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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">1. </font></div>
</td>
<td align="left" width="75%" valign="top">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Business and Significant Accounting Policies</font></div>
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<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">The Company</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">DC Brands International, Inc. (“DC Brands” or the “Company”) was incorporated under the laws of Colorado in 1998 as Telemerge Holding Corp. and changed its name to DC Brands International, Inc. in 2004.  The Company’s current focus is on providing financial and other services to the Colorado marijuana industry. From inception until the first half of 2013, DC Brands’ main focus has been on  the manufacture, marketing and distribution of health related products that utilize natural botanicals, vitamins, minerals and supplements and are aimed at maximizing the full potential of the body.    The Company’s focus during the first half of 2013 was the sale of products under its H.A.R.D. Nutrition label. During the second half of the year the Company’s focus was shifted to its joint venture tea business and a  restructuring of the Company. </font></div>
<div style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> In April 2014 the Company announced a new focus, to become a financing provider and service provider to the growing Colorado marijuana industry. DC Brands, through its newly formed, 80% owned subsidiary, DC Brands Green Investments, LLC intends to provide accounting, security, compliance, payroll processing and tax payment services to fully licensed Colorado medical and recreational marijuana businesses.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Financial Condition</font></div>
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serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The Company has incurred significant losses and negative cash flows since its inception.   In addition, the Company had negative working capital (current assets less current liabilities) at June 30, 2014.  These factors raise substantial doubt about the Company’s ability to continue as a going concern.  The financial statements do not include any adjustments that might result from the outcome of these uncertainties.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Basis of Presentation</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">These statements reflect all normal recurring adjustments, which, in the opinion of management, are necessary for the fair presentation of financial position, results of operations and cash flows for the periods presented. The accompanying financial statements should be read in conjunction with DC Brands’ consolidated financial statements for the years ended December 31, 2013 and 2012 filed in the Company’s Annual Report on Form 10K dated December 31, 2013, which includes all disclosures required by accounting principles generally accepted in the United States of America, or GAAP. The results of operations for the periods ended June 30, 2013 and 2012 are not necessarily indicative of expected operating results for the full year.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Principles of Consolidation</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries DC Nutrition, Inc. and DC Brands, LLC (inactive) as well as its 80% owned subsidiary DB Brands Green Investments, LLC.  All material intercompany transactions and balances have been eliminated.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Credit
Risk and Customer Concentrations</font></div>
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<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Credit risk represents the accounting loss that would be recognized at the reporting date if counterparties failed completely to perform as contracted. Concentrations of credit risk (whether on or off balance sheet) that arise from financial instruments exist for groups of customers or counterparties when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions.  Financial instruments potentially subjecting the Company to concentrations of credit risk consist principally of accounts receivable.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">As of June 30, 2014 the Company had one receivable from a client of its 80% owned subsidiary and it is current.  As of December 31, 2013 there were no accounts receivable.</font></div>
<div style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Fair Value of Financial Instrument Estimates</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">In accordance with the reporting requirements of ASC Topic 825, Financial Instruments, the Company calculates the fair value of its assets and liabilities which qualify as financial instruments under this standard and includes this additional information in the notes to the consolidated financial statements when the fair value is different than the carrying value of those financial instruments.  The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets and liabilities measured at fair value at the consolidated balance sheet dates, nor gains or losses reported in the statements of operations that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held during the three months ended June 30, 2014 and 2013.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Recent Accounting Pronouncements</font></div>
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line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">During the period ended June 30, 2014, there were several new accounting pronouncements issued by the FASB.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Each of these pronouncements, as applicable, has been or will be adopted by the Company.  Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements.<font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font>Set forth below are the more significant pronouncements.</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">In July 2014, the FASB issued Accounting Standards Update (“ASU”) ASU No. 2014-10, <font style="font-style: italic; display: inline;">Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities </font><font style="font-style: italic; display: inline;">Guidance in Topic 810, Consolidation</font>. The amendments in this ASU remove all incremental financial reporting requirements from U.S. GAAP for development stage entities, including the removal of Topic 915, Development Stage Entities, from the FASB Accounting Standards Codification™. A development stage entity is one that devotes substantially all of its efforts to establishing a new business and for which: (a) planned principal operations have not commenced; or (b) planned principal operations have commenced, but have produced no significant revenue. Current U.S. GAAP requires a development stage entity to present the same basic financial statements and apply the same recognition and measurement rules as established companies. In addition, U.S. GAAP requires a development stage entity to present inception-to-date information about income statement line items, cash flows, and equity transactions. For public business entities, the presentation and disclosure requirements in Topic 915 will no longer be required for the first annual period beginning after December 15, 2014. The revised consolidation standards are effective one year later, in annual periods beginning after December 15, 2015. Early adoption is permitted for financial statements that have not yet been issued or made available for issuance. The Company has elected to adopt the guidance as of June 30, 2014.  The adoption did not impact the Company’s financial position or results of operations.</font></div>
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<div style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; color: #222222; font-size: 10pt;">In May 2014, the FASB issued ASU No. 2014-09, <font style="font-style: italic; display: inline;">Revenue from Contracts with Customers</font> (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein,
using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures).  We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017.</font></div>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">2.  </font></div>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Commitments and Contingencies</font></div>
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<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The Company currently has no leases or other contingencies.</font></div>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">3.  </font></div>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Notes Payable</font></div>
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<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">As of June 30, 2014 and December 31, 2013, fifty-two notes payable totaling $5,363,153, were past due.  There are no default penalties or fees that may be sanctioned against the Company for not paying the notes upon maturity.  The Company intends to restructure these notes into long-term debt or equity.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The Company settled notes payable and accrued interest payable totaling $399,534 and $133,002 during the six months ended June 30, 2014 and 2013, respectively by issuing 5,007,940,161 and 5,956,329 shares of common stock during the six months ended June 30, 2014 and 2013, respectively.  </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Transactions involving notes payable subsequent to June 30, 2014 are set forth in Note 8. Subsequent Events.</font></div>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Income Taxes</font></div>
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<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The Company has not filed tax returns since its inception.  The Company is in the process of preparing past tax returns and does not believe that it will be exposed to any risk of penalty or forfeiture of NOLs.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">At June 30, 2014 and December 31, 2013, the Company provided a full valuation allowance against any calculated deferred tax asset based on the weight of available evidence, both positive and negative, including the Company’s history of losses, which indicate that it is more likely than not that such benefits will not be realized.</font></div>
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<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Stockholders’ Equity</font></div>
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<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Issuances of Common Stock</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The Company issued common stock during the six months ended June 30, 2014 as set forth below.  The common stock was valued at the fair market value at the date the Company became obligated to issue the shares.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The Company issued 5,007,940,161 shares of common stock on forty-one different occasions during the six months ended June 30, 2014, upon partial conversion of six different notes and the partial conversion of Series E preferred stock.  The common stock value ranged from $.00015 to $.000125 per share.  The shares were collectively valued at $2,221,725. </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Preferred Stock</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The chart below details the number of preferred shares issued and conversion analysis.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant:
normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;">
<div align="left">
<table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr bgcolor="#ffffff">
<td align="left" width="28%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="#ffffff">
<td align="left" width="28%" valign="bottom" style="padding-bottom: 2px;">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Shares Issued</font></div>
</td>
<td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Series A</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Series B</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Series C</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black;
border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Series D</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Series E</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Series F</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Series G</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td align="left" width="28%" valign="bottom">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Issued as of 12/31/2013</font></div>
</td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">91,111</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">269</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,641</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">44,663</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2,776</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">5,500</font></td>
<td width="1%"
nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">151,960</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="white">
<td align="left" width="28%" valign="bottom" style="padding-bottom: 2px;">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">For conversion to debt</font></div>
</td>
<td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">(163</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">(39</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">(202</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;
text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td>
</tr>
<tr bgcolor="#cceeff">
<td align="left" width="28%" valign="bottom" style="padding-bottom: 4px;">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Issued as of 3/31/2014</font></div>
</td>
<td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">91,111</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">106</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,641</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">44,663</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2,737</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">5,500</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">151,758</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="white">
<td align="left" width="28%" valign="bottom">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">% of Common Stock convertible into</font></div>
</td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">51.25</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td>
<td align="right"
width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">7.95</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1.64</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0.00</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">8.01</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">5.50</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6.00</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">80.35</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td>
</tr>
</table>
</div>
</div>
<div style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block;"> </div>
<div align="justify" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Transactions involving common stock subsequent to June 30, 2014 are set forth in Note 8. Subsequent Events.</font></div>
<div style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px;">
<table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr>
<td align="left" width="3%" valign="top">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">6.  </font></div>
</td>
<td align="left" width="75%" valign="top">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Share Based Compensation Expense</font></div>
</td>
</tr>
</table>
</div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The Company recognizes expense associated with shares issued for services over the service period.  The shares are valued based upon the fair value of the common stock on the date that the Company becomes obligated to issue the shares.  Expenses associated with shares issued for services were zero in both the three months and six months ended June 30, 2014 and 2013.</font></div>
<div style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px;">
<table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr>
<td align="left" width="3%" valign="top">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">7.  </font></div>
</td>
<td align="left" width="75%" valign="top">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Related Party <font style="font-family: 'times new roman'; font-size: 10pt;">Transactions</font></font></div>
</td>
</tr>
</table>
</div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The Company had related party payables and note payable to former officers of $1,319,689 and $1,319,689 at June 30, 2014 and December 31, 2013, respectively consisting primarily of notes payable to former officers.  Of the $1,319,689 of related party payables, $1,000,000 was owed to Mr. Pearce in the form of a secured convertible promissory note and $319,689 was owed to Mr. Alcamo ($216,175 for deferred salary payable, $12,958 for royalties owed in accordance with the bottle cap license agreement and $90,556 in the form of an unsecured promissory note).  Richard Pearce, our former Chief Executive Officer, and Jeremy J Alcamo, our former Executive Vice President, have received a design patent in the United States (US D 576,877S) for the flip-top compartment which we currently use on our H.A.R.D. Nutrition bottles, which they had licensed to us on an exclusive basis for a fee based upon the number of products sold that contain the cap.  The royalty agreement with Richard Pearce and Jeremy Alcamo was for a term of five years and expired in January 2013 The agreement provided  that they were entitled to receive 5 cents per cap or 2 1/2 cents each for each bottle cap sold.  The bottle cap is a specialized cap that contains the vitamin supplements in the Company’s functional water system..   The related party payables are non-interest bearing and due on demand.  The 20% minority interest in DC Brands Green Investors, LLC is controlled by Robert Armstrong, the Company’s CEO & CFO.  We have 1 note payable originated in 2011 with an aggregate principal balance of $264,598 due in 2012 bearing interest at 6%. This note was issued to Cut & Dried Productions, LLC a company that Richard Pearce, the former CEO of DC Brands International, owns a majority of.</font></div>
<div style="font: 13px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;">
<table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr>
<td align="left" width="3%" valign="top">
<div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">8.  </font></div>
</td>
<td align="left" width="75%" valign="top">
<div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">Subsequent Events</font></div>
</td>
</tr>
</table>
</div>
<div align="left" style="font: 13px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></div>
<div align="left" style="font: 13px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Subsequent to June 30, 2014, the Company issued common stock as follows:</font><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><br /></font></div>
<div align="left" style="font: 13px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; -webkit-text-stroke-width: 0px;">
<div align="left">
<table style="width: 100%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr bgcolor="#ffffff">
<td align="left" width="48%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="2%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="9%" nowrap="nowrap" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="9%" nowrap="nowrap" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="9%" nowrap="nowrap" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="9%" nowrap="nowrap" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
</tr>
<tr bgcolor="#ffffff">
<td align="left" width="48%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="2%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="10%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2">
<div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Shares</font></div>
</td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="10%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2">
<div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Common Stock</font></div>
</td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="10%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2">
<div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Additional Paid<br />in Capital</font></div>
</td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="10%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2">
<div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Amount</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td align="left" width="48%" valign="bottom" style="padding-bottom: 2px;">
<div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">For conversion of debt</font></div>
</td>
<td align="left" width="2%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,041,644,596</font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,041,645</font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">-</font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,041,645</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
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<tr bgcolor="white">
<td align="left" width="48%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td align="left" width="2%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,041,644,596</font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,041,645</font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">-</font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,041,645</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"></font></td>
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<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Basis of Presentation</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">These statements reflect all normal recurring adjustments, which, in the opinion of management, are necessary for the fair presentation of financial position, results of operations and cash flows for the periods presented. The accompanying financial statements should be read in conjunction with DC Brands’ consolidated financial statements for the years ended December 31, 2013 and 2012 filed in the Company’s Annual Report on Form 10K dated December 31, 2013, which includes all disclosures required by accounting principles generally accepted in the United States of America, or GAAP. The results of operations for the periods ended June 30, 2013 and 2012 are not necessarily indicative of expected operating results for the full year.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Principles of Consolidation</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries DC Nutrition, Inc. and DC Brands, LLC (inactive) as well as its 80% owned subsidiary DB Brands Green Investments, LLC.  All material intercompany transactions and balances have been eliminated.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"><br class="apple-interchange-newline" />Credit Risk and Customer Concentrations</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Credit risk represents the accounting loss that would be recognized at the reporting date if counterparties failed completely to perform as contracted. Concentrations of credit risk (whether on or off balance sheet) that arise from financial instruments exist for groups of customers or counterparties when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions.  Financial instruments potentially subjecting the Company to concentrations of credit risk consist principally of accounts receivable.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">As of June 30, 2014 the Company had one receivable from a client of its 80% owned subsidiary and it is current.  As of December 31, 2013 there were no accounts receivable.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"><br class="apple-interchange-newline" />Fair Value of Financial Instrument Estimates</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">In accordance with the reporting requirements of ASC Topic 825, Financial Instruments, the Company calculates the fair value of its assets and liabilities which qualify as financial instruments under this standard and includes this additional information in the notes to the consolidated financial statements when the fair value is different than the carrying value of those financial instruments.  The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets and liabilities measured at fair value at the consolidated balance sheet dates, nor gains or losses reported in the statements of operations that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held during the three months ended June 30, 2014 and 2013.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">Recent Accounting Pronouncements</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">During the period ended June 30, 2014, there were several new accounting pronouncements issued by the FASB.</font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Each of these pronouncements, as applicable, has been or will be adopted by the Company.  Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements.<font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font>Set forth below are the more significant pronouncements.</font></div>
<div align="justify" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div>
<div align="left" style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">In July 2014, the FASB issued Accounting Standards Update (“ASU”) ASU No. 2014-10, <font style="font-style: italic; display: inline;">Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities </font><font style="font-style: italic; display: inline;">Guidance in Topic 810, Consolidation</font>. The amendments in this ASU remove all incremental financial reporting requirements from U.S. GAAP for development stage entities, including the removal of Topic 915, Development Stage Entities, from the FASB Accounting Standards Codification™. A development stage entity is one that devotes substantially all of its efforts to establishing a new business and for which: (a) planned principal operations have not commenced; or (b) planned principal operations have commenced, but have produced no significant revenue. Current U.S. GAAP requires a development stage entity to present the same basic financial statements and apply the same recognition and measurement rules as established companies. In addition, U.S. GAAP requires a development stage entity to present inception-to-date information about income statement line items, cash flows, and equity transactions. For public business entities, the presentation and disclosure requirements in Topic 915 will no longer be required for the first annual period beginning after December 15, 2014. The revised consolidation standards are effective one year later, in annual periods beginning after December 15, 2015. Early adoption is permitted for financial statements that have not yet been issued or made available for issuance. The Company has elected to adopt the guidance as of June 30, 2014.  The adoption did not impact the Company’s financial position or results of operations.</font></div>
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<div style="color: #000000; font-family: 'times new roman', times, serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; color: #222222; font-size: 10pt;">In May 2014, the FASB issued ASU No. 2014-09, <font style="font-style:
italic; display: inline;">Revenue from Contracts with Customers</font> (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures).  We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017.</font></div>
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<td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><br class="apple-interchange-newline" /> </font></td>
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<td width="7%" nowrap="nowrap" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="#ffffff">
<td align="left" width="28%" valign="bottom" style="padding-bottom: 2px;">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Shares Issued</font></div>
</td>
<td width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Series A</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Series B</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Series C</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black;
border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Series D</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Series E</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Series F</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Series G</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;">
<div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td align="left" width="28%" valign="bottom">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Issued as of 12/31/2013</font></div>
</td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">91,111</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">269</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,641</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">44,663</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2,776</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">5,500</font></td>
<td width="1%"
nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">151,960</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="white">
<td align="left" width="28%" valign="bottom" style="padding-bottom: 2px;">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">For conversion to debt</font></div>
</td>
<td align="left" width="1%" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">(163</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">(39</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">(202</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;
text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td>
</tr>
<tr bgcolor="#cceeff">
<td align="left" width="28%" valign="bottom" style="padding-bottom: 4px;">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Issued as of 3/31/2014</font></div>
</td>
<td align="left" width="1%" valign="bottom" style="padding-bottom: 4px;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">91,111</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">106</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,641</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">44,663</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2,737</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">5,500</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6,000</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">151,758</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
</tr>
<tr bgcolor="white">
<td align="left" width="28%" valign="bottom">
<div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">% of Common Stock convertible into</font></div>
</td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">51.25</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td>
<td align="right"
width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">7.95</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1.64</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">0.00</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">8.01</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">5.50</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">6.00</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td>
<td align="right" width="1%" valign="bottom"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td>
<td width="7%" valign="bottom" style="text-align: right;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">80.35</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">%</font></td>
</tr>
</table>
</div>
</div>
<div> </div>
<table style="width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0">
<tr bgcolor="#ffffff">
<td width="2%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><br class="apple-interchange-newline" /> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="9%" nowrap="nowrap" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="9%" nowrap="nowrap" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="9%" nowrap="nowrap" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="9%" nowrap="nowrap" valign="bottom"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
</tr>
<tr bgcolor="#ffffff">
<td align="left" width="48%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="2%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="10%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2">
<div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Shares</font></div>
</td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="10%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2">
<div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Common Stock</font></div>
</td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="10%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2">
<div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Additional Paid<br />in Capital</font></div>
</td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="10%" nowrap="nowrap" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" colspan="2">
<div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Amount</font></div>
</td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td align="left" width="48%" valign="bottom" style="padding-bottom: 2px;">
<div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">For conversion of debt</font></div>
</td>
<td align="left" width="2%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,041,644,596</font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,041,645</font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">-</font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,041,645</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
</tr>
<tr bgcolor="white">
<td align="left" width="48%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td align="left" width="2%" valign="bottom" style="padding-bottom: 2px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,041,644,596</font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,041,645</font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">-</font></td>
<td width="2%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
<td width="1%" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td>
<td width="9%" valign="bottom" style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">1,041,645</font></td>
<td width="1%" nowrap="nowrap" valign="bottom" style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td>
</tr>
</table>
0.80
5363153
5363153
133002
399534
-202
-163
-39
1041644596
0.8035
0.5125
0.0164
0.0795
0.0000
0.0550
0.0801
0.0600
0.00015
0.000125
6
0
0
1319689
1319689
319689
1000000
0.06
1
216175
12958
90556
264598
The royalty agreement with Richard Pearce and Jeremy Alcamo was for a term of five years and expired in January 2013 The agreement provided that they were entitled to receive 5 cents per cap or 2 1/2 cents each for each bottle cap sold.
P5Y
35000
-9432946
-9792493
9000
9000
9000
20000
-673
50000
675000
20000
0.20
1041645
1041645
1041644596
1041645
1041645
5956329
5007940161
2221725
5007940161
675000000
-39
675000
-675000