<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="border-bottom: black 1pt solid; 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></tr>
<tr style="vertical-align: bottom">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="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: right; 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>2013</b></p></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">Cash flows from operating activities:</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="2" style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="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: White">
    <td style="width: 72%; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net loss</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">$</font></td>
    <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(632,035</font></td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(164,010</font></td>
    <td style="width: 1%; 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-family: Times New Roman, Times, Serif">Adjustments to
    reconcile net loss to net cash provided by (used in) operating activites:</font></td>
    <td style="line-height: 115%"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%; padding-left: 10pt"><font style="font-family: Times New Roman, Times, Serif">Depreciation and
    amortization</font></td>
    <td style="line-height: 115%"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font-family: Times New Roman, Times, Serif">1,083</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="line-height: 115%"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font-family: Times New Roman, Times, Serif">2,343</font></td>
    <td style="line-height: 115%"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></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">&nbsp; &nbsp;&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">&nbsp; 3,125</font></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="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp; -</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;&nbsp;&nbsp;&nbsp;Settlement 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">424,575</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">-</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></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">Changes in assets and liabilities:</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></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;Decrease in accounts receivable</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">9,636</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">22,290</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;&nbsp; Decrease (increase)&nbsp;in inventories</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">2,646</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">(9,077</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;&nbsp; Decrease in prepaid 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">357</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">1,282</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;&nbsp; Increase in accounts payable and accrued liabilities</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">26,235</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">22,741</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;&nbsp; Increase in amounts due to related parties</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">115,991</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">113,356</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;&nbsp;(Decrease) in deferred maintenance contracts</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">(500</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">Net cash (used in) operating activities</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">(48,387</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">(11,575</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></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">Cash flows from financing activities:</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></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;&nbsp;&nbsp;Proceeds from new debt issued</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">54,669</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%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;</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">Net cash provided by financing activities</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">54,669</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%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;</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></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">Net increase (decrease) in cash and cash equivalents</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">6,282</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">(11,575</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="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Cash and cash equivalents at beginning of period</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">101,323</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">140,139</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">Cash and cash equivalents at end of period</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">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">107,605</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</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">128,564</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></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></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">During the period, cash was paid for the following:</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></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;Taxes paid</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">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;-</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</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">&nbsp;-</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;&nbsp;Interest paid</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">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;-</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</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">&nbsp;-</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></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></tr>
<tr>
<td><font>Cash flows from operating activities:</font></td>
<td> </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></tr>
<tr>
<td><font>Adjustments to
    reconcile net loss to net cash provided by (used in) operating activites:</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>Depreciation and
    amortization</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>2,343</font></td>
<td><font> </font></td></tr>
<tr>
<td><font>     Amortization of debt discount</font></td>
<td> </td>
<td> </td>
<td><font>  3,125</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>  -</font></td>
<td> </td></tr>
<tr>
<td><font>     Settlement expense</font></td>
<td> </td>
<td> </td>
<td><font>424,575</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></tr>
<tr>
<td><font>Changes in assets and liabilities:</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>    Decrease in accounts receivable</font></td>
<td> </td>
<td> </td>
<td><font>9,636</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>22,290</font></td>
<td> </td></tr>
<tr>
<td><font>    Decrease (increase) in inventories</font></td>
<td> </td>
<td> </td>
<td><font>2,646</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>(9,077</font></td>
<td><font>)</font></td></tr>
<tr>
<td><font>    Decrease in prepaid expenses</font></td>
<td> </td>
<td> </td>
<td><font>357</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>1,282</font></td>
<td> </td></tr>
<tr>
<td><font>    Increase in accounts payable and accrued liabilities</font></td>
<td> </td>
<td> </td>
<td><font>26,235</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>22,741</font></td>
<td> </td></tr>
<tr>
<td><font>    Increase in amounts due to related parties</font></td>
<td> </td>
<td> </td>
<td><font>115,991</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>113,356</font></td>
<td> </td></tr>
<tr>
<td><font>   (Decrease) in deferred maintenance contracts</font></td>
<td> </td>
<td> </td>
<td><font>-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>(500</font></td>
<td><font>)</font></td></tr>
<tr>
<td><font>Net cash (used in) operating activities</font></td>
<td> </td>
<td> </td>
<td><font>(48,387</font></td>
<td><font>)</font></td>
<td> </td>
<td> </td>
<td><font>(11,575</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></tr>
<tr>
<td><font>Cash flows from financing activities:</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>    Proceeds from new debt issued</font></td>
<td> </td>
<td> </td>
<td><font>54,669</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>-</font></td>
<td><font> </font></td></tr>
<tr>
<td><font>Net cash provided by financing activities</font></td>
<td> </td>
<td> </td>
<td><font>54,669</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>-</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></tr>
<tr>
<td><font>Net increase (decrease) in cash and cash equivalents</font></td>
<td> </td>
<td> </td>
<td><font>6,282</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>(11,575</font></td>
<td><font>)</font></td></tr>
<tr>
<td><font>Cash and cash equivalents at beginning of period</font></td>
<td> </td>
<td> </td>
<td><font>101,323</font></td>
<td> </td>
<td> </td>
<td> </td>
<td><font>140,139</font></td>
<td> </td></tr>
<tr>
<td><font>Cash and cash equivalents at end of period</font></td>
<td> </td>
<td><font>$</font></td>
<td><font>107,605</font></td>
<td> </td>
<td> </td>
<td><font>$</font></td>
<td><font>128,564</font></td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>During the period, cash was paid for the following:</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr>
<td><font>   Taxes paid</font></td>
<td> </td>
<td><font>$</font></td>
<td><font> -</font></td>
<td> </td>
<td> </td>
<td><font>$</font></td>
<td><font> -</font></td>
<td> </td></tr>
<tr>
<td><font>   Interest paid</font></td>
<td> </td>
<td><font>$</font></td>
<td><font> -</font></td>
<td> </td>
<td> </td>
<td><font>$</font></td>
<td><font> -</font></td>
<td> </td></tr>
</tbody></table>