0001670869
2020-01-01
2020-06-30
0001670869
2021-07-17
0001670869
2020-06-30
0001670869
2019-12-31
0001670869
2020-04-01
2020-06-30
0001670869
2019-04-01
2019-06-30
0001670869
2019-01-01
2019-06-30
0001670869
2018-12-31
0001670869
2019-06-30
0001670869
RMHB:SeriesAPreferredMember
2020-06-30
0001670869
RMHB:SeriesAPreferredMember
2019-12-31
0001670869
RMHB:SeriesBPreferredMember
2020-06-30
0001670869
RMHB:SeriesBPreferredMember
2019-12-31
0001670869
RMHB:SeriesCPreferredMember
2020-06-30
0001670869
RMHB:SeriesCPreferredMember
2019-12-31
0001670869
RMHB:SeriesDPreferredMember
2020-06-30
0001670869
RMHB:SeriesDPreferredMember
2019-12-31
0001670869
RMHB:SeriesEPreferredMember
2020-06-30
0001670869
RMHB:SeriesEPreferredMember
2019-12-31
0001670869
RMHB:SeriesFPreferredMember
2020-06-30
0001670869
RMHB:SeriesFPreferredMember
2019-12-31
0001670869
RMHB:SeriesGPreferredMember
2020-06-30
0001670869
RMHB:SeriesGPreferredMember
2019-12-31
0001670869
RMHB:SeriesHPreferredMember
2020-06-30
0001670869
RMHB:SeriesHPreferredMember
2019-12-31
0001670869
us-gaap:CommonStockMember
2020-04-01
2020-06-30
0001670869
us-gaap:CommonStockMember
2020-03-31
0001670869
us-gaap:CommonStockMember
2020-06-30
0001670869
us-gaap:PreferredStockMember
2020-04-01
2020-06-30
0001670869
us-gaap:PreferredStockMember
2020-03-31
0001670869
us-gaap:PreferredStockMember
2020-06-30
0001670869
us-gaap:AdditionalPaidInCapitalMember
2020-04-01
2020-06-30
0001670869
us-gaap:AdditionalPaidInCapitalMember
2020-03-31
0001670869
us-gaap:AdditionalPaidInCapitalMember
2020-06-30
0001670869
us-gaap:RetainedEarningsMember
2020-04-01
2020-06-30
0001670869
us-gaap:RetainedEarningsMember
2020-03-31
0001670869
us-gaap:RetainedEarningsMember
2020-06-30
0001670869
us-gaap:NoncontrollingInterestMember
2020-04-01
2020-06-30
0001670869
us-gaap:NoncontrollingInterestMember
2020-03-31
0001670869
us-gaap:NoncontrollingInterestMember
2020-06-30
0001670869
2020-03-31
0001670869
us-gaap:CommonStockMember
2019-01-01
2019-03-31
0001670869
us-gaap:CommonStockMember
2019-04-01
2019-06-30
0001670869
us-gaap:CommonStockMember
2020-01-01
2020-03-31
0001670869
us-gaap:CommonStockMember
2018-12-31
0001670869
us-gaap:CommonStockMember
2019-03-31
0001670869
us-gaap:CommonStockMember
2019-06-30
0001670869
us-gaap:CommonStockMember
2019-12-31
0001670869
us-gaap:PreferredStockMember
2019-01-01
2019-03-31
0001670869
us-gaap:PreferredStockMember
2019-04-01
2019-06-30
0001670869
us-gaap:PreferredStockMember
2020-01-01
2020-03-31
0001670869
us-gaap:PreferredStockMember
2018-12-31
0001670869
us-gaap:PreferredStockMember
2019-03-31
0001670869
us-gaap:PreferredStockMember
2019-06-30
0001670869
us-gaap:PreferredStockMember
2019-12-31
0001670869
RMHB:PreferredStockGMember
2019-01-01
2019-03-31
0001670869
RMHB:PreferredStockGMember
2019-04-01
2019-06-30
0001670869
RMHB:PreferredStockGMember
2020-01-01
2020-03-31
0001670869
RMHB:PreferredStockGMember
2020-04-01
2020-06-30
0001670869
RMHB:PreferredStockGMember
2018-12-31
0001670869
RMHB:PreferredStockGMember
2019-03-31
0001670869
RMHB:PreferredStockGMember
2019-06-30
0001670869
RMHB:PreferredStockGMember
2019-12-31
0001670869
RMHB:PreferredStockGMember
2020-03-31
0001670869
RMHB:PreferredStockGMember
2020-06-30
0001670869
RMHB:PreferredStockHMember
2019-01-01
2019-03-31
0001670869
RMHB:PreferredStockHMember
2019-04-01
2019-06-30
0001670869
RMHB:PreferredStockHMember
2020-01-01
2020-03-31
0001670869
RMHB:PreferredStockHMember
2020-04-01
2020-06-30
0001670869
RMHB:PreferredStockHMember
2018-12-31
0001670869
RMHB:PreferredStockHMember
2019-03-31
0001670869
RMHB:PreferredStockHMember
2019-06-30
0001670869
RMHB:PreferredStockHMember
2019-12-31
0001670869
RMHB:PreferredStockHMember
2020-03-31
0001670869
RMHB:PreferredStockHMember
2020-06-30
0001670869
us-gaap:AdditionalPaidInCapitalMember
2019-01-01
2019-03-31
0001670869
us-gaap:AdditionalPaidInCapitalMember
2019-04-01
2019-06-30
0001670869
us-gaap:AdditionalPaidInCapitalMember
2020-01-01
2020-03-31
0001670869
us-gaap:AdditionalPaidInCapitalMember
2018-12-31
0001670869
us-gaap:AdditionalPaidInCapitalMember
2019-03-31
0001670869
us-gaap:AdditionalPaidInCapitalMember
2019-06-30
0001670869
us-gaap:AdditionalPaidInCapitalMember
2019-12-31
0001670869
us-gaap:RetainedEarningsMember
2019-01-01
2019-03-31
0001670869
us-gaap:RetainedEarningsMember
2019-04-01
2019-06-30
0001670869
us-gaap:RetainedEarningsMember
2020-01-01
2020-03-31
0001670869
us-gaap:RetainedEarningsMember
2018-12-31
0001670869
us-gaap:RetainedEarningsMember
2019-03-31
0001670869
us-gaap:RetainedEarningsMember
2019-06-30
0001670869
us-gaap:RetainedEarningsMember
2019-12-31
0001670869
RMHB:TotalRMHBShareholdersDeficitMember
2019-01-01
2019-03-31
0001670869
RMHB:TotalRMHBShareholdersDeficitMember
2019-04-01
2019-06-30
0001670869
RMHB:TotalRMHBShareholdersDeficitMember
2020-01-01
2020-03-31
0001670869
RMHB:TotalRMHBShareholdersDeficitMember
2020-04-01
2020-06-30
0001670869
RMHB:TotalRMHBShareholdersDeficitMember
2018-12-31
0001670869
RMHB:TotalRMHBShareholdersDeficitMember
2019-03-31
0001670869
RMHB:TotalRMHBShareholdersDeficitMember
2019-06-30
0001670869
RMHB:TotalRMHBShareholdersDeficitMember
2019-12-31
0001670869
RMHB:TotalRMHBShareholdersDeficitMember
2020-03-31
0001670869
RMHB:TotalRMHBShareholdersDeficitMember
2020-06-30
0001670869
us-gaap:NoncontrollingInterestMember
2019-01-01
2019-03-31
0001670869
us-gaap:NoncontrollingInterestMember
2019-04-01
2019-06-30
0001670869
us-gaap:NoncontrollingInterestMember
2020-01-01
2020-03-31
0001670869
us-gaap:NoncontrollingInterestMember
2018-12-31
0001670869
us-gaap:NoncontrollingInterestMember
2019-03-31
0001670869
us-gaap:NoncontrollingInterestMember
2019-06-30
0001670869
us-gaap:NoncontrollingInterestMember
2019-12-31
0001670869
2019-01-01
2019-03-31
0001670869
2020-01-01
2020-03-31
0001670869
2019-03-31
0001670869
2019-04-01
2019-04-22
0001670869
2019-01-01
2019-12-31
0001670869
srt:MinimumMember
2020-01-01
2020-06-30
0001670869
srt:MaximumMember
2020-01-01
2020-06-30
0001670869
RMHB:GHSNotePayableMember
2020-04-01
2020-06-30
0001670869
RMHB:GHSNotePayableMember
2019-01-01
2019-12-31
0001670869
RMHB:GHSNotePayableMember
2020-06-30
0001670869
RMHB:GHSNotePayableMember
srt:MinimumMember
2020-04-01
2020-06-30
0001670869
RMHB:GHSNotePayableMember
srt:MaximumMember
2020-04-01
2020-06-30
0001670869
RMHB:EagleEquitiesNotePayableMember
2020-04-01
2020-06-30
0001670869
RMHB:EagleEquitiesNotePayableMember
2019-01-01
2019-12-31
0001670869
RMHB:EagleEquitiesNotePayableMember
2020-06-30
0001670869
RMHB:EagleEquitiesNotePayableMember
srt:MinimumMember
2020-04-01
2020-06-30
0001670869
RMHB:EagleEquitiesNotePayableMember
srt:MaximumMember
2020-04-01
2020-06-30
0001670869
RMHB:LSWNotePayableMember
2020-01-01
2020-06-30
0001670869
RMHB:LSWNotePayableMember
2019-01-01
2019-12-31
0001670869
RMHB:LSWNotePayableMember
2020-06-30
0001670869
RMHB:LSWNotePayableTwoMember
2020-04-01
2020-06-30
0001670869
RMHB:NonInterestNotesMember
2020-06-30
0001670869
RMHB:NonInterestNotesMember
2019-12-31
0001670869
2018-12-28
0001670869
2020-01-30
0001670869
2019-12-01
2019-12-31
0001670869
2020-06-01
2020-06-30
0001670869
RMHB:MasterManufacturingAgreementMember
2017-12-01
2017-12-31
0001670869
RMHB:MasterManufacturingAgreementMember
2020-06-01
2020-06-30
0001670869
RMHB:MasterManufacturingAgreementMember
2019-12-01
2019-12-31
0001670869
RMHB:CBDLifeMember
2018-12-01
2018-12-31
0001670869
RMHB:CBDLifeMember
2020-01-01
2020-01-31
0001670869
RMHB:CBDLifeMember
2020-01-01
2020-06-30
0001670869
RMHB:OptimusFulfillMember
2019-01-31
0001670869
RMHB:OptimusFulfillMember
2019-01-01
2019-12-31
0001670869
RMHB:SeriesCPreferredMember
2020-01-01
2020-06-30
0001670869
RMHB:SeriesDPreferredMember
2020-01-01
2020-06-30
0001670869
RMHB:SeriesEPreferredMember
2020-06-30
0001670869
RMHB:SeriesEPreferredMember
2019-12-31
0001670869
RMHB:SeriesEPreferredMember
2020-01-01
2020-06-30
0001670869
RMHB:SeriesFPreferredMember
2020-06-30
0001670869
RMHB:SeriesFPreferredMember
2019-12-31
0001670869
RMHB:SeriesFPreferredMember
2019-12-20
0001670869
RMHB:SeriesFPreferredMember
2019-12-01
2019-12-20
0001670869
RMHB:SeriesFPreferredMember
2020-01-01
2020-06-30
0001670869
RMHB:SeriesGPreferredMember
2020-06-30
0001670869
RMHB:SeriesGPreferredMember
2019-12-31
0001670869
RMHB:SeriesGPreferredMember
2020-01-01
2020-06-30
0001670869
RMHB:SeriesGPreferredMember
2019-12-20
0001670869
RMHB:SeriesGPreferredMember
2019-12-01
2019-12-20
0001670869
RMHB:SeriesHPreferredMember
2020-02-25
0001670869
RMHB:SeriesHPreferredMember
2020-02-01
2020-02-25
0001670869
RMHB:SeriesHPreferredMember
2019-12-31
0001670869
RMHB:SeriesHPreferredMember
2020-06-30
0001670869
RMHB:SeriesHPreferredMember
2020-01-01
2020-06-30
0001670869
RMHB:WarrantsMember
2020-01-01
2020-06-30
0001670869
RMHB:WarrantsMember
2020-06-30
0001670869
RMHB:WarrantsMember
2019-12-31
0001670869
RMHB:WarrantsMember
2019-01-01
2019-12-31
0001670869
RMHB:WarrantsMember
srt:MinimumMember
2019-12-31
0001670869
RMHB:WarrantsMember
srt:MaximumMember
2019-12-31
0001670869
RMHB:WarrantsMember
srt:MinimumMember
2020-06-30
0001670869
RMHB:WarrantsMember
srt:MaximumMember
2020-06-30
0001670869
RMHB:OptionsMember
2020-01-01
2020-06-30
0001670869
RMHB:OptionsMember
2019-01-01
2019-06-30
0001670869
RMHB:RMHBMember
2019-07-01
2019-07-31
0001670869
RMHB:RMHBMember
2019-07-31
0001670869
RMHB:SweetAllyMember
2019-07-01
2019-07-31
0001670869
RMHB:SweetAllyMember
2019-07-31
0001670869
RMHB:SweetRockMember
2020-01-01
2020-06-30
0001670869
RMHB:LargeCustomerOneMember
2020-01-01
2020-06-30
0001670869
RMHB:LargeCustomerTwoMember
2020-01-01
2020-06-30
0001670869
RMHB:LargeCustomerOneMember
2019-01-01
2019-06-30
0001670869
RMHB:LargeCustomerTwoMember
2019-01-01
2019-06-30
0001670869
RMHB:OriginalOifficeLeaseMember
2016-09-01
0001670869
RMHB:AmendedOfficeLeaseMember
2019-09-05
0001670869
RMHB:AmendedOfficeLeaseTwoMember
2020-02-28
0001670869
RMHB:DenverColoradoLeaseMember
2018-01-18
0001670869
RMHB:DenverColoradoLeaseMember
2018-01-01
2018-01-18
0001670869
RMHB:DenverColoradoLeaseMember
2020-01-01
2020-01-18
0001670869
2019-09-30
0001670869
2017-12-31
0001670869
RMHB:USCorporateTaxRateCurrentMember
2020-01-01
2020-06-30
0001670869
RMHB:USCorporateTaxRatePreciousMember
2020-01-01
2020-06-30
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
10-Q
false
2020-06-30
Q2
2020
--12-31
Rocky Mountain High Brands, Inc.
0001670869
No
Non-accelerated Filer
true
true
false
false
409977163
0.001
0.001
0.001
0.001
0.001
0.001
0.001
0.001
0.001
0.001
0.001
0.001
0.001
0.001
0.001
0.001
0.001
0.001
0.001
0.001
12806154
12801154
1000000
1000000
7000000
7000000
2000000
2000000
2000000
2000000
789474
789474
1680
1680
10000
500
789474
789474
1680
1680
1680
10000
10000
10000
5000
5000
10
10
330
130
10000
11
0.001
0.001
1000000000
1000000000
284451184
137914630
284451184
137914630
0
0
32240
53606
147386
196704
14474
466300
80751
18162
150039
238035
1105610
174726
1287889
499003
2136017
19342
1408367
13008
11593
14606
4843866
545959
1262740
1143217
971142
1008950
180100
30000
115737
96134
510696
445925
771391
413678
1200
1200
10
284451
137915
40482224
37528496
-42734969
-40285145
-1968294
-2618724
-3627
-3627
-1971921
-2622351
-702555
-925910
156550
284451
38043720
40482224
-41264767
-42734969
-3627
-3627
-3068124
94581
104170
108980
137915
10
34221215
35404015
35913891
37528496
-35018351
-36281611
-36948781
-40285145
-702555
-773426
-925910
-2618724
-3064497
-1968294
-3627
-773426
4843866
545959
6815787
3168310
782932
669489
36572
113001
80194
959338
742258
38854
114584
-176406
-72769
-2282
-1583
1832303
1248234
696846
1653486
69104
24442
158985
368375
-1901407
-1272676
858831
2021861
-2007813
-1345445
-858113
-2023444
260418
108863
339368
632754
74164
-689991
-230840
37429
15894
-390520
195063
-2815835
-1470202
-667170
-1930430
-1470202
-667170
-1470202
-1263260
-667170
-979622
-1263260
-667170
-979622
-1470202
-1263260
-979622
-2815835
-1470202
-667170
-1930430
-0.01
-0.01
-0.01
-0.02
142225592
1569700
106076970
102934
-1470202
1930430
511750
110209
622367
357713
195063
-689991
1678
20482
14773
6738
12029
-228905
-966692
-238945
13058
49432
-12922
68188
-223267
-1301422
2045372
-3226720
201523
1139173
1781905
1500249
-154675
-545123
32240
123455
613686
68563
10387
9976
188870
271189
367500
-30840
3003912
-1397960
1828820
367500
1007000
573382
-6424
156549700
284451184
330
94580869
104169609
108979991
137914630
130
10000
11
12437084
9976484
1750000
2315980
12437084
12437084
98980
17529
9976
89004
1750
2316
12437
169592
15213
195963
171342
17529
208400
98980
171342
208400
802700
22250000
25403
802700
802700
511750
22250
489500
25
803
3976
15251
4001
16054
511750
4001
16054
500000
500000
-10000
500000
500
-10
490
490
4985286
4895
93010
97905
97905
150000
3225
150
3075
3225
7813337
2480932
200
11
122127
7813
2491
1009233
119636
211000
1017046
122127
211000
1017046
211000
600000
15600
600
15000
15600
27000000
540000
27000
513000
540000
50000000
1000000
50000
980000
1000000
17500000
387500
17500
370000
387500
425000
9350
425
8925
9350
7530
7530
7530
367500
367500
367500
3470
3
-3
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b>NOTE 1
– General</b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.35pt 0 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">Rocky Mountain High Brands, Inc. (“RMHB”
or the “Company”) was incorporated under the laws of the State of Nevada. On July 17, 2014, the Company changed its name from
Republic of Texas Brands Incorporated to Totally Hemp Crazy, Inc and on October 23, 2015, the Company changed its name to Rocky Mountain
High Brands, Inc.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.45pt 0 0"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">RMHB currently operates through its parent company,
three wholly owned subsidiaries, two majority-owned subsidiaries, and one minority-owned subsidiary, which the Company controls. All subsidiaries
are consolidated for financial reporting purposes.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.2pt 0 0"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">RMHB is a consumer goods company that specializes
in the developing, manufacturing, marketing, and distributing high-quality, health conscious, hemp oil and hemp extract-infused products
that span various categories including beverage, food, fitness, skin care, and more. RMHB also markets a naturally high alkaline spring
water as part of our brand portfolio. All products comply with federal regulations on hemp products and contain 0.0% tetrahydrocannabinol
(“THC”), the psychoactive constituent of cannabis. Recently, through a newly created subsidiary of RMHB, Rocky Mountain Productions,
Inc. (“RMPI”), the Company acquired a bottling and canning facility and is now also in the business of canning both its own beverages
as well as canning beverages for other customers.  Furthermore, as a result of equipment included in the acquisition
of the facility, RMHB is also in the business of bottling hand sanitizer.  Because of the demand resulting with the COVID-19
pandemic, RMHB anticipates continuing in the bottling of hand sanitizer for the foreseeable future.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">In March 2018, the Company launched the HEMPd brand
with gummies, water soluble drops, capsules, tinctures, lotions, and salves. The Company introduced four flavors of CBD-infused waters
in 12 oz. cans in November 2018.</p>
<p style="font: 10pt/95% Calibri Light,sans-serif; margin: 0 5.8pt 0 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">In July 2018, the Company acquired the assets of BFIT
Brands, LLC and formed a new subsidiary, FitWhey Brands Inc. FitWhey marketed a line-up of five water-based protein drinks that include
caffeine and B vitamins. In August 2019, the Company suspended the production of FitWhey products.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">On June 12, 2019, the Company organized Sweet Rock,
LLC (“Sweet Rock”), a 51% owned company, with Sweet Ally, Inc. Sweet Rock will manufacture and market CBD-infused chocolate,
hard candies, and baked goods.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">On April 29, 2020, the Company formed Rocky Mountain
Productions, Inc. (“RMPI”), a wholly owned Nevada corporation. On April 30, 2020, RMPI acquired Raw Pharma, LLC (“Raw
Pharma”) for approximately $1,971,200, as adjusted by the Global Settlement Agreement, November 12, 2020. The company financed the
acquisition by assuming bank debt, collateralized by equipment issuing common stock and cash payments. The facility has the capability
to can and bottle products, including 12 oz. regular and sleek cans, 16 oz. cans, shots, and bottles.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The following shows the allocation of the purchase
price for Raw Pharma, LLC to acquired intangible assets, assumed liabilities and proforma goodwill:</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri Light; border-collapse: collapse; width: 40%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -20pt; width: 71%; color: Black; font-weight: bold; text-align: left">  <b>     Total
Purchase Price</b></td><td style="width: 10%; color: Black; font-weight: bold"><b> </b></td>
<td style="width: 1%; color: Black; font-weight: bold; text-align: left"><b> </b></td><td style="width: 18%; color: Black; font-weight: bold; text-align: right"><b>1,971,200</b></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -20pt; color: Black; font-weight: bold; text-align: left"><b>       Production
Equipment</b></td><td style="color: Black; font-weight: bold"><b> </b></td>
<td style="color: Black; font-weight: bold; text-align: left"><b> </b></td><td style="color: Black; font-weight: bold; text-align: right"><b>1,448,020</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -20pt; color: Black; font-weight: bold; text-align: left; padding-bottom: 1pt"><b>       Leasehold
Improvements</b></td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"><b> </b></td>
<td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: left"><b> </b></td><td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: right"><b>380,000</b></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-indent: -20pt; color: Black; font-weight: bold; text-align: left; padding-bottom: 2.5pt"><b>       Total
Proforma Goodwill</b></td><td style="color: Black; font-weight: bold; padding-bottom: 2.5pt"><b> </b></td>
<td style="border-bottom: Black 2.5pt double; color: Black; font-weight: bold; text-align: left"><b>$</b></td><td style="border-bottom: Black 2.5pt double; color: Black; font-weight: bold; text-align: right"><b>143,180</b></td></tr>
</table>
<p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 1.5in"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 1.5in"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 1.5in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 1.5in"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">Effective April 30, 2020, the company’s subsidiary,
Rocky Mountain Productions, Inc acquired all the assets relating and used in the acquired business for cash and 31,700,000 shares of the
company’s common stock. The results of operations since April 30, 2020, are included in financial statement. The Company will report
in the Annual Report, the balance sheet for comparison purposes as required by agreement with the Securities and Exchange Commission.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">During early 2019, the Company continued to market
its lineup of naturally flavored hemp-infused functional beverages.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The Company also bottles and distributes its naturally
high alkaline spring water under the name Eagle Spirit Spring Water.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0 5.8pt 0 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">On April 22, 2019, the reverse split of the Company’s
stock, at a ratio of one share for every 20 shares, was effective. All common stock share and per share amounts in this document reflects
this reverse split.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.25pt 0 0"><b>NOTE 2 – Summary of Significant Accounting Policies</b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.35pt 0 0"><b> </b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Basis of Presentation</i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.55pt 0 0"><i> </i></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The accompanying unaudited consolidated financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim
financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange
Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by accounting principles generally
accepted in the United States of America for annual financial statements. In the opinion of the Company’s management, the accompanying
unaudited consolidated financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present
the financial position of the Company as of June 30, 2020, and the results of operations and cash flows for the periods presented. The
results of operations for the three months ended June 30, 2020, are not necessarily indicative of the operating results for the full fiscal
year or any future period. These unaudited consolidated financial statements should be read in conjunction with the financial statements
and related notes thereto included in the Company’s Form 10-K for the year ended December 31, 2019, filed with the SEC on July 9,
2020.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.1pt 0 0"> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Principles of Consolidation</i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.2pt 0 0"><i> </i></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The consolidated financial statements have been prepared
in accordance with generally accepted accounting principles in the United States. The consolidated financial statements include the accounts
of the Company, its wholly owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.4pt 0 0"> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Use of Estimates</i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.1pt 0 0"><i> </i></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The preparation of the financial statements in conformity
with Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements
and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Certain
of the Company’s estimates could be affected by external conditions, including those unique to its industry, and general economic
conditions. It is possible that these external factors could have an effect on the Company’s estimates that could cause actual results
to differ from its estimates. The Company re-evaluates all its accounting estimates at least quarterly based on these conditions and record
adjustments when necessary.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b><i></i></b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Cash</i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.15pt 0 0"><i> </i></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify">The Company maintains cash balances at various financial
institutions. At times, these balances may exceed federally insured limits.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="background-color: white"><b><i>Restricted
Cash</i></b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="background-color: white">The Company classifies
any cash that is legally restricted as to its withdrawal or usage as restricted cash.</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The following table provides a reconciliation of cash
and restricted cash reported on the consolidated balance sheets to the total of those same amounts shown in our consolidated statements
of cash flows:</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 8pt/115% Calibri Light,sans-serif; margin: 0 0 0 5.95pt; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 70%">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri Light,sans-serif; color: Black; text-align: center"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">December 31, 2019</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2019</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">December 31, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 41%; font-family: Calibri Light,sans-serif; color: Black">Cash</td><td style="width: 3%; font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="width: 10%; font-family: Calibri Light,sans-serif; color: Black; text-align: right">31,245</td><td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="width: 3%; font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="width: 10%; font-family: Calibri Light,sans-serif; color: Black; text-align: right">53,606</td><td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="width: 3%; font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="width: 10%; font-family: Calibri Light,sans-serif; color: Black; text-align: right">196,704</td><td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="width: 3%; font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="width: 10%; font-family: Calibri Light,sans-serif; color: Black; text-align: right">147,386</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; padding-bottom: 1pt">Restricted cash</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">—  </td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">14,474</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">80,751</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">466,300</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; padding-bottom: 2.5pt">Cash and restricted cash</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: right">31,245</td><td style="padding-bottom: 2.5pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: right">68,080</td><td style="padding-bottom: 2.5pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: right">277,455</td><td style="padding-bottom: 2.5pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: right">613,686</td></tr>
</table>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.25pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Accounts Receivable and Allowance for Doubtful Accounts
Receivable</i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0 0 0 6pt; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.4pt 0 0; text-align: justify">The Company has a policy of reserving for
uncollectible accounts based on the best estimate of the amount of probable credit losses in our existing accounts receivable. We extend
credit to customers based on an evaluation of their financial condition and other factors. The Company generally does not require collateral
or other security to support accounts receivable and perform ongoing credit evaluations of customers and maintain an allowance for potential
bad debts if required.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0 0 0 6pt; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">It is determined whether an allowance for doubtful
accounts is required by evaluating specific accounts where information indicates the customers may have an inability to meet financial
obligations. In these cases, <font style="letter-spacing: -0.3pt">we</font> use assumptions and judgment, based on the best available
facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount
expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated
are analyzed to determine the total amount of the allowance. The Company may also record a general allowance, as necessary.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.1pt 0 0"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">Direct write-offs are taken in the period when we
have exhausted our efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate the collectability
of receivables.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0 0 0 6pt; text-align: justify"> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Inventories</i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i> </i></b>Inventories, which consist only
of the Company’s finished products held for resale, are stated at the lower of cost, determined using the first-in, first-out, and
net realizable value. Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to
dispose of the product.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">If the Company identifies excess, obsolete, or unsalable
items, its inventories are written down to their realizable value in the period in which the impairment is first identified. Shipping
and handling costs incurred for inventory purchases and product shipments are recorded in cost of sales in the Company’s statements
of operations.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">  </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Fair Value Measurements</i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify">The Company adopted the provisions of ASC Topic 820, “Fair
Value Measurements and Disclosures,” which defines fair value as used in numerous accounting pronouncements, establishes a framework
for measuring fair value and expands disclosure of fair value measurements.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.35pt 0 0"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The estimated fair value of certain financial instruments,
including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis,
which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short- and long-term
credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates
taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates
of returns for instruments of similar credit risk.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.4pt 0 0"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">ASC 820 defines fair value as the exchange price that
would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset
or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy,
which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
ASC 820 describes three levels of inputs that may be used to measure fair value:</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0 0 0 6pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 48px"> </td>
<td style="font: 11pt/11.45pt Calibri, Helvetica, Sans-Serif; width: 16px"><font style="font: 10pt Calibri Light,sans-serif; letter-spacing: -0.25pt">•</font></td>
<td style="font: 11pt/11.45pt Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Calibri Light,sans-serif">Level 1 — quoted prices in active markets for identical assets or liabilities.</font></td></tr>
</table>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 16px; line-height: 11.45pt"><font style="font: 10pt Calibri Light,sans-serif; letter-spacing: -0.25pt">•</font></td>
<td style="line-height: 11.45pt"><font style="font: 10pt Calibri Light,sans-serif">Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable.</font></td></tr>
</table>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 16px; line-height: 11.45pt"><font style="font: 10pt Calibri Light,sans-serif; letter-spacing: -0.25pt">•</font></td>
<td style="line-height: 11.45pt"><font style="font: 10pt Calibri Light,sans-serif">Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions).</font></td></tr>
</table>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The derivative liability, which relates to the conversion
feature of convertible debt and common stock warrants and options, is classified as a Level 3 liability, and is the only financial liability
measure at fair value on a recurring basis.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The change in the Level 3 financial instrument is
as follows:</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0 0 0 6pt; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri Light; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 79%; color: Black">Balance, December 31, 2019</td><td style="width: 2%; color: Black"> </td>
<td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 18%; color: Black; text-align: right">413,678</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black">Issued during the three months ended June 30, 2020</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">357,719</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black">Exercises/Conversions</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">—  </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left; padding-bottom: 1pt">Change in fair value recognized in operations</td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">—  </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; padding-bottom: 2.5pt">Balance, June 30, 2020</td><td style="color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">771,391</td></tr>
</table>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.4pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The estimated
fair value of the derivative instruments was valued using the Black-Scholes option pricing model, using the following assumptions as
of March 31, 2020:</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri Light; border-collapse: collapse; width: 40%">
<tr style="vertical-align: bottom">
<td style="color: Black">Estimated Dividends</td><td style="color: Black"> </td>
<td colspan="2" style="color: Black; text-align: right">None</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 67%; color: Black; text-align: left">Expected Volatility</td><td style="width: 2%; color: Black"> </td>
<td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 30%; color: Black; text-align: right">145.0%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left">Risk Free Interest Rate</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">0.041%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; text-align: left">Expected term</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">.1 to 1.5 years</font></td></tr>
</table>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.2pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b><i>Property
and Equipment</i></b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0"><font style="font-size: 10pt; color: Black"><i> </i></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">Property
and equipment is stated at cost less accumulated depreciation. Depreciation is provided for on a straight-line basis over the useful
lives of the assets, which generally range from three to five years. Expenditures for additions and improvements are capitalized; repairs
and maintenance are expensed as incurred.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0 5.9pt 0 0"><font style="font-size: 10pt; color: Black"><b><i>Leases</i></b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0 5.9pt 0 11.95pt"><font style="font-size: 10pt; color: Black"><i> </i></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">On January
1, 2020, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”)
2016-02, <i>Leases (Topic 842)</i>, as amended, which requires a lessee to recognize on the balance sheet a right-of-use asset, representing
its right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. The
guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing and uncertainty of cash flows arising
from leases. Upon adoption, the Company did not have any leases that would require recognition on its consolidated balance sheet.</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b><i>Capitalized
Software</i></b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0 5.9pt 0 0"><font style="font-size: 10pt; color: Black"><i> </i></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">Direct
costs related to software development, including coding, website application development, infrastructure development and graphics development,
are capitalized and included in other assets. Amortization is provided for on a straight-line basis over the useful life of the software.
Costs related to planning, content development, and operating and maintaining software are expensed as incurred.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.5pt 0 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b><i>Impairment
of Long-Lived Assets</i></b></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.25pt 0 0"><font style="font-size: 10pt; color: Black"><i> </i></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The Company
evaluates intangible assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not
be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flow and recognizes an impairment
loss when the estimated undiscounted future cash flow expected to result from the use of the asset plus the net proceeds expected from
disposition of the asset, if any, are less than the carrying value of the asset. When the Company identifies an impairment, it reduces
the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate,
to comparable market values. No impairment charges were recorded during the three months ended June 30, 2020, and 2019.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b><i> </i></b></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b><i>Share-based
Payments</i></b></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.2pt 0 0"><font style="font-size: 10pt; color: Black"><i> </i></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">Share-based
payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements
based on their fair values, in accordance with FASB ASC Topic 718. That expense is recognized over the period during which an employee
is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period). The Company
had no common stock options or common stock equivalents granted or outstanding for all periods presented.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.05pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The Company
issued restricted stock to consultants and employees for various services. Cost for these transactions is measured at the fair value
of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The value of
the common stock is to be measured at the earlier of (i) the date at which a firm commitment for performance by the counterparty to earn
the equity instruments is reached or (ii) the date at which the counterparty's performance is complete.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.05pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.05pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.05pt 0 0"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b><i>Convertible
Instruments</i></b></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0 0 0 11.9pt; text-align: justify"><font style="font-size: 10pt; color: Black"><b><i> </i></b></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The Company
evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging
Activities.” Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them
as freestanding derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic
characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and
risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is
not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument
with the same terms as the embedded derivative instrument would be considered a derivative instrument.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.2pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Preferred Stock</i></b></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0"><font style="font-size: 10pt; color: Black"><i> </i></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">We apply
the guidance enumerated in ASC 480 “Distinguishing Liabilities from Equity” when determining the classification and measurement
of preferred stock. Preferred shares subject to mandatory redemption (if any) are classified as liability instruments and are measured
at fair value. We classify conditionally redeemable preferred shares (if any), which includes preferred shares that feature redemption
rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within
our control, as temporary equity. At all other times, we classified our preferred shares in stockholders’ equity. Our preferred
shares do not feature any redemption rights within the holders’ control or conditional redemption features not within our control.
Accordingly, unless otherwise noted, all issuances of preferred stock are presented as a component of consolidated shareholders’
deficit.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.3pt 0 0 13.95pt"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b><i>Revenue
Recognition</i></b></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.35pt 0 0"><font style="font-size: 10pt; color: Black"><i> </i></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The Company
follows the guidance of the Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers,”
as amended. It records revenue when persuasive evidence of an arrangement exists, product delivery has occurred, the selling price to
the customer is fixed or determinable and collectability of the revenue is reasonably assured. The Company has not experienced any significant
returns from customers and accordingly, in management’s opinion, no reserve for returns has been provided. Payments received prior
to shipment of goods are recorded as deferred revenue.</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The following
table represents sales by sales channel for each of the periods:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 6pt; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri Light; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom">
<td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="6" style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: center">Three Months Ended</td></tr>
<tr style="vertical-align: bottom">
<td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: center">June 30, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 69%; color: Black">Online</td><td style="width: 2%; color: Black"> </td>
<td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 12%; color: Black; text-align: right">20,195</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td>
<td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 12%; color: Black; text-align: right">21,103</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left">Private Label</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">636,240</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">—  </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black">Distributor</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">12,224</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,421</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; padding-bottom: 1pt">Retailer</td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">830</td><td style="padding-bottom: 1pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">14,048</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; font-weight: bold; padding-bottom: 1pt">Total</td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: right">669,489</td><td style="padding-bottom: 1pt; color: Black; font-weight: bold; text-align: left"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: right">36,572</td></tr>
</table>
<p style="font: 8pt Calibri Light,sans-serif; margin: 0 0 0 6pt; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">All sales
for all periods presented were to domestic customers, except private label sales of $80,194 for the three months ended June 30, 2020.
These private label sales were to CBD Life, S.A. (“CBD Life”) of Mexico. All sales to CBD Life are delivered to Laredo, Texas,
where the customer takes title.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.35pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">Due to
the nature of the Company’s revenue from contracts with customers, the Company does not have material contract assets or liabilities
that fall under the scope of ASC 606.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.4pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The Company’s
revenues accounted for under ASC 606, generally, do not require significant estimates or judgments based on the nature of the Company’s
revenue streams. The sales prices are generally fixed at the point of sale and all consideration from contracts is included in the transaction
price. The Company’s contracts do not include multiple performance obligations or material variable consideration.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">In June 2020, the Company produced and delivered 146,880
cans of Rocket High, California Limonada, and California Te Negro branded product to CBD Life. In July 2020 the customer informed the
Company that numerous cans of the delivered product were leaking. The Company agreed to replace the entire production run at its own expense
and accrued related costs of $68,648 as of June 30, 2020. The production-related costs, including start-up costs and production overruns,
were approximately $109,000. The customer has not requested, and the Company has not offered, any refund of the sales amount or to provide
any other consideration to the customer. The $80,194 sales amount is included in sales for the three months ended June 30, 2020.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 0 6pt; text-align: justify"><font style="font-size: 10pt; color: Black">  </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b><i>Advertising</i></b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.5pt 0 0"><font style="font-size: 10pt; color: Black"><i> </i></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">Advertising
and marketing expenses are charged to operations as incurred.</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.5pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b><i>Income
Taxes</i></b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0"><font style="font-size: 10pt; color: Black"><i> </i></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The Company
uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under
this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred
tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements
or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a
change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance
is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is
more likely than not some portion or all the deferred tax assets will not be realized.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.2pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">ASC Topic
740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes
a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties,
accounting in interim periods, disclosure, and transition. The Company has no material uncertain tax positions.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black; background-color: white"><b><i>Reclassifications</i></b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify; color: #222222"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black; background-color: white">Certain
reclassifications have been made to prior year consolidated financial statements to conform to classifications used in the current
year.</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b>NOTE 3
– Going Concern</b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.05pt 0 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The accompanying financial statements have been prepared
on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
As of June 30, 2020, the Company has a shareholders’ deficit of $1,207,165 and an accumulated deficit of $42,471,932 and has generated
operating losses since inception. These factors, among others, raise substantial doubt about the ability of the Company to continue as
a going concern. The Company’s continuation as a going concern is dependent upon its ability to generate revenues and its ability
to continue raising capital.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0 5.7pt 0 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0 5.7pt 0 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0 5.7pt 0 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The Company has historically funded its operations
with sales of equity and debt securities. The COVID-19 pandemic of 2020 has added uncertainty into the financial markets that the Company
relies on for its operating and investment funding. It is unclear how long, or to what extent, the pandemic will impact the Company in
2020 and beyond. On April 30, 2020, the Company purchased certain assets of Raw Pharma, LLC (“Raw Pharma”) and agreed to sublease
Raw Pharma’s production facility. Management believes its Securities Purchase Agreement dated December 20, 2019, with GHS Investments,
LLC (“GHS”), along with bridge financing from GHS or other sources, will provide sufficient funds to make up for any operating
cash flows.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The Company’s business has been adversely affected
by the instability, disruption, and quarantine restrictions caused by the recent COVID-19 pandemic. The COVID-19 pandemic may cause customers
to suspend their decisions on ordering our products, make it impossible to attend or sponsor trade shows or other conferences in which
our products are presented to distributors, customers and potential customers, for our customers to visit our physical location, and give
rise to sudden significant changes in regional and global economic conditions and cycles that could interfere with purchases of goods,
or commitments to develop new brands and private label products.</p>
<p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">Significant disruptions to communications and travel,
including travel restrictions and other protective quarantine measures against COVID-19 by governmental agencies, have increased the difficulty
in delivering goods to our customers and could ultimately make such deliveries impossible. Travel restrictions and protective measures
against COVID-19 could cause us to incur additional unexpected labor costs and expenses or could restrain our ability to retain the highly
skilled personnel we need for our operations.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0">The COVID-19 pandemic has added uncertainty to the financial markets that
the Company relies on for its operating and investment funding. It has also negatively impacted the Company’s ability to meet its
external financial reporting deadlines.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b>NOTE 4
– Inventory</b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">Inventory
consists of the following:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0.35pt 0 0.05pt"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri Light; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom">
<td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: center">December 31, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 69%; color: Black; text-align: left">Finished inventory</td><td style="width: 2%; color: Black"> </td>
<td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 12%; color: Black; text-align: right">51,591</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td>
<td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 12%; color: Black; text-align: right">160,763</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left; padding-bottom: 1pt">Raw materials and packaging</td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">98,349</td><td style="padding-bottom: 1pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">77,272</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; font-weight: bold; padding-bottom: 1pt">Total</td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: right">149,940</td><td style="padding-bottom: 1pt; color: Black; font-weight: bold; text-align: left"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: right">238,035</td></tr>
</table>
<p style="font: 10pt Calibri, Helvetica, Sans-Serif; margin: 0"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>NOTE
5 – Prepaid Expenses and Other Current Assets</b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.05pt 0 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">Prepaid expenses
and other current assets consist of the following:</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.5pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom">
<td style="color: Black"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">December 31, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 69%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">Prepaid officers’ compensation</td><td style="width: 2%; font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="width: 12%; font-family: Calibri Light,sans-serif; color: Black; text-align: right">—  </td><td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="width: 2%; font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="width: 12%; font-family: Calibri Light,sans-serif; color: Black; text-align: right">143,233</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">Prepaid production</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">12,500</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">—  </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; padding-bottom: 1pt">Other prepaid expenses and current assets</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">1,093,110</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">31,493</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt">Total</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: right">1,105,610</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: right">174,726</td></tr>
</table>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.2pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b>NOTE 7
– Intangible Assets</b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.05pt 0 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">Intangible
assets consist of capitalized software. For the three months ended June 30, 2020, and 2019, amortization expense was $2,601 and $2,601,
respectively. </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b>NOTE 8
– Accounts Payable and Accrued Liabilities</b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.45pt 0 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">Accounts payable
and accrued liabilities consist of the following:</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.5pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom">
<td style="color: Black"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">December 31, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 69%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">Accounts payable</td><td style="width: 2%; font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="width: 12%; font-family: Calibri Light,sans-serif; color: Black; text-align: right">458,904</td><td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="width: 2%; font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="width: 12%; font-family: Calibri Light,sans-serif; color: Black; text-align: right">440,788</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">Accrued compensation</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">—  </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">51,500</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">Common stock payable</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">396,850</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">417,850</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; padding-bottom: 1pt">Other accrued expenses</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">406,986</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">233,079</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt">Total</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: right">1,262,740</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: right">1,143,217</td></tr></table>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b>NOTE 9
– Convertible Notes Payable</b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b> </b>Convertible
notes payable consists of the following:</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0 0 0 6pt; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 80%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>Interest
Rates</b></font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid"><p style="font: 8pt Calibri Light,sans-serif; margin: 0.1pt 0 0; text-align: center"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 8pt/106% Calibri Light,sans-serif; margin: 0; text-align: center"><font style="font-size: 10pt; color: Black"><b>Term
</b></font></p></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>Conversion
Rates</b></font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b><br />
June 30, 2020</b></font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>December
31, 2019</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 41%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">GHS Investments, LLC (fixed
conversion)</font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 7%; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">10%</font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 10%; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">.3 -
.75 years</font></td>
<td style="width: 1%; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">$</font></td>
<td style="width: 8%; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">0.01</font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">849,208</font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">1,035,750</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Calibri Light,sans-serif; color: Black">Eagle Equities, LLC</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">8%</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">1.3 – 1.5
years</font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">(a)</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">298,750</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">—  </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Calibri Light,sans-serif; color: Black">LSW Holdings, LLC (variable conversion)</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">6%</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">—  </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">(b)</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">179,000</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">179,000</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Calibri Light,sans-serif; color: Black">Discount</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">(345,048</font></td>
<td><font style="font: 10pt Calibri Light,sans-serif; color: Black">)</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">(205,800)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>Total</b></font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>981,910</b></font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>1,008,950</b></font></td></tr>
</table>
<p style="font: 8pt Calibri Light,sans-serif; margin: 0 0 0 6pt"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 21px"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 19px; line-height: 11.3pt"><font style="font: 10pt Calibri Light,sans-serif; color: Black; letter-spacing: -0.3pt">(a)</font></td>
<td style="text-align: justify; line-height: 11.3pt"><font style="font: 10pt Calibri Light,sans-serif; color: Black">Fixed
conversion rate for the first 180 days ($0.03 as of March 31, 2020). 40% discount on the lowest closing bid price during the 20 trading
days prior to conversion after 180 days.</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="line-height: 11.3pt"><font style="font: 10pt Calibri Light,sans-serif; color: Black; letter-spacing: -0.3pt">(b)</font></td>
<td style="text-align: justify; line-height: 11.3pt"><font style="font: 10pt Calibri Light,sans-serif; color: Black">50%
discount on the average of the 3 lowest closing bid prices during the 10 trading days prior to conversion ($0.019).</font></td></tr>
</table>
<p style="font: 8pt Calibri Light,sans-serif; margin: 0.35pt 6.5pt 0 6pt; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.35pt 6.5pt 0 6pt; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">For the three months ended June 30, 2020, and 2019,
interest expense on these notes, including amortization of the discount, was $135,671 and $293,189, respectively.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0 6.5pt 0 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">As of June 30, 2020, and December 31, 2019, the Company’s
derivate liability related to its convertible note’s payable was $728,976 and $403,971, respectively. </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">All tangible
and intangible assets of the Company are pledged as security.</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b>NOTE 10
– Notes Payable</b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.4pt 0 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">Notes payable
consist of the following:</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 80%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>Interest
Rate</b></font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid"><p style="font: 10pt Calibri Light,sans-serif; margin: 0.35pt 0 0; text-align: center"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt/10.1pt Calibri Light,sans-serif; margin: 0; text-align: center"><font style="font-size: 10pt; color: Black"><b><u>Term
</u></b></font></p></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>June
30, 2020</b></font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>December
31, 2019</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 33%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">Notes payable</font></td>
<td style="width: 3%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 12%; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">0%</font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 3%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 12%; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">Due</font></td>
<td style="width: 1%; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 3%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">603,382</font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 3%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">30,000</font></td></tr>
</table>
<p style="font: 10pt/11.3pt Calibri Light,sans-serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">As of
June 30, 2020, and December 31, 2019, notes payable includes two non-interest-bearing notes totaling $30,000 that originated prior to
the Company’s 2014 bankruptcy proceedings.</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b>NOTE 11
– Deferred Revenue</b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.05pt 11pt 0 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">In December 2017, the Company executed a three-year
Master Manufacturing Agreement (“MMA”) with CBD Alimentos SA de CV (“CBD-Alimentos”), a Mexican food and beverage
distributor. Under the agreement (as amended), CBD Alimentos, through its sister company, CBD Life, is our exclusive distributor in Mexico
for all our CBD-infused energy and functional beverages. In turn, <font style="letter-spacing: -0.15pt">we are</font> CBD Life’s
exclusive supplier of such products. The beverages supplied to CBD Life are private label products made to order for CBD Life. On December
24, 2018, the Company received its first purchase order under the MMA. The purchase order is for a total of 2,000,000 cans, consisting
of three flavors: Rocket High Energy Drink, California Black Tea (Te Negro), and California Lemonade (Limonada) to be delivered to CBD
Life’s facility in Laredo, Texas. Each flavor consists of a sugar and sugar-free version. Based on the pricing the Company agreed
to, the total of the purchase order is $932,600. In December 2018, the Company received a deposit of $466,300 to begin the procurement
process for packaging (aluminum can bodies, lids, labels) and raw materials (CBD and other ingredients), co-packing services, and the
Company’s contracted margin of $.05 per can. During 2019 the Company ordered, received and paid for packaging and raw materials
and contracted for co-packing services with Optimus Fulfill, a Coppell, Texas-based beverage processor. The contract with Optimus Fulfill
required the Company to make deposits of $156,000 to secure the co-packing services. These deposits were made in January 2019. Subsequent
to the Company’s payment of the deposits, Optimus Fulfill filed for bankruptcy protection. The Company received a total of $20,000
in refunds in 2019 and was forced to secure another co-packer. The lengthy lead time associated with procuring co-packing services coupled
with the normal lead times for packaging and raw materials pushed the production schedule into the last quarter of 2019. Additionally,
a change in Mexico’s Presidential administration resulted in additional scrutiny of CBD Life’s permits in November 2019. Once
these hurdles were cleared, production began in December 2019 with an initial run of 38,400 cans with a selling price of $20,375, and
production-related costs of $64,526, including start-up costs and production overruns. In January 2020, the Company received an additional
deposit of $97,060 from CBD Life to help restore the lost deposit with Optimus Fulfill. The Company procured additional packaging and
raw materials and restarted production in March 2020, with a total of 146,880 cans produced and delivered in that month. The revenue recorded
in June 2020 was $80,194.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">In accordance with the MMA, RMHB opened a separate
operating bank account for all deposits made by CBD Life. CBD Life is required to always maintain a positive cash balance in the account.
The Company has full unilateral authority to disburse funds from the bank account to vendors, suppliers, co-packers, and the Company solely
for the purposes of production, other administrative costs, and the Company’s margin on the sale. During 2019 the Company transferred
$80,000 ($.04 per can ordered) from the CBD Life restricted bank account to its corporate account in accordance with the terms of the
MMA. As of June 30, 2020, and December 31, 2019, the balances in the separate operating bank account were $27,645 and $14,474, respectively,
and are included in restricted cash on the Company’s balance sheet.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">A summary
rolls forward of the Deferred Revenue balance from the December 28, 2018 (receipt of first deposit) until June 30, 2020, is as follows:</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri Light; border-collapse: collapse; width: 40%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 45%; color: Black; text-align: left"><font style="font: 10pt Calibri Light,sans-serif; color: Black">December 28, 2018, deposit received</font></td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 10%; color: Black"> </td>
<td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 43%; color: Black; text-align: right">466,300</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left"><font style="font: 10pt Calibri Light,sans-serif; color: Black">December 2019 delivery</font></td><td style="padding-bottom: 1pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">(20,375)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; text-align: left"><font style="font: 10pt Calibri Light,sans-serif; color: Black">Balance as of December 31, 2019</font></td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td>
<td style="color: Black; text-align: left">$</td><td style="color: Black; text-align: right">445,925</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left"><font style="font: 10pt Calibri Light,sans-serif; color: Black">January 30, 2020, deposit received</font></td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">97,060</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; text-align: left"><font style="font: 10pt Calibri Light,sans-serif; color: Black">June  2020 deliveries</font></td><td style="padding-bottom: 1pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">32,289</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left"><font style="font: 10pt Calibri Light,sans-serif; color: Black">Balance as of June 30, 2020</font></td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">462,791</td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">In July
2020 CBD Life informed the Company that numerous cans of the delivered product were leaking. The Company has agreed to replace the production
run at its own expense and accrued related cost of $68,648 as of June 30, 2020. The production-related costs, including start-up costs
and production overruns, were approximately $109,000. The Company has not agreed to refund the sales amount or provide any other consideration
to the customer.</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b>NOTE 12
– Shareholders’ Deficit</b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b></b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Common Stock</i></b> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.5pt 11pt 0 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">As of June 30, 2020, the Company has 1,000,000,000
shares of common stock authorized and 284,451,184 shares issued and outstanding. On April 22, 2019, the Company effected a 1-for-20 reverse
stock split. All common share amounts in this report reflect this stock split.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">During the three months ended June 30, 2020, the Company
issued 18,635,070 shares of common stock, including 12,437,084 shares for convertible notes payable conversions, 4,895,286 shares for
amounts due to a board member, 802,700 shares for compensation, and 500,000 shares for Series G Preferred Stock conversions.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Preferred Stock </i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The Company has 20,000,000 shares of preferred stock
authorized as of June 30, 2020, of which 12,801,154 are specifically designated to a series of preferred stock and 7,198,846 remain undesignated.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.1pt 11pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Series A Preferred Stock</i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.2pt 11pt 0 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The Company has 1,000,000 shares of Series A Preferred
Stock designated, of which none were outstanding as of June 30, 2020 and December 31, 2019. LSW Holdings LLC was the holder of these shares.
Lily Li, who was the Company’s Executive Vice President until April 5, 2018, is the Managing Member of LSW and, in that capacity,
had the authority to direct voting and investment decisions with regard to its holdings in the Company. On October 26, 2018, these shares
were ruled void <i>ab initio </i>by a District Court in Dallas County, Texas. The Company cancelled these shares effective that date.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.5pt 11pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.5pt 11pt 0 0; text-align: justify"><b><i>Series B Preferred Stock</i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.4pt 11pt 0 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The Company has 7,000,000 shares of Series B Preferred
Stock designated, of which none were outstanding as of June 30, 2020, and December 31, 2019.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.35pt 11pt 0 0; text-align: justify"><b><i>Series C Preferred Stock</i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.35pt 11pt 0 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The Company has 2,000,000 shares of Series C Preferred
Stock designated, of which none were outstanding as of June 30, 2020, and December 31, 2019. Series C Preferred Stock is 12% interest
bearing, cumulative, exchangeable, non-voting, convertible preferred stock of the Company. Each Series C Preferred share is convertible
to 2.5 shares of common stock.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.15pt 11pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Series D Preferred Stock</i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.25pt 11pt 0 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The Company has 2,000,000 shares of Series D Preferred
Stock designated, of which none were outstanding as of March 31, 2020, and December 31, 2019. Series D Preferred Stock is a non-voting,
non-interest-bearing convertible preferred stock. Each Series D preferred share is convertible to 5 shares of common stock.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.5pt 11pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Series E Preferred Stock</i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.25pt 11pt 0 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The Company has 789,474 shares of Series E Preferred
Stock designated, of which none were outstanding as of March 31, 2020, and December 31, 2019. Holders of Series E Preferred Stock are
entitled to cast 100 votes per share of Series E Preferred Stock on any proposal to increase our authorized capital stock, with no other
voting rights. Each share of Series E Preferred Stock is convertible to 20 shares of common stock.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Series F Preferred Stock</i></b></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">On December 20, 2019, the Board of Directors designated
1,680 shares of Series F Preferred Stock. On that same day, the Company sold 130 shares of Series F Preferred Stock to GHS Investments,
LLC ("GHS") in accordance with a Securities Purchase Agreement with GHS. The Series F Preferred Stock has a par value of $.001,
stated value of $1,200, accrues dividends at 12%, is convertible to common stock based on a 20-day trailing volume weighted average low
share price, and is senior to other preferred stock. During the three months ended March 31, 2020, the Company sold 200 shares of Series
F Preferred Stock to GHS. As of June 30, 2020, and December 31, 2019, there were 330 and 130 shares issued and outstanding, respectively.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0 11pt 0 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Series G Preferred Stock</i></b></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">On December 20, 2019, the Board of Directors designated
10,000 shares of Series G Preferred Stock. On that same day, the Company granted 10,000 shares of Series G Preferred Stock to Charles
Smith, a Board member, and Chief Operating Officer of the Company, in exchange for $10,000 owed to Mr. Smith in compensation. The Series
G Preferred Stock has a par value of $.001, is non-interest and non-dividend earning, and each share is convertible to 50 shares of common
stock. The holder of Series G Preferred Stock has the right to cast 20,000 votes for every one share of Series G Preferred Stock on any
and all proposals to amend the Company’s Articles of Incorporation to increase the authorized capital stock of the Company. Mr.
Smith exercised that right in December 2019 and the Series G Preferred Shares were converted to common stock on March 20, 2020. As of
June 30, 2020, there were no shares of Series G Preferred Stock issued and outstanding.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> <b><i>Series H Preferred Stock</i></b></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">On February 25, 2020, the Board of Directors designated
5,000 shares of Series H Preferred Stock. The Board amended the designation on April 7, 2020. The Series H Preferred Stock has a par
value of $.001, stated value of $1,200, accrues dividends at 12%, and is convertible to common stock based on a 20-day trailing volume
weighted average low share price. As of June 30, 2020, there were 11 shares outstanding. As of December 31, 2019, there were no shares
issued and outstanding.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.15pt 0 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.15pt 0 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.15pt 0 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Warrants</i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify">During the three months ended June 30, 2020, and 2019 the
Company granted no common stock warrants, none were exercised, and none were forfeited. As of June 30, 2020, and December 31, 2019, there
were 607,500 warrants outstanding. Exercise prices range from $.02 to $.40 per share.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i>Options</i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify">During the three months ended June 30, 2020, the Company
did not grant any options to purchase the Company’s common stock and there were no exercises or forfeitures of such options.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify">During the three months ended June 30, 2019, the Company
granted 500,000 options to purchase common stock to an employee. There were no exercises or forfeitures during that period.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify">As of June 30, 2020, and December 31, 2019, there were
no options outstanding.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b>NOTE 13– Noncontrolling Interests</b></p>
<p style="font: 10pt/11.4pt Calibri Light,sans-serif; margin: 0 11pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify">In July 2019, the Company invested $500 in Sweet Rock,
LLC, a Michigan limited liability company. The Company owns 51% and Sweet Ally, Inc. (“Sweet Ally”) invested $495 and owns
49%. The Company consolidates the financial statements of Sweet Rock and accounts for Sweet Ally’s ownership as a noncontrolling
interest. During the three months ended June 30, 2020, Sweet Rock recorded no revenue or expenses.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b>NOTE 14– Concentrations</b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.45pt 11pt 0 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify">During the three months ended June 30, 2020, the Company’s
two largest customers accounted for approximately 71% and 12% of sales, respectively. During the three months ended June 30, 2019, the
Company’s two largest customers accounted for approximately 17% and 2% of sales, respectively.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><b>NOTE 15 – Income Taxes</b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.2pt 11pt 0 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify">The reconciliation of income tax benefit at the U.S. statutory
rate of 21% to the Company’s effective rate for the periods presented is</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom">
<td style="color: Black; text-align: center"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">Three Months Ended</td></tr>
<tr style="vertical-align: bottom">
<td style="color: Black; text-align: center"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 68%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">U.S. federal statutory rate</td><td style="width: 2%; font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="width: 12%; font-family: Calibri Light,sans-serif; color: Black; text-align: right">(21</td><td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">%)</td><td style="width: 2%; font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="width: 12%; font-family: Calibri Light,sans-serif; color: Black; text-align: right">(21</td><td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">%)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">State income tax, net of federal benefit</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">(0.0</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">%)</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">(0.0</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">%)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">Increase in valuation allowance</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">21</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">%</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">21</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">Income tax provision (benefit)</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">0.0</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">%</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">0.0</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">%</td></tr>
</table>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The tax effects
of temporary differences that give rise to the Company’s net deferred tax liability as of June 30, 2020, and December 31, 2019,
are:</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom">
<td style="color: Black"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">December 31, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left">Deferred Tax Assets</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 69%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">Net Operating Losses</td><td style="width: 2%; font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="width: 12%; font-family: Calibri Light,sans-serif; color: Black; text-align: right">4,700,000</td><td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="width: 2%; font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="width: 12%; font-family: Calibri Light,sans-serif; color: Black; text-align: right">4,620,000</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; padding-bottom: 1pt">Less: Valuation Allowance</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">(4,700,000</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left">)</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">(4,620,000)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left; padding-bottom: 1pt">Deferred Tax Assets – Net</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">—  </td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">—  </td></tr>
</table>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.1pt 0 0"><font style="font-size: 10pt; color: Black">  </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.1pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.1pt 0 0"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify">As of June 30, 2020, the Company had approximately $22,000,000
of federal and state net operating loss carryovers (“NOLs”), which begin to expire in 2028. Utilization of the NOLs may be
subject to limitation under the Internal Revenue Code Section 382 should there be a greater than 50% ownership change as determined under
regulations.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.35pt 0 0"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">In assessing the realization of deferred tax assets,
management considers whether it is more likely than not that some portion or all the deferred tax assets will be realized. The ultimate
realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary
differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income
and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance
against the entire deferred tax asset relating to NOLs for every period because it is more likely than not that all the deferred tax asset
will not be realized.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.55pt 0 0">  </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">On December 22, 2017, the Tax Cuts and Jobs Act of
2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are
not limited to, a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition
of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed
repatriation of foreign earnings. We have estimated our provision for income taxes in accordance with the Tax Act and guidance available
as of the date of this filing but have kept the full valuation allowance. As a result, the Company has recorded no income tax expense
during the three months ended June 30, 2020, and 2019.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.05pt 0 0"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The Company’s deferred tax assets and liabilities
were remeasured to reflect the reduction in the U.S. corporate income tax rate from 34% to 21%, resulting in a deferred tax expense of
approximately $2,000,000 in 2017 that is still fully valued against as of March 31, 2020. This expense is attributable to the Company
being in a net deferred tax asset position at the time of remeasurement. As the company maintains fully valuation allowance, this amount
can be seen on the rate reconciliation as an adjustment to deferred tax asset and corresponding valuation allowance.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b>NOTE
16 – Commitments</b></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.5pt 0 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The Company executed a three-year lease for corporate
office space effective September 1, 2016. The lease included monthly payments of $7,715 in year one, $7,972 in year two, and $8,229 in
year three plus common area maintenance. The lease was accounted for on a straight-line basis over its term.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">On September 5, 2019, the Company executed a six-month
extension of its corporate office lease at $8,065 per month plus common area maintenance. The lease expired on February 29, 2020.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">On February 28, 2020, the Company executed a second
six-month extension of its corporate office lease. The lease includes new, smaller space within the same office building at a monthly
payment of $3,549 per month plus common area maintenance.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">On January 18, 2018, WFLC entered into a 12-month
office use agreement for office space in Denver, Colorado. Monthly payments were $91. The lease automatically renews for 12 months each
January. Monthly payments are $122.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.5pt 0 0"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b><i>Other
Leases</i></b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0"><font style="font-size: 10pt; color: Black"><i> </i></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The Company
rents storage space from various third parties on a month-to-month basis.</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b>NOTE 17
– Legal Proceedings</b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0 5.75pt 0 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b></b></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><i>Rocky Mountain High Brands, Inc. v Lyonpride Music,
LLC, United States District Court Northern District of Texas, 3:18-cv-00045-C, now Lyonpride Music LLC v Rocky Mountain High Brands, Inc.,
Before the American Arbitration Association, 01-18-0003-1428. </i></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The parties have settled the matter and the settlement
documents have been signed by the parties. This matter has been concluded.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><i>Dallas County Texas, Case Number DC-17-15441 filed
November 8, 2017. Rocky Mountain High Brands, Inc. f/k/a Republic of Texas Brands, Inc. Plaintiff, vs. Jerry Grisaffi, Joe Radcliffe,
LSW Holdings, LLC, Lily Li, Epic Group One, LLC, Kenneth Radcliffe, Dennis Radcliffe, Phil Uhrik, Michael Radcliffe, Frank Izzo, Morgan
Albright, John Garrison, BB Winks, LLC, Crackerjack Classic, LLC, and Universal Consulting, LLC. </i></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The Company sought the return of the Series A Preferred
Stock (“Series A”) issued to Jerry Grisaffi (“Grisaffi”), RMHB’s former Chairman of the Board. The Company
further alleged, among other things, that Grisaffi breached his fiduciary duty to the Company by issuing these Series A shares to himself.
On August 30, 2018, the Trial Court in the 192nd District Court of Dallas County, Texas entered a final judgment in the Company’s
favor and against Grisaffi in the amount of $3,500,000 for fraud, breach of fiduciary duty, and conversion with respect to the Series
A preferred stock. The Court further voided ab initio the Series A Preferred Shares. The Court further ruled that Grisaffi take nothing
by his counterclaims in the case.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><i>In The Court of Appeals For The Fifth District
Of Texas Dallas, Texas, Jerry Grisaffi, Appellant v. Rocky Mountain High Brands, Inc, f/k/a Republic of Texas Brands, Inc., Appellee,
No. 05-18-01020-CV. </i></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">Grisaffi appealed the Judgment described above. The
Court of Appeals affirmed in part and reversed in part the Judgment and remanded it to the trial court for the purpose of the Company
electing its remedy. The Company has elected its remedy of the $3,500,000 judgment against Grisaffi. Grisaffi has again appealed this
matter. On November 19, 2019, Grisaffi filed a chapter 11 bankruptcy in the United States Bankruptcy Court for the Northern District of
Texas, Case No. 19-33855-sgj. The Company has filed an Adversary Proceeding to deny Grisaffi the ability to discharge the judgment. A
Motion for Summary Judgment on the Adversary Proceeding has been filed and is set for hearing. The Chapter 11 case has been converted
by the Bankruptcy Court to a Chapter 7 case. The Trustee who has been appointed is actively conducting proceedings to locate assets of
Grisaffi.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><i>Dallas County Texas, Case Number DC-18-13491. Rocky
Mountain High Brands, Inc. f/k/a Republic of Texas Brands, Inc. Plaintiff, vs. Joe Radcliffe, LSW Holdings, LLC, Lily Li, Epic Group One,
LLC, Kenneth Radcliffe, Dennis Radcliffe, Phil Uhrik, Michael Radcliffe, Frank Izzo, Morgan Albright, John Garrison, BB Winks, LLC, Crackerjack
Classic, LLC, and Universal Consulting, LLC. </i></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">This Final Judgment against Lily Li and LSW Holdings,
LLC is final for all purposes and was not appealed. The Company plans to outsource the collection of this Judgment. Other than collection
of the Judgment this matter has been finalized.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><i>Rocky Mountain High Brands, Inc. v La Dolce Vita
Trust and Christine Guthrie, In Her Capacity as Trustee, In The 382nd District Court of Rockwall County, Texas, Cause No. 1-18-1608. </i></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">This is a case whereby the Company is attempting to
collect on the Judgment obtained against Grisaffi. More specifically the Company is requesting the Court to order the La Dolce Vita Trust
to turnover fraudulently transferred assets and for additional relief necessary to enforce the Company’s judgment against Grisaffi.
The case has been stayed, and the Company will seek an order from the Bankruptcy Court to continue in this case or will work in conjunction
with the Trustee appointed in the Chapter 7 case on this matter.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><i>Chet – 5 Broadcasting, Inc. v Rocky Mountain
High Brands, Inc., Supreme Court of the State of New York, County of Ulster, Case No. 18-4416. </i></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The parties have settled this matter and the settlement
documents have been signed by the parties. This matter has been concluded.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b>NOTE 18
– Other (Income)/Expenses</b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0 11pt 0 0; text-align: justify"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0 5.75pt 0 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0 5.75pt 0 0; text-align: justify"><i>Loss on Extinguishment of Debt</i></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0 5.75pt 0 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">For the three months ended June 30, 2020, the Company
recorded a loss on extinguishment of debt of $74,164 related to the amendment and settlement of convertible notes payable. There was no
gain or loss on extinguishment of debt during the three months ended June 30, 2019.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0 5.75pt 0 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0"><i>Gain (Loss) on Change in Fair Value of Derivative Liability</i></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">For the three months ended June 30, 2020, the Company
recorded a loss on the change in fair value of derivative liability of $21,535 compared to a gain of $195,457 for the three months ended
June 30, 2019. In 2020 the loss resulted from the change in the convertibility of two convertible notes payable that were made in February
and March 2020 and increase in the valuation of the related derivative liability based on the change in the market value of the Company’s
common stock. The gain in 2019 was due to the decrease in the market value of the Company’s common stock between January 1, 2019,
and June 30, 2019.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><b>NOTE 19 – Subsequent Events</b></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">Between April 1 and September 8, 2020, the Company
issued 133,183,537 shares of common stock, including 27,000,000 for the acquisition of the assets of Raw Pharma, 21,925,000 for legal
settlements, 9,976,484 for convertible notes payable conversions, 22,000,000 for director and employee compensation, 51,000,000 for payments
to vendors, and 1,282,053 for cash.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0 5.95pt 0 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">Between April 1 and September 8, 2020, holders of
convertible notes payable converted $98,742 of outstanding principal.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">On April 7, 2020, the Company executed a three-year
consulting agreement with Eagle Processing & Distribution, Inc. (“EPD”). Under the agreement, EPD is to provide outsourced
services related to sales and distribution, marketing, social media, and website maintenance, logistics and order fulfillment, production,
inventory management, customer service, risk management, and assistance with obtaining financing. EPD was granted 50,000,000 shares of
common stock as compensation for the first eight months of the contract with compensation for the remainder of the contract to be negotiated
prior to the end of the initial eight months. On June 30, 2020, EPD returned 25,000,000 common shares of the previously issued 50,000,000
shares pending the execution of an amendment to the April 7, 2020, consulting agreement. These common shares have not been cancelled and
are included in shares outstanding.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">On April 21, 2020, the Company filed a Registration
on Form S-8 to register 600,000 shares of common stock issued to a vendor as compensation for services provided.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">On April 29, 2020, the Company formed Rocky Mountain
Productions, Inc. (“RMPI”), a wholly owned Nevada corporation. On April 30, 2020, RMPI purchased certain of the assets of
Raw Pharma, LLC (“Raw Pharma”) including machinery, equipment, and fixtures. The facility has the capability to can and bottle
product, including 12 oz. regular and sleek cans, 16 oz. cans, shots, and bottles. The purchase price for the assets consists of a combination
of $1,750,000 in cash, 27,000,000 shares of common stock, and the assumption or refinancing of Raw Pharma’s bank debts secured by
equipment in the amount of $1,007,000. The Company is also assuming the lease of Raw Pharma’s 20,000 square foot facility and certain
equipment leases. The Company assumed no other liabilities in the transaction. In March and April 2020, the Company produced and delivered
146,880 and 149,760, respectively, cans of beverage to CBD Life. In July 2020 CBD Life informed the Company that numerous cans of the
delivered product were leaking. The Company has agreed to replace the production run at its own expense and accrued related cost of $68,648
as of March 31, 2020. The production-related costs, including start-up costs and production overruns, were approximately $109,000 in June
2020. The Company has not agreed to refund the sales amount or provide any other consideration to the customer. The Company has investigated
the cause of the leaking cans and is in the process of remediating the equipment issues it believes caused the packaging failures. Management
believes the manufacturing issues will be resolved and the plant will be able to resume all production by September 15, 2020. Management
has also held discussions with the prior owners of Raw Pharma (where the product was produced prior to our acquisition) and is negotiating
an agreement to compensate the Company for losses related to the equipment issues.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">On April 29, 2020, the Company executed a $150,100
loan agreement with Comerica Bank under the Paycheck Protection Program (“PPP”) of the Small Business Administration (“SBA”).
The loan bears interest at 1% and is due on April 29, 2022. If the Company meets certain PPP qualifications the loan will be forgiven
by the SBA. Otherwise, monthly loan payments will commence November 1, 2020.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">On May 12, 2020, the Company executed a Settlement
Agreement and Release with Texas Wellness Center (“TWC”), a subsidiary of GL Brands, Inc., related to the 200,000 can production
run the Company ran for TWC in September 2019. Pursuant to the Settlement Agreement the Company agreed to issue 17,500,000 shares of common
stock, with a market value of $367,500, on the settlement date. As of December 31, 2019, the Company reversed the $322,000 previously
recorded in September 2019, recorded a common stock payable of $367,500 and accrued a $15,000 payment made to TWC in January 2020 to assist
with TWC’s customer service-related issues. The companies mutually released each other from all other liabilities, including a $75,000
account payable to TWC for CBD used in the manufacturing of the beverages. The companies further agreed that if RMHB files a lawsuit seeking
damages against its can vendor, it would pay TWC 30% of any net recovery. RMHB is not required to take any further action.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">On May 20, 2020, the Company executed a Release and
Settlement Agreement with CHET-5 Broadcasting, Inc. (“CHET-5”) related to a breach of contract lawsuit filed by CHET-5 related
to an advertising contract between the Company and CHET-5. The Company agreed to pay CHET-5 $9,000 in cash and 425,000 shares of common
stock in exchange for full mutual releases.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify">On September 9, 2020, the Company issued 420 shares of
Series F Preferred Stock to GHS Investments, LLC in exchange for the maturity date extensions on three convertible notes payable and to
waive any breaches related to the Company’s delinquent first and second quarter 2020 financial statement filings.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The accompanying unaudited consolidated financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim
financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange
Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by accounting principles generally
accepted in the United States of America for annual financial statements. In the opinion of the Company’s management, the accompanying
unaudited consolidated financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present
the financial position of the Company as of June 30, 2020, and the results of operations and cash flows for the periods presented. The
results of operations for the three months ended June 30, 2020, are not necessarily indicative of the operating results for the full fiscal
year or any future period. These unaudited consolidated financial statements should be read in conjunction with the financial statements
and related notes thereto included in the Company’s Form 10-K for the year ended December 31, 2019, filed with the SEC on July 9,
2020.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The consolidated financial statements have been prepared
in accordance with generally accepted accounting principles in the United States. The consolidated financial statements include the accounts
of the Company, its wholly owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The preparation of the financial statements in conformity
with Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements
and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Certain
of the Company’s estimates could be affected by external conditions, including those unique to its industry, and general economic
conditions. It is possible that these external factors could have an effect on the Company’s estimates that could cause actual results
to differ from its estimates. The Company re-evaluates all its accounting estimates at least quarterly based on these conditions and record
adjustments when necessary.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify">The Company maintains cash balances at various financial
institutions. At times, these balances may exceed federally insured limits.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="background-color: white">The Company classifies
any cash that is legally restricted as to its withdrawal or usage as restricted cash.</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The following table provides a reconciliation of cash
and restricted cash reported on the consolidated balance sheets to the total of those same amounts shown in our consolidated statements
of cash flows:</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 8pt/115% Calibri Light,sans-serif; margin: 0 0 0 5.95pt; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 70%">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri Light,sans-serif; color: Black; text-align: center"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">December 31, 2019</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2019</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">December 31, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 41%; font-family: Calibri Light,sans-serif; color: Black">Cash</td><td style="width: 3%; font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="width: 10%; font-family: Calibri Light,sans-serif; color: Black; text-align: right">31,245</td><td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="width: 3%; font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="width: 10%; font-family: Calibri Light,sans-serif; color: Black; text-align: right">53,606</td><td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="width: 3%; font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="width: 10%; font-family: Calibri Light,sans-serif; color: Black; text-align: right">196,704</td><td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="width: 3%; font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="width: 1%; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="width: 10%; font-family: Calibri Light,sans-serif; color: Black; text-align: right">147,386</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; padding-bottom: 1pt">Restricted cash</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">—  </td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">14,474</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">80,751</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">466,300</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; padding-bottom: 2.5pt">Cash and restricted cash</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: right">31,245</td><td style="padding-bottom: 2.5pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: right">68,080</td><td style="padding-bottom: 2.5pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: right">277,455</td><td style="padding-bottom: 2.5pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: right">613,686</td></tr></table>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.4pt 0 0; text-align: justify">The Company has a policy of reserving for
uncollectible accounts based on the best estimate of the amount of probable credit losses in our existing accounts receivable. We extend
credit to customers based on an evaluation of their financial condition and other factors. The Company generally does not require collateral
or other security to support accounts receivable and perform ongoing credit evaluations of customers and maintain an allowance for potential
bad debts if required.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0 0 0 6pt; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">It is determined whether an allowance for doubtful
accounts is required by evaluating specific accounts where information indicates the customers may have an inability to meet financial
obligations. In these cases, <font style="letter-spacing: -0.3pt">we</font> use assumptions and judgment, based on the best available
facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount
expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated
are analyzed to determine the total amount of the allowance. The Company may also record a general allowance, as necessary.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.1pt 0 0"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">Direct write-offs are taken in the period when we
have exhausted our efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate the collectability
of receivables.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><b><i></i></b>Inventories, which consist only
of the Company’s finished products held for resale, are stated at the lower of cost, determined using the first-in, first-out, and
net realizable value. Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to
dispose of the product.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">If the Company identifies excess, obsolete, or unsalable
items, its inventories are written down to their realizable value in the period in which the impairment is first identified. Shipping
and handling costs incurred for inventory purchases and product shipments are recorded in cost of sales in the Company’s statements
of operations.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify">The Company adopted the provisions of ASC Topic 820, “Fair
Value Measurements and Disclosures,” which defines fair value as used in numerous accounting pronouncements, establishes a framework
for measuring fair value and expands disclosure of fair value measurements.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.35pt 0 0"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The estimated fair value of certain financial instruments,
including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis,
which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short- and long-term
credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates
taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates
of returns for instruments of similar credit risk.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.4pt 0 0"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">ASC 820 defines fair value as the exchange price that
would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset
or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy,
which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
ASC 820 describes three levels of inputs that may be used to measure fair value:</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0 0 0 6pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 48px"> </td>
<td style="font: 11pt/11.45pt Calibri, Helvetica, Sans-Serif; width: 16px"><font style="font: 10pt Calibri Light,sans-serif; letter-spacing: -0.25pt">•</font></td>
<td style="font: 11pt/11.45pt Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Calibri Light,sans-serif">Level 1 — quoted prices in active markets for identical assets or liabilities.</font></td></tr>
</table>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 16px; line-height: 11.45pt"><font style="font: 10pt Calibri Light,sans-serif; letter-spacing: -0.25pt">•</font></td>
<td style="line-height: 11.45pt"><font style="font: 10pt Calibri Light,sans-serif">Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable.</font></td></tr>
</table>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 16px; line-height: 11.45pt"><font style="font: 10pt Calibri Light,sans-serif; letter-spacing: -0.25pt">•</font></td>
<td style="line-height: 11.45pt"><font style="font: 10pt Calibri Light,sans-serif">Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions).</font></td></tr>
</table>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The derivative liability, which relates to the conversion
feature of convertible debt and common stock warrants and options, is classified as a Level 3 liability, and is the only financial liability
measure at fair value on a recurring basis.</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">The change in the Level 3 financial instrument is
as follows:</p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0 0 0 6pt; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri Light; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 79%; color: Black">Balance, December 31, 2019</td><td style="width: 2%; color: Black"> </td>
<td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 18%; color: Black; text-align: right">413,678</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black">Issued during the three months ended June 30, 2020</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">357,719</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black">Exercises/Conversions</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">—  </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left; padding-bottom: 1pt">Change in fair value recognized in operations</td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">—  </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; padding-bottom: 2.5pt">Balance, June 30, 2020</td><td style="color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">771,391</td></tr>
</table>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0.4pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The estimated
fair value of the derivative instruments was valued using the Black-Scholes option pricing model, using the following assumptions as
of March 31, 2020:</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri Light; border-collapse: collapse; width: 40%">
<tr style="vertical-align: bottom">
<td style="color: Black">Estimated Dividends</td><td style="color: Black"> </td>
<td colspan="2" style="color: Black; text-align: right">None</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 67%; color: Black; text-align: left">Expected Volatility</td><td style="width: 2%; color: Black"> </td>
<td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 30%; color: Black; text-align: right">145.0%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left">Risk Free Interest Rate</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">0.041%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; text-align: left">Expected term</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">.1 to 1.5 years</font></td></tr></table>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">Property
and equipment is stated at cost less accumulated depreciation. Depreciation is provided for on a straight-line basis over the useful
lives of the assets, which generally range from three to five years. Expenditures for additions and improvements are capitalized; repairs
and maintenance are expensed as incurred.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">On January
1, 2020, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”)
2016-02, <i>Leases (Topic 842)</i>, as amended, which requires a lessee to recognize on the balance sheet a right-of-use asset, representing
its right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. The
guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing and uncertainty of cash flows arising
from leases. Upon adoption, the Company did not have any leases that would require recognition on its consolidated balance sheet.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">Direct
costs related to software development, including coding, website application development, infrastructure development and graphics development,
are capitalized and included in other assets. Amortization is provided for on a straight-line basis over the useful life of the software.
Costs related to planning, content development, and operating and maintaining software are expensed as incurred.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The Company
evaluates intangible assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not
be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flow and recognizes an impairment
loss when the estimated undiscounted future cash flow expected to result from the use of the asset plus the net proceeds expected from
disposition of the asset, if any, are less than the carrying value of the asset. When the Company identifies an impairment, it reduces
the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate,
to comparable market values. No impairment charges were recorded during the three months ended June 30, 2020, and 2019.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">Share-based
payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements
based on their fair values, in accordance with FASB ASC Topic 718. That expense is recognized over the period during which an employee
is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period). The Company
had no common stock options or common stock equivalents granted or outstanding for all periods presented.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.05pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The Company
issued restricted stock to consultants and employees for various services. Cost for these transactions is measured at the fair value
of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The value of
the common stock is to be measured at the earlier of (i) the date at which a firm commitment for performance by the counterparty to earn
the equity instruments is reached or (ii) the date at which the counterparty's performance is complete.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The Company
evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging
Activities.” Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them
as freestanding derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic
characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and
risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is
not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument
with the same terms as the embedded derivative instrument would be considered a derivative instrument.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">We apply
the guidance enumerated in ASC 480 “Distinguishing Liabilities from Equity” when determining the classification and measurement
of preferred stock. Preferred shares subject to mandatory redemption (if any) are classified as liability instruments and are measured
at fair value. We classify conditionally redeemable preferred shares (if any), which includes preferred shares that feature redemption
rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within
our control, as temporary equity. At all other times, we classified our preferred shares in stockholders’ equity. Our preferred
shares do not feature any redemption rights within the holders’ control or conditional redemption features not within our control.
Accordingly, unless otherwise noted, all issuances of preferred stock are presented as a component of consolidated shareholders’
deficit.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The Company
follows the guidance of the Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers,”
as amended. It records revenue when persuasive evidence of an arrangement exists, product delivery has occurred, the selling price to
the customer is fixed or determinable and collectability of the revenue is reasonably assured. The Company has not experienced any significant
returns from customers and accordingly, in management’s opinion, no reserve for returns has been provided. Payments received prior
to shipment of goods are recorded as deferred revenue.</font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The following
table represents sales by sales channel for each of the periods:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 6pt; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri Light; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom">
<td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="6" style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: center">Three Months Ended</td></tr>
<tr style="vertical-align: bottom">
<td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: center">June 30, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 69%; color: Black">Online</td><td style="width: 2%; color: Black"> </td>
<td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 12%; color: Black; text-align: right">20,195</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td>
<td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 12%; color: Black; text-align: right">21,103</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left">Private Label</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">636,240</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">—  </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black">Distributor</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">12,224</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,421</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; padding-bottom: 1pt">Retailer</td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">830</td><td style="padding-bottom: 1pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">14,048</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; font-weight: bold; padding-bottom: 1pt">Total</td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: right">669,489</td><td style="padding-bottom: 1pt; color: Black; font-weight: bold; text-align: left"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: right">36,572</td></tr>
</table>
<p style="font: 8pt Calibri Light,sans-serif; margin: 0 0 0 6pt; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">All sales
for all periods presented were to domestic customers, except private label sales of $80,194 for the three months ended June 30, 2020.
These private label sales were to CBD Life, S.A. (“CBD Life”) of Mexico. All sales to CBD Life are delivered to Laredo, Texas,
where the customer takes title.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.35pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">Due to
the nature of the Company’s revenue from contracts with customers, the Company does not have material contract assets or liabilities
that fall under the scope of ASC 606.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.4pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The Company’s
revenues accounted for under ASC 606, generally, do not require significant estimates or judgments based on the nature of the Company’s
revenue streams. The sales prices are generally fixed at the point of sale and all consideration from contracts is included in the transaction
price. The Company’s contracts do not include multiple performance obligations or material variable consideration.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black"></font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify">In June 2020, the Company produced and delivered 146,880
cans of Rocket High, California Limonada, and California Te Negro branded product to CBD Life. In July 2020 the customer informed the
Company that numerous cans of the delivered product were leaking. The Company agreed to replace the entire production run at its own expense
and accrued related costs of $68,648 as of June 30, 2020. The production-related costs, including start-up costs and production overruns,
were approximately $109,000. The customer has not requested, and the Company has not offered, any refund of the sales amount or to provide
any other consideration to the customer. The $80,194 sales amount is included in sales for the three months ended June 30, 2020.</p>
<p style="font: 10pt Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">Advertising
and marketing expenses are charged to operations as incurred.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">The Company
uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under
this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred
tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements
or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a
change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance
is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is
more likely than not some portion or all the deferred tax assets will not be realized.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0.2pt 0 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black">ASC Topic
740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes
a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties,
accounting in interim periods, disclosure, and transition. The Company has no material uncertain tax positions.</font></p>
<p style="font: 10pt/115% Calibri Light,sans-serif; margin: 0; text-align: justify"><font style="font-size: 10pt; color: Black; background-color: white">Certain
reclassifications have been made to prior year consolidated financial statements to conform to classifications used in the current
year.</font></p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 70%">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri Light,sans-serif; color: Black; text-align: center"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">December 31, 2019</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2019</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">December 31, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; width: 41%">Cash</td><td style="font-family: Calibri Light,sans-serif; color: Black; width: 3%"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%">$</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right; width: 10%">31,245</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; width: 3%"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%">$</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right; width: 10%">53,606</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; width: 3%"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%">$</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right; width: 10%">196,704</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; width: 3%"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%">$</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right; width: 10%">147,386</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; padding-bottom: 1pt">Restricted cash</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">—  </td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">14,474</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">80,751</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">466,300</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; padding-bottom: 2.5pt">Cash and restricted cash</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: right">31,245</td><td style="padding-bottom: 2.5pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: right">68,080</td><td style="padding-bottom: 2.5pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: right">277,455</td><td style="padding-bottom: 2.5pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Calibri Light,sans-serif; color: Black; text-align: right">613,686</td></tr>
</table>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri Light; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; width: 79%">Balance, December 31, 2019</td><td style="color: Black; width: 2%"> </td>
<td style="color: Black; text-align: left; width: 1%">$</td><td style="color: Black; text-align: right; width: 18%">413,678</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black">Issued during the three months ended June 30, 2020</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">357,719</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black">Exercises/Conversions</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">—  </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left; padding-bottom: 1pt">Change in fair value recognized in operations</td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">—  </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; padding-bottom: 2.5pt">Balance, June 30, 2020</td><td style="color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">771,391</td></tr>
</table>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri Light; border-collapse: collapse; width: 40%">
<tr style="vertical-align: bottom">
<td style="color: Black">Estimated Dividends</td><td style="color: Black"> </td>
<td colspan="2" style="color: Black; text-align: right">None</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; text-align: left; width: 67%">Expected Volatility</td><td style="color: Black; width: 2%"> </td>
<td style="color: Black; text-align: left; width: 1%"> </td><td style="color: Black; text-align: right; width: 30%">145.0%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left">Risk Free Interest Rate</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">0.041%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; text-align: left">Expected term</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">.1 to 1.5 years</font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri Light; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom">
<td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="6" style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: center">Three Months Ended</td></tr>
<tr style="vertical-align: bottom">
<td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: center">June 30, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; width: 69%">Online</td><td style="color: Black; width: 2%"> </td>
<td style="color: Black; text-align: left; width: 1%">$</td><td style="color: Black; text-align: right; width: 12%">20,195</td><td style="color: Black; text-align: left; width: 1%"> </td><td style="color: Black; width: 2%"> </td>
<td style="color: Black; text-align: left; width: 1%">$</td><td style="color: Black; text-align: right; width: 12%">21,103</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left">Private Label</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">636,240</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">—  </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black">Distributor</td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">12,224</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,421</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; padding-bottom: 1pt">Retailer</td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">830</td><td style="padding-bottom: 1pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">14,048</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; font-weight: bold; padding-bottom: 1pt">Total</td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: right">669,489</td><td style="padding-bottom: 1pt; color: Black; font-weight: bold; text-align: left"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: right">36,572</td></tr>
</table>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri Light; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom">
<td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: center">December 31, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; text-align: left; width: 69%">Finished inventory</td><td style="color: Black; width: 2%"> </td>
<td style="color: Black; text-align: left; width: 1%">$</td><td style="color: Black; text-align: right; width: 12%">51,591</td><td style="color: Black; text-align: left; width: 1%"> </td><td style="color: Black; width: 2%"> </td>
<td style="color: Black; text-align: left; width: 1%">$</td><td style="color: Black; text-align: right; width: 12%">160,763</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left; padding-bottom: 1pt">Raw materials and packaging</td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">98,349</td><td style="padding-bottom: 1pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">77,272</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; font-weight: bold; padding-bottom: 1pt">Total</td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: right">149,940</td><td style="padding-bottom: 1pt; color: Black; font-weight: bold; text-align: left"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; color: Black; font-weight: bold; text-align: right">238,035</td></tr>
</table>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom">
<td style="color: Black"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">December 31, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 69%">Prepaid officers’ compensation</td><td style="font-family: Calibri Light,sans-serif; color: Black; width: 2%"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%">$</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right; width: 12%">—  </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; width: 2%"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%">$</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right; width: 12%">143,233</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">Prepaid production</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">12,500</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">—  </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; padding-bottom: 1pt">Other prepaid expenses and current assets</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">1,093,110</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">31,493</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt">Total</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: right">1,105,610</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: right">174,726</td></tr>
</table>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom">
<td style="color: Black"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">December 31, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; width: 69%">Vehicles</td><td style="font-family: Calibri Light,sans-serif; color: Black; width: 2%"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%">$</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right; width: 12%">14,687</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; width: 2%"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%">$</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right; width: 12%">14,687</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">Furniture and equipment</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">2,101,920</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">45,322</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; padding-bottom: 1pt">Personal computers</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">16,667</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">17,901</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black"> </td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">2,193,270</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">77,910</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; padding-bottom: 1pt">Less: accumulated depreciation</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">57,257</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">58,568</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt">Total</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: right">2,136,017</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: right">19,342</td></tr>
</table>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom">
<td style="color: Black"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">December 31, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 69%">Accounts payable</td><td style="font-family: Calibri Light,sans-serif; color: Black; width: 2%"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%">$</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right; width: 12%">458,904</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; width: 2%"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%">$</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right; width: 12%">440,788</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">Accrued compensation</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">—  </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">51,500</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">Common stock payable</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">396,850</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">417,850</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; padding-bottom: 1pt">Other accrued expenses</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">406,986</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">233,079</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt">Total</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: right">1,262,740</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: right">1,143,217</td></tr>
</table>
<table cellspacing="0" cellpadding="0" align="center" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 80%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>Interest
Rates</b></font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid"><p style="font: 8pt Calibri Light,sans-serif; margin: 0.1pt 0 0; text-align: center"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 8pt/106% Calibri Light,sans-serif; margin: 0; text-align: center"><font style="font-size: 10pt; color: Black"><b>Term
</b></font></p></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>Conversion
Rates</b></font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b><br />
June 30, 2020</b></font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>December
31, 2019</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 41%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">GHS Investments, LLC (fixed
conversion)</font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center; width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center; width: 7%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">10%</font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center; width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center; width: 10%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">.3 -
.75 years</font></td>
<td style="text-align: center; width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">$</font></td>
<td style="text-align: center; width: 8%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">0.01</font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">$</font></td>
<td style="text-align: right; width: 10%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">849,208</font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">$</font></td>
<td style="text-align: right; width: 10%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">1,035,750</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Calibri Light,sans-serif; color: Black">Eagle Equities, LLC</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">8%</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">1.3 – 1.5
years</font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">(a)</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">298,750</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">—  </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Calibri Light,sans-serif; color: Black">LSW Holdings, LLC (variable conversion)</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">6%</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">—  </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black">(b)</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">179,000</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">179,000</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Calibri Light,sans-serif; color: Black">Discount</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">(345,048</font></td>
<td><font style="font: 10pt Calibri Light,sans-serif; color: Black">)</font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black">(205,800)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>Total</b></font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>981,910</b></font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>1,008,950</b></font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" align="center" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 80%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"><font style="font-size: 10pt; color: Black"> </font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>Interest
Rate</b></font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid"><p style="font: 10pt Calibri Light,sans-serif; margin: 0.35pt 0 0; text-align: center"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 10pt/10.1pt Calibri Light,sans-serif; margin: 0; text-align: center"><font style="font-size: 10pt; color: Black"><b><u>Term
</u></b></font></p></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>June
30, 2020</b></font></td>
<td><font style="font-size: 10pt; color: Black"> </font></td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Calibri Light,sans-serif; color: Black"><b>December
31, 2019</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 33%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">Notes payable</font></td>
<td style="width: 3%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center; width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center; width: 12%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">0%</font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 3%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center; width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center; width: 12%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">Due</font></td>
<td style="text-align: center; width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 3%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">$</font></td>
<td style="text-align: right; width: 12%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">603,382</font></td>
<td style="width: 1%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 3%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">$</font></td>
<td style="text-align: right; width: 12%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">30,000</font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri Light; border-collapse: collapse; width: 40%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; text-align: left; width: 45%"><font style="font: 10pt Calibri Light,sans-serif; color: Black">December 28, 2018, deposit received</font></td><td style="color: Black; text-align: left; width: 1%"> </td><td style="color: Black; width: 10%"> </td>
<td style="color: Black; text-align: left; width: 1%">$</td><td style="color: Black; text-align: right; width: 43%">466,300</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left"><font style="font: 10pt Calibri Light,sans-serif; color: Black">December 2019 delivery</font></td><td style="padding-bottom: 1pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">(20,375)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; text-align: left"><font style="font: 10pt Calibri Light,sans-serif; color: Black">Balance as of December 31, 2019</font></td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td>
<td style="color: Black; text-align: left">$</td><td style="color: Black; text-align: right">445,925</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left"><font style="font: 10pt Calibri Light,sans-serif; color: Black">January 30, 2020, deposit received</font></td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td>
<td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">97,060</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: Black; text-align: left"><font style="font: 10pt Calibri Light,sans-serif; color: Black">June  2020 deliveries</font></td><td style="padding-bottom: 1pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: Black; text-align: right">32,289</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: Black; text-align: left"><font style="font: 10pt Calibri Light,sans-serif; color: Black">Balance as of June 30, 2020</font></td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">462,791</td></tr>
</table>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom">
<td style="color: Black; text-align: center"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">Three Months Ended</td></tr>
<tr style="vertical-align: bottom">
<td style="color: Black; text-align: center"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 68%">U.S. federal statutory rate</td><td style="font-family: Calibri Light,sans-serif; color: Black; width: 2%"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right; width: 12%">(21</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%">%)</td><td style="font-family: Calibri Light,sans-serif; color: Black; width: 2%"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right; width: 12%">(21</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; width: 1%">%)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">State income tax, net of federal benefit</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">(0.0</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">%)</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">(0.0</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">%)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">Increase in valuation allowance</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">21</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">%</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">21</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">Income tax provision (benefit)</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">0.0</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">%</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">0.0</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">%</td></tr>
</table>
<table cellpadding="0" cellspacing="0" align="center" style="font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 50%">
<tr style="vertical-align: bottom">
<td style="color: Black"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">June 30, 2020</td><td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: center">December 31, 2019</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left; width: 69%">Deferred Tax Assets</td><td style="color: Black; width: 2%"> </td>
<td style="color: Black; text-align: left; width: 1%"> </td><td style="color: Black; text-align: right; width: 12%"> </td><td style="color: Black; text-align: left; width: 1%"> </td><td style="color: Black; width: 2%"> </td>
<td style="color: Black; text-align: left; width: 1%"> </td><td style="color: Black; text-align: right; width: 12%"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">Net Operating Losses</td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">4,700,000</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black"> </td>
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="font-family: Calibri Light,sans-serif; color: Black; text-align: right">4,620,000</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Calibri Light,sans-serif; color: Black; text-align: left; padding-bottom: 1pt">Less: Valuation Allowance</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">(4,700,000</td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left">)</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">(4,620,000)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Calibri Light,sans-serif; color: Black; font-weight: bold; text-align: left; padding-bottom: 1pt">Deferred Tax Assets – Net</td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">—  </td><td style="padding-bottom: 1pt; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="font-family: Calibri Light,sans-serif; color: Black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri Light,sans-serif; color: Black; text-align: right">—  </td></tr>
</table>
2014-07-17
2015-10-23
On April 22, 2019 the reverse split of the Company’s Stock, at a ratio of one share for every 20 shares, was effective. All common stock share and per share amounts in this document reflect this reverse split.
1971200
31700000
413678
357719
371391
1.45
0.0041
P1M6D
P1Y6M
20195
21103
636240
12224
1421
830
14048
669489
36572
68648
109000
-1207165
51591
160763
98349
77272
349940
238035
143233
12500
109000
1093110
31493
1105610
174726
14687
14687
2101920
45322
16667
17901
2193270
77910
57257
58568
2933
4161
2601
2601
458904
440788
51500
406986
233079
1262740
1143217
3003912
30406
396850
417850
849208
1035750
298750
179000
179000
P0D
P3M18D
P9M
P1Y3M18D
P1Y6M
0.12
0.10
0.08
0.06
0.01
345048
205800
981910
1008950
135671
293189
728976
403971
Fixed conversion rate for the first 180 days ($0.03 as of March 31, 2020). 40% discount on the lowest closing bid price during the 20 trading days prior to conversion after 180 days.
50% discount on the average of the 3 lowest closing bid prices during the 10 trading days prior to conversion ($0.019).
603382
30000
0
30000
30000
466300
97060
156000
20375
80194
932600
466300
156000
20000
20375
1000000000
0.05
18635070
130
200
4895286
20000000
12801154
7198846
Series C Preferred Stock is 12% interest bearing, cumulative, exchangeable, non-voting, convertible preferred stock of the Company. Each Series C Preferred share is convertible to 2.5 shares of common stock.
Series D Preferred Stock is a non-voting, non-interest bearing convertible preferred stock. Each Series D preferred share is convertible to 5 shares of common stock.
Holders of Series E Preferred Stock are entitled to cast 100 votes per share of Series E Preferred Stock on any proposal to increase our authorized capital stock, with no other voting rights. Each share of Series E Preferred Stock is convertible to 20 shares of common stock.
The Series F Preferred Stock has a par value of $.001, stated value of $1,200, accrues dividends at 12%, is convertible to common stock based on a 20-day trailing volume weighted average low share price, and is senior to other preferred stock
The Series G Preferred Stock has a par value of $.001, is non-interest and non-dividend earning, and each share is convertible to 50 shares of common stock. The holder of Series G Preferred Stock has the right to cast 20,000 votes for every one share of Series G Preferred Stock on any and all proposals to amend the Company’s Articles of Incorporation to increase the authorized capital stock of the Company
The Series H Preferred Stock has a par value of $.001, stated value of $1,200, accrues dividends at 12%, and is convertible to common stock based on a 20-day trailing volume weighted average low share price
0.12
0.12
10000
10000
The holder of Series G Preferred Stock has the right to cast 20,000 votes for every one share of Series G Preferred Stock
20000
632500
607500
0.02
0.40
0.02
0.40
0
0
0
0
0
0
500000
500
495
0.51
0.49
0
0.71
0.12
0.17
0.02
0.21
0.21
0.0
0.0
0.21
0.21
0.0
0.0
4700000
4620000
4700000
4620000
P12M
91
122
7715
8065
3549
7972
8229
2020-02-29
22000000
2000000
2000000
0.35
0.21
0.34
Yes
-2815835
-1470202
-667170
-1930430
369011
124757
-190943
-93014