<table>
<tbody><tr style="vertical-align: bottom">
    <td><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 10pt; color: Black">Three
    months Ended</font></td></tr>
<tr style="vertical-align: bottom">
    <td><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>March
                                         31,</b></font></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>2016</b></font></p></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>March
                                         31,</b></font></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>2015</b></font></p></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">Cash flows from operating activities:</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="width: 56%; text-align: justify"><font style="font-size: 10pt; color: Black">Net loss</font></td><td style="width: 8%"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="font-size: 10pt; color: Black">(200,463</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black">)</font></td><td style="width: 8%"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="font-size: 10pt; color: Black">(281,826</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify"><font style="font-size: 10pt; color: Black">Adjustments to reconcile net loss to net cash
    provided by (used in) operating activities:</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; text-indent: 10pt"><font style="font-size: 10pt; color: Black">Amortization of intangibles</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">541</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">541</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; text-indent: 10pt"><font style="font-size: 10pt; color: Black">Amortization of debt discounts</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">4,341</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">21,831</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; text-indent: 10pt"><font style="font-size: 10pt; color: Black">Settlement expense</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">11,468</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">7,020</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; text-indent: 10pt"><font style="font-size: 10pt; color: Black">Loss on valuation of derivative
    liabilities</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">79,925</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">118,497</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify"><font style="font-size: 10pt; color: Black">Changes in assets and liabilities:</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; text-indent: 10pt"><font style="font-size: 10pt; color: Black">Decrease in accounts receivable</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">1,111</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">2,425</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; text-indent: 10pt"><font style="font-size: 10pt; color: Black">(Increase)&nbsp;in inventories</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">(2,982</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">)</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">(8,260</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; text-indent: 10pt"><font style="font-size: 10pt; color: Black">Decrease in prepaid expenses</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">1,007</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">2,337</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; text-indent: 10pt"><font style="font-size: 10pt; color: Black">Increase in accounts payable
    and accrued liabilities</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">16,922</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">27,086</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; text-indent: 10pt"><font style="font-size: 10pt; color: Black">Increase in amounts due to
    related parties</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">55,222</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">52,389</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: left; text-indent: 10pt; padding-left: 10pt"><font style="font-size: 10pt; color: Black">Net cash (used
    in) operating activities</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">(32,908</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">(57,960</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify"><font style="font-size: 10pt; color: Black">Cash flows from financing activities:</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; text-indent: 10pt"><font style="font-size: 10pt; color: Black">Proceeds from common stock
    subscriptions</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">—&nbsp;&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">38,391</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; text-indent: 10pt"><font style="font-size: 10pt; color: Black">Proceeds from new debt issued</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">—&nbsp;&nbsp;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">133,750</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; text-indent: 10pt; padding-left: 10pt"><font style="font-size: 10pt; color: Black">Net cash (used
    in) financing activities</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">—&nbsp;&nbsp;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">172,141</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify"><font style="font-size: 10pt; color: Black">Net increase (decrease) in cash and cash equivalents</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">(32,908</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">)</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">114,181</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 10pt; color: Black">Cash and cash equivalents
    at beginning of period</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">134,727</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">99,407</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 10pt; color: Black">Cash and cash equivalents
    at end of period</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 10pt; color: Black">101,819</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 10pt; color: Black">213,588</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify"><font style="font-size: 10pt; color: Black">During the period, cash was paid for the following:</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; text-indent: 10pt"><font style="font-size: 10pt; color: Black">Taxes paid</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 10pt; color: Black">—&nbsp;&nbsp;</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 10pt; color: Black">—&nbsp;&nbsp;</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; text-indent: 10pt"><font style="font-size: 10pt; color: Black">Interest paid</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 10pt; color: Black">—&nbsp;&nbsp;</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 10pt; color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 10pt; color: Black">—&nbsp;&nbsp;</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 10pt; color: Black">&nbsp;</font></td></tr>
</tbody></table>
<table>
<tbody><tr>
<td><font> </font></td><td><font> </font></td>
<td><font>Three
    months Ended</font></td></tr>
<tr>
<td><font> </font></td><td><font> </font></td>
<td><p><font><b>March
                                         31,</b></font></p> <p><font><b>2016</b></font></p></td><td><font> </font></td>
<td><p><font><b>March
                                         31,</b></font></p> <p><font><b>2015</b></font></p></td></tr>
<tr>
<td><font>Cash flows from operating activities:</font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>Net loss</font></td><td><font> </font></td>
<td><font>$</font></td><td><font>(200,463</font></td><td><font>)</font></td><td><font> </font></td>
<td><font>$</font></td><td><font>(281,826</font></td><td><font>)</font></td></tr>
<tr>
<td><font>Adjustments to reconcile net loss to net cash
    provided by (used in) operating activities:</font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>Amortization of intangibles</font></td><td><font> </font></td>
<td><font> </font></td><td><font>541</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>541</font></td><td><font> </font></td></tr>
<tr>
<td><font>Amortization of debt discounts</font></td><td><font> </font></td>
<td><font> </font></td><td><font>4,341</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>21,831</font></td><td><font> </font></td></tr>
<tr>
<td><font>Settlement expense</font></td><td><font> </font></td>
<td><font> </font></td><td><font>11,468</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>7,020</font></td><td><font> </font></td></tr>
<tr>
<td><font>Loss on valuation of derivative
    liabilities</font></td><td><font> </font></td>
<td><font> </font></td><td><font>79,925</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>118,497</font></td><td><font> </font></td></tr>
<tr>
<td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>Changes in assets and liabilities:</font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>Decrease in accounts receivable</font></td><td><font> </font></td>
<td><font> </font></td><td><font>1,111</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>2,425</font></td><td><font> </font></td></tr>
<tr>
<td><font>(Increase) in inventories</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(2,982</font></td><td><font>)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(8,260</font></td><td><font>)</font></td></tr>
<tr>
<td><font>Decrease in prepaid expenses</font></td><td><font> </font></td>
<td><font> </font></td><td><font>1,007</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>2,337</font></td><td><font> </font></td></tr>
<tr>
<td><font>Increase in accounts payable
    and accrued liabilities</font></td><td><font> </font></td>
<td><font> </font></td><td><font>16,922</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>27,086</font></td><td><font> </font></td></tr>
<tr>
<td><font>Increase in amounts due to
    related parties</font></td><td><font> </font></td>
<td><font> </font></td><td><font>55,222</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>52,389</font></td><td><font> </font></td></tr>
<tr>
<td><font>Net cash (used
    in) operating activities</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(32,908</font></td><td><font>)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(57,960</font></td><td><font>)</font></td></tr>
<tr>
<td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>Cash flows from financing activities:</font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>Proceeds from common stock
    subscriptions</font></td><td><font> </font></td>
<td><font> </font></td><td><font>—  </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>38,391</font></td><td><font> </font></td></tr>
<tr>
<td><font>Proceeds from new debt issued</font></td><td><font> </font></td>
<td><font> </font></td><td><font>—  </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>133,750</font></td><td><font> </font></td></tr>
<tr>
<td><font>Net cash (used
    in) financing activities</font></td><td><font> </font></td>
<td><font> </font></td><td><font>—  </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>172,141</font></td><td><font> </font></td></tr>
<tr>
<td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>Net increase (decrease) in cash and cash equivalents</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(32,908</font></td><td><font>)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>114,181</font></td><td><font> </font></td></tr>
<tr>
<td><font>Cash and cash equivalents
    at beginning of period</font></td><td><font> </font></td>
<td><font> </font></td><td><font>134,727</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>99,407</font></td><td><font> </font></td></tr>
<tr>
<td><font>Cash and cash equivalents
    at end of period</font></td><td><font> </font></td>
<td><font>$</font></td><td><font>101,819</font></td><td><font> </font></td><td><font> </font></td>
<td><font>$</font></td><td><font>213,588</font></td><td><font> </font></td></tr>
<tr>
<td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>During the period, cash was paid for the following:</font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>Taxes paid</font></td><td><font> </font></td>
<td><font>$</font></td><td><font>—  </font></td><td><font> </font></td><td><font> </font></td>
<td><font>$</font></td><td><font>—  </font></td><td><font> </font></td></tr>
<tr>
<td><font>Interest paid</font></td><td><font> </font></td>
<td><font>$</font></td><td><font>—  </font></td><td><font> </font></td><td><font> </font></td>
<td><font>$</font></td><td><font>—  </font></td><td><font> </font></td></tr>
</tbody></table>