<table>
<tbody><tr style="vertical-align: bottom">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="6" style="padding-right: 0.2in; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Six months ended</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="6" style="padding-right: 0.2in; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Three months ended</b></font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td colspan="2" style="border-bottom: black 1pt solid">
        <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30, </b></p>
        <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2014</b></p></td>
    <td style="text-align: center; line-height: 115%">&nbsp;</td>
    <td style="text-align: center; line-height: 115%">&nbsp;</td>
    <td colspan="2" style="border-bottom: black 1pt solid">
        <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30,</b></p>
        <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2013</b></p></td>
    <td style="text-align: center; line-height: 115%">&nbsp;</td>
    <td style="text-align: center; line-height: 115%">&nbsp;</td>
    <td colspan="2" style="border-bottom: Black 1pt solid">
        <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 4.4pt 0 0; text-align: center"><b>June 30,</b></p>
        <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 4.4pt 0 0; text-align: center"><b>2014</b></p></td>
    <td style="text-align: center; line-height: 115%">&nbsp;</td>
    <td style="text-align: center; line-height: 115%">&nbsp;</td>
    <td colspan="2" style="border-bottom: Black 1pt solid">
        <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 1.8pt 0 0; text-align: center"><b>June 30,</b></p>
        <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 1.8pt 0 0; text-align: center"><b>2013</b></p></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-top: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-top: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td colspan="2" style="line-height: 115%">&nbsp;</td>
    <td style="border-top: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-top: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td colspan="2" style="line-height: 115%">&nbsp;</td>
    <td style="border-top: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-top: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td colspan="2" style="line-height: 115%">&nbsp;</td>
    <td style="border-top: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-top: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td colspan="2" style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 44%; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net sales</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 12%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">55,828</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 10%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">84,324</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">30,940</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">40,857</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Cost of sales</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">21,992</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">21,245</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,305</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,119</font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Gross profit</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">33,836</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">63,079</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">18,635</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">28,738</font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Operating expenses:</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;General and administrative expenses</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">207,316</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">208,292</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">101,525</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">102,149</font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;Impairment of assets</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total operating expenses</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">207,316</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">208,292</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">101,525</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">102,149</font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(173,480</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(145,213</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(82,890</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(73,411</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Other income (expense):</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;Interest</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">24</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">135</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">59</font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;Amortization of debt discount</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(3,125</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(3,125</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">) </font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;Interest expense</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(30,879</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(18,932</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(13,980</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(9,878</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;Settlement expense</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(424,575</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(91,575</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total other income (expense)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(458,555</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(18,797</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(108,668</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(9,819</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from operations before provision for income taxes</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(632,035</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(164,010</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(191,558</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(83,230</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Provision for income taxes</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net loss</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(632,035</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(164,010</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1.5pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(191,558</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1.5pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(83,230</font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;Basic and diluted loss per common share</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.00</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.00</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1.5pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.00</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: Black 1.5pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: Black 1.5pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.00</font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Weighted average shares outstanding</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,457,576,240</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,361,164,699</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,621,898,200</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,361,164,699</font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
</tbody></table>
<table>
<tbody><tr>
<td> </td>
<td> </td>
<td><font><b>Six months ended</b></font></td>
<td> </td>
<td> </td>
<td><font><b>Three months ended</b></font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td>
<p><b>June 30, </b></p>
<p><b>2014</b></p></td>
<td> </td>
<td> </td>
<td>
<p><b>June 30,</b></p>
<p><b>2013</b></p></td>
<td> </td>
<td> </td>
<td>
<p><b>June 30,</b></p>
<p><b>2014</b></p></td>
<td> </td>
<td> </td>
<td>
<p><b>June 30,</b></p>
<p><b>2013</b></p></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>Net sales</font></td>
<td> </td>
<td><font>$</font></td>
<td><font>55,828</font></td>
<td> </td>
<td> </td>
<td><font>$</font></td>
<td><font>84,324</font></td>
<td> </td>
<td> </td>
<td><font>$</font></td>
<td><font>30,940</font></td>
<td> </td>
<td> </td>
<td><font>$</font></td>
<td><font>40,857</font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>Cost of sales</font></td>
<td> </td>
<td> </td>
<td><font>21,992</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>21,245</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>12,305</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>12,119</font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>Gross profit</font></td>
<td> </td>
<td> </td>
<td><font>33,836</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>63,079</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>18,635</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>28,738</font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>Operating expenses:</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>  General and administrative expenses</font></td>
<td> </td>
<td> </td>
<td><font>207,316</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>208,292</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>101,525</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>102,149</font></td>
<td> </td></tr>
<tr>
<td><font>  Impairment of assets</font></td>
<td> </td>
<td> </td>
<td><font>-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>-</font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>Total operating expenses</font></td>
<td> </td>
<td> </td>
<td><font>207,316</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>208,292</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>101,525</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>102,149</font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>     Loss from operations</font></td>
<td> </td>
<td> </td>
<td><font>(173,480</font></td>
<td><font>)</font></td>
<td> </td>
<td> </td>
<td><font>(145,213</font></td>
<td><font>)</font></td>
<td> </td>
<td> </td>
<td><font>(82,890</font></td>
<td><font>)</font></td>
<td> </td>
<td> </td>
<td><font>(73,411</font></td>
<td><font>)</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>Other income (expense):</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>  Interest</font></td>
<td> </td>
<td> </td>
<td><font>24</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>135</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>12</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>59</font></td>
<td> </td></tr>
<tr>
<td><font>  Amortization of debt discount</font></td>
<td> </td>
<td> </td>
<td><font>(3,125</font></td>
<td><font>)</font></td>
<td> </td>
<td> </td>
<td><font>-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>(3,125</font></td>
<td><font>) </font></td>
<td> </td>
<td> </td>
<td><font>-</font></td>
<td> </td></tr>
<tr>
<td><font>  Interest expense</font></td>
<td> </td>
<td> </td>
<td><font>(30,879</font></td>
<td><font>)</font></td>
<td> </td>
<td> </td>
<td><font>(18,932</font></td>
<td><font>)</font></td>
<td> </td>
<td> </td>
<td><font>(13,980</font></td>
<td><font>)</font></td>
<td> </td>
<td> </td>
<td><font>(9,878</font></td>
<td><font>)</font></td></tr>
<tr>
<td><font>  Settlement expense</font></td>
<td> </td>
<td> </td>
<td><font>(424,575</font></td>
<td><font>)</font></td>
<td> </td>
<td> </td>
<td><font>-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>(91,575</font></td>
<td><font>)</font></td>
<td> </td>
<td> </td>
<td><font>-</font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>Total other income (expense)</font></td>
<td> </td>
<td> </td>
<td><font>(458,555</font></td>
<td><font>)</font></td>
<td> </td>
<td> </td>
<td><font>(18,797</font></td>
<td><font>)</font></td>
<td> </td>
<td> </td>
<td><font>(108,668</font></td>
<td><font>)</font></td>
<td> </td>
<td> </td>
<td><font>(9,819</font></td>
<td><font>)</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>Loss from operations before provision for income taxes</font></td>
<td> </td>
<td> </td>
<td><font>(632,035</font></td>
<td><font>)</font></td>
<td> </td>
<td> </td>
<td><font>(164,010</font></td>
<td><font>)</font></td>
<td> </td>
<td> </td>
<td><font>(191,558</font></td>
<td><font>)</font></td>
<td> </td>
<td> </td>
<td><font>(83,230</font></td>
<td><font>)</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>Provision for income taxes</font></td>
<td> </td>
<td> </td>
<td><font>-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>Net loss</font></td>
<td> </td>
<td><font>$</font></td>
<td><font>(632,035</font></td>
<td><font>)</font></td>
<td> </td>
<td><font>$</font></td>
<td><font>(164,010</font></td>
<td><font>)</font></td>
<td> </td>
<td><font>$</font></td>
<td><font>(191,558</font></td>
<td><font>)</font></td>
<td> </td>
<td><font>$</font></td>
<td><font>(83,230</font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>  Basic and diluted loss per common share</font></td>
<td> </td>
<td><font>$</font></td>
<td><font>(0.00</font></td>
<td><font>)</font></td>
<td> </td>
<td><font>$</font></td>
<td><font>(0.00</font></td>
<td><font>)</font></td>
<td> </td>
<td><font>$</font></td>
<td><font>(0.00</font></td>
<td> </td>
<td> </td>
<td><font>$</font></td>
<td><font>(0.00</font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>Weighted average shares outstanding</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>     Basic and diluted</font></td>
<td> </td>
<td> </td>
<td><font>3,457,576,240</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>1,361,164,699</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>3,621,898,200</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>1,361,164,699</font></td>
<td> </td></tr>
</tbody></table>