<table>
<tbody><tr style="vertical-align: bottom">
    <td><font style="color: Black">&nbsp;</font></td><td style="font-weight: bold"><font style="color: Black">&nbsp;</font></td>
    <td colspan="7" style="font-weight: bold; text-align: center"><font style="color: Black">Three months Ended</font></td>
    </tr>
<tr style="vertical-align: bottom">
    <td><font style="color: Black">&nbsp;</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="color: Black">March
    31, <br>2015</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="color: Black">March
    31, <br>2014</font></td>
    </tr>
<tr style="vertical-align: bottom">
    <td><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td colspan="3"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td colspan="3"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="width: 46%; text-align: justify"><font style="color: Black">Net sales</font></td><td style="width: 5%"><font style="color: Black">&nbsp;</font></td>
    <td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 11%; text-align: right"><font style="color: Black">20,222</font></td><td style="width: 1%; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="width: 5%"><font style="color: Black">&nbsp;</font></td>
    <td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 11%; text-align: right"><font style="color: Black">24,888</font></td><td style="width: 1%; text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: White">
    <td><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; padding-bottom: 1pt"><font style="color: Black">Cost of sales</font></td><td style="padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">10,972</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">9,687</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: White">
    <td><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; padding-bottom: 1pt"><font style="color: Black">Gross profit</font></td><td style="padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">9,250</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">15,201</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: White">
    <td><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify"><font style="color: Black">Operating expenses:</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify"><font style="color: Black">&nbsp;&nbsp;General and administrative expenses</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">134,967</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">105,791</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; padding-bottom: 1pt"><font style="color: Black">&nbsp;&nbsp;Impairment of assets</font></td><td style="padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—&nbsp;&nbsp;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—&nbsp;&nbsp;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: White">
    <td><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; padding-bottom: 1pt"><font style="color: Black">Total operating expenses</font></td><td style="padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">134,967</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">105,971</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: White">
    <td><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; padding-bottom: 1pt"><font style="color: Black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations</font></td><td style="padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(125,517</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td><td style="padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(90,590</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: White">
    <td><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify"><font style="color: Black">Other income (expense):</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify"><font style="color: Black">&nbsp;&nbsp;Interest</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">16</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">12</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify"><font style="color: Black">&nbsp;&nbsp;Amortization of debt discount</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">(21,831</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">—&nbsp;&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify"><font style="color: Black">&nbsp;&nbsp;Interest expense</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">(8,777</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">(16,899</font></td><td style="text-align: left"><font style="color: Black">)</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify"><font style="color: Black">&nbsp;&nbsp;Loss on valuation of derivatives</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">(118,497</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">—&nbsp;&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; padding-bottom: 1pt"><font style="color: Black">&nbsp;&nbsp;Settlement expense</font></td><td style="padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(7,020</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td><td style="padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(333,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; padding-bottom: 1pt"><font style="color: Black">Total other income (expense)</font></td><td style="padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(156,109</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td><td style="padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(349,887</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left"><font style="color: Black">Loss from operations before provision for income taxes</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">(281,826</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">(440,477</font></td><td style="text-align: left"><font style="color: Black">)</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; padding-bottom: 1pt"><font style="color: Black">Provision for income taxes</font></td><td style="padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—&nbsp;&nbsp;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="padding-bottom: 1pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—&nbsp;&nbsp;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: left; padding-bottom: 2.5pt"><font style="color: Black">Net loss</font></td><td style="padding-bottom: 2.5pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="color: Black">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="color: Black">(281,826</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="color: Black">)</font></td><td style="padding-bottom: 2.5pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="color: Black">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="color: Black">(440,477</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="color: Black">)</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: White">
    <td><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify; padding-bottom: 2.5pt"><font style="color: Black">&nbsp;&nbsp;Basic and diluted loss per common
    share</font></td><td style="padding-bottom: 2.5pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="color: Black">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="color: Black">(0.00</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="color: Black">)</font></td><td style="padding-bottom: 2.5pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="color: Black">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="color: Black">(1.34</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="color: Black">)</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: White">
    <td><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: Silver">
    <td style="text-align: justify"><font style="color: Black">Weighted average shares outstanding</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">&nbsp;</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td>
    </tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify"><font style="color: Black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">111,684,629</font></td><td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td><font style="color: Black">&nbsp;</font></td>
    <td style="text-align: left"><font style="color: Black">&nbsp;</font></td><td style="text-align: right"><font style="color: Black">329,143</font></td><td style="text-align: left"><font style="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><font>March
    31, <br/>2015</font></td><td><font> </font></td>
<td><font>March
    31, <br/>2014</font></td>
</tr>
<tr>
<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 sales</font></td><td><font> </font></td>
<td><font>$</font></td><td><font>20,222</font></td><td><font> </font></td><td><font> </font></td>
<td><font>$</font></td><td><font>24,888</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>Cost of sales</font></td><td><font> </font></td>
<td><font> </font></td><td><font>10,972</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>9,687</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>Gross profit</font></td><td><font> </font></td>
<td><font> </font></td><td><font>9,250</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>15,201</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>Operating expenses:</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>  General and administrative expenses</font></td><td><font> </font></td>
<td><font> </font></td><td><font>134,967</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>105,791</font></td><td><font> </font></td>
</tr>
<tr>
<td><font>  Impairment of assets</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>Total operating expenses</font></td><td><font> </font></td>
<td><font> </font></td><td><font>134,967</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>105,971</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>     Loss from operations</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(125,517</font></td><td><font>)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(90,590</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>Other income (expense):</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</font></td><td><font> </font></td>
<td><font> </font></td><td><font>16</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>12</font></td><td><font> </font></td>
</tr>
<tr>
<td><font>  Amortization of debt discount</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(21,831</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 expense</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(8,777</font></td><td><font>)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(16,899</font></td><td><font>)</font></td>
</tr>
<tr>
<td><font>  Loss on valuation of derivatives</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(118,497</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>  Settlement expense</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(7,020</font></td><td><font>)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(333,000</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>Total other income (expense)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(156,109</font></td><td><font>)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(349,887</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>Loss from operations before provision for income taxes</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(281,826</font></td><td><font>)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(440,477</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>Provision for income taxes</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>$</font></td><td><font>(281,826</font></td><td><font>)</font></td><td><font> </font></td>
<td><font>$</font></td><td><font>(440,477</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>  Basic and diluted loss per common
    share</font></td><td><font> </font></td>
<td><font>$</font></td><td><font>(0.00</font></td><td><font>)</font></td><td><font> </font></td>
<td><font>$</font></td><td><font>(1.34</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>Weighted average shares outstanding</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>     Basic and diluted</font></td><td><font> </font></td>
<td><font> </font></td><td><font>111,684,629</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>329,143</font></td><td><font> </font></td>
</tr>
</tbody></table>