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<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>NOTE 1 – ORGANIZATION</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Nature of Operations</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">Greenway Technologies, Inc.
(“Greenway Technologies,” “GTI,” 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, and to Greenway
Technologies, Inc. on June 23, 2017.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The Company’s mission
is to operate as a holding company to provide funding for commercializing the proprietary process held by its 100% owned subsidiary,
Greenway Innovative Energy, Inc. (“GIE”).</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">In September 2010, the Company
acquired 1,440 acres of placer mining claims on Bureau of Land Management land in Mohave County, Arizona. See discussion in Note
3.  Due to the Company not producing any revenue from its BLM mining leases since its acquisition of the leases, nor achieving
cash flow levels to independently fund the development of its BLM mining leases in December 2010 and not having current resources
for an appraisal or assay, the Company recognized an impairment charge of $100,000 during the year ended December 31, 2014. The
Company believes that this investment could be very lucrative if sufficient resources are committed to its development. However,
at this time, the Company has made the decision to commit is resources to commercialization of the Gas-To-Liquids (“GTL”)
technology owned by GIE.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">In August 2012, the Company
acquired 100% of Greenway Innovative Energy, Inc. (“GIE”) which owns patents and trade secrets for a proprietary process
and related technology to convert natural gas into synthesis gas (syngas), and then to liquid fuels, also known as gas-to-liquids
or “GTL” processing. In addition to its usefulness in the GTL process, syngas is an important intermediate gas used
by industry in the production of ammonia, methane, liquid fuels, and other downstream products.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The Company’s unique reforming
process is called Fractional Thermal Oxidation™ (FTO). The Company believes it will be able to offer a new economical, relatively
small scale (125 to 2,475 barrels/day) method of converting natural gas into liquid fuels that can be located in field locations
where applicable to smaller scale GTL processing requirements. Commercialization of its proprietary reforming and GTL processes
are the primary focus of the Company.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>NOTE 2 - BASIS OF PRESENTATION
AND GOING CONCERN UNCERTAINTIES</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Principles of Consolidation</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The accompanying condensed consolidated
financial statements include the financial statements of the Company and its wholly-owned subsidiaries. All significant inter-company
accounts and transactions are eliminated in consolidation.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Basis of Presentation</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><font style="font-size: 8pt">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, 2018.  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,
2017.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><font style="font-size: 8pt">The accompanying condensed
consolidated financial statements include the accounts of the following entities.  </font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 33%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Name
of Entity</font></td>
<td style="width: 7%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">%</font></td>
<td style="width: 5%; border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 21%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Entity</font></td>
<td style="width: 13%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Incorporation</font></td>
<td style="width: 21%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Relationship</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Greenway Technologies, Inc.</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Corporation</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Texas</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Parent</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Universal Media Corporation</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">100</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%"> %</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Corporation</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Wyoming</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Subsidiary</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Greenway Innovative Energy, Inc.</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">100</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%"> %</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Corporation</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Nevada</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Subsidiary</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Logistix Technology Systems, Inc.</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">100</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%"> %</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Corporation</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Texas</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Subsidiary</font></td></tr>
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<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b>Going Concern Uncertainties</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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 $803,000 for the three-month period ended June 30, 2018 and has a working capital deficiency
of approximately $3.0 million and an accumulated deficit of approximately $25 million at June 30, 2018. 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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">With the successful test of
the Company’s G-Reformer® unit and FTO process during the first quarter 2018, the Company has started discussions with
a number of oil and gas companies, smaller oil and gas operators and investors regarding potential joint venture funding for a
commercial scale gas-to-liquids (GTL) plant using the Company’s unique GTL system. A commercial GTL plant will include the
Company’s proprietary G-Reformer®, a Fischer-Tropsch unit, and all necessary components to develop a fully functional
GTL plant with a minimum output of ~125 barrels/day of high-cetane blendstock (diesel fuel). Should an agreement be reached, a
joint venture relationship would be anticipated to provide funding for a plant, as well as sufficient additional operating capital
for the Company to complete the commercialization process. While there are no assurances that financing for an initial plant will
be obtained on acceptable terms and in a timely manner, the failure to obtain the necessary working capital may cause the Company
to move in one or more alternate directions to transition this revolutionary GTL system into production.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">In parallel, Company is also
seeking agreements and/or partnerships with other GTL system providers to use the Company’s proprietary synthesis gas production
unit, the G-Reformer®, as part of existing, planned, or new GTL systems in partnership with the Company. While there are no
assurances that such agreements and partnerships will be obtained on acceptable terms and in a timely manner, the failure to obtain
the necessary working capital may cause the Company to move in one or more alternate directions to commercialize its proprietary
G-Reformer® technology. Several alternate paths are under consideration.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>NOTE 3 - SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">A summary of significant accounting
policies applied in the presentation of the condensed consolidated financial statements are as follows.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Property and Equipment</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">Property and equipment are 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 or
salvage value are recorded as a gain or loss on sale of equipment. Depreciation is computed using the straight-line method over
the useful life of the assets. The Company continues to use its fully depreciated property and equipment.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Impairment of Long-Lived
Assets</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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 Accounting Standards Codification, ASC Topic 360, <i>Property, Plant and Equipment</i>.  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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Revenue Recognition</b></font></p>
<p style="font: 9pt/12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0 0 12pt; color: #212121"><font style="font-size: 8pt">The Company
has not, to date, generated any revenues. </font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b>Use of Estimates</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The preparation of 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.<b> </b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Cash and Cash Equivalents</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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 June 30, 2018, or December 31, 2017.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Income Taxes</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The Company has adopted the
provisions of FASB ASC 740-10-05 <i>Accounting for Uncertainty in Income Taxes</i>. 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 2013 – 2016.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Net Loss Per Share, basic
and diluted</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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 or beneficial conversion features (11,356,238) have been excluded as
a common stock equivalent in the diluted loss per share because their effect would be anti-dilutive.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Derivative Instruments</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The Company accounts for derivative
instruments in accordance with Accounting Standards Codification 815, <i>Derivatives and Hedging (“ASC 815”),</i>
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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">See Notes 6 and 7 below for
disclosures associated with the Company’s convertible notes payable and warrants.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0 0 12pt"><font style="font-size: 8pt"><b>Fair Value of Financial Instruments</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">Effective January 1, 2008, fair value
measurements are determined by the Company’s adoption of authoritative guidance issued by the FASB, with the exception of
the application of the statement to non-recurring, non-financial assets and liabilities, as permitted. Fair value is defined in
the authoritative guidance as the price that would be received to sell an asset or paid to transfer a liability in the principal
or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement
date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three levels as follows:</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">Level 1 – Valuation based on
unadjusted quoted market prices in active markets for identical assets or liabilities.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">Level 2 – Valuation based on,
observable inputs (other than level one prices), quoted market prices for similar assets such as at the measurement date; quoted
prices in the market that are not active; or other inputs that are observable, either directly or indirectly.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">Level 3 – Valuation based
on unobservable inputs that are supported by little or no market activity, therefore requiring management’s best estimate
of what market participants would use as fair value.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Original Issue Discount</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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 total amount
payable. The OID is amortized into interest expense pro-rata over the term of the Note.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">In instances where the determination
of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value
hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair
value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value
measurement in its entirety requires judgment and considers factors specific to the asset or liability. The valuation of the Company’s
notes recorded at fair value is determined using Level 3 inputs, which consider (i) time value, (ii) current market and (iii)
contractual prices.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The carrying amounts of financial
assets and liabilities, such as cash and cash equivalents, receivables, accounts payable, notes payable and other payables, approximate
their fair values because of the short maturity of these instruments.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The following table represents
the Company’s assets and liabilities by level measured at fair value on a recurring basis at June 30, 2018 and December
31, 2017:</font></p>
<p style="font: 9pt/12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 8pt; line-height: 106%"><b>Description</b></font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 1.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%"><b>Level
1</b></font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 1.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%"><b>Level
2</b></font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="border-bottom: black 1.5pt solid; padding-right: 2.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%"><b>Level
3</b></font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 44%; padding-right: 0.8pt; text-align: justify"><font style="font-size: 8pt; line-height: 106%">June 30,
2018 Derivative Liabilities</font></td>
<td style="width: 2%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 10%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$                  </font></td>
<td style="width: 2%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0 </font></td>
<td style="width: 8%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 2%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 5%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 3%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0 </font></td>
<td style="width: 8%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 5%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 8%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">68,056</font></td>
<td style="width: 2%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 8pt; line-height: 106%">December 31, 2017 Derivative
Liabilities</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$                  </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0 </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0 </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">105,643</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><font style="font-size: 8pt">The following
assets and liabilities are measured on the balance sheets at fair value on a recurring basis utilizing significant unobservable
inputs or Level 3 assumptions in their valuation. The following tables provide a reconciliation of the beginning and ending balances
of the liabilities:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><font style="font-size: 8pt">The
change in the notes payable at fair value for the nine-month period ended June 30, 2018, is as follows: </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-size: 9pt; text-align: center"><font style="font-size: 8pt">Fair <br />Value</font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-size: 9pt; text-align: center"><font style="font-size: 8pt">Change in</font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-size: 9pt; text-align: center"><font style="font-size: 8pt">New</font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-size: 9pt; text-align: center"><p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 8pt">Fair</font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 8pt">Value</font></p></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 35%; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="width: 2%; font-size: 9pt; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 9%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: center; vertical-align: bottom"><font style="font-size: 8pt">January
1, 2018</font></td><td style="width: 1%; padding-bottom: 1pt; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%; font-size: 9pt; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 9%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: right"><p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0; text-align: center"><font style="font-size: 8pt">Fair</font></p> <p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0; text-align: center"><font style="font-size: 8pt">Value</font></p></td><td style="width: 1%; padding-bottom: 1pt; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%; font-size: 9pt; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 9%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: right"><p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0; text-align: center"><font style="font-size: 8pt">Convertible</font></p> <p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0; text-align: center"><font style="font-size: 8pt">Notes</font></p></td><td style="width: 1%; padding-bottom: 1pt; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%; font-size: 9pt; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 9%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: right"><p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0"><font style="font-size: 8pt"> </font></p><p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0; text-align: center"><font style="font-size: 8pt">Conversions</font></p></td><td style="width: 1%; padding-bottom: 1pt; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%; font-size: 9pt; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 9%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: center; vertical-align: bottom"><font style="font-size: 8pt; line-height: 106%">June
30, 2018</font></td><td style="width: 1%; padding-bottom: 1pt; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 9pt; text-align: justify"><font style="font-size: 8pt"> Derivative Liabilities</font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="font-size: 9pt; text-align: right"><font style="font-size: 8pt">106,643</font></td><td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="font-size: 9pt; text-align: right"><font style="font-size: 8pt">37,587</font></td><td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="font-size: 9pt; text-align: right"><font style="font-size: 8pt">0</font></td><td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="font-size: 9pt; text-align: right"><font style="font-size: 8pt">0</font></td><td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="font-size: 9pt; text-align: right"><font style="font-size: 8pt">(68,056</font></td><td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr>
</table>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">All gains and losses on assets and
liabilities measured at fair value on a recurring basis and classified as Level 3 within the fair value hierarchy are recognized
in other interest income and expense in the accompanying condensed consolidated financial statements.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b> </b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b>Stock Based Compensation</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The Company follows Accounting
Standards Codification subtopic 718-10, <i>Compensation</i> (“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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">At June 30, 2018, the Company
did not have any outstanding stock options.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Concentration and Credit
Risk </b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Research and Development</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The Company accounts for research
and development costs in accordance with Accounting Standards Codification subtopic 730-10, <i>Research and Development</i> (“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 $232,068 and $177,658 during the three-months ended June 30, 2018 and 2017, respectively.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Issuance of Common Stock</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The issuance of common stock
for other than cash is recorded by the Company at market values.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Impact of New Accounting
Standards</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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 condensed consolidated financial statements.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>NOTE 4 – PROPERTY,
PLANT, AND EQUIPMENT</b></font></p>
<p style="font: 9pt/12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3"><p style="font: 9pt Times New Roman, Times, Serif; margin: 0 5.6pt 0 0; text-align: center"><font style="font-size: 8pt"><u>Range
of Lives</u></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0 5.6pt 0 0; text-align: center"><font style="font-size: 8pt"><u>in
Years</u></font></p></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3"><p style="font: 9pt Times New Roman, Times, Serif; margin: 0 5.6pt 0 0; text-align: center"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0 5.6pt 0 0; text-align: center"><font style="font-size: 8pt"><u>June
30, 2018</u></font></p></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="padding-right: 2.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%"><u>December
31, 2017</u></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 40%; padding-left: 5.4pt"><font style="font-size: 8pt; line-height: 106%">Equipment</font></td>
<td style="width: 5%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 13%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">5</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 5%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 13%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">2,032</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 5%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 13%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">2,032</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt; line-height: 106%">Furniture and fixtures</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">5</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">1,983</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">1,983</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">4,015</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">4,015</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt; line-height: 106%">Less accumulated depreciation</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(4,015</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">)</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(4,015</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">Depreciation expense was $0
and $99 for the three-months ended June 30, 2018 and 2017, respectively.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0 8pt"><font style="font-size: 8pt"><b>NOTE 5 – TERM NOTES
PAYABLE</b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">Term notes payable consisted of
the following at June 30, 2018 and December 31, 2017:</font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 1.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">2018</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid"><p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.05in 0 0; text-align: center"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.05in 0 0; text-align: center"><font style="font-size: 8pt">2017</font></p></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="padding-right: 1.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="padding-right: 1.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.8pt 0 0"><font style="font-size: 8pt">Unsecured note
payable dated March 8, 2016 to an individual at 5% interest, payable upon</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.8pt 0 0"><font style="font-size: 8pt">the Company’s
availability of cash</font></p></td>
<td style="width: 1%; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 8%; padding-right: 0.8pt; padding-bottom: 8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0</font></td>
<td style="width: 1%; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 8%; padding-right: 0.8pt; padding-bottom: 8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">13,500</font></td>
<td style="width: 1%; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.8pt 0 0"><font style="font-size: 8pt">Unsecured note
payable dated November 13, 2017 to a corporation at $10,000 lump</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.8pt 0 0"><font style="font-size: 8pt">sum interest
at maturity on February 28, 2018. The terms are being re-negotiated with</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.8pt 0 0"><font style="font-size: 8pt">the noteholder.</font></p></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">100,000</font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">100,000</font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Unsecured note payable dated December 28,
2017 to a corporation, due January 3, 2018</font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; padding-bottom: 8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">53,842</font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt; line-height: 106%">Total term notes</font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; padding-bottom: 8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">100,000</font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; padding-bottom: 8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">153,842</font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0 8pt"><font style="font-size: 8pt"><b>NOTE 6 – 2017 CONVERTIBLE
PROMISSORY NOTES</b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0 8pt; text-align: justify"><font style="font-size: 8pt">The
Company issued a $166,667 convertible promissory note bearing interest at 4.50% per annum to an accredited investor, payable in
equal installments of $6,000 commencing February 1, 2018 plus interest at rate of 4% per annum on December 20, 2018 and $80,000
plus accrued interest on December 20, 2019.   The holder has the right to convert the note into common stock of
the Company at a conversion price of $0.08 per share for each one dollar of cash payment which may be due, (which would be 1,083,333
shares for the $86,667 payment and 1,000,000 shares for the $80,000 payment). </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 12pt 0 8pt; text-align: justify"><font style="font-size: 8pt">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 not 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. As of December 31, 2017, the discount related to the beneficial conversion
feature on the note was valued at $27,083 based on the $0.013 difference between the market price of $0.093 and the conversion
price of $0.08 times the 2,083,325 conversion shares. As of and during the three-months ended June 30, 2018, the remaining discount
was $20,313 and $3,386 of the discount was amortized.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company
issued a $150,000 convertible promissory note bearing interest at 4.50% per annum to an accredited investor, payable in equal
installments of $6,000 plus accrued interest until the principal and accrued interest are paid in full.   The holder
has the right to convert the note into common stock of the Company at a conversion price of equal to 70% of the prior twenty (20)
days average closing market price of the Company’s common stock. </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 12pt 0 8pt; text-align: justify"><font style="font-size: 8pt">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 resulted 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 $58,494
based on the difference between the fair value of the 1,578,947 convertible shares at the valuation date and the $150,000 note
value. The discount related to the beneficial conversion feature is being amortized over the term of the debt. The discount related
to the beneficial conversion feature on the note was valued at $150,000 based on the <i>Black-Scholes Model</i>. As of and during
the three-months ended June 30, 2018, the remaining discount was $40,711 and $7,019 of the discount was amortized. The derivative
liability for this note at June 30, 2018 was $68,056.  <b> </b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0 8pt"><font style="font-size: 8pt"><b>NOTE 8 – ACCRUED
EXPENSES</b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b> </b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">Accrued expenses consisted of
the following at June 30, 2018 and December 31, 2017:</font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 1.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">2018</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid"><p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.05in 0 0; text-align: center"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.05in 0 0; text-align: center"><font style="font-size: 8pt">2017</font></p></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="padding-right: 1.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="padding-right: 1.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Accrued consulting fees</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 8%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">447,280</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 8%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">249,500</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Accrued expense related to shareholder dispute</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">330,000</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Accrued expense related to warrant exercise</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">180,000</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Other accrued expenses</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">             243,334</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">12,000</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Accrued interest expense</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">20,185</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">7,260</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Total accrued expenses</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">710,799</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">778,760</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b>NOTE 9– CAPITAL STRUCTURE</b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">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 stock with a par value of $.0001 per share.  Each Class A common stock share has one voting right and the right
to dividends, if and when declared by the Board of Directors. Class B common stock does not vote.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><b>Class
A Common Stock</b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">At June 30,
2018, there were 286,050,581 shares of class A common stock issued and outstanding.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">During the
three-months ended June 30, 2018, the Company: issued 650,000 shares of restricted class A common stock to 2 individuals through
private placements for cash of $76,000 at average of $0.12 per share.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<ul style="margin-top: 0in; list-style-type: disc">
<li style="text-align: justify; margin: 0 0 0pt; font-size: 9pt"><font style="font-size: 8pt">Issued 1,600,000 of unrestricted
common stock to the holder of a convertible promissory note payable. The note had warrants attached to the note The Company negotiated
a settlement with the lender to issue the 1,600,000 shares to the lender at an price of $0.13 per share.</font></li>
</ul>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt 0.5in; text-align: justify"><font style="font-size: 8pt"> </font></p>
<ul style="margin-top: 0in; list-style-type: disc">
<li style="text-align: justify; margin: 0; font-size: 10pt"><font style="font-size: 8pt">Issued 250,000 shares of stock to each
the President and Chief Financial Officer as required under Employment Agreements. The shares were issued at $.06 per share</font></li>
<li style="text-align: justify; margin: 12pt 0 0pt; font-size: 9pt"><font style="font-size: 8pt">Canceled 100,000 shares returned
to the Company by shareholders at a value of $10 added to paid-in-capital.</font></li>
</ul>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><b> </b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><b>Class
B Stock </b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><b> </b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">At June 30,
2018 and 2017, there were 0 and 126,938 shares of class B stock issued and outstanding, respectively.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 9pt 0 0"><font style="font-size: 8pt">During the year ended
December 31, 2017, the Company; exchanged 630,000 shares of class A common stock for 62,986 class B shares with a shareholder
who held class B shares from the 2009 merger agreement between the Company and Dynalyst Manufacturing Corporation which set a
conversion rate of 15 to 1. The Company negotiated the 630,000 shares when the class B shareholder elected to convert.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 9pt 0 0; text-align: center"><font style="font-size: 8pt"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Symbol">·</font>
<font style="font-size: 8pt">Exchanged (on a one for one basis) 63,932 shares of class A common stock for 63,932 class B shares
with shareholders who acquired the class B shares after the 2009 merger agreement between the Company and Dynalyst Manufacturing
Corporation.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 9pt 0 0"><font style="font-size: 8pt"><b>Stock options, warrants
and other rights</b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">At June 30, 2018, the Company
has not adopted any employee stock option plans.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><font style="font-size: 8pt">On
February 3, 2017, the Company issued 6,000,000 warrants (4,000,000 at $0.35 for two years and 2,000,000 at $0.45 for three years)
as part of a separation agreement with a co-founder and former president. The Company valued the warrants as of June 30, 2017,
at $639,284 using the <i>Black-Scholes Model</i> with expected dividend rate of 0%, expected volatility rate of 455%, expected
conversion term of two and three years and risk-free interest rate of 1.75%.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><font style="font-size: 8pt">On
November 30, 2017, the Company issued 1,000,000 warrants at $0.30 for three years as part of a settlement of a shareholder dispute
with MTG Holdings, Inc. The Company valued the warrants as of December 31, 2017, at $95,846 using the <i>Black-Scholes Model</i>
with expected dividend rate of 0%, expected volatility rate of 116%, expected conversion term of three years and risk-free interest
rate of 1.37%.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><font style="font-size: 8pt">On
January 8, 2018, the Company issued 4,000,000 warrants to a director, which were provided in lieu of 3,000,000 shares that the
director returned to the Company and were subsequently cancelled, at $0.10 per share which expire in three years.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b>NOTE 10 - RELATED PARTY TRANSACTIONS</b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">Shareholders made loans and advances
to the Company in the amounts of $27,491 (Kevin Jones $26,391 and Pat Six $1,100) during the three-months ended June 30, 2018
and $219,509 (Tunstall Canyon Group $166,667, Kevin Jones $51,342 and Pat Six $1,500) during the year ended December 31, 2017,
respectively.  During the year ended December 31, 2017, a shareholder, Richard Halden, purchased 2,250,000 shares of class
A common stock for $225,000 ($0.10 per share) and Kevin Jones received repayment of a $59,690 loan.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b>NOTE 11 – INCOME TAXES</b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">At June 30,
2018 and December 31, 2017, the Company had approximately $17.3 million and $16.4 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 2034.  Utilization of these losses may be severely or completely limited if the Company undergoes
an ownership change pursuant to Internal Revenue Code Section 382.  </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">The provision for income taxes
for continuing operations consists of the following components for the three-months ended June 30, 2018 and the year ended December
31, 2017:</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="border-bottom: black 1.5pt solid; padding-right: 2.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">2018</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="border-bottom: black 1.5pt solid; padding-right: 2.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">2017</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="padding-right: 2.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="padding-right: 2.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Current</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 8%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 8%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Deferred</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">   Total tax provision for
(benefit from) income taxes</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">A comparison of the provision
for income tax expense at the federal statutory rate of 21% for the three-months ended June 30, 2018 and the year ended December
31, 2017, the Company's effective rate is as follows:</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 1.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">2018</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 1.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">2017</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="padding-right: 1.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="padding-right: 1.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 68%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Federal statutory rate</font></td>
<td style="width: 1%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 11%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(21.0</font></td>
<td style="width: 3%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">) %</font></td>
<td style="width: 1%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 11%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(21.0</font></td>
<td style="width: 3%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">) %</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">State tax, net of federal benefit</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(0.0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">)</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(0.0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Permanent differences and other including
surtax exemption</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0.0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0.0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Temporary difference</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(15.9</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">)</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(15.9</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">) </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Valuation allowance</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">36.9</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">36.9</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Effective tax rate</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0.0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">%</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0.0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">%</font></td></tr>
</table>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">The net deferred tax assets and
liabilities included in the financial statements consist of the following amounts at June 30, 2018 and December 31, 2017:</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"></font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 1.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">2018</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid"><p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.05in 0 0; text-align: center"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.05in 0 0; text-align: center"><font style="font-size: 8pt">2017</font></p></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Deferred tax assets</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="padding-right: 1.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="padding-right: 1.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 68%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Net operating loss carry forwards</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 13%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">16,524,544</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 13%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">16,403,873</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Deferred compensation</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">790,360</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">821,572</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Stock based compensation</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">2,900,734</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">2,900,734</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Other</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">581,639</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">581,639</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Total</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">20,797,277</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">20,707,818</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Less valuation allowance</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(20,797,277</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">)</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(20,707,818</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Deferred tax asset</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Deferred tax liabilities</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Depreciation and amortization</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Net long-term deferred tax asset</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">  </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The change
in the valuation allowance was $45,912 and $12,784,855 for the three-months ended June 30, 2018 and the year ended December 31,
2017, 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 $20,797,277
and $20,707,818 at June 30, 2018 and December 31, 2017, respectively. </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><font style="font-size: 8pt">Utilization
of the Company’s net operating losses may be subject to substantial annual limitation if the Company experiences a 50% change
in ownership, as provided by the Internal Revenue Code and similar state provisions.  Such an ownership change would substantially
increase the possibility of net operating losses expiring before complete utilization.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">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.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b>NOTE 12 – COMMITMENTS </b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b> </b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b>Employment Agreements </b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">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.  The employment agreement terminated August 12, 2017. During the three-months ended June 30, 2017, the Company
paid and accrued a total of $45,000 on the employment agreement.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">In the August 2012 acquisition
agreement with Greenway Innovative Energy, Inc., the Company agreed to issue an additional 7,500,000 shares of restricted common
stock when the first GTL unit is built and becomes operational and is capable of producing 2,000 barrels of diesel or jet fuel
per day and pay Greenway Innovative Energy a 2% royalty on all gross production sales on each unit placed in production.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font-size: 8pt">Effective
May 10, 2018, the Company entered into employment agreements with John Olynick, as President and Ransom Jones, as Chief Financial
Officer, respectively. The terms and conditions of their employment agreements are identical. John Olynick, as President earns
a salary of $120,000 per year. Ransom Jones, as Chief Financial Officer, earns a salary of $120,000 per year. Mr. Jones also serves
as the Company’s Secretary and Treasurer. During each year that their Agreements are in effect, they are each entitled to
receive a bonus (“Bonus”) equal to at least Thirty-Five Thousand Dollars ($35,000) per year. Under their employment
agreements, Mr. Olynick and Mr. Jones were each issued 250,000 shares of Common Stock, par value $.0001 during the three months
ended June 30, 2018.On the date of issuance, the stock was valued at $.06 per share and the Company recorded an expense of $30,000.
They are also entitled to participate in the Company’s benefit plans.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0 0pt; text-indent: 0.5in"><font style="font-size: 8pt">The
foregoing summary of the Employment Agreements is qualified in its entirety by reference to the actual true and correct Employment
Agreements, copies of which are attached hereto as Exhibit 10.39 and 10.40. </font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font-size: 8pt">See Subsequent
Events Note 13.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font-size: 8pt"></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b>Consulting Agreement</b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b> </b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">On November 28, 2017, the Company
entered into a three-year consulting agreement with Chisos Equity Consultants, LLC for public relations, consulting and corporate
communications services. The initial payment was 1,800,000 shares of the Company’s restricted common stock. Additional payments
upon the Company’s common stock reaching certain price points are follows;</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<ul style="margin-top: 0in; list-style-type: disc">
<li style="margin: 0; font-size: 9pt"><font style="font-size: 8pt">500,000 shares at the time our common stock reaches $0.25 per
share during the first year</font></li>
<li style="margin: 0; font-size: 9pt"><font style="font-size: 8pt">500,000 shares at the time our common stock reaches $0.45 per
share during the first year</font></li>
<li style="margin: 0; font-size: 9pt"><font style="font-size: 8pt">1,000,000 shares at the time our common stock reaches $0.90
per share during the first or second year</font></li>
<li style="margin: 0; font-size: 9pt"><font style="font-size: 8pt">2,000,000 shares at the time our common stock reaches $1.50
per share during the first or second year</font></li>
<li style="margin: 0; font-size: 9pt"><font style="font-size: 8pt">3,000,000 shares at the time our common stock reaches $2.00
per share during the term of the agreement</font></li>
<li style="margin: 0 0 0pt; font-size: 9pt"><font style="font-size: 8pt">1,000,000 shares at the time our common stock reaches
$10.00 per share during the term of the agreement</font></li>
</ul>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">Due to a breach under the Agreement,
the Board of Directors of the Company on June 22, 2018, voted to terminate the Agreement. Based on the termination, all warrants
to purchase the Company’s common stock were cancelled. </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt/106% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0pt"></td><td style="width: 36pt"><font style="font-size: 8pt">  <b>Leases</b></font></td><td></td></tr></table>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In October
2015, the Company signed a new two-year lease for new office space of approximately 1,800 square feet at the rate of $2,417 for
the first twelve months and $2,495 for the second twelve months.  During the three months ended June 30, 2018 and 2017, the
Company expensed $14,510 and $8,640, respectively, in rent expense.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Greenway
Innovative Energy, Inc. rents approximately 600 square feet of office space at 1511 North Cooper St., Suite 207, Arlington, Texas
76011, at a rate of $1,369 per month.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company pays
approximately $11,600 in annual maintenance fees on its Arizona BLM mining leases, in addition to 10% royalties based on production.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b>Legal  </b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b> </b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 5.95pt 8pt 0.7pt"><font style="font-size: 8pt">The Company has
been named as a co-defendant in an action brought against the Company and Mamaki Tea, Inc., alleging, among other things, that
the Company was named as a co-guarantor on an $850,000 foreclosed note. Management does not believe the ultimate resolution will
have an adverse impact on the Company’s financial condition or results of operations.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">On April 22, 2016, Greenway Technologies
filed suit under Cause No. DC-16-004718, in the 193rd District Court, Dallas County, Texas against Mamaki of Hawaii, Inc. (“Mamaki”),
Hawaiian Beverages, Inc.(“HBI”), Curtis Borman and Lee Jenison for breach of a Stock Purchase Agreement dated October
29, 2015, wherein the Company sold its shares in Mamaki to HBI 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. On January 13, 2017, the
parties executed a Settlement and Mutual Release Agreement (Agreement). However, the Defendants defaulted in their payment obligations
under Agreement. Curtis Borman and Lee Jennison were co-guarantors of the obligations of Mamaki and HBI. To secure their guaranties,
each of Curtis Borman and Lee Jennsion posted 1,241,500 and 1,000,000 shares, respectively, of the Company. Under the Agreement,
the shares were valued at $.20. Due to the default under the Agreement, these shares were returned to the Company’s treasury
shares. Because of bankruptcy proceedings involving Curtis Borman, all action in this matter has been stayed.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">See Subsequent Events Note 13.</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><b>NOTE
13 - SUBSEQUENT EVENTS</b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><b> </b></font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">There are
no subsequent events to report.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Property and Equipment</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">Property and equipment are 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 or
salvage value are recorded as a gain or loss on sale of equipment. Depreciation is computed using the straight-line method over
the useful life of the assets. The Company continues to use its fully depreciated property and equipment.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Impairment of Long-Lived
Assets</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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 Accounting Standards Codification, ASC Topic 360, <i>Property, Plant and Equipment</i>.  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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Revenue Recognition</b></font></p>
<p style="font: 9pt/12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0 0 12pt; color: #212121"><font style="font-size: 8pt">The Company
has not, to date, generated any revenues. </font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b>Use of Estimates</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The preparation of 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.<b> </b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Cash and Cash Equivalents</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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 June 30, 2018, or December 31, 2017.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Income Taxes</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The Company has adopted the
provisions of FASB ASC 740-10-05 <i>Accounting for Uncertainty in Income Taxes</i>. 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 2013 – 2016.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Net Loss Per Share, basic
and diluted</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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 or beneficial conversion features (11,356,238) have been excluded as
a common stock equivalent in the diluted loss per share because their effect would be anti-dilutive.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Derivative Instruments</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The Company accounts for derivative
instruments in accordance with Accounting Standards Codification 815, <i>Derivatives and Hedging (“ASC 815”),</i>
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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">See Notes 6 and 7 below for
disclosures associated with the Company’s convertible notes payable and warrants.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0 0 12pt"><font style="font-size: 8pt"><b>Fair Value of Financial Instruments</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">Effective January 1, 2008, fair value
measurements are determined by the Company’s adoption of authoritative guidance issued by the FASB, with the exception of
the application of the statement to non-recurring, non-financial assets and liabilities, as permitted. Fair value is defined in
the authoritative guidance as the price that would be received to sell an asset or paid to transfer a liability in the principal
or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement
date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three levels as follows:</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">Level 1 – Valuation based on
unadjusted quoted market prices in active markets for identical assets or liabilities.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">Level 2 – Valuation based on,
observable inputs (other than level one prices), quoted market prices for similar assets such as at the measurement date; quoted
prices in the market that are not active; or other inputs that are observable, either directly or indirectly.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">Level 3 – Valuation based
on unobservable inputs that are supported by little or no market activity, therefore requiring management’s best estimate
of what market participants would use as fair value.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Original Issue Discount</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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 total amount
payable. The OID is amortized into interest expense pro-rata over the term of the Note.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">In instances where the determination
of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value
hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair
value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value
measurement in its entirety requires judgment and considers factors specific to the asset or liability. The valuation of the Company’s
notes recorded at fair value is determined using Level 3 inputs, which consider (i) time value, (ii) current market and (iii)
contractual prices.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The carrying amounts of financial
assets and liabilities, such as cash and cash equivalents, receivables, accounts payable, notes payable and other payables, approximate
their fair values because of the short maturity of these instruments.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The following table represents
the Company’s assets and liabilities by level measured at fair value on a recurring basis at June 30, 2018 and December
31, 2017:</font></p>
<p style="font: 9pt/12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 8pt; line-height: 106%"><b>Description</b></font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 1.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%"><b>Level
1</b></font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 1.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%"><b>Level
2</b></font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="border-bottom: black 1.5pt solid; padding-right: 2.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%"><b>Level
3</b></font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 44%; padding-right: 0.8pt; text-align: justify"><font style="font-size: 8pt; line-height: 106%">June 30,
2018 Derivative Liabilities</font></td>
<td style="width: 2%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 10%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$                  </font></td>
<td style="width: 2%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0 </font></td>
<td style="width: 8%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 2%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 5%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 3%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0 </font></td>
<td style="width: 8%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 5%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 8%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">68,056</font></td>
<td style="width: 2%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 8pt; line-height: 106%">December 31, 2017 Derivative
Liabilities</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$                  </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0 </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0 </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">105,643</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><font style="font-size: 8pt">The following
assets and liabilities are measured on the balance sheets at fair value on a recurring basis utilizing significant unobservable
inputs or Level 3 assumptions in their valuation. The following tables provide a reconciliation of the beginning and ending balances
of the liabilities:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><font style="font-size: 8pt">The
change in the notes payable at fair value for the nine-month period ended June 30, 2018, is as follows: </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-size: 9pt; text-align: center"><font style="font-size: 8pt">Fair <br />Value</font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-size: 9pt; text-align: center"><font style="font-size: 8pt">Change in</font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-size: 9pt; text-align: center"><font style="font-size: 8pt">New</font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-size: 9pt; text-align: center"><p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 8pt">Fair</font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 8pt">Value</font></p></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 35%; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="width: 2%; font-size: 9pt; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 9%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: center; vertical-align: bottom"><font style="font-size: 8pt">January
1, 2018</font></td><td style="width: 1%; padding-bottom: 1pt; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%; font-size: 9pt; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 9%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: right"><p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0; text-align: center"><font style="font-size: 8pt">Fair</font></p> <p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0; text-align: center"><font style="font-size: 8pt">Value</font></p></td><td style="width: 1%; padding-bottom: 1pt; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%; font-size: 9pt; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 9%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: right"><p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0; text-align: center"><font style="font-size: 8pt">Convertible</font></p> <p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0; text-align: center"><font style="font-size: 8pt">Notes</font></p></td><td style="width: 1%; padding-bottom: 1pt; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%; font-size: 9pt; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 9%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: right"><p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0"><font style="font-size: 8pt"> </font></p><p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0; text-align: center"><font style="font-size: 8pt">Conversions</font></p></td><td style="width: 1%; padding-bottom: 1pt; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%; font-size: 9pt; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 9%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: center; vertical-align: bottom"><font style="font-size: 8pt; line-height: 106%">June
30, 2018</font></td><td style="width: 1%; padding-bottom: 1pt; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 9pt; text-align: justify"><font style="font-size: 8pt"> Derivative Liabilities</font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="font-size: 9pt; text-align: right"><font style="font-size: 8pt">106,643</font></td><td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="font-size: 9pt; text-align: right"><font style="font-size: 8pt">37,587</font></td><td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="font-size: 9pt; text-align: right"><font style="font-size: 8pt">0</font></td><td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="font-size: 9pt; text-align: right"><font style="font-size: 8pt">0</font></td><td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="font-size: 9pt; text-align: right"><font style="font-size: 8pt">(68,056</font></td><td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr>
</table>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">All gains and losses on assets and
liabilities measured at fair value on a recurring basis and classified as Level 3 within the fair value hierarchy are recognized
in other interest income and expense in the accompanying condensed consolidated financial statements.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b>Stock Based Compensation</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The Company follows Accounting
Standards Codification subtopic 718-10, <i>Compensation</i> (“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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">At June 30, 2018, the Company
did not have any outstanding stock options.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Concentration and Credit
Risk </b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Research and Development</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The Company accounts for research
and development costs in accordance with Accounting Standards Codification subtopic 730-10, <i>Research and Development</i> (“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 $232,068 and $177,658 during the three-months ended June 30, 2018 and 2017, respectively.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Issuance of Common Stock</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">The issuance of common stock
for other than cash is recorded by the Company at market values.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt"><b>Impact of New Accounting
Standards</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font-size: 8pt">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 condensed consolidated financial statements.</font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 33%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Name
of Entity</font></td>
<td style="width: 7%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">%</font></td>
<td style="width: 5%; border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 21%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Entity</font></td>
<td style="width: 13%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Incorporation</font></td>
<td style="width: 21%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Relationship</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Greenway Technologies, Inc.</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Corporation</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Texas</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Parent</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Universal Media Corporation</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">100</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%"> %</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Corporation</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Wyoming</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Subsidiary</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Greenway Innovative Energy, Inc.</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">100</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%"> %</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Corporation</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Nevada</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Subsidiary</font></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Logistix Technology Systems, Inc.</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">100</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%"> %</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Corporation</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Texas</font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">Subsidiary</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 8pt; line-height: 106%"><b>Description</b></font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 1.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%"><b>Level
1</b></font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 1.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%"><b>Level
2</b></font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="border-bottom: black 1.5pt solid; padding-right: 2.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%"><b>Level
3</b></font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 44%; padding-right: 0.8pt; text-align: justify"><font style="font-size: 8pt; line-height: 106%">June 30,
2018 Derivative Liabilities</font></td>
<td style="width: 2%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 10%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$                  </font></td>
<td style="width: 2%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0 </font></td>
<td style="width: 8%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 2%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 5%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 3%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0 </font></td>
<td style="width: 8%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 5%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 8%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">68,056</font></td>
<td style="width: 2%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt; text-align: justify"><font style="font-size: 8pt; line-height: 106%">December 31, 2017 Derivative
Liabilities</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$                  </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0 </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0 </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">105,643</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-size: 9pt; text-align: center"><font style="font-size: 8pt">Fair <br />Value</font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-size: 9pt; text-align: center"><font style="font-size: 8pt">Change in</font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-size: 9pt; text-align: center"><font style="font-size: 8pt">New</font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-size: 9pt; text-align: center"><p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 8pt">Fair</font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 8pt">Value</font></p></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 35%; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td style="width: 2%; font-size: 9pt; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 9%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: center; vertical-align: bottom"><font style="font-size: 8pt">January
1, 2018</font></td><td style="width: 1%; padding-bottom: 1pt; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%; font-size: 9pt; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 9%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: right"><p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0; text-align: center"><font style="font-size: 8pt">Fair</font></p> <p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0; text-align: center"><font style="font-size: 8pt">Value</font></p></td><td style="width: 1%; padding-bottom: 1pt; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%; font-size: 9pt; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 9%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: right"><p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0; text-align: center"><font style="font-size: 8pt">Convertible</font></p> <p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0; text-align: center"><font style="font-size: 8pt">Notes</font></p></td><td style="width: 1%; padding-bottom: 1pt; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%; font-size: 9pt; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 9%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: right"><p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0"><font style="font-size: 8pt"> </font></p><p style="font: 9pt Times New Roman, Times, Serif; margin: 0 8.4pt 0 0; text-align: center"><font style="font-size: 8pt">Conversions</font></p></td><td style="width: 1%; padding-bottom: 1pt; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%; font-size: 9pt; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 9%; border-bottom: Black 1pt solid; font-size: 9pt; text-align: center; vertical-align: bottom"><font style="font-size: 8pt; line-height: 106%">June
30, 2018</font></td><td style="width: 1%; padding-bottom: 1pt; font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 9pt; text-align: justify"><font style="font-size: 8pt"> Derivative Liabilities</font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="font-size: 9pt; text-align: right"><font style="font-size: 8pt">106,643</font></td><td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="font-size: 9pt; text-align: right"><font style="font-size: 8pt">37,587</font></td><td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="font-size: 9pt; text-align: right"><font style="font-size: 8pt">0</font></td><td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="font-size: 9pt; text-align: right"><font style="font-size: 8pt">0</font></td><td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt"><font style="font-size: 8pt"> </font></td>
<td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="font-size: 9pt; text-align: right"><font style="font-size: 8pt">(68,056</font></td><td style="font-size: 9pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3"><p style="font: 9pt Times New Roman, Times, Serif; margin: 0 5.6pt 0 0; text-align: center"><font style="font-size: 8pt"><u>Range
of Lives</u></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0 5.6pt 0 0; text-align: center"><font style="font-size: 8pt"><u>in
Years</u></font></p></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3"><p style="font: 9pt Times New Roman, Times, Serif; margin: 0 5.6pt 0 0; text-align: center"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0 5.6pt 0 0; text-align: center"><font style="font-size: 8pt"><u>June
30, 2018</u></font></p></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="padding-right: 2.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%"><u>December
31, 2017</u></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 40%; padding-left: 5.4pt"><font style="font-size: 8pt; line-height: 106%">Equipment</font></td>
<td style="width: 5%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 13%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">5</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 5%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 13%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">2,032</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 5%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 13%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">2,032</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt; line-height: 106%">Furniture and fixtures</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">5</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">1,983</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">1,983</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">4,015</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">4,015</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt; line-height: 106%">Less accumulated depreciation</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(4,015</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">)</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(4,015</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 1.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">2018</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid"><p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.05in 0 0; text-align: center"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.05in 0 0; text-align: center"><font style="font-size: 8pt">2017</font></p></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="padding-right: 1.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="padding-right: 1.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%"><p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.8pt 0 0"><font style="font-size: 8pt">Unsecured note
payable dated March 8, 2016 to an individual at 5% interest, payable upon</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.8pt 0 0"><font style="font-size: 8pt">the Company’s
availability of cash</font></p></td>
<td style="width: 1%; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 8%; padding-right: 0.8pt; padding-bottom: 8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0</font></td>
<td style="width: 1%; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 8%; padding-right: 0.8pt; padding-bottom: 8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">13,500</font></td>
<td style="width: 1%; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.8pt 0 0"><font style="font-size: 8pt">Unsecured note
payable dated November 13, 2017 to a corporation at $10,000 lump</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.8pt 0 0"><font style="font-size: 8pt">sum interest
at maturity on February 28, 2018. The terms are being re-negotiated with</font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.8pt 0 0"><font style="font-size: 8pt">the noteholder.</font></p></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">100,000</font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">100,000</font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Unsecured note payable dated December 28,
2017 to a corporation, due January 3, 2018</font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; padding-bottom: 8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">53,842</font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt; line-height: 106%">Total term notes</font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; padding-bottom: 8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">100,000</font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; padding-bottom: 8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">153,842</font></td>
<td style="padding-right: 0.8pt; padding-bottom: 8pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt; line-height: 106%"><b>Commitment Date</b></font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 62%; text-align: justify"><font style="font-size: 8pt; line-height: 106%">Expected dividends</font></td>
<td style="width: 13%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 8%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 16%; text-align: center"><font style="font-size: 8pt; line-height: 106%">0%</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt; line-height: 106%">Expected volatility</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: center"><font style="font-size: 8pt; line-height: 106%">175.59%</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt; line-height: 106%">Expected term: conversion feature</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt; line-height: 106%">                           2 years</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 1.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">2018</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid"><p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.05in 0 0; text-align: center"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.05in 0 0; text-align: center"><font style="font-size: 8pt">2017</font></p></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="padding-right: 1.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="padding-right: 1.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Accrued consulting fees</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 8%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">447,280</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 8%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">249,500</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Accrued expense related to shareholder dispute</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">330,000</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Accrued expense related to warrant exercise</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">180,000</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Other accrued expenses</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">             243,334</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">12,000</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Accrued interest expense</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">20,185</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">7,260</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Total accrued expenses</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">710,799</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">778,760</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="border-bottom: black 1.5pt solid; padding-right: 2.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">2018</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="border-bottom: black 1.5pt solid; padding-right: 2.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">2017</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="padding-right: 2.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="padding-right: 2.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 78%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Current</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 8%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 8%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Deferred</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">   Total tax provision for
(benefit from) income taxes</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 1.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">2018</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 1.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">2017</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="padding-right: 1.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="padding-right: 1.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 68%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Federal statutory rate</font></td>
<td style="width: 1%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 11%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(21.0</font></td>
<td style="width: 3%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">) %</font></td>
<td style="width: 1%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 11%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(21.0</font></td>
<td style="width: 3%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">) %</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">State tax, net of federal benefit</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(0.0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">)</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(0.0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Permanent differences and other including
surtax exemption</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0.0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0.0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Temporary difference</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(15.9</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">)</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(15.9</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">) </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Valuation allowance</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">36.9</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">36.9</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Effective tax rate</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0.0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">%</font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">0.0</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">%</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 1.8pt; text-align: center"><font style="font-size: 8pt; line-height: 106%">2018</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid"><p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.05in 0 0; text-align: center"><font style="font-size: 8pt"> </font></p>
<p style="font: 9pt/106% Times New Roman, Times, Serif; margin: 0 0.05in 0 0; text-align: center"><font style="font-size: 8pt">2017</font></p></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Deferred tax assets</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="padding-right: 1.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="padding-right: 1.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 68%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Net operating loss carry forwards</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 13%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">16,524,544</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="width: 13%; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">16,403,873</font></td>
<td style="width: 1%; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Deferred compensation</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">790,360</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">821,572</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Stock based compensation</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">2,900,734</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">2,900,734</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Other</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">581,639</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">581,639</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Total</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">20,797,277</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">20,707,818</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Less valuation allowance</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(20,797,277</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">)</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">(20,707,818</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Deferred tax asset</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Deferred tax liabilities</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Depreciation and amortization</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">Net long-term deferred tax asset</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt"><font style="font-size: 8pt; line-height: 106%">$</font></td>
<td style="border-bottom: black 9pt double; padding-right: 0.8pt; text-align: right"><font style="font-size: 8pt; line-height: 106%">-</font></td>
<td style="padding-right: 0.8pt"><font style="font-size: 8pt"> </font></td></tr>
</table>
-180000
0
1600000
58316
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"><b>NOTE 7
– CONVERTIBLE PROMISSORY NOTE</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-size: 8pt"><b>May 2016 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">On May 4,
2016, the Company issued a $224,000 convertible promissory note bearing interest at 10.0% per annum to an accredited investor,
payable beginning November 10, 2016, in monthly installments of $44,800 plus accrued interest and a cash premium equal to 10.0%
of the installment amount.  The convertible promissory note was paid in full on March 4, 2017.  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.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">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 resulted 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 $224,000
based on the <i>Black-Scholes Model</i>. The discount related to the beneficial conversion feature ($51,829) was amortized over
the term of the debt (10 months).  For the year ended December 31, 2017, the Company recognized interest expense of
$9,327 related to the amortization of the discount.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">In connection
with the issuance of the $224,000 note, the Company recorded debt issue cost and discount as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 1%; font-size: 10pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 5%; font-size: 10pt"><font style="font-size: 8pt"> </font></td>
<td style="width: 94%; font-size: 10pt"><font style="font-size: 8pt">$20,000 original issue discount and $4,000 debt issue
cost, which was amortized over 10 months, with amortization of $4,000 for twelve-months ended December 31, 2017.</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 1%"><font style="font-size: 8pt"> </font></td>
<td style="width: 5%"><font style="font-size: 8pt"> </font></td>
<td style="width: 94%"><font style="font-size: 8pt">The convertible promissory note was paid in full on March 10, 2017, reducing
the embedded derivative for the 2016 beneficial conversion right to zero at December 31, 2017.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-size: 8pt"><b>September 2014 Convertible
Note </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-size: 8pt">In connection with the issuance
of a $158,000 convertible promissory note in 2014 (repaid in July 2015), the Company issued warrants to purchase shares of common
stock.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-size: 8pt"> </font></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><font style="font: 8pt Symbol">·</font></td><td style="padding-right: 0.8pt"><font style="font-size: 8pt">Warrants
– recorded at fair value ($79,537) upon issuance, and marked -to-market on the
balance sheet at $58,317 as of June 30, 2018 and $47,149 as of December 31, 2017, which
was computed as follows:</font></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> </font></td>
<td><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 8pt"><b>Commitment Date</b></font></td>
<td><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 64%; text-align: justify"><font style="font-size: 8pt">Expected dividends</font></td>
<td style="width: 13%"><font style="font-size: 8pt"> </font></td>
<td style="width: 7%"><font style="font-size: 8pt"> </font></td>
<td style="width: 15%; text-align: center"><font style="font-size: 8pt">0%</font></td>
<td style="width: 1%"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 8pt">Expected volatility</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td><font style="font-size: 8pt"> </font></td>
<td style="text-align: center"><font style="font-size: 8pt">175.59%</font></td>
<td><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 8pt">Expected term: conversion feature</font></td>
<td><font style="font-size: 8pt"> </font></td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt">                           2 years</font></td>
<td><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-size: 8pt">  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-size: 8pt">There was a controversy with the
lender regarding the number of shares that would be issued with wa</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-size: 8pt">A controversy and litigation between
the lender and the Company emerged regarding the number of warrants attached to the loan agreement. The parties reached a settlement
whereby the Company issued 1,600,000 shares of freely-tradable stock to the lender. As a result of the settlement, all of the
remaining balance sheet amounts relating to the promissory note were eliminated in the quarter ended June 30, 2018.  The
Company recorded Settlement Expense in the amount of $208,000 and Gain on Exchange in Fair Value of Derivative in the amount of
$58,316.</font></p>