative Energy, Inc., filed a patent application, and is conducting research on Gas-to-Liquid ("GTL") technology.  The Technology is based upon the Fischer-Tropsch ("FT") conversion system that has been operational in various locations throughout the world since the early 1930s.  Thousands of FT systems have operated during the last 80 years, being most notably responsible for driving energy economies of wartime Nazi Germany and Imperial Japan.  More recently, and for a more sustained period, FT has been responsible for providing much of the motive energy required to meet the needs of the Republic of South Africa, a country recognized as having pushed FT technology much further than any other nation since the development of the process.

Greenway's research has been centered on developing a portable production-scale FT system ("the Portable Technology") to accommodate the needs of smaller gas plays that are increasingly beginning to characterize natural gas production within the US and elsewhere.  The Company is currently seeking funding of $45 - $50 million to build the initial (2,000 BPD) GTL unit near an existing pipeline.

The Company has decided to proceed with the building of scaled model unit at a local entity in conjunction with a sponsored research agreement at an estimated cost of $1,500,000.

Mining Interest

In December 2010, UMED acquired the rights to approximately 1,440 acres of placer mining claims in Mohave County, Arizona for 5,066,000 shares of restricted common stock.  Early indications, from samples taken and processed, gives the Company reason to believe that the potential recovery value of the metals located on the 1,440 acres is significant, but actual mining and processing will determine the ultimate value realized.  The Company is currently seeking funding of $500,000 to begin certified assaying, to determine the viability of continued development of the mining claims.

Mamaki Tea Farm

On May 2, 2012, the Company acquired 80% of Mamaki of Hawaii, Inc. (formerly Mamaki Tea & Extract, Inc.), a Nevada corporation in exchange for 5,000,000 shares of the Company's restricted common stock and $150,000 in cash.  On December 31, 2012, the Company acquired the remaining 20% of Mamaki of Hawaii, Inc. for 500,000 shares of its restricted common stock and $127,000 in cash.  See Note 2 to the financial statements for a discussion on the October 2015 sale of Mamaki of Hawaii, Inc.

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Results of Operations

Three Months Ended March 31, 2016 Compared to Three Months Ended March 31, 2015

The Company had no revenues from operations for the three months ended March 31, 2016 and 2015.  We reported net operating losses during the three months ended March 31, 2016 and 2015 of $494,640 and $423,987, respectively.

The following table summarizes operating expenses and other income and expenses for the three months ended March 31, 2016 and 2015:

	2016		2015
General and administrative	$	289,493	$	315,493
Research and development		164,835		72,000
Depreciation and amortization		99		99
Interest expense		115		36,395

The table below illustrates our results for the discontinued Mamaki Tea reporting segment for the three months ended March 31, 2015:

	2015
Sales	$	27,301
Cost of sales		3,147
Gross Profit (Loss)		24,154
General and administrative expense		106,806
Depreciation expense		29,740
Operating loss		(112,392	)
Other expense
Interest expense		(30,616	)
Net loss	$	(143,008	)

For the three months ended March 31, 2016, general and administrative costs consisted primarily of management and consulting fees of $231,050 (including $40,800 in stock based compensation for consulting fees), rent expense of $7,137, and legal expenses of $40,153.

For the three months ended March 31, 2015, general and administrative costs consisted primarily of management and consulting fees of $242,000, rent expense of $12,800 and legal expense of $35,000.

Net operating loss was $494,640 or $0.01 per basic and diluted earnings per share for the three months ended March 31, 2016 compared to $566,995 or $0.01 per share for the three months ended March 31, 2015. The weighted-average number of shares used in the earnings per share for the basic and dilutive computation was 186,441,276 for the three months ended March 31, 2016 and 146,159,118 for the three months ended March 31, 2015.

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Liquidity and Capital Resources

Our cash flow from operating, investing and financing activities, as reflected in the consolidated statements of cash flows, is summarized in the following table for the three months ended March 31:

(thousands)	2016			2015
Cash provided by (used for):
Operating activities	$	(386,748	)	$	(279,518	)
Investing activities		0			0
Financing activities		397,043			245,850
Cash used in discontinued operations		0			(43,624	)
(Decrease) Increase in cash	$	10,295		$	(77,292	)

Our financial statements have been prepared on a going concern basis, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business.  Our general business strategy is to first seek capital to construct the first portable GTL Unit and explore and research its existing mining lease properties.  As shown in the accompanying condensed consolidated financial statements, we sustained a net operating loss of $454,542 for the three months ended March 31, 2016 and have a cumulative deficit of $12,952,771 at March 31, 2016.  Although we have managed our liquidity during the three months ended March 31, 2016 through the sale of common stock, shareholder advances and notes payable, our ability to continue as a going concern is in doubt and dependent upon achieving a profitable level of operations and on our ability to obtain necessary financing to fund ongoing operations.

We currently are evaluating strategic alternatives that include the following: (i) raising of new capital, or (ii) issuance of debt instruments.  This process is ongoing and may be lengthy and has inherent costs.  There can be no assurance that the exploration of strategic alternatives will result in any specific action to alleviate the Company's 12 month working capital needs or result in any other transaction.

We project that approximately $48.5 - $53.5 million of capital will be needed for all aspects of our business development. We project a need of $45 -$50 million to build the first portable GTL Unit, $500,000 for our mining exploration plan, and $3,000,000 for general and administration.   Further, until there is a fuller assessment of the mining property, we cannot determine the capital requirements and our operating budgets, if it is decided to pursue full exploration and development. We also will be subject to environmental expenses in connection with these activities.  We will also have the expense of maintaining and defending any patents obtained, our claims, and seeking further patents and claims to be able to garner enough area to make our operations more viable, once we have shown appropriate mineral deposits present in our claims, if at all.  After building the first GTL Unit and determining the commercial feasibility of the mining claims, we will need substantial capital to build additional GTL Units, develop the mining claims, acquire plant and equipment and hire personnel.

We intend to seek equity and revenue participation and debt forms of capital. We have no firm arrangements for any capital at this time.  Additionally, equity capital for small companies generally and small companies in the oil and gas and mining segments in particular, have a difficult time competing for investors because of the high risk at this stage of development and the fact that the investment is long term.  The markets for the transportation fuel and metals that the company believes may be derived from the GTL Units and from its mining claims also influences investment decisions, such that if there is strong demand, then funds may be relatively more available, but if market demand is not strong or the price of transportation fuels and the metals declines, funding may be unavailable. Additionally, the capital demands of the oil and gas industries present competition for funds for companies in the metals segment.  The failure to obtain the necessary working capital would have a material adverse effect on the business prospects and, depending upon the shortfall, the Company may have to curtail or cease its operations.

Commitments

Employment Agreements

In May 2011, the Company entered into employment agreements with its chief executive officer, president and chief financial officer.  The Agreements are for a term of 5 years with compensation of $180,000 the first year, $240,000 the second year, $300,000 the third year, $350,000 the fourth year and the fifth year at a salary commensurate with those in similar industries.  The employment agreements also provide for the officers to receive 1,250,000 shares of restricted common stock annually for each year of the employment agreement.  During the three months ended March 31, 2016 and 2015, with consent of management, the Company accrued a total of $90,000 and $135,000, respectively, as management fees in accordance with the terms of these agreements.  On April 8, 2015, the Company's chief executive officer resigned and relinquished his claim to receive $518,300 of deferred compensation, which the Company treated as debt forgiveness.

19

In August 2012, the Company entered into employment agreements with the president and chairman of the board of Greenway Innovative Energy, Inc. for a term of 5 years with compensation of $90,000 per year. In June of 2014, the president's employment agreement was amended to increase his annual pay to $180,000.  On March 31, 2015, accrual on the Greenway chairman of the board agreement was ceased due to his absence from the company for more than a year. During the three months ended March 31, 2016 and 2015, respectively, the Company accrued $45,000 and $56,250 towards the employment agreements.

Leases

In October 2015, the Company entered into a two-year lease for approximately 1,800 square feet a base rate of $2,417 per month. During the three months ended March 31, 2016 and 2015, the Company expensed $7,251 and $19,200, respectively, in rent expense.

Mining Leases

Our minimum commitment for 2016 is approximately $11,160 in annual maintenance fees, which are due September 1, 2016.  Once we enter the production phase, royalties owed to the BLM are equal to 10% of production.

Financing

Our financing has been provided by advances from shareholders and by issuing shares of its common stock in various private placements to related parties and individuals.  

Off-Balance Sheet Arrangements

As of March 31, 2016, there were no off-balance sheet arrangements, unconsolidated subsidiaries and commitments or guaranties of other parties.

Going Concern

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying condensed consolidated financial statements, the Company sustained a loss of $455 thousand for the three-month period ended March 31, 2016 and has a deficit of $12.9 million at March 31, 2016. Our financial statements' includes a statement that unless, we obtain financing or generate revenues, there is substantial concern that we will be able to continue as a going concern.  We do not have any current firm prospects for obtaining financing.  To meet these objectives, the Company continues to seek other sources of financing in order to support existing operations and expand the range and scope of its business. However, there are no assurances that any such financing can be obtained on acceptable terms and timely manner, if at all.  The failure to obtain the necessary working capital would have a material adverse effect on the business prospects and, depending upon the shortfall, the Company may have to curtail or cease its operations.

To meet these objectives, the Company continues to seek other sources of financing in order to support existing operations and expand the range and scope of its business. However, there are no assurances that any such financing can be obtained on acceptable terms and timely manner, if at all.  The failure to obtain the necessary working capital would have a material adverse effect on the business prospects and, depending upon the shortfall, the Company may have to curtail or cease its operations.

The accompanying condensed consolidated financial statements do not include any adjustment to the recorded assets or liabilities that might be necessary should the Company have to curtail operations or be unable to continue in existence.

To date, we have financed our operations from the sale of restricted common stock, advances from shareholders and debt financing.

We believe that the effect of inflation has not been material during the three months ended March 31, 2016.

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Critical Accounting Policies and Estimates

Our critical accounting policies are identified in our Annual Form 10-K filed on April 14, 2016 in   Management's Discussion and Analysis of Financial Condition and Results of Operations   under the heading "Critical Accounting Policies." There were no significant changes to our critical accounting policies during the three months ended March 31, 2016.

Item 3: Quantitative and Qualitative Disclosures About Market Risk.

Not applicable for small reporting company.

Item 4T: Controls and Procedures.

Disclosure Controls and Procedures

Our management is responsible for establishing and maintaining adequate internal control over financial reporting.  Internal  control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f)  promulgated under the Exchange  Act as a process  designed by, or under the supervision of, the company's  principal executive officer and principal financial officer and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and  includes those policies and procedures that:

● pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

● provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

● provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In March 2016, we conducted an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in "Internal Control -- Integrated Framework," issued by the Committee of Sponsoring Organizations (COSO II) of the Treadway Commission.  Based upon this assessment, we determined that there are material weaknesses affecting our internal control over financial reporting.

The  matters  involving  internal  controls  and  procedures  that our management considers to be material weaknesses under COSO and SEC rules are: (1) lack of a functioning  audit committee and lack of independent  directors on our board of  directors,  resulting in potentially ineffective oversight in the establishment and monitoring of required internal controls and procedures;  (2) inadequate segregation of  duties consistent with control objectives; (3) insufficient written policies and procedures for accounting  and financial reporting with respect to the requirements  and application of US GAAP and SEC disclosure requirements;  and (4) ineffective controls over period end financial disclosure and reporting  processes.  The aforementioned potential material weaknesses were identified by our Chief Financial Officer in connection with the preparation of our financial statements as of March 31, 2016 who communicated the matters to our management and board of directors.

21

Management believes that the material weaknesses set forth above did not have an effect on our financial results.   However, the lack of a functioning audit committee and lack of a majority of independent directors on our board of directors resulting in potentially ineffective oversight in the establishment and monitoring of required internal controls and procedures, can impact our financial statements.

Management's Remediation Initiatives

Although we are unable to meet the standards under COSO because of the limited funds available to a company of our size, we are committed to improving our financial organization. As funds become available, we will undertake to: (1) create positions to segregate duties  consistent with control  objectives,  (2) increase our personnel resources and technical  accounting  expertise within the accounting  function (3) appoint one or more  outside  directors to our board of directors  who shall be appointed to a Company  audit  committee  resulting in a fully  functioning  audit  committee  who will  undertake  the  oversight in the establishment and monitoring of required  internal controls and procedures;  and (4) prepare and implement  sufficient written policies and checklists which will set forth procedures for accounting and financial  reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements.

We will continue to monitor and evaluate the effectiveness of our internal controls and procedures and our internal control over financial reporting on an ongoing basis and are committed to taking further action and implementing additional enhancements or improvements, as necessary and as funds allow.  However, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected.  These inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple error or mistake.  The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.  Projections of any evaluation of controls effectiveness to future periods are subject to risks.

Part II – OTHER INFORMATION

Item 1.  Legal Proceedings.

On April 22, 2016, the Company filed suit in District Court, Dallas County, Texas against Mamaki of Hawaii, Inc. ("Mamaki"), Hawaiian Beverages, Inc.("HBI"), Curtis Borman and Lee Jenison for breach of Stock Purchase Agreement dated October 29, 2015, wherein the Company sold its shares in Mamaki of Hawaii, Inc. to Hawaiian Beverages, Inc. for $700,000 (along with the assumption of certain debt).  The Defendants failed to make payments of $150,000 each on November 30, 2015, December 28, 2015 and January 27, 2016.

Item 1A.  Risk Factors

Not required by small reporting company.

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

During the three-month period ended March 31, 2016, the Company issued 3,500,002 shares of restricted common stock to four individuals through private placements for cash of $245,000 at average of $.07 per share.

During the three-month period ended March 31, 2016, the Company issued 664,285 shares of restricted common stock for conversion of shareholder advances of $51,500 at average of $.0775 per share.

During the three-month period ended March 31, 2016, the Company issued 400,000 shares of restricted common stock for consulting services of $32,000 at average of $.08 per share.

During the three-month period ended March 31, 2016, the Company issued 106,000 shares of restricted common stock to a creditor for rent expense of $8,480at average of $.08 per share.

The issuance of these shares was exempt from the registration requirements of the Securities Act of 1933 under Section 4 (2) thereof.

22

Item 3.  Defaults Upon Senior Securities.   Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders.   

         No matters were submitted for a vote of Security Holders

Item 5.  Other Information.

 None

Item 6.   Exhibits.

Listing of Exhibits:
31.1	Certification of Chief Executive Officer.
31.2	Certification of Chief Financial Officer.
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Interactive data files pursuant to Rule 405 of Regulation S-T.

 Signatures

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	UMED HOLDINGS, INC.
Date:  May 13, 2016	By:	/s/ Ransom Jones
		Its:  Interim Chief Executive Officer
Date:  May 13, 2016	By:	/s/ Randy Moseley
		Its:  Chief Financial Officer

23

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Ransom Jones, certify that:

1. I have reviewed this quarterly report on Form 10-Q of UMED Holdings, Inc.;

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

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a -15(f) and 15d – 15(f)) for the registrant and have:

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

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

(c)      Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)      Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:

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

(b)      Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 13, 2016	/s/ Ransom Jones
	Ransom Jones, Interim Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Randy Moseley, certify that:

1. I have reviewed this quarterly report on Form 10-Q of UMED Holdings, Inc.;

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

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

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

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

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

(c)       Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)       Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:

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

(b)       Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 13, 2016	/s/ Randy Moseley
	Randy Moseley, Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of UMED Holdings, Inc. (the "Company") on Form 10-Q for the period ended March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, in the capacities listed below, hereby certifies, pursuant to 18U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:  (i) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (ii) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	UMED Holdings, Inc.
Date: May 13, 2016	By: /s/ Ransom Jones
	Ransom Jones
	Interim Chief Executive Officer
	(principal executive officer)
Date: May 13, 2016	By: /s/ Randy Moseley
	Randy Moseley
	Chief Financial Officer
	(principal financial officer)

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

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
Document and Entity Information:
Entity Registrant Name	UMED HOLDINGS, INC.
Entity Trading Symbol	umed
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Entity Central Index Key	0001572386
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		188,552,419
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1

XML

Condensed Consolidated Balance Sheet (Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current Assets
Cash	$ 10,295	$ 0
Total Current Assets	10,295	0
Fixed assets
Property & equipment	4,015	4,015
Less depreciation	3,370	3,271
Total Fixed Assets	645	744
Other Assets
Mine properties	0	0
Investment	0	0
Total Other Assets	0	0
Total Assets	10,940	744
Current Liabilities
Accounts payable	77,173	85,545
Stockholder advances	166,756	102,214
Accrued management fees	1,820,602	1,793,617
Accrued expenses	238,365	229,763
Note payable	36,000	0
Derivative liability - warrants	100,262	60,164
Total Current Liabilities	2,439,158	2,271,303
Total Liabilities	$ 2,439,158	$ 2,271,303
Commitments and contingencies
Stockholders' Deficit
Common Class B stock, 20,000,000 shares authorized, par value $0.0001,15,126,938 issued and outstanding at March 31, 2016 and December 31,2015	$ 1,513	$ 1,513
Common Class A stock 300,000,000 shares authorized, par value $0.0001,188,552,419 and 183,882,132 issued and outstanding at March 31, 2016 and December 31, 2015, respectively	18,857	18,389
Additional paid-in capital	10,504,183	10,167,670
Accumulated deficit	(12,952,771)	(12,458,131)
Total Stockholders' Deficit	(2,428,218)	(2,270,559)
Total Liabilities & Stockholders' Deficit	$ 10,940	$ 744

XML

Condensed Consolidated Balance Sheets Parentheticals - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Parentheticals
Class B stock, par value	$ 0.0001	$ 0.0001
Class B stock, shares authorized	20,000,000	20,000,000
Class B stock, shares issued	15,126,938	15,126,938
Class B stock, shares outstanding	15,126,938	15,126,938
Class A stock, par value	$ 0.0001	$ 0.0001
Class A stock, shares authorized	300,000,000	300,000,000
Class A stock, shares issued	188,552,419	183,882,132
Class A stock, shares outstanding	188,552,419	183,882,132

XML

Consolidated Statements of Operations - Unaudited - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Sales
Sales	$ 0	$ 0
Expenses
General and administrative	289,493	315,493
Research and development	164,835	72,000
Depreciation	99	99
Total Expense	454,427	387,592
Operating loss	(454,427)	(387,592)
Other income (expenses)
Loss on change in fair value of derivative	(40,098)	0
Interest expense	(115)	(36,395)
Total other income (expense)	(40,213)	(36,395)
Operating loss from continuing operations	(494,640)	(423,987)
Loss from discontinued operations, net of tax	0	(143,008)
Loss before income taxes	0	(566,995)
Provision for income taxes	0	0
Net loss	$ (494,640)	$ (566,995)
Net loss per share;
Basic and diluted net income (loss) per shares	$ 0.01	$ 0.00
Continuing operations	0.00	0.00
Discontinued operations	$ 0.01	$ 0.00
Weighted average shares Outstanding; Basic and diluted	186,441,276	146,159,118

XML

Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Flows from Operating Activities
Net Loss from operations	$ (494,640)	$ (4,239,875)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	99	98
Stock issued for services	40,480	0
Loss on derivative	40,098	0
Changes in operating assets and liabilities:
Accounts payable	(8,372)	898
Accrued management fees	26,985	135,563
Derivative	0	0
Accrued expenses	8,602	7,910
Net Cash Used in Operating Activities	(386,748)	(279,518)
Cash Flows from Investing Activities	0	0
Cash Flows from Financing Activities
Shareholder advances, net	116,043	136,610
Proceeds - note payable	36,000	0
Decrease in convertible notes payable	0	(22,515)
Proceeds from sale of common stock	245,000	108,001
Debt issuance cost	0	23,754
Net Cash Provided by Financing Activities	397,043	245,850
Cash Used in Discontinued Operations	0	(43,624)
Net Increase (Decrease) in Cash	10,295	(77,292)
Cash Beginning of Period	0	77,503
Cash End of Period	10,295	211
Supplemental Disclosure of Cash Flow Information:
Cash Paid during the period for interest	0	0
Cash Paid during the period for taxes	0	0
Conversion of shareholder advances to common stock	$ 51,500	$ 18,500

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES {1}

3 Months Ended

Mar. 31, 2016

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

UMED Holdings, Inc. ("UMED" or the "Company") was organized on March 13, 2002 under the laws of the State of Texas as Dynalyst Manufacturing Corporation.  On August 18, 2009, in connection with a merger with Universal Media Corporation, a privately held Nevada company, the Company changed its name to Universal Media Corporation ("Universal Media").  The company changed its name to UMED Holdings, Inc. on March 23, 2011.

UMED's mission is to operate as a holding company through the acquisition of businesses as wholly-owned subsidiaries that meet some key requirements: (1) solid management that will not have to be replaced in the near future (2) the ability to grow with steady growth to follow and (3) an emphasis on emerging core industry markets, such as energy, metals and agriculture.  It is the Company's intention to add experienced personnel and select strategic partners to manage and operate the acquired business units.  

In September 2010, UMED acquired 1,440 acres of placer mining claims on Bureau of Land Management land in Mohave County, Arizona. See discussion in Note 4.  Due the Company not producing any revenues from its BLM mining leases since its acquisition of the leases, achieving a position of producing cash flow levels to fund the development of its BLM mining leases in December of 2010 and not having current resources for an appraisal, we recognized an impairment charge of $100,000 during the year ended December 31, 2014.

In October 2011, UMED acquired a 49% interest in Jet Regulators, LP, an aircraft maintenance company located at Meacham Field in Fort Worth, Texas.  See discussion in Notes 5 and 7.  Due to reduced growth expectations and the Company not receiving any revenues from its ownership in Jet Tech described in Note 7, we recognized an impairment charge of $90,000 during the year ended December 31, 2014.

In May 2012, the Company acquired 80% of Mamaki Tea & Extract of Hawaii, Inc. (nka Mamaki of Hawaii, Inc.) which owns and operates Wood Valley Plantation a 25 acre Mamaki Tea plantation located in the Kau district of the Island of Hawaii and lies at the foot of Mauna Loa, the Earth's largest volcano.   On December 31, 2012, the Company acquired the remaining 20% for 500,000 shares of restricted common stock and $127,800 of cash.  Mamaki of Hawaii, Inc. was sold in October 2015 as discussed further in Notes 3, 4 and 12.

In August 2012, the Company acquired 100% of Greenway Innovative Energy, Inc., which owns two patents and proprietary technology for the conversion of natural gas to diesel/jet fuels. 

XML

BASIS OF PRESENTATION AND GOING CONCERN UNCERTAINTIES

3 Months Ended

Mar. 31, 2016

BASIS OF PRESENTATION AND GOING CONCERN UNCERTAINTIES

BASIS OF PRESENTATION AND GOING CONCERN UNCERTAINTIES

NOTE 2 - BASIS OF PRESENTATION AND GOING CONCERN UNCERTAINTIES

Principles of Consolidation

The accompanying consolidated financial statements include the financial statements of UMED and its wholly-owned subsidiaries. All significant inter-company accounts and transactions were eliminated in consolidation.

  Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulations S-X.  Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.  The net assets and results of operations of Mamaki of Hawaii, Inc. have been reflected as discontinued operations for the three months ended March 31, 2015.  For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2015.

The accompanying condensed consolidated financial statements include the accounts of the following entities:

Name of Entity	%		Entity	Incorporation	Relationship
UMED Holdings, Inc.			Corporation	Texas	Parent
Mamaki of Hawaii, Inc.*	100	%	Corporation	Nevada	Subsidiary
Universal Media Corporation	100	%	Corporation	Wyoming	Subsidiary
Greenway Innovative Energy, Inc.	100	%	Corporation	Nevada	Subsidiary
Logistix Technology Systems, Inc.	100	%	Corporation	Texas	Subsidiary

*  Sold in November 2015

Going Concern Uncertainties

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying condensed consolidated financial statements, the Company sustained a loss of approximately $495 thousand for the three-month period ended March 31, 2016 and has an accumulated deficit of approximately $12.9 million at March 31, 2016. The ability of the Company to continue as a going concern is in doubt and dependent upon achieving a profitable level of operations or on the ability of the Company to obtain necessary financing to fund ongoing operations. Management believes that its current and future plans enable it to continue as a going concern for the next twelve months.

To meet these objectives, the Company continues to seek other sources of financing in order to support existing operations and expand the range and scope of its business. However, there are no assurances that any such financing can be obtained on acceptable terms and timely manner, if at all.  The failure to obtain the necessary working capital would have a material adverse effect on the business prospects and, depending upon the shortfall, the Company may have to curtail or cease its operations.

The accompanying condensed consolidated financial statements do not include any adjustment to the recorded assets or liabilities that might be necessary should the Company have to curtail operations or be unable to continue in existence.

XML

RECLASSIFICATION

3 Months Ended

Mar. 31, 2016

RECLASSIFICATION

RECLASSIFICATION

NOTE 3 - RECLASSIFICATION

The March 31, 2015 financial statements amounts have been reclassified to reflect the operations of Mamaki of Hawaii, Inc. as discontinued operations, as follows;

Statement of Operations	As Previously Stated			Reclassification			As Reclassified
Sales	$	27,301		$	(27,301	)	$	0
Cost of sales		3,147			(3,147	)		0
Gross profit		24,154			(24,154	)		0
Expenses
General and administrative		422,299			(106,806	)		315,493
Research and development		72,000			0			72,000
Depreciation		29,839			(29,740	)		99
		524,138			(136,574	)		387,592
Operating loss Other expenses		(499,984	)		(111,492	)		(387,592	)
Interest expense		(67,011	)		30,616			(36,395	)
Operating loss from continuing operations		(566,995	)		143,008			(423,987	)
Loss from discontinued operations		0			(143,008	)		(143,008	)
Loss before income taxes		(566,995	)		0			(566,995	)
Provision for income taxes		0			0			0
Net loss	$	(566,995	)	$	0		$	(566,995	)
Basic loss per share
Operating loss							$	(0.00	)
Loss from discontinued operations							$	(0.00	)

Statement of Cash Flows Accounts	As Previously Stated			Reclassification			As Reclassified
Net Loss	$	(566,995	)	$	(143,008	)	$	(423,987	)
Depreciation		29,838			29,739			99
Stock issued for services		0			0			0
Warrants		0			0			0
Accounts receivable		(12,355	)		(12,355	)		0
Prepaid expenses		5,140			5,140			0
Accounts payable		(11,229	)		(12,127	)		898
Accrued management fees		135,563			0			135,5635
Accrued expenses		92,990			85,080			7,910
Net Cash Provided by Operations		(327,048	)		47,530			(279,518	)
Advances from shareholders		136,610			0			136,610
Proceeds from convertible note		(22,515	)		0			(22,515	)
Decrease in notes payable		1,077			(1,077	)		0
Proceeds from sale of common stock		108,001			0			108,001
Debt issue costs		23,754			0			23,754
Net Cash Provided by Financing		246,927			(1,077	)		245,850
Cash used in discontinued operations					(43,624	)		(43,624	)
Net Increase in Cash	$	(80,121	)	$	2,829		$	(77,292	)

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2016

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of significant accounting policies applied in the presentation of the condensed consolidated financial statements are as follows:

Property & Equipment

Property and equipment is recorded at cost. Major additions and improvements are capitalized. The cost and related accumulated depreciation of equipment retired or sold are removed from the accounts and any differences between the undepreciated amount and the proceeds from the sale are recorded as a gain or loss on sale of equipment. Depreciation is computed using the straight-line method over the estimated useful life of the assets as follows.

Equipment 5 to 7 years

Impairment of Long-Lived Assets

The Company assesses the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, in accordance with ASC Topic 360, "Property, Plant and Equipment."  An asset or asset group is considered impaired if its carrying amount exceeds the undiscounted future net cash flow the asset or asset group is expected to generate.  If an asset or asset group is considered impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds its fair value.  If estimated fair value is less than the book value, the asset is written down to the estimated fair value and an impairment loss is recognized.

Discontinued Operations

On November 2, 2015, the Company consummated on the sale of its wholly owned subsidiary, Mamaki of Hawaii, Inc. ("Mamaki") to Hawaiian Beverages, Inc. ("HBI").   Under the agreement, HBI acquired 100% of the common stock of Mamaki in exchange for seven hundred thousand dollars ($700,000) and the assumption of eighty-four thousand two hundred seventy-five dollars ($84,275) of UMED debts.  HBI paid two hundred forty-five thousand five hundred dollars ($245,000) of the two hundred fifty thousand dollars ($250,000) due at closing and was scheduled to pay three installments of one hundred fifty thousand dollars ($150,000) on each of thirty, sixty and ninety-day anniversary of the closing date.  The Company has not received any payment on the $454,600 and determined that the account is doubtful and wrote it off, as of December 31, 2015, as a deduction from the gain calculated on the sale.

For the three months ended March 31, 2015, the results of Mamaki are presented as a separate line item in the consolidated statement of operations and the consolidated cash flow statement.  In accordance with Accounting Standards Codification Subtopic 205-10-45, the Company elected to not allocate consolidated interest expense to discontinued operations where the debt is not directly attributable to or related to discontinued operations. All of the financial information in the consolidated financial statements and notes to the consolidated financial statements has been revised to reflect only the results of continued operations. (See Notes 2 and 12).

Revenue Recognition

The Company has not, to date, generated significant revenues.  The Company plans to recognize revenue in accordance with Accounting Standards Codification subtopic 605-10, Revenue Recognition ("ASC 605-10") which requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded.

ASC 605-10 incorporates Accounting Standards Codification subtopic 605-25, Multiple-Element Arraignments ("ASC 605-25"). ASC 605-25 addresses accounting for arrangements that may involve the delivery or performance of multiple products, services and/or rights to use assets. The effect of implementing 605-25 on the Company's financial position and results of operations was not significant.

Use of Estimates

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States 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 amount of revenue and expenses during the reported period.  Actual results could differ materially from the estimates.

Cash and Cash Equivalent

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.  There were no cash equivalents at March 31, 2016 or December 31, 2015.

Mine Exploration and Development Costs

The Company plans to account for mine exploration costs in accordance with Accounting Standards Codification 932, Extractive Activities.   All exploration expenditures are expensed as incurred. Mine development costs are capitalized until production, other than production incidental to the mine development process, commences and are amortized on a units of production method based on the estimated proven and probable reserves. Mine development costs represent costs incurred in establishing access to mineral reserves and include costs associated with sinking or driving shafts and underground drifts, permanent excavations, roads and tunnels. The end of the development phase and the beginning of the production phase takes place when construction of the mine for economic extraction is substantially complete. Coal extracted during the development phase is incidental to the mine's production capacity and is not considered to shift the mine into the production phase. Amortization of capitalized mine development is computed based on the estimated life of the mine and commences when production, other than production incidental to the mine development process, begins.  Due to the Company not producing any revenues from its BLM mining leases since its acquisition of the leases, achieving a position of producing cash flow levels to fund the development of its BLM mining leases and not having current resources for an appraisal, we recognized an impairment charge of $100,000 during the year ended December 31, 2014.   During the three months ended March 31, 2016 and 2015, the Company did not incur any mine development costs.

 Mine Properties

The Company will account for mine properties in accordance with Accounting Standard Codification 930, Extractive Activities-Mining.   Costs of acquiring mine properties are capitalized by project area upon purchase of the associated claims.  Mine properties are periodically assessed for impairment of value and any diminution in value. The Company had 1,440 acres of placer mining claims at March 31, 2016, which were acquired in December 2010 in exchange for 5,066,000 shares of common stock valued at $100,000.  Due to the Company not producing any revenues from its BLM mining leases since its acquisition of the leases, achieving a position of producing cash flow levels to fund the development of its BLM mining leases and not having current resources for an appraisal, we recognized an impairment charge of $100,000 during the year ended December 31, 2014.

Income Taxes

The Company accounts for income taxes in accordance with FASB ASC 740, "Income Taxes," which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when it is more likely than not that some or all deferred tax assets will not be realized.

The Company has adopted the provisions of FASB ASC 740-10-05 Accounting for Uncertainty in Income Taxes. The ASC clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements.  The ASC prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  The ASC provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  Open tax years, subject to IRS examination include 2009 – 2015.

Net Loss Per Share, basic and diluted

Basic loss per share has been computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding for the period. Shares issuable upon the exercise of warrants (5,446,154) have been excluded as a common stock equivalent in the diluted loss per share because their effect is anti-dilutive.

Derivative Instruments

The Company accounts for derivative instruments in accordance with Accounting Standards Codification 815, Derivatives and Hedging ("ASC 815"), which establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities.  They require that an entity recognize all derivatives as either assets or liabilities in the balance sheet and measure those instruments at fair value.

If certain conditions are met, a derivative may be specifically designated as a hedge, the objective of which is to match the timing of gain or loss recognition on the hedging derivative with the recognition of (i) the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk or (ii) the earnings effect of the hedged forecasted transaction. For a derivative not designated as a hedging instrument, the gain or loss is recognized in income in the period of change.

See Note 7 below for discussion regarding a warrant agreement related to a convertible note, which was repaid on July 22, 2015.

Original Issue Discount

For certain convertible debt issued, the Company provides the debt holder with an original issue discount ("OID").  An OID is the difference between the original cash proceeds and the amount of the note upon maturity. The Note is originally recorded for the proceeds received. The OID was amortized into interest expense pro-rata over the term of the Note.

Fair Value of Financial Instruments

The Company's financial instruments, as defined by Accounting Standard Codification subtopic 825-10, Financial Instrument ("ASC 825-10), include cash, accounts payable and convertible note payable.  All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at March 31, 2016.

FASB ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

Level 1: Observable inputs such as quoted prices in active markets;

Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3: Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions

The Company's derivative was valued at level 3.

Stock Based Compensation

The Company follows Accounting Standards Codification subtopic 718-10, Compensation ("ASC 718-10") which requires that all share-based payments to both employees and non-employees be recognized in the income statement based on their fair values.  

At March 31, 2016, the Company did not have any issued or outstanding stock options.

Concentration and Credit Risk

Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash. The Company places its cash with high credit quality institutions.  At times, such deposits may be in excess of the FDIC insurance limit.

Research and Development

The Company accounts for research and development costs in accordance with Accounting Standards Codification subtopic 730-10, Research and Development ("ASC 730-10"). Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved as defined under the applicable agreement. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company incurred research and development expenses of $164,835 and $72,000 during the three months ended March 31, 2016 and 2015. 

Issuance of Common Stock

The issuance of common stock for other than cash is recorded by the Company at market values.

Impact of New Accounting Standards

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

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PROPERTY, PLANT AND EQUIPMENT

3 Months Ended

Mar. 31, 2016

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

NOTE 5 – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment, their estimated useful lives, and related accumulated depreciation at March 31, 2016 and December 31, 2015, respectively, are summarized as follows:

	Range of
	Lives in		March 31, December 31,
	Years		2016			2015
Equipment		5		2,032			2,032
Furniture and fixtures		5		1,983			1,983
				4,015			4,015
Less accumulate depreciation				(3,370	)		(3,271	)
			$	645			744
Depreciation expense for the period ended			$	99		$	396

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INVESTMENTS

3 Months Ended

Mar. 31, 2016

INVESTMENTS

INVESTMENTS

NOTE 6 – INVESTMENTS

Investments consisted of the following at March 31, 2016 and December 31, 2015;

	March 31,		December 31,
	2016		2015
Jet Tech LLC In October 2011, the Company acquired a 49% interest in JetTech LLC which is an aerospace maintenance operation located at Meacham Airport in Fort Worth, Texas.  The Company has impaired the investment at March 31, 2016 and December 31, 2014, respectively.	$	0	$	0
TOTAL INVESTMENTS	$	0	$	0

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CONVERTIBLE PROMISSORY NOTE

3 Months Ended

Mar. 31, 2016

CONVERTIBLE PROMISSORY NOTE:

CONVERTIBLE PROMISSORY NOTE

NOTE 7 – CONVERTIBLE PROMISSORY NOTE

On September 18, 2015, the Company issued a $158,000 convertible promissory note bearing interest at 10.0% per annum to an accredited investor, payable July 23, 2015, in monthly installments of $31,600 plus accrued interest beginning 6 months after the date of the promissory note.  The note was paid in full on July 22, 2015.  The holder had the right under certain circumstances to convert the note into common stock of the Company at a conversion price equal to 70% of the average of the 3 lowest volume weighted average trading prices during the 20-day period ending on the latest complete trading day prior to the conversion date. 

The Company evaluated the terms of the convertible note in accordance with ASC 815-40, Contracts in Entity's Own Equity, and concluded that the Convertible Note did result in a derivative. The Company evaluated the terms of the convertible note and concluded that there was a beneficial conversion feature since the convertible note was convertible into shares of common stock at a discount to the market value of the common stock. The discount related to the beneficial conversion feature on the note was valued at $158,000 based on its then intrinsic value. The discount related to the beneficial conversion feature ($78,463) and the warrants ($79,537) is being amortized over the term of the debt (10 months).  For the period ended March 31, 2016, the Company did not recognized any interest expense related to the amortization of the discount as the note was paid in full on July 22, 2015.

In connection with the issuance of the $158,000 note discussed above, the Company recorded debt issue cost and discount as follows:

	?	10.4% cash – which is equivalent to $16,500, and,
	?	Warrants – having a fair value of $107,212 and recorded on the balance sheet at $100,262 as of March 31, 2016 and $60,164 at December 31, 2015, which was computed as follows;
			Commitment Date
Expected dividends				0%
Expected volatility				189%
Expected term: conversion feature			3.5 years
Risk free interest rate				1.75%

The debt issue costs were capitalized and amortized through July 22, 2015, when the note was paid in full.

Amortization of debt issuance costs for the three months ended March 31, 2015 was $23,754.  There was no amortization of debt issue costs for the three months ended March 31, 2016, as the note had been paid in full.

The original issue discount pertains to discount taken by lender against the total convertible note of $158,000, resulting in a disbursement of $144,000 to the company.

The original issue discount of $14,000 was amortized during the year ended December 31, 2015, as the note had been paid in full on July 22, 2015

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ACCRUED EXPENSES

3 Months Ended

Mar. 31, 2016

ACCRUED EXPENSES

ACCRUED EXPENSES

NOTE 8 – ACCRUED EXPENSES

Accrued expenses consisted of the following at March 31, 2016 and December 31, 2015;

	2016		2015
Accrued consulting fees	$	238,250	$	229,000
Bank overdraft		0		763
Accrued interest expense		115		0
Total accrued expenses	$	238,365	$	229,763

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CAPITAL STRUCTURE

3 Months Ended

Mar. 31, 2016

CAPITAL STRUCTURE

CAPITAL STRUCTURE

NOTE 9– CAPITAL STRUCTURE

The Company is authorized to issue 300,000,000 shares of class A common stock with a par value of $.0001 per share and 20,000,000 shares of class B common with a par value of $.0001 per share.  Each common stock share has one voting right and the right to dividends, if and when declared by the Board of Directors.

Common A Stock

At March 31, 2016, there were 188,552,419 shares of common stock issued and outstanding.

During the three-month period ended March 31, 2016, the Company issued 3,500,002 shares of restricted common stock to four individuals through private placements for cash of $245,000 at average of $.07 per share.

During the three-month period ended March 31, 2016, the Company issued 664,285 shares of restricted common stock for conversion of shareholder advances of $51,500 at average of $.0775 per share.

During the three-month period ended March 31, 2016, the Company issued 400,000 shares of restricted common stock for consulting services of $32,000 at average of $.08 per share.

During the three-month period ended March 31, 2016, the Company issued 106,000 shares of restricted common stock to a creditor for rent expense of $8,480 at average of $.08 per share.

Class B Common

At March 31, 2016, there were 15,126,938 shares of class B common stock issued and outstanding. Each class B share is convertible, at the option of the class B shareholder, into one share of class A common stock.

Stock options, warrants and other rights

At March 31, 2016, the Company has not adopted any employee stock option plans.

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RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2016

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 10 - RELATED PARTY TRANSACTIONS

Shareholders have made advances to the Company in the amounts of $126,042 and $132,109 during the three months ended March 31, 2016 and 2015, respectively.  The shareholders have elected to convert advances of $51,500 and $18,500 to shares of common stock at market value ($.08 and $.118 per share) and received repayments of $10,000 and $0 during the three months ended March 31, 2016 and 2015, respectively.

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INCOME TAXES

3 Months Ended

Mar. 31, 2016

INCOME TAXES

INCOME TAXES

NOTE 11 – INCOME TAXES

At March 31, 2016 and December 31, 2015, the Company had approximately $4.8 million and $4 million, respectively, of net operating losses ("NOL") carry forwards for federal and state income tax purposes.  These losses are available for future years and expire through 2033.  Utilization of these losses may be severely or completely limited if the Company undergoes an ownership change pursuant to Internal Revenue Code Section 382.  

The provision for income taxes for continuing operations consists of the following components for the three months ended March 31, 2016 and the year ended December 31, 2015:

	2015			2015
Current		$	-		$	-
Deferred			-			-
Total tax provision for (benefit from) income taxes		$	-		$	-

A comparison of the provision for income tax expense at the federal statutory rate of 34% for the three months ended March 31, 2016 and the year ended December 31, 2015 the Company's effective rate is as follows:

	2016			2015
Federal statutory rate		(34.0	) %		(34.0	) %
State tax, net of federal benefit		(0.0	)		(0.0	)
Permanent differences and other including surtax exemption		0.0			0.0
Valuation allowance		34.0			34.0
Effective tax rate		0.0	%		0.0	%

The net deferred tax assets and liabilities included in the financial statements consist of the following amounts at March 31, 2016 and December 31, 2015:

	2016			2015
Deferred tax assets
Net operating loss carry forwards	$	4,806,093		$	4,028,702
Deferred compensation		2,544,213			2,409,213
Stock based compensation		4,930,968			4,898.968
Other		671,497			1,121,2480
Total		12,952,771			12,458,131
Less valuation allowance		(12,952,771	)		(12,458,131	)
Deferred tax asset		-			-
Deferred tax liabilities
Depreciation and amortization	$	-		$	-
Net long-term deferred tax asset	$	-		$	-

 The change in the valuation allowance was $494,640 and $4,028,702 for the three months ended March 31, 2016 and the year ended December 31, 2015, respectively.  The Company has recorded a 100% valuation allowance related to the deferred tax asset for the loss from operations, interest expense, interest income and other income subsequent to the change in ownership, which amounted to $12,952,771 and $12,458,131 at March 31, 2016 and December 31, 2015, respectively. 

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, historical taxable income including available net operating loss carry forwards to offset taxable income, and projected future taxable income in making this assessment.

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DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2016

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

NOTE 12 – DISCONTINUED OPERATIONS

In November 2015, the Company completed the sale of its wholly owned subsidiary, Mamaki of Hawaii, Inc, ("Mamaki") to Hawaiian Beverages, Inc. ("HBI").  Under the agreement, HBI acquired 100% of the common stock of Mamaki in exchange for seven hundred thousand dollars ($700,000) and the assumption of eighty-four thousand two hundred seventy-five dollars ($84,275) of UMED debts.  HBI paid two hundred forty-five thousand five hundred dollars ($245,500) at closing towards the first installment due of two hundred fifty thousand ($250,000) and was to pay three installments of one hundred fifty thousand dollars ($150,000) on each of thirty, sixty and ninety-day anniversary of the closing date.  The Company has not received any payment on the $454,600 and determined that the account is doubtful and wrote it off, as of December 31, 2015, as a deduction from the gain calculated on the sale.

The following are condensed statements of the discontinued operations (Mamaki of Hawaii, Inc.) for the three months ended March 31, 2015:

	2015
Sales	$	27,301
Cost of sales		3,147
Gross profit		24,154
Operating Expenses:
General and administrative expenses		106,806
Depreciation		29,740
Total Operating Expenses		136,546
Operating Loss		(112,392	)
Other Income (Expense)
Interest expense		(30,616	)
Loss from discontinued operations	$	( 143,008	)
Loss per share - discontinued operations	$	(0.00	)

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COMMITMENTS

3 Months Ended

Mar. 31, 2016

COMMITMENTS

COMMITMENTS

NOTE 13 – COMMITMENTS

Employment Agreements

In May 2011, the Company entered into employment agreements with its chief executive officer, president and chief financial officer.  The Agreements are for a term of 5 years with compensation of $180,000 the first year, $240,000 the second year, $300,000 the third year, $350,000 the fourth year and the fifth year at a salary commensurate with those in similar industries.  The employment agreements also provide for the officers to receive 1,250,000 shares of restricted common stock annually for each year of the employment agreement.  During the three months ended March 31, 2016 and 2015, with consent of management, the Company accrued a total of $90,000 and $135,000, respectively, as management fees in accordance with the terms of these agreements.  On April 8, 2015, the Company's chief executive officer resigned and relinquished his claim to receive $518,300 of deferred compensation, which the Company treated as debt forgiveness.

In August 2012, the Company entered into employment agreements with the president and chairman of the board of Greenway Innovative Energy, Inc. for a term of 5 years with compensation of $90,000 per year. In June of 2014, the president's employment agreement was amended to increase his annual pay to $180,000.  On April 30, 2015, accrual on the Greenway chairman of the board agreement was ceased due to his absence from the company for more than a year. During the three months ended March 31, 2016 and 2015, respectively, the Company accrued $45,000 and $56,250 towards the employment agreements.

Leases

In October 2015, the Company entered into a two-year lease for approximately 1,800 square feet a base rate of $2,417 per month. During the three months ended March 31, 2016 and 2015, the Company expensed $7,251 and $19,200, respectively, in rent expense.

The Company is obligated to pay approximately $11,800 in annual maintenance fees on its mining leases, in addition to 10% royalties based on production.

Legal

As dislosed below in Note 14 – Subsequent Event - On April 22, 2016, the Company filed suit in District Court, Dallas County, Texas against Mamaki of Hawaii, Inc. ("Mamaki"), Hawaiian Beverages, Inc.("HBI"), Curtis Borman and Lee Jenison for breach of Stock Purchase Agreement dated October 29, 2015.

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SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2016

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 14 – SUBSEQUENT EVENTS

On April 22, 2016, the Company filed suit in District Court, Dallas County, Texas against Mamaki of Hawaii, Inc. ("Mamaki"), Hawaiian Beverages, Inc.("HBI"), Curtis Borman and Lee Jenison for breach of Stock Purchase Agreement dated October 29, 2015, wherein the Company sold its shares in Mamaki of Hawaii, Inc. to Hawaiian Beverages, Inc. for $700,000 (along with the assumption of certain debt).  The Defendants failed to make payments of $150,000 each on November 30, 2015, December 28, 2015 and January 27, 2016.

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ACCOUNTING POLICIES. (POLICIES)

3 Months Ended

Mar. 31, 2016

Accounting Policies:

Nature Of Operations

Nature of Operations

UMED Holdings, Inc. ("UMED" or the "Company") was organized on March 13, 2002 under the laws of the State of Texas as Dynalyst Manufacturing Corporation.  On August 18, 2009, in connection with a merger with Universal Media Corporation, a privately held Nevada company, the Company changed its name to Universal Media Corporation ("Universal Media").  The company changed its name to UMED Holdings, Inc. on March 23, 2011.

UMED's mission is to operate as a holding company through the acquisition of businesses as wholly-owned subsidiaries that meet some key requirements: (1) solid management that will not have to be replaced in the near future (2) the ability to grow with steady growth to follow and (3) an emphasis on emerging core industry markets, such as energy, metals and agriculture.  It is the Company's intention to add experienced personnel and select strategic partners to manage and operate the acquired business units.  

In September 2010, UMED acquired 1,440 acres of placer mining claims on Bureau of Land Management land in Mohave County, Arizona. See discussion in Note 4.  Due the Company not producing any revenues from its BLM mining leases since its acquisition of the leases, achieving a position of producing cash flow levels to fund the development of its BLM mining leases in December of 2010 and not having current resources for an appraisal, we recognized an impairment charge of $100,000 during the year ended December 31, 2014.

In October 2011, UMED acquired a 49% interest in Jet Regulators, LP, an aircraft maintenance company located at Meacham Field in Fort Worth, Texas.  See discussion in Notes 5 and 7.  Due to reduced growth expectations and the Company not receiving any revenues from its ownership in Jet Tech described in Note 7, we recognized an impairment charge of $90,000 during the year ended December 31, 2014.

In May 2012, the Company acquired 80% of Mamaki Tea & Extract of Hawaii, Inc. (nka Mamaki of Hawaii, Inc.) which owns and operates Wood Valley Plantation a 25 acre Mamaki Tea plantation located in the Kau district of the Island of Hawaii and lies at the foot of Mauna Loa, the Earth's largest volcano.   On December 31, 2012, the Company acquired the remaining 20% for 500,000 shares of restricted common stock and $127,800 of cash.  Mamaki of Hawaii, Inc. was sold in October 2015 as discussed further in Notes 3, 4 and 12.

In August 2012, the Company acquired 100% of Greenway Innovative Energy, Inc., which owns two patents and proprietary technology for the conversion of natural gas to diesel/jet fuels. 

Property and Equipment

Property & Equipment

Property and equipment is recorded at cost. Major additions and improvements are capitalized. The cost and related accumulated depreciation of equipment retired or sold are removed from the accounts and any differences between the undepreciated amount and the proceeds from the sale are recorded as a gain or loss on sale of equipment. Depreciation is computed using the straight-line method over the estimated useful life of the assets as follows.

Equipment 5 to 7 years

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

The Company assesses the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, in accordance with ASC Topic 360, "Property, Plant and Equipment."  An asset or asset group is considered impaired if its carrying amount exceeds the undiscounted future net cash flow the asset or asset group is expected to generate.  If an asset or asset group is considered impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds its fair value.  If estimated fair value is less than the book value, the asset is written down to the estimated fair value and an impairment loss is recognized.

Discontinued Operations

Discontinued Operations

On November 2, 2015, the Company consummated on the sale of its wholly owned subsidiary, Mamaki of Hawaii, Inc. ("Mamaki") to Hawaiian Beverages, Inc. ("HBI").   Under the agreement, HBI acquired 100% of the common stock of Mamaki in exchange for seven hundred thousand dollars ($700,000) and the assumption of eighty-four thousand two hundred seventy-five dollars ($84,275) of UMED debts.  HBI paid two hundred forty-five thousand five hundred dollars ($245,000) of the two hundred fifty thousand dollars ($250,000) due at closing and was scheduled to pay three installments of one hundred fifty thousand dollars ($150,000) on each of thirty, sixty and ninety-day anniversary of the closing date.  The Company has not received any payment on the $454,600 and determined that the account is doubtful and wrote it off, as of December 31, 2015, as a deduction from the gain calculated on the sale.

For the three months ended March 31, 2015, the results of Mamaki are presented as a separate line item in the consolidated statement of operations and the consolidated cash flow statement.  In accordance with Accounting Standards Codification Subtopic 205-10-45, the Company elected to not allocate consolidated interest expense to discontinued operations where the debt is not directly attributable to or related to discontinued operations. All of the financial information in the consolidated financial statements and notes to the consolidated financial statements has been revised to reflect only the results of continued operations. (See Notes 2 and 12).

Revenue Recognition

Revenue Recognition

The Company has not, to date, generated significant revenues.  The Company plans to recognize revenue in accordance with Accounting Standards Codification subtopic 605-10, Revenue Recognition ("ASC 605-10") which requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded.

ASC 605-10 incorporates Accounting Standards Codification subtopic 605-25, Multiple-Element Arraignments ("ASC 605-25"). ASC 605-25 addresses accounting for arrangements that may involve the delivery or performance of multiple products, services and/or rights to use assets. The effect of implementing 605-25 on the Company's financial position and results of operations was not significant.

Use of Estimates

Use of Estimates

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States 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 amount of revenue and expenses during the reported period.  Actual results could differ materially from the estimates.

Cash and Cash Equivalent

Cash and Cash Equivalent

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.  There were no cash equivalents at March 31, 2016 or December 31, 2015.

Mine Exploration and Development Costs

Mine Exploration and Development Costs

The Company plans to account for mine exploration costs in accordance with Accounting Standards Codification 932, Extractive Activities.   All exploration expenditures are expensed as incurred. Mine development costs are capitalized until production, other than production incidental to the mine development process, commences and are amortized on a units of production method based on the estimated proven and probable reserves. Mine development costs represent costs incurred in establishing access to mineral reserves and include costs associated with sinking or driving shafts and underground drifts, permanent excavations, roads and tunnels. The end of the development phase and the beginning of the production phase takes place when construction of the mine for economic extraction is substantially complete. Coal extracted during the development phase is incidental to the mine's production capacity and is not considered to shift the mine into the production phase. Amortization of capitalized mine development is computed based on the estimated life of the mine and commences when production, other than production incidental to the mine development process, begins.  Due to the Company not producing any revenues from its BLM mining leases since its acquisition of the leases, achieving a position of producing cash flow levels to fund the development of its BLM mining leases and not having current resources for an appraisal, we recognized an impairment charge of $100,000 during the year ended December 31, 2014.   During the three months ended March 31, 2016 and 2015, the Company did not incur any mine development costs.

Mine Properties

Mine Properties

The Company will account for mine properties in accordance with Accounting Standard Codification 930, Extractive Activities-Mining.   Costs of acquiring mine properties are capitalized by project area upon purchase of the associated claims.  Mine properties are periodically assessed for impairment of value and any diminution in value. The Company had 1,440 acres of placer mining claims at March 31, 2016, which were acquired in December 2010 in exchange for 5,066,000 shares of common stock valued at $100,000.  Due to the Company not producing any revenues from its BLM mining leases since its acquisition of the leases, achieving a position of producing cash flow levels to fund the development of its BLM mining leases and not having current resources for an appraisal, we recognized an impairment charge of $100,000 during the year ended December 31, 2014.

Income Taxes

Income Taxes

The Company accounts for income taxes in accordance with FASB ASC 740, "Income Taxes," which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when it is more likely than not that some or all deferred tax assets will not be realized.

The Company has adopted the provisions of FASB ASC 740-10-05 Accounting for Uncertainty in Income Taxes. The ASC clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements.  The ASC prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  The ASC provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  Open tax years, subject to IRS examination include 2009 – 2015

Net Loss Per Share, basic and diluted

Net Loss Per Share, basic and diluted

Basic loss per share has been computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding for the period. Shares issuable upon the exercise of warrants (5,446,154) have been excluded as a common stock equivalent in the diluted loss per share because their effect is anti-dilutive.

Derivative Instruments

Derivative Instruments

The Company accounts for derivative instruments in accordance with Accounting Standards Codification 815, Derivatives and Hedging ("ASC 815"), which establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities.  They require that an entity recognize all derivatives as either assets or liabilities in the balance sheet and measure those instruments at fair value.

If certain conditions are met, a derivative may be specifically designated as a hedge, the objective of which is to match the timing of gain or loss recognition on the hedging derivative with the recognition of (i) the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk or (ii) the earnings effect of the hedged forecasted transaction. For a derivative not designated as a hedging instrument, the gain or loss is recognized in income in the period of change.

See Note 7 below for discussion regarding a warrant agreement related to a convertible note, which was repaid on July 22, 2015.

Original Issue Discount

Original Issue Discount

For certain convertible debt issued, the Company provides the debt holder with an original issue discount ("OID").  An OID is the difference between the original cash proceeds and the amount of the note upon maturity. The Note is originally recorded for the proceeds received. The OID was amortized into interest expense pro-rata over the term of the Note.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company's financial instruments, as defined by Accounting Standard Codification subtopic 825-10, Financial Instrument ("ASC 825-10), include cash, accounts payable and convertible note payable.  All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at March 31, 2016.

FASB ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

Level 1: Observable inputs such as quoted prices in active markets;

Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3: Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions

The Company's derivative was valued at level 3.

Stock Based Compensation

Stock Based Compensation

The Company follows Accounting Standards Codification subtopic 718-10, Compensation ("ASC 718-10") which requires that all share-based payments to both employees and non-employees be recognized in the income statement based on their fair values.  

At March 31, 2016, the Company did not have any issued or outstanding stock options

Concentration and Credit Risk

Concentration and Credit Risk

Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash. The Company places its cash with high credit quality institutions.  At times, such deposits may be in excess of the FDIC insurance limit.

Research and Development

Research and Development

The Company accounts for research and development costs in accordance with Accounting Standards Codification subtopic 730-10, Research and Development ("ASC 730-10"). Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved as defined under the applicable agreement. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company incurred research and development expenses of $164,835 and $72,000 during the three months ended March 31, 2016 and 2015. 

Issuance of Common Stock

Issuance of Common Stock

The issuance of common stock for other than cash is recorded by the Company at market values.

Impact of New Accounting Standards

Impact of New Accounting Standards

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

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Basis of Presentation (TABLES)

3 Months Ended

Mar. 31, 2016

Basis of Presentation (TABLES):

Basis of Presentation (TABLES)

The accompanying condensed consolidated financial statements include the accounts of the following entities:

Name of Entity	%		Entity	Incorporation	Relationship
UMED Holdings, Inc.			Corporation	Texas	Parent
Mamaki of Hawaii, Inc.*	100	%	Corporation	Nevada	Subsidiary
Universal Media Corporation	100	%	Corporation	Wyoming	Subsidiary
Greenway Innovative Energy, Inc.	100	%	Corporation	Nevada	Subsidiary
Logistix Technology Systems, Inc.	100	%	Corporation	Texas	Subsidiary

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RECLASSIFICATION (TABLES)

3 Months Ended

Mar. 31, 2016

RECLASSIFICATION {2}

Schedule of Restatement of Operations

Statement of Operations	As Previously Stated			Reclassification			As Reclassified
Sales	$	27,301		$	(27,301	)	$	0
Cost of sales		3,147			(3,147	)		0
Gross profit		24,154			(24,154	)		0
Expenses
General and administrative		422,299			(106,806	)		315,493
Research and development		72,000			0			72,000
Depreciation		29,839			(29,740	)		99
		524,138			(136,574	)		387,592
Operating loss Other expenses		(499,984	)		(111,492	)		(387,592
Interest expense		(67,011	)		30,616			(36,395
Operating loss from continuing operations		(566,995	)		143,008			(423,987
Loss from discontinued operations		0			(143,008	)		(143,008
Loss before income taxes		(566,995	)		0			(566,995
Provision for income taxes		0			0			0
Net loss	$	(566,995	)	$	0		$	(566,995
Basic loss per share
Operating loss							$	(0.00
Loss from discontinued operations							$	(0.00

Schedule of restatement of Cash Flows Accounts

Statement of Cash Flows Accounts	As Previously Stated			Reclassification			As Reclassified
Net Loss	$	(566,995	)	$	(143,008	)	$	(423,987
Depreciation		29,838			29,739			99
Stock issued for services		0			0			0
Warrants		0			0			0
Accounts receivable		(12,355	)		(12,355	)		0
Prepaid expenses		5,140			5,140			0
Accounts payable		(11,229	)		(12,127	)		898
Accrued management fees		135,563			0			135,5635
Accrued expenses		92,990			85,080			7,910
Net Cash Provided by Operations		(327,048	)		47,530			(279,518
Advances from shareholders		136,610			0			136,610
Proceeds from convertible note		(22,515	)		0			(22,515
Decrease in notes payable		1,077			(1,077	)		0
Proceeds from sale of common stock		108,001			0			108,001
Debt issue costs		23,754			0			23,754
Net Cash Provided by Financing		246,927			(1,077	)		245,850
Cash used in discontinued operations					(43,624	)		(43,624
Net Increase in Cash	$	(80,121	)	$	2,829		$	(77,292

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PROPERTY, PLANT AND EQUIPMENT (TABLES)

3 Months Ended

Mar. 31, 2016

PROPERTY, PLANT AND EQUIPMENT (TABLES):

PROPERTY, PLANT AND EQUIPMENT (TABLES)

Property, plant and equipment, their estimated useful lives, and related accumulated depreciation at March 31, 2016 and December 31, 2015, respectively, are summarized as follows:

	Range of
	Lives in		March 31, December 31,
	Years		2016			2015
Equipment		5		2,032			2,032
Furniture and fixtures		5		1,983			1,983
				4,015			4,015
Less accumulate depreciation				(3,370	)		(3,271	)
			$	645			744
Depreciation expense for the period ended			$	99		$	396

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INVESTMENTS (TABLES)

3 Months Ended

Mar. 31, 2016

INVESTMENTS (TABLES):

INVESTMENTS (TABLES)

Investments consisted of the following at March 31, 2016 and December 31, 2015;

	March 31,		December 31,
	2016		2015
Jet Tech LLC In October 2011, the Company acquired a 49% interest in JetTech LLC which is an aerospace maintenance operation located at Meacham Airport in Fort Worth, Texas.  The Company has impaired the investment at March 31, 2016 and December 31, 2014, respectively.	$	0	$	0
TOTAL INVESTMENTS	$	0	$	0

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CONVERTIBLE PROMISSORY NOTE (TABLES)

3 Months Ended

Mar. 31, 2016

CONVERTIBLE PROMISSORY NOTE (TABLES):

CONVERTIBLE PROMISSORY NOTE (TABLES)

In connection with the issuance of the $158,000 note discussed above, the Company recorded debt issue cost and discount as follows:

	?	10.4% cash – which is equivalent to $16,500, and,
	?	Warrants – having a fair value of $107,212 and recorded on the balance sheet at $100,262 as of March 31, 2016 and $60,164 at December 31, 2015, which was computed as follows;
			Commitment Date
Expected dividends				0%
Expected volatility				189%
Expected term: conversion feature			3.5 years
Risk free interest rate				1.75%

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ACCRUED EXPENSES (TABLES)

3 Months Ended

Mar. 31, 2016

ACCRUED EXPENSES (TABLES):

ACCRUED EXPENSES (TABLES)

Accrued expenses consisted of the following at March 31, 2016 and December 31, 2015;

	2016		2015
Accrued consulting fees	$	238,250	$	229,000
Bank overdraft		0		763
Accrued interest expense		115		0
Total accrued expenses	$	238,365	$	229,763

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INCOME TAXES (TABLES)

3 Months Ended

Mar. 31, 2016

INCOME TAXES (TABLES):

The provision for income taxes

The provision for income taxes for continuing operations consists of the following components for the three months ended March 31, 2016 and the year ended December 31, 2015:

	2015			2015
Current		$	-		$	-
Deferred			-			-
Total tax provision for (benefit from) income taxes		$	-		$	-

A comparison of the provision for income tax expense at the federal statutory rate

A comparison of the provision for income tax expense at the federal statutory rate of 34% for the three months ended March 31, 2016 and the year ended December 31, 2015 the Company's effective rate is as follows:

	2016			2015
Federal statutory rate		(34.0	) %		(34.0	) %
State tax, net of federal benefit		(0.0	)		(0.0	)
Permanent differences and other including surtax exemption		0.0			0.0
Valuation allowance		34.0			34.0
Effective tax rate		0.0	%		0.0	%

The net deferred tax assets and liabilities

The net deferred tax assets and liabilities included in the financial statements consist of the following amounts at March 31, 2016 and December 31, 2015:

	2016			2015
Deferred tax assets
Net operating loss carry forwards	$	4,806,093		$	4,028,702
Deferred compensation		2,544,213			2,409,213
Stock based compensation		4,930,968			4,898.968
Other		671,497			1,121,2480
Total		12,952,771			12,458,131
Less valuation allowance		(12,952,771	)		(12,458,131	)
Deferred tax asset		-			-
Deferred tax liabilities
Depreciation and amortization	$	-		$	-
Net long-term deferred tax asset	$	-		$	-

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DISCONTINUED OPERATIONS (TABLES)

3 Months Ended

Mar. 31, 2016

DISCONTINUED OPERATIONS (TABLES):

Condensed statements of the discontinued operations

The following are condensed statements of the discontinued operations (Mamaki of Hawaii, Inc.) for the three months ended March 31, 2015:

	2015
Sales	$	27,301
Cost of sales		3,147
Gross profit		24,154
Operating Expenses:
General and administrative expenses		106,806
Depreciation		29,740
Total Operating Expenses		136,546
Operating Loss		(112,392	)
Other Income (Expense)
Interest expense		(30,616	)
Loss from discontinued operations	$	( 143,008	)
Loss per share - discontinued operations	$	(0.00	)

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Nature of Operations Textuals (Details) - USD ($)	Dec. 31, 2015	Aug. 31, 2012	May. 31, 2012	Oct. 31, 2011	Sep. 30, 2010
Nature of Operations textuals
UMED has acquired acres of placer mining claims on Bureau of Land Management land in Mohave County, Arizona.					$ 1,440
UMED acquired a % of interest in Jet Regulators, LP, an aircraft maintenance company located at Meacham Field in Fort Worth, Texas.				49.00%
Percentage of Shares acquired of Mamaki Tea & Extract of Hawaii, Inc. (nka Mamaki of Hawaii, Inc.)			80.00%
Company acquired % of Greenway Innovative Energy, Inc.,		100.00%
Company acquired the remaining 20% shares of restricted common stock of Rig Support Group, Inc., (nka Logistix Technology Systems, Inc.	$ 500,000
Cash paid for acquisition of Mamaki Tea & Extract of Hawaii, Inc.	$ 127,800

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Basis of presentation (Details)	Dec. 31, 2015
Name of the Entity
UMED Holdings, Inc.	0.00%
Mamaki of Hawaii, Inc.	100.00%
Universal Media Corporation	100.00%
Greenway Innovative Energy, Inc.	100.00%
Logistix Technology Systems, Inc.	100.00%

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Going Concern Uncertainties (Details)	3 Months Ended
	Mar. 31, 2016 USD ($)
Going Concern Uncertainties
Companied sustained loss amounted	$ 495,000
Company incurred accumulated deficit	$ 12,900,000

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Property and Equipment-Estimated life (Details)	Dec. 31, 2015
Property and Equipment-Estimated life in years
Equipment estimated life minimum	5
Equipment estimated life maximum	7

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Discontinued Operations (Details)	Nov. 02, 2015 USD ($)
Discontinued Operations {1}
HBI acquired common stock of Mamaki in percentage	100.00%
HBI acquired common stock of Mamaki	$ 700,000
UMED debts	84,275
HBI paid	245,000
HBI was to pay	250,000
HBI was to pay in three installments	150,000
Company has not received any payment	$ 454,600

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Mine Properties (Details)	Mar. 31, 2016	Dec. 31, 2010 USD ($) shares
Mine Properties {1}
Mining claims in acres	1,440
Mining claims acquired in exchange for shares of common stock | shares		5,066,000
Nominal value of common stock | $		$ 100,000

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Net Loss Per Share, basic and diluted (Details)	Dec. 31, 2015 shares
Net Loss Per Share, basic and diluted-Details
Exercise of warrants has been excluded as a common stock equivalent in the diluted loss per share	(5,446,154)

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Research and Development (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Research and Development Details
Company incurred research and development expenses	$ 164,835	$ 72,000

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Property, Plant and Equipment values (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment values
Equipment with Range of Lives in 5 Years	$ 2,032	$ 2,032
Furniture and fixtures with Range of Lives in 5 Years	1,983	1,983
Total value of the assets	4,015	4,015
Less accumulate depreciation	(3,370)	(3,271)
Net value of assets,	645	744
Depreciation expense for the period ended	$ 99	$ 396

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Investments consisted of the following (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Investments consisted of the following
Investments made in JetTech LLC	$ 0	$ 0
Total Investments	$ 0	$ 0

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Investments Parentheticals (Details)	Mar. 31, 2016
Investments Parentheticals
Company acquired interest in JetTech LLC an aerospace maintenance operation	49.00%

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Convertible promissory note issues (Details) - USD ($)	Mar. 31, 2016	Sep. 18, 2014
Convertible promissory note issues
Company issued a convertible promissory note to an accredited investor		$ 158,000
Convertible promissory note bears interest at a rate per annum		10.00%
Monthly instalments payable on note		$ 31,600
Note converted into common stock at conversion price equal to average of 3 lowest volume weighted average trading prices during 20 day		70.00%
The discount related to the beneficial conversion feature on the note valued at an amount based on intrinsic value		$ 158,000
Discount related to beneficial conversion feature is amortized over the term of (10 months)		78,463
Warrants is being amortized over the term of debt (10 months)		$ 79,537
Warrants - having a fair value of	$ 107,212
Expected dividends	0.00%
Expected volatility	189.00%
Expected term: conversion feature(years)	3.5
Risk free interest rate	1.75%

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Convertible promissory note debt issue costs as follows (Details)	3 Months Ended
	Mar. 31, 2016 USD ($)
Convertible promissory note debt issue costs as follows
Convertible promissory note debt issue costs paid in cash equal to a percentage	10.40%
Convertible promissory note debt issue costs paid in cash	$ 16,500
Amortization of debt issue costs for the period	23,754
Company recorded original issue discounts for the year	158,000
Disbursement of note to the company	144,000
Company amortized original issue discount related to the convertible note	$ 14,000

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Accrued expenses consisted of the following (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Accrued expenses consisted of the following
Accrued consulting fees	$ 238,250	$ 229,000
Bank overdraft	0	763
Accrued interest expense	115	0
Total accrued expenses	$ 238,365	$ 229,763

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Class A Common Stock transactions (Details)	3 Months Ended
	Mar. 31, 2016 USD ($) $ / shares shares
Class A Common Stock transactions
Authorized shares of class A common stock	300,000,000
Par value per share of class A common stock | $ / shares	$ 0.0001
Authorized shares of class B common stock	20,000,000
Par value per share of class B common stock | $ / shares	$ 0.0001
Shares of class A common stock issued and outstanding.	188,552,419
Company issued shares of restricted common stock to four individuals through private placements	3,500,002
Value of shares of restricted common stock issued to four individuals through private placements | $	$ 245,000
Per share value of restricted common stock issued to four individuals through private placements | $ / shares	$ 0.07
Company issued shares of restricted common stock for conversion of advances from shareholders	664,285
Value of shares of restricted common stock issued for conversion of advances from shareholders | $	$ 51,500
Per share value of shares of restricted common stock issued for conversion of advances from shareholders | $ / shares	$ 0.0775
Company issued shares of restricted common stock for consulting services	400,000
Value of shares of restricted common stock issued for consulting services | $	$ 32,000
Per share value of shares of restricted common stock issued for consulting services | $ / shares	$ 0.08
Company issued shares of restricted common stock to a creditor for rent expense	106,000
Value of shares of restricted common stock to a creditor for rent expense | $	$ 8,480
Per share value of restricted common stock to a creditor for rent expense | $ / shares	$ 0.08

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Class B Stock (Details)	Mar. 31, 2016 shares
Class B Stock
Shares of class B stock issued and outstanding	15,126,938

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Related Party (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Related Party
Shareholders made advances	$ 126,042	$ 132,109
Shareholders converted advances into common stock at market value	$ 51,500	$ 18,500
Shareholders converted advances into common stock at market value per share	$ 0.08	$ 0.118
Received repayments	$ 10,000	$ 0

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The provision for income taxes for continuing operations (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
The provision for income taxes for continuing operations
Current	$ 0	$ 0
Deferred	0	0
Total tax provision for (benefit from) income taxes	$ 0	$ 0

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Comparison of Provision for income tax expense (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Comparison of Provision for income tax expense
Federal statutory rate	(34.00%)	(34.00%)
State tax, net of federal benefit	0.00%	0.00%
Permanent differences and other including surtax exemption	0.0	0.0
Valuation allowance	$ 34.0	$ 34.0
Effective tax rate	0.00%	0.00%

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The net deferred tax assets and liabilities (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Deferred tax assets
Net operating loss carry forwards	$ 4,806,093	$ 4,028,702
Deferred compensation	2,544,213	2,409,213
Stock based compensation	4,930,968	4,899
Other	671,497	11,212,480
Total	12,952,771	12,458,131
Less valuation allowance	(12,952,771)	$ (12,458,131)
Deferred tax asset	0
Deferred tax liabilities
Depreciation and amortization	0
Net long-term deferred tax asset	$ 0

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Valuation Allowance and Net Operating Losses Carry Forward (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Valuation Allowance and Net Operating Losses Carry Forward
Change in the valuation allowance	$ 494,640	$ 4,028,702
Company has recorded a 100% valuation allowance related to the deferred tax asset for the loss from operations amount	12,952,771	12,458,131
Net operating losses carry forward for federal and state income tax purposes	$ 4,800,000	$ 4,000,000

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Discontinued Operations Textual (Details)	Nov. 02, 2015 USD ($)
Discontinued Operations Textual
HBI acquired common stock of Mamaki in percentage	100.00%
HBI acquired common stock of Mamaki	$ 700,000
UMED debts	84,275
HBI paid towards the first installment	245,500
HBI was due	250,000
HBI was to pay in three installments	150,000
Company has not received any payment	$ 454,600

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Condensed Statements Of Discontinued Operations (Details)	3 Months Ended
	Mar. 31, 2015 USD ($) $ / shares
Condensed Statements Of Discontinued Operations
Discontinued Operations Sales	$ 27,301
Discontinued Operations Cost of sales	3,147
Discontinued Operations Gross profit	24,154
Discontinued Operations Operating Expenses:
Discontinued Operations General and administrative expenses	106,806
Discontinued Operations Depreciation	29,740
Discontinued Operations Total Operating Expenses	136,546
Discontinued Operations Operating Loss	(112,392)
Discontinued Operations Other Income (Expense)
Discontinued Operations Interest expense	(30,616)
Loss from discontinued operations.	$ (143,008)
Loss per share - discontinued operations | $ / shares	$ 0.00

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Commitments Consists of the following (Details) - USD ($)	Apr. 08, 2015	May. 31, 2011
Commitments Consists of the following
Compensation payable during the first year		$ 180,000
Compensation payable during the second year		240,000
Compensation payable during the third year		300,000
Compensation payable during the fourth and fifth years		$ 350,000
Shares of restricted common stock annually for each year of the employment agreement		1,250,000
Company's chief executive officer resigned and relinquished his claim to receive compensation	$ 518,300

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Commitments (Details)	3 Months Ended
	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)
Commitment details
Company accured total management fee	$ 90,000	$ 135,000
Compensation for a term in years	5
Increase in annual pay	$ 180,000
Company accrued towards the employment agreements	45,000	56,250
Company entered into a lease in years	2
Rent expenses accrued during the period	7,251	$ 19,200
Company is obligated to pay annual maintenance fees	$ 11,800
Royalties based on production	10.00%

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SUBSEQUENT TRANSACTIONS (DETAILS) - USD ($)	Apr. 22, 2016	Jan. 27, 2016	Dec. 28, 2015	Nov. 30, 2015
SUBSEQUENT TRANSACTIONS
Company sold its shares in Mamaki of Hawaii	700,000
Defendants failed to make payments		$ 150,000	$ 150,000	$ 150,000