<table>
<tbody><tr style="vertical-align: bottom">
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black"><b>Six
    months Ended</b></font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom">
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></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"><font style="color: Black"><b>June
        30,</b></font></p>
        <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="color: Black"><b>2015</b></font></p></td>
    <td style="text-align: right; line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="color: Black">&nbsp;</font></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"><font style="color: Black"><b>June
        30,</b></font></p>
        <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="color: Black"><b>2014</b></font></p></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">Cash flows from operating
    activities:</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td colspan="2" style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td colspan="2" style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="width: 72%; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">Net
    loss</font></td>
    <td style="width: 1%; line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">$</font></td>
    <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">(506,534</font></td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">)</font></td>
    <td style="width: 1%; line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">$</font></td>
    <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">(632,035</font></td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><font style="color: Black">Adjustments
        to reconcile net loss to net</font></p>
        <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><font style="color: Black">&nbsp;&nbsp;&nbsp;cash
        provided by (used in) operating activities:</font></p></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
    of intangibles</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">1,083</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">1,083</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp; &nbsp;&nbsp;&nbsp;Amortization
    of debt discounts</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">55,318</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">3,125</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement
    expense</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">58,874</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">424,575</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp; &nbsp;&nbsp;Loss
    on valuation of derivative liabilities</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">134,474</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;
    -</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></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; color: Black">Changes
    in assets and liabilities:</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;&nbsp;&nbsp;&nbsp;Decrease
    in accounts receivable</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">2,206</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">9,636</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></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; color: Black">&nbsp;&nbsp;
    (Increase) decrease&nbsp;in inventories</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">(10,937</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">)</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">2,646</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;&nbsp;&nbsp;
    Decrease in prepaid expenses</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">3,367</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">357</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></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; color: Black">&nbsp;&nbsp;&nbsp;
    Increase in accounts payable and accrued liabilities</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">62,336</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">26,235</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;&nbsp;
    &nbsp;Increase in amounts due to related parties</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">105,455</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">115,991</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></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; color: Black">Net
    cash (used in) operating activities</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">(94,358</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">)</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">(48,387</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></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; color: Black">Cash
    flows from financing activities:</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp; &nbsp;&nbsp;Proceeds
    from common stock subscriptions</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">38,391</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;
    -</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></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; color: Black">&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
    from new debt issued</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">133,750</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">54,669</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">Net
    cash (used in) financing activities</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">172,141</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">54,669</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">Net
    increase in cash and cash equivalents</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">77,783</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">6,282</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></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; color: Black">Cash
    and cash equivalents at beginning of period</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">99,407</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">101,323</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">Cash
    and cash equivalents at end of period</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">177,190</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">$</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; color: Black">107,605</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></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; color: Black">During
    the period, cash was paid for the following:</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;&nbsp;&nbsp;Taxes
    paid</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;-</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">$</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; color: Black">&nbsp;-</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></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; color: Black">&nbsp;&nbsp;&nbsp;Interest
    paid</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;-</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">$</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; color: Black">&nbsp;-</font></td>
    <td style="line-height: 115%"><font style="color: Black">&nbsp;</font></td></tr>
</tbody></table>
<table>
<tbody><tr>
<td><font> </font></td>
<td><font> </font></td>
<td><font><b>Six
    months Ended</b></font></td>
<td><font> </font></td></tr>
<tr>
<td><font> </font></td>
<td><font> </font></td>
<td><p><font><b>June
        30,</b></font></p>
<p><font><b>2015</b></font></p></td>
<td><font> </font></td>
<td><font> </font></td>
<td><p><font><b>June
        30,</b></font></p>
<p><font><b>2014</b></font></p></td>
<td><font> </font></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></tr>
<tr>
<td><font>Net
    loss</font></td>
<td><font> </font></td>
<td><font>$</font></td>
<td><font>(506,534</font></td>
<td><font>)</font></td>
<td><font> </font></td>
<td><font>$</font></td>
<td><font>(632,035</font></td>
<td><font>)</font></td></tr>
<tr>
<td><p><font>Adjustments
        to reconcile net loss to net</font></p>
<p><font>   cash
        provided by (used in) operating activities:</font></p></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>1,083</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>1,083</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>55,318</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>3,125</font></td>
<td><font> </font></td></tr>
<tr>
<td><font>     Settlement
    expense</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>58,874</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>424,575</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>134,474</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> </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>2,206</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>9,636</font></td>
<td><font> </font></td></tr>
<tr>
<td><font>  
    (Increase) decrease in inventories</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>(10,937</font></td>
<td><font>)</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>2,646</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>3,367</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>357</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>62,336</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>26,235</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>105,455</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>115,991</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>(94,358</font></td>
<td><font>)</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>(48,387</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>38,391</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 new debt issued</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>133,750</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>54,669</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>172,141</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>54,669</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 in cash and cash equivalents</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>77,783</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>6,282</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>99,407</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>101,323</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>$</font></td>
<td><font>177,190</font></td>
<td><font> </font></td>
<td><font> </font></td>
<td><font>$</font></td>
<td><font>107,605</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> </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>