<table>
<tbody><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="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><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; background-color: Silver">
    <td style="text-align: left"><font style="color: Black">Cash flows from operating activities:</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="width: 56%; text-align: justify"><font style="color: Black">Net loss</font></td><td style="width: 8%"><font style="color: Black">&nbsp;</font></td>
    <td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">(440,477</font></td><td style="width: 1%; text-align: left"><font style="color: Black">)</font></td><td style="width: 8%"><font style="color: Black">&nbsp;</font></td>
    <td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">(440,477</font></td><td style="width: 1%; 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">Adjustments to reconcile net loss to net <br>&nbsp;&nbsp;&nbsp;cash
    provided by (used in) operating activities:</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;Amortization of intangibles</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">541</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">541</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: left"><font style="color: Black">&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discounts</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">&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;&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;Settlement 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;&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">330,000</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: left"><font style="color: Black">&nbsp;&nbsp;&nbsp;Loss on valuation of derivative liabilities</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">&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;&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><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">Changes in assets and liabilities:</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;Decrease in accounts receivable</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">2,425</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">12,582</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;(Increase) decrease&nbsp;in inventories</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">(8,260</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">2,635</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;(Increase) decrease in prepaid 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">2,337</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">(213</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;&nbsp;Increase in accounts payable and accrued liabilities</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">27,086</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">19,041</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;&nbsp;Increase in amounts due
    to related parties</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">52,389</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">57,628</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: justify; padding-bottom: 1pt"><font style="color: Black">Net cash (used in) operating activities</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">(57,960</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">(15,263</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">Cash flows from financing activities:</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">&nbsp;&nbsp;&nbsp;Proceeds from common stock subscriptions</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">38,391</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;&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;Proceeds from new
    debt issued</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">133,750</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">29,669</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 style="text-align: justify; padding-bottom: 1pt"><font style="color: Black">Net cash (used in) financing activities</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">172,141</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">29,669</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><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"><font style="color: Black">Net increase in cash and cash equivalents</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">114,181</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">14,406</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">Cash and cash equivalents at beginning of
    period</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">99,407</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">101,323</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 style="text-align: justify; padding-bottom: 2.5pt"><font style="color: Black">Cash and cash equivalents at end of period</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">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="color: Black">213,588</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="padding-bottom: 2.5pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="color: Black">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="color: Black">115,729</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="color: Black">&nbsp;</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><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">During the period, cash was paid for the following:</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: 2.5pt"><font style="color: Black">&nbsp;&nbsp;&nbsp;Taxes paid</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">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="color: Black">—&nbsp;&nbsp;</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="padding-bottom: 2.5pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="color: Black">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="color: Black">—&nbsp;&nbsp;</font></td><td style="padding-bottom: 2.5pt; 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;&nbsp;Interest paid</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">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="color: Black">—&nbsp;&nbsp;</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="color: Black">&nbsp;</font></td><td style="padding-bottom: 2.5pt"><font style="color: Black">&nbsp;</font></td>
    <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="color: Black">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="color: Black">—&nbsp;&nbsp;</font></td><td style="padding-bottom: 2.5pt; 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>Cash flows from operating activities:</font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>Net loss</font></td><td><font> </font></td>
<td><font>$</font></td><td><font>(440,477</font></td><td><font>)</font></td><td><font> </font></td>
<td><font>$</font></td><td><font>(440,477</font></td><td><font>)</font></td></tr>
<tr>
<td><font>Adjustments to reconcile net loss to net <br/>   cash
    provided by (used in) operating activities:</font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>     Amortization of intangibles</font></td><td><font> </font></td>
<td><font> </font></td><td><font>541</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>541</font></td><td><font> </font></td></tr>
<tr>
<td><font>    Amortization of debt discounts</font></td><td><font> </font></td>
<td><font> </font></td><td><font>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>     Settlement 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>330,000</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>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> </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>2,425</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>12,582</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>(8,260</font></td><td><font>)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>2,635</font></td><td><font> </font></td></tr>
<tr>
<td><font>   (Increase) decrease in prepaid expenses</font></td><td><font> </font></td>
<td><font> </font></td><td><font>2,337</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>(213</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>27,086</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>19,041</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>52,389</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>57,628</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>(57,960</font></td><td><font>)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(15,263</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>29,669</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>29,669</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>114,181</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>14,406</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>$</font></td><td><font>213,588</font></td><td><font> </font></td><td><font> </font></td>
<td><font>$</font></td><td><font>115,729</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>