0001445866-16-002381.txt : 20160720 0001445866-16-002381.hdr.sgml : 20160720 20160720160833 ACCESSION NUMBER: 0001445866-16-002381 CONFORMED SUBMISSION TYPE: S-1/A PUBLIC DOCUMENT COUNT: 87 FILED AS OF DATE: 20160720 DATE AS OF CHANGE: 20160720 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Leo Motors, Inc. CENTRAL INDEX KEY: 0001356564 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLES & PASSENGER CAR BODIES [3711] IRS NUMBER: 953909667 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: S-1/A SEC ACT: 1933 Act SEC FILE NUMBER: 333-211973 FILM NUMBER: 161775553 BUSINESS ADDRESS: STREET 1: 3F BOKWANG BLDG. STREET 2: SEOWOON-RO 6 GIL 14, SEOCHO-GU CITY: SEOUL STATE: M5 ZIP: 06734 BUSINESS PHONE: 82 70 4699 3585 MAIL ADDRESS: STREET 1: 3F BOKWANG BLDG. STREET 2: SEOWOON-RO 6 GIL 14, SEOCHO-GU CITY: SEOUL STATE: M5 ZIP: 06734 FORMER COMPANY: FORMER CONFORMED NAME: Simco America Inc. DATE OF NAME CHANGE: 20060317 S-1/A 1 leoms106062016.htm S-1/A

 
As filed with the Securities and Exchange Commission on July 20 , 2016
 
                                                                                   Registration No. 333- 211973
  UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
AMENEMENT NO. 1
TO
FORM S-1
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
 
LEO MOTORS, INC.
(Exact name of registrant as specified in its charter)
 
Nevada
3711
95-3909667
(State or other jurisdiction of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
 
(I.R.S. Employer Identification Number)
3F Bokwang Bldg., Seowunro 6 Gil 14,
Seocho Gu, Seoul
 Republic of Korea
06734
(070) 4699-3585
(Address, including zip code, and telephone number,
including area code, of registrant's principal executive offices)
 
Shi Chul Kang, Co-Chief Executive Officer
Jun Heng Park, Co-Chief Executive Officer
Leo Motors, Inc.
3F Bokwang Bldg., Seowunro 6 Gil 14, Seocho Gu, Seoul
Republic of Korea
06734
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
 
Copies of all communications, including communications sent to agent for service, should be sent to:
 
Darrin M. Ocasio, Esq.
Sichenzia Ross Friedman Ference LLP
61 Broadway, 32nd Floor
New York, NY 10006
Phone (212) 930-9700
Fax (212) 930-9725
 
Approximate date of commencement of proposed sale to the public:  As soon as practicable after the effective date of this Registration Statement.
 
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box.   x
 
If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.   ¨
 
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.   ¨
 
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.   ¨
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.  (Check one):
 
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
(Do not check if a smaller reporting company)
 
 
 
 

CALCULATION OF REGISTRATION FEE
 
TITLE OF EACH CLASS OF
SECURITIES TO BE REGISTERED
 
AMOUNT TO BE
REGISTERED (1)
   
PROPOSED MAXIMUM OFFERING PRICE
PER SHARE (2)
   
PROPOSED MAXIMUM
AGGREGATE OFFERING PRICE (1)
   
AMOUNT OF REGISTRATION FEE
 
Shares of common stock, $0. 001 par value
   
39,321,444(3)
   
$
0.25
   
$
9,830,361
   
$
989.92
 
Shares of common stock, $0. 001 par value, underlying convertible debenture
   
3,134,921(4)
   
$
0.25
   
$
783,730.25
   
$
78.92
 
Total
   
42,456,365
           
$
10,614,091.20
   
$
1,068.84
 
 
(1)  
Pursuant to Rule 416 under the Securities Act, the shares of common stock offered hereby also include an indeterminate number of additional shares of common stock as may from time to time become issuable by reason of stock splits, stock dividends, recapitalizations or other similar transactions.
 
(2)  
Estimated at $0.25 per share, the average of the high and low prices as reported on the OTCQB on June 6, 2016, for the purpose of calculating the registration fee in accordance with Rule 457(c) under the Securities Act.
 
(3)
Represents (i) shares of the Company's common stock underlying an equity line of credit agreement ("ELOC"), which are the subject of a registration rights agreement by and between the Company and a selling stockholder listed herein; and (ii) shares issued to an individual selling shareholder listed herein.
 
(4) Represents shares of the Company's common stock underlying a series of convertible debentures issued to a selling stockholder listed herein.
 
The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission acting pursuant to said Section 8(a) may determine.
 

The information in this prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell and is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
 
PRELIMINARY PROSPECTUS
SUBJECT TO COMPLETION
DATED  JULY [●], 2016

LEO MOTORS, INC.
 


 
42,456,365
Shares of
Common stock
 
This prospectus relates to the sale by the selling stockholders identified herein of up to 42,456,365 shares of common stock of Leo Motors, Inc. (the "Company").
 
BOU Trust is deemed to be an "underwriter" within the meaning of the Securities Act of 1933, as amended (the "Securities Act"), in connection with the resale of the 38,986,355 shares that it is offering in this prospectus, although it may not sell those shares pursuant to Rule 144 of the Securities Act. The prices at which the selling stockholders may sell shares will be determined by the prevailing market price for the shares or in privately negotiated transactions. We will not receive any proceeds from the sale of these shares by the selling stockholders.  All expenses of registration incurred in connection with this offering are being borne by us, but all selling and other expenses incurred by the selling stockholders will be borne by the selling stockholders.
 
Our common stock is quoted on the OTCQB and trades under the symbol "LEOM."  On June9, 2016, the last reported sale price of our common stock as reported on the OTCQB was $0.29 per share. All amounts herein are in thousands, except for share and per share data.
 
We are an "emerging growth company" as that term is used in the Jumpstart Our Business Startups Act of 2012, and, as such, have elected to comply with certain reduced public company reporting requirements. 
 
Investing in our common stock is highly speculative and involves a high degree of risk. You should carefully consider the risks and uncertainties in the section entitled "Risk Factors" within this prospectus before making a decision to purchase our stock.
 
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.
 
The date of this prospectus is  July [●], 2016.
 

TABLE OF CONTENTS
 
 
Page
Prospectus Summary
 2
Risk Factors
 4
Special Note Regarding Forward Looking Statements
 10
Use of Proceeds
 10
Market for Our Common stock and Related Stockholder Matters
 11
Management's Discussion and Analysis of Financial Condition and Results of Operations
 12
Business
 16
Management
 20
Executive Compensation
 22
Certain Relationships and Related Transactions
 23
Security Ownership of Certain Beneficial Owners and Management
 24
Selling Stockholders
 24
Description of Securities
 26
Plan of Distribution
 26
Legal Matters
 27
Experts
 27
Where You Can Find Additional Information
 28
Index to Financial Statements
 29

You should rely only on the information contained in this prospectus. We have not authorized any other person to provide you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. We are not making an offer to sell these securities in any jurisdiction where offer or sale is not permitted. You should assume that the information appearing in this prospectus is accurate only as of the date on the front cover of this prospectus. Our business, financial condition, results of operations and prospects may have changed since that date.
 
For investors outside the United States, we have not done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. You are required to inform yourselves about and to observe any restrictions relating to this offering and the distribution of this prospectus outside of the United States.
 
This prospectus includes estimates, statistics and other industry and market data that we obtained from industry publications, research, surveys and studies conducted by third parties and publicly available information. Such data involves a number of assumptions and limitations and contains projections and estimates of the future performance of the industries in which we operate that are subject to a high degree of uncertainty. This prospectus also includes data based on our own internal estimates. We act and believe that the information provided in this prospectus is true and accurate.
 
 

Prospectus Summary
 
This summary highlights information contained in other parts of this prospectus. Because it is only a summary, it does not contain all of the information that you should consider before investing in our securities and it is qualified in its entirety by, and should be read in conjunction with, the more detailed information appearing elsewhere in this prospectus. You should read the entire prospectus carefully, especially the section entitled "Risk Factors" and our consolidated financial statements and related notes, before deciding to buy our securities. Unless otherwise stated, all references to "us," "our," "we," "Leo Motors," "LEOM," the "Company" and similar designations refer to Leo Motors, Inc. and, depending on the context, its subsidiaries.
 
Leo Motors, Inc. (the "Company") is a Nevada corporation incorporated on September 8, 2004.  The Company established a wholly-owned operating subsidiary in Korea named Leo Motors, Co. Ltd. ("Leozone") on July 1, 2006.  Through Leozone, the Company is engaged in the research and development ("R&D") of multiple products, prototypes, and conceptualizations based on proprietary, patented and patent pending electric power generation, drive train, and storage technologies.  Leozone operates through four unincorporated divisions: new product research & development ("R&D"), post R&D development (such as product testing), production, and sales.

The Company's products include (i) E-Box electric energy storage system for solar and wind power generation devices; and (ii) electric vehicle ("EV") components that integrate electric batteries with electric motors such as EV Controllers that use a mini-computer to control torque drive.

Revenues for the year ended December 31, 2015 were 4,299,187 compared to 693,096 for the year ended December 31, 2014.  Revenues for the three months ended March 31, 2016 were $745,706 compared to $42,771 for the three months ended March 31, 2015, an increase of $702,935. This was the direct result of increased product line in conjunction with its acquired subsidiary sales.  The net loss for the year ended December 31, 2015 was 4,490,972 compared to 4,480,544 for the year ended December 31, 2014. The net loss for the three months ending March 31, 2016 decreased to $458,166 from $595,418 for the three months ending March 31, 2015, a decrease of $137,252.

As reported in the consolidated financial statements included herewith, the Company has accumulated deficits of $25,404,609 as of December 31, 2015 and its current liabilities exceeded its current assets. These negative trends have been consistent over the last few years except for asset sales.

These factors create uncertainty about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable and to create operations that contribute capital from normal operations. If the Company cannot obtain adequate capital it could be forced to cease operations.

In order to continue as a going concern, develop and generate revenues and achieve a profitable level of operations, the Company will need, among other things, additional capital resources. Management's plans to obtain such resources for the  Company  include  (1) raising additional capital through sales of common stock, (2) converting  promissory notes into  common  stock  and (3) entering into acquisition agreements  with profitable  entities  with   significant   operations.   In   addition, management is continually seeking to streamline its operations and expand the business through a variety of industries, including real estate and financial management.

However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations.  The accompanying   consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
 
The Offering
 
Common stock offered by the selling stockholders:
42,456,365 shares of the Company's $0.001 par value common stock.
 
 
Common stock outstanding before and after this offering:
163,713,902(1) and 206,170,267(2)
 
 
Total  proceeds:
We will not receive any proceeds from the sale of shares in this offering by the selling stockholders. We will receive proceeds from our sale of shares to BOU Trust. BOU Trust has committed to purchase up to $10,000,000 worth of shares of our common stock over a period upon receipt of an appropriate notice.  The purchase price for the shares to be paid by BOU TRUST shall be the average of the lowest two (2) VWAPS during 5 consecutive Trading Days following the delivery by the Company of a notice plus a 5% discount. The amount for each purchase of the Shares as designated by the Company in the applicable draw down notices shall be equal to the lesser of (i) 4.99% of the then-current shares outstanding or (ii) the previous 10-day average trading volume of the draw down shares multiplied by 3; provided that the number of shares to be purchased by BOU Trust shall not exceed the number of such shares that, when added to the number of shares of our common stock then beneficially owned by BOU Trust, would exceed 4.99% of the number of shares of our common stock outstanding.
 
 
OTC Market symbol:
"LEOM"
 
 
Risk factors:
You should carefully consider the information set forth in this prospectus and, in particular, the specific factors set forth in the "Risk Factors" within this prospectus before deciding whether or not to invest in shares of our common stock.
   
Fees & Commissions 
 
Pursuant to a Mutual Acknowledgement Letter between the Company and NMS Capital Advisors, LLC ("NMS"), with respect to an Engagement Agreement between the Company and NMS, upon closing of the transaction with BOU Trust, NMS is owed four percent (4%) of the total transaction value due and payable only upon receipt by the Company of the draw down amount. If the Company does not elect to take any draws, then no fees shall be due to NMS. 
 
(1) The number of issued and outstanding shares of the Company's common stock as of June 6, 2016.
(2)  The number of issued and outstanding shares after this offering, assuming the conversion and draw down, in full, of the shares underlying the convertible debentures and the ELOC, respectively, as they pertain to the selling stockholders.  

2

The Company entered into a securities purchase agreement with an accredited investor (the "Investor") for the purchase of an equity line of credit ("ELOC"). The shares of common stock issuable under this ELOC are part of this Prospectus. Pursuant to the ELOC, the Company, at its sole and exclusive option, may issue and sell to the Investor, and the Investor shall purchase from the Company, shares of the Company's registered common stock (the "Shares") upon the Company's delivery of written notices to the Investor.  The aggregate maximum amount of all purchases that the Investor shall be obligated to make under the ELOC shall not exceed $10,000,000.  Once a written notice is received by the Investor, it shall not be terminated, withdrawn or otherwise revoked by the Company.

The amount for each purchase of the Shares as designated by the Company in the applicable draw down notices shall be equal to the lesser of (i) 4.99% of the then-current shares outstanding or (ii) the previous 10-day average trading volume of the draw down shares multiplied by 3. There shall be a minimum draw down investment amount of $25,000 and a maximum draw down investment amount of $1,000,000 unless otherwise agreed upon by the Company and the Investor. The purchase price for the Shares to be paid by the Investor shall be the average of the lowest two (2) VWAPS during 5 consecutive Trading Days following the delivery by the Company of a notice plus a 5% discount.

By way of example, if the share price calculated based on the average of the two lowest VWAPS was $0.075, the purchase price would be, after a 5% discount, $0.0712. Further, if the 10-day average trading volume was 300,000, the total number of shares for that purchase would be 300,000 multiplied by 3, or 900,000, assuming that this number is less than 4.99% of the shares outstanding.  The drawdown amount in this example would be $64,080 or 900,000 shares at a purchase price of $0.0712 per share.
 
There are substantial risks to investors as a result of the issuance of shares of our common stock under the ELOC. These risks include dilution of stockholders, significant decline in our stock price and our inability to draw sufficient funds when needed.

In order to fund a notice for funding pursuant to the ELOC (a "Drawdown Notice"), BOU Trust will periodically purchase our common stock under the ELOC and will, in turn, sell such shares to investors in the market at the market price on a best efforts basis, subject to certain conditions. This may cause our stock price to decline, which will require us to issue increasing numbers of common shares to BOU Trust to raise the same amount of funds, as our stock price declines.

Disclosure showing shares issuable if market stock price drops 25%, 50% and 75%

Drawdown Amount Required
 
 
 
 
 
100% of
25% Decrease
50% Decrease
75% Decrease
Current Stock
in Stock Price
in Stock Price
in Stock Price
Price (1)
(1)
(1)
(1)
 
 
 
 
 
 
 
 
 
 
Total No. of Shares Required to Raise $10,000,000(1)
 
 
41,666,667
 
56,179,775
 
83,333,336
 
166,666,672
(1) Based on a price of $0.25 per share.


Based on the above chart, the sale of stock under the first will be limited, resulting in significantly less capital than the $10,000,000 capital commitment. There are no assurances that the price of common stock will appreciate, depreciate, or remain at the same price as a result of stock sales under this Agreement, however, if there is a 25% to 75% decline in stock value pricing, the Company may only receive a portion of the $10,000,000 available.
 
The Company understands and acknowledges that the number of shares issuable upon purchases pursuant to this ELOC will increase in certain circumstances including, but not necessarily limited to, the circumstance wherein the trading price of the Common Stock declines during the Draw Down Pricing Period. The Company's executive officers and directors have studied and fully understand the nature of the transactions contemplated by this ELOC and recognize that they have a potential dilutive effect on the shareholders of the Company. The Board of Directors of the Company has concluded, in its good faith business judgment, and with full understanding of the implications, that such issuance is in the best interests of the Company. The Company specifically acknowledges that, subject to such limitations as are expressly set forth in the ELOC, its obligation to issue shares upon purchases pursuant to this ELOC is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.  We determined the amount of $10,000,000 as we require large sums of financing for our staged growth and in order to allow the greatest possible flexibility under the ELOC.

The Company also entered into a securities purchase agreement with an accredited investor (the "Investor") for the issuance of a series of convertible debentures (each a "Debenture," collectively, the "Debentures"). The shares of common stock underlying the Debentures are part of this Prospectus.  Each Debenture has a maturity date which is one year after the date of issuance and has an interest rate of ten (10%) percent per annum. Each Debenture is convertible into shares of the Company's Common Stock at any time after the sooner to occur of 180 days from the original issue date or when the shares issuable upon conversion of the Debenture have been registered on a registration statement that has been declared effective by the Securities and Exchange Commission and until the Debenture is no longer outstanding. The Debentures are convertible at a conversion price equal to the lower of (i) $0.50 per share or (ii) 70% of the lowest VWAP for the previous 20 trading days prior to conversion. The Company is permitted to prepay the Debentures at any time upon ten (10) days written notice to the Investor.

 
3

RISK FACTORS
 
There are numerous and varied risks, known and unknown, that may prevent us from achieving our goals. If any of these risks actually occur, our business, financial condition or results of operation may be materially adversely affected. In such case, the trading price of our common stock could decline and investors could lose all or part of their investment.
  
Discussion of our business and operations included in this prospectus should be read together with the risk factors set forth below. They describe various risks and uncertainties to which we are or may become subject. These risks and uncertainties, together with other factors described elsewhere in this report, have the potential to affect our business, financial condition, results of operations, cash flows, strategies or prospects in a material and adverse manner.  New risks may emerge at any time, and we cannot predict those risks or estimate the extent to which they may affect our financial performance. Each of the risks described below could adversely impact the value of our securities.  These statements, like all statements in this report, speak only as of the date of this prospectus (unless another date is indicated), and we undertake no obligation to update or revise the statements in light of future developments.
 
We cannot assure you that we will be successful in commercializing any of the Company's products or if any of our products are commercialized, that they will be profitable for the Company.
 
The Company generates limited revenue from operations upon which an evaluation of our prospects can be made.  The Company's prospects must be considered keeping in mind the risks, expenses and difficulties frequently encountered in the establishment of a new business in a constantly changing industry.  There can be no assurance that the Company will be able to achieve profitable operations in the foreseeable future, if at all.
 
The Company has identified a number of specific risk areas that may affect our operations and results in the future:
 
Investing in our Common Stock involves a high degree of risk. You should carefully consider the risks described below with all of the other information included in this prospectus before making an investment decision. If any of the possible adverse events described below actually occurs, our business, results of operations or financial condition would likely suffer. In such an event, the market price of our Common Stock could decline and you could lose all or part of your investment.
 
Risks Related to Our Business

Products that fail to meet specifications, are defective, or that are otherwise incompatible with end uses could impose significant costs on us.

Products that do not meet specifications or that contain, or are perceived by our customers to contain, defects or that are otherwise incompatible with end uses could impose significant costs on us or otherwise materially adversely affect our business, results of operations or financial condition. If problems with nonconforming, defective or incompatible products occur after we have shipped such products, we could be adversely affected in several ways, including the following:

· we may be required to replace product or otherwise compensate customers for costs incurred or damages caused by defective or incompatible product ; and
· we may encounter adverse publicity, which could cause a decrease in sales of our products.
 
We face the risk of product liability, recalls or other claims.

Our business exposes us to the risk of product liability claims that is inherent in the testing, manufacturing and marketing of any product. We may be subject to product liability claims if our products cause, or merely appear to have caused, an injury or death. If we do not have or we are unable to obtain insurance at acceptable cost or on acceptable terms with adequate coverage or otherwise protect against potential product liability claims, we could be exposed to significant financial and other liabilities, which may materially harm our business. A product liability claim, product recall or other claim with respect to uninsured liabilities or for amounts in excess of insured liabilities could have a material adverse effect on our business, operating results and prospects. We may be subject to claims even if the apparent injury is due to the actions of others. These liabilities could prevent, delay or otherwise adversely interfere with our product commercialization efforts, as well as result in judgments, fines, damages and other financial liabilities to us which would have a material adverse effect on our business, operating results and prospects. Defending a suit, regardless of merit, could be costly, could divert management's attention from our business and might result in adverse publicity, which could result in reduced acceptance of our products in the market. In addition to adversely impacting our business and prospects, such adverse publicity could materially adversely affect the value of our stock.
 
The limited availability of raw materials or supplies could materially adversely affect our business, our results of operations, or our financial condition.

Our operations require raw materials that meet exacting standards. We generally have multiple sources of supply for our raw materials. However, only a limited number of suppliers are capable of delivering certain raw materials that meet our standards. Shortages may occur from time to time in the future. In addition, disruptions in transportation lines could delay our receipt of raw materials. Lead times for the supply of raw materials have been extended in the past. If our supply of raw materials is disrupted or our lead times extended, our business, results of operations or financial condition could be materially adversely affected.

Our proprietary rights may not adequately protect our intellectual property and product candidates and if we cannot obtain adequate protection of our intellectual property and product candidates, we may not be able to successfully market our product candidates.
 
Our commercial success will depend in part on obtaining and maintaining intellectual property protection for our technologies and product candidates. We will only be able to protect our technologies and product candidates from unauthorized use by third parties to the extent that valid and enforceable patents cover them, or that other market exclusionary rights apply.

The patent positions of companies, like ours, can be highly uncertain and involve complex legal and factual questions for which important legal principles remain unresolved. No consistent policy regarding the breadth of claims allowed in such companies' patents has emerged to date in the United States. The general patent environment outside the United States also involves significant uncertainty. Accordingly, we cannot predict the breadth of claims that may be allowed or that the scope of these patent rights would provide a sufficient degree of future protection that would permit us to gain or keep our competitive advantage with respect to these products and technology.
4

 
In addition, others may independently develop similar or alternative compounds and technologies that may be outside the scope of our intellectual property. Should third parties obtain patent rights to similar compounds or technology, this may have an adverse effect on our business.
 
If we fail to attract and retain senior management, consultants, advisors, and scientific and technical personnel, our product development and commercialization efforts could be impaired.
 
Our performance is substantially dependent on the performance of our senior management and key scientific and technical personnel. The loss of the services of any member of our senior management or our scientific or technical staff may significantly delay or prevent the development of our product candidates and other business objectives by diverting management's attention to transition matters and identification of suitable replacements, if any, and could have a material adverse effect on our business, operating results and financial condition.
 
In addition, we believe that we will need to recruit additional executive management and scientific and technical personnel. There is currently intense competition for skilled executives and employees with relevant scientific and technical expertise, and this competition is likely to continue. The inability to attract and retain sufficient scientific, technical and managerial personnel could limit or delay our product development efforts, which would adversely affect the development of our product candidates and commercialization of our potential products and growth of our business.
 
We expect to expand our research, development, clinical research and marketing capabilities and, as a result, we may encounter difficulties in managing our growth, which could disrupt our operations.
 
We expect to have significant growth in expenditures, the number of our employees and the scope of our operations, in particular with respect to those potential products that we elect to commercialize independently or together with others. To manage our anticipated future growth, we must continue to implement and improve our managerial, operational and financial systems, expand our facilities and continue to train qualified personnel. Due to our limited resources, we may not be able to effectively manage the expansion of our operations or train additional qualified personnel. The physical expansion of our operations may lead to significant costs and may divert our management and business development resources. Any inability to manage growth could delay the execution of our business plan or disrupt our operations.

We have a history of losses and expect to continue to incur losses and may not achieve or maintain profitability.
 
We expect to incur additional losses for at least the next several years and cannot be certain that we will ever achieve profitability. As a result, our business is subject to all of the risks inherent in the development of a new business enterprise, such as the risk that we may not obtain substantial additional capital needed to support the expenses of developing our technology and commercializing our potential products; develop a market for our potential products; and/or attract and retain qualified management, technical and scientific staff.
 
We qualify as an emerging growth company.

As a company with less than $1.0 billion in revenue during our last fiscal year, we qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act, or the JOBS Act, enacted in April 2012. An "emerging growth company" may take advantage of reduced reporting requirements that are otherwise applicable to public companies. These provisions include, but are not limited to:

- being permitted to present only two years of audited financial statements and only two years of related Management's Discussion and Analysis of Financial Condition and Results of Operations in this prospectus;

- not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended;

- reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration statements; and

- exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

We may use these provisions until the last day of our fiscal year following the fifth anniversary of the closing of our initial public offering. However, if certain events occur prior to the end of such five-year period, including if we become a "large accelerated filer," our annual gross revenue exceed $1.0 billion or we issue more than $1.0 billion of non-convertible debt in any three-year period, we will cease to be an emerging growth company prior to the end of such five-year period.

The JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(2) of the Jobs Act, that allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.
 
Risks Related to Doing Business in Korea
 
The movement of the Korean Won against the U.S. dollar and other currencies may have a material adverse effect on us.
 
The Korean Won has fluctuated significantly against major currencies in recent years, especially as a result of the recent global financial crisis and the relatively speedy recovery of Korean economy therefrom.  The depreciation of the Won against U.S. dollar and other foreign currencies typically results in a material increase in the cost of fuel and equipment purchased from overseas and the cost of servicing our foreign currency-denominated debt as the prices for substantially all of the fuel materials and a significant portion of the equipment we purchase are stated in currencies other than the Won, generally in U.S. dollars. As a result, any significant depreciation of Won against the U.S. dollar or other major foreign currencies will have a material adverse effect on our profitability and results of operations
 
 
5

The movement of the Won against the U.S. dollar and other currencies may have a material adverse effect on us.
 
The Won has fluctuated significantly against major currencies in recent years, especially as a result of the recent global financial crisis and the relatively speedy recovery of Korean economy therefrom. The depreciation of Won against U.S. dollar and other foreign currencies typically results in a material increase in the cost of fuel and equipment purchased from overseas and the cost of servicing our foreign currency-denominated debt as the prices for substantially all of the fuel materials and a significant portion of the equipment we purchase are stated in currencies other than Won, generally in U.S. dollars. As a result, any significant depreciation of Won against the U.S. dollar or other major foreign currencies will have a material adverse effect on our profitability and results of operations.
 
Escalations in tensions with North Korea could have an adverse effect on us.
 
Relations between Korea and North Korea have been tense throughout Korea's modern history. The level of tension between the two Koreas has fluctuated and may increase abruptly as a result of current and future events. In recent years, there have been heightened security concerns stemming from North Korea's nuclear weapon and long- range missile programs and increased uncertainty regarding North Korea's actions and possible responses from the international community. In December 2002, North Korea removed the seals and surveillance equipment from its Yongbyon nuclear power plant and evicted inspectors from the United Nations International Atomic Energy Agency. In January 2003, North Korea renounced its obligations under the Nuclear Non-Proliferation Treaty. Since the renouncement, Korea, the United States, North Korea, China, Japan and Russia have held numerous rounds of six party multi-lateral talks in an effort to resolve issues relating to North Korea's nuclear weapons program.
There can be no assurance that the level of tension on the Korean peninsula will not escalate in the future. Any further increase in tensions, which may occur, for example, if North Korea experiences a leadership crisis, high-level contacts break down or military hostilities occur, could have a material adverse effect on our operations and the market value of our common stock.
 
You may not be able to enforce a judgment of a foreign court against us.

A significant portion of the assets of our directors and officers named in this  Prospectus , and substantially all of our assets are located in Korea. As a result, it may not be possible for you to enforce judgments, against either our assets or us, obtained in United States based on the civil liability provisions of the United States federal securities laws. There is doubt as to the enforceability in Korea, either in original actions or in actions for enforcement of judgments of United States courts, of civil liabilities predicated on the United States federal securities laws.

Risks Related to Our Industry

Our competitors may develop products that are less expensive, are safer or more effective, and thus may diminish or eliminate the commercial success of any potential products that we may commercialize.
 
If our competitors' market products that are less expensive, safer or more effective than our future products developed from our product candidates, or that reach the market before our product candidates, we may not achieve commercial success.  The market may choose to continue utilizing the existing products for any number of reasons, including familiarity with or pricing of these existing products. The failure of any of our product candidates to compete with products marketed by our competitors would impair our ability to generate revenue, which would have a material adverse effect on our future business, financial condition and results of operations.
 
We expect to compete with several companies and our competitors may:
 
• 
develop and market products that are less expensive or more effective than our future products;
 
 
• 
commercialize competing products before we or our partners can launch any products developed from our product candidates;
 
 
• 
operate larger research and development programs or have substantially greater financial resources than we do;
 
 
• 
initiate or withstand substantial price competition more successfully than we can;
 
 
• 
have greater success in recruiting skilled technical and scientific workers from the limited pool of available talent;
 
 
• 
more effectively negotiate third-party licenses and strategic relationships; and
 
 
• 
take advantage of acquisition or other opportunities more readily than we can.
 
Risks Related to Our Common Stock

The stock market, particularly in recent years, has experienced significant volatility. Factors that could cause this volatility in the market price of our Common Stock include:
 
• 
failure or discontinuation of any of our research;
 
 
• 
delays in establishing new strategic relationships;
 
 
• 
delays in the development or commercialization of our potential products;
 
 
• 
market conditions and issuance of new or changed securities analysts' reports or recommendations;
 
 
• 
actual and anticipated fluctuations in our financial and operating results;
 
 
• 
developments or disputes concerning our intellectual property or other proprietary rights;
 
 
• 
introduction of technological innovations or new commercial products by us or our competitors;
 
 
• 
issues in manufacturing our potential products;
 
 
• 
third-party healthcare reimbursement policies;
 
 
• 
litigation or public concern about the safety of our product candidates; and
 
 
• 
additions or departures of key personnel.
 
6

These and other external factors may cause the market price and demand for our Common Stock to fluctuate substantially, which may limit or prevent investors from readily selling their shares of Common Stock and may otherwise negatively affect the liquidity of our Common Stock. In the past, when the market price of a stock has been volatile, holders of that stock have instituted securities class action litigation against the company that issued the stock. If any of our stockholders brought a lawsuit against us, we could incur substantial costs defending the lawsuit. Such a lawsuit could also divert the time and attention of our management.

We have not and do not anticipate paying any dividends on our common stock.
 
We have paid no dividends on our common stock to date and it is not anticipated that any dividends will be paid to holders of our common stock in the foreseeable future. While our future dividend policy will be based on the operating results and capital needs of the business, it is currently anticipated that any earnings will be retained to finance our future expansion and for the implementation of our business plan. As an investor, you should take note of the fact that a lack of a dividend can further affect the market value of our stock, and could significantly affect the value of any investment in our Company.
 
We are subject to the reporting requirements of federal securities laws, this can be expensive and may divert resources from other projects, thus impairing its ability grow.
 
We are subject to the information and reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and other federal securities laws, including compliance with the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act").  The costs of preparing and filing annual and quarterly reports, proxy statements and other information with the SEC and furnishing audited reports to stockholders will cause our expenses to be higher than they would have been if we had remained privately held.

If we fail to establish and maintain an effective system of internal control, we may not be able to report our financial results accurately or to prevent fraud.  Any inability to report and file our financial results accurately and timely could harm our reputation and adversely impact the trading price of our Common Stock.
 
Effective internal control is necessary for us to provide reliable financial reports and prevent fraud.  If we cannot provide reliable financial reports or prevent fraud, we may not be able to manage our business as effectively as we would if an effective control environment existed, and our business and reputation with investors may be harmed.  As a result, our small size and any current internal control deficiencies may adversely affect our financial condition, results of operation and access to capital.  We have not performed an in-depth analysis to determine if historical un-discovered failures of internal controls exist, and may in the future discover areas of our internal control that need improvement.
 
Public company compliance may make it more difficult to attract and retain officers and directors.
 
The Sarbanes-Oxley Act and new rules subsequently implemented by the SEC have required changes in corporate governance practices of public companies.  As a public company, we expect these new rules and regulations to increase our compliance costs in 2016 and beyond and to make certain activities more time consuming and costly.  As a public company, we also expect that these new rules and regulations may make it more difficult and expensive for us to obtain director and officer liability insurance in the future and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage.  As a result, it may be more difficult for us to attract and retain qualified persons to serve on our board of directors or as executive officers.

The limited trading market for our common stock results in limited liquidity for shares of our common stock and significant volatility in our stock price.
 
Although prices for our shares of common stock are quoted on the OTCQB, there is little current trading and no assurance can be given that an active public trading market will develop or, if developed, that it will be sustained.  The OTCQB is generally regarded as a less efficient and less prestigious trading market than other national markets.  There is no assurance if or when our common stock will be quoted on another more prestigious exchange or market.  Active trading markets generally result in lower price volatility and more efficient execution of buy and sell orders.  The absence of an active trading market reduces the liquidity of our common stock.

The market price of our stock is likely to be highly volatile because for some time there will likely be a thin trading market for the stock, which causes trades of small blocks of stock to have a significant impact on our stock price.  As a result of the lack of trading activity, the quoted price for our common stock on the OTCQB is not necessarily a reliable indicator of its fair market value.  Further, if we cease to be quoted, holders of our common stock would find it more difficult to dispose of, or to obtain accurate quotations as to the market value of, our common stock, and the market value of our common stock would likely decline.
7

  
Our Common Stock is currently deemed a "penny stock," which makes it more difficult for our investors to sell their shares.
 
Our Common Stock is subject to the "penny stock" rules adopted under Section 15(g) of the Exchange Act.  The penny stock rules generally apply to companies whose common stock is not listed on The NASDAQ Stock Market or other national securities exchange and trades at less than $4.00 per share, other than companies that have had average revenue of at least $6,000,000 for the last three years or that have tangible net worth of at least $5,000,000 ($2,000,000 if the company has been operating for three or more years).  These rules require, among other things, that brokers who trade penny stock to persons other than "established customers" complete certain documentation, make suitability inquiries of investors and provide investors with certain information concerning trading in the security, including a risk disclosure document and quote information under certain circumstances.  Many brokers have decided not to trade penny stocks because of the requirements of the penny stock rules and, as a result, the number of broker-dealers willing to act as market makers in such securities is limited.  If we remain subject to the penny stock rules for any significant period, it could have an adverse effect on the market, if any, for our securities.  If our securities are subject to the penny stock rules, investors will find it more difficult to dispose of our securities.
 
Offers or availability for sale of a substantial number of shares of our Common Stock may cause the price of our Common Stock to decline.
 
If our stockholders sell substantial amounts of our Common Stock in the public market upon the expiration of any statutory holding period, under Rule 144, or issued upon the exercise of outstanding options or warrants, it could create a circumstance commonly referred to as an "overhang" and in anticipation of which the market price of our Common Stock could fall.  The existence of an overhang, whether or not sales have occurred or are occurring, also could make more difficult our ability to raise additional financing through the sale of equity or equity-related securities in the future at a time and price that we deem reasonable or appropriate.

You may experience dilution of your ownership interests because of the future issuance of additional shares of our common stock.
 
In the future, we may issue our authorized but previously unissued equity securities, resulting in the dilution of the ownership interests of our present stockholders.  We may issue additional shares of our common stock or other securities that are convertible into or exercisable for our common stock in connection with hiring or retaining employees, future acquisitions, future sales of our securities for capital raising purposes, or for other business purposes.  The future issuance of any such additional shares of our common stock may create downward pressure on the trading price of the common stock. We will need to raise additional capital in the near future to meet our working capital needs, and there can be no assurance that we will not be required to issue additional shares, warrants or other convertible securities in the future in conjunction with these capital raising efforts, including at a price (or exercise or conversion prices) below the price an investor paid for stock.  

There are substantial risks associated with the ELOC with BOU Trust which could contribute to the decline of the price of our Common Shares and have a dilutive impact on our existing stockholders.

In order to obtain needed capital, we entered into the ELOC with BOU Trust. The sale of our Common Shares pursuant to the ELOC will have a dilutive impact on our stockholders. We believe BOU Trust intends to promptly re-sell the Common Shares that we sell to it under the ELOC. Such resales could cause the market price of our Common Shares to decline significantly. Any subsequent sales by us to BOU Trust under the ELOC may, to the extent of any such decline, require us to issue a greater number of Common Shares to BOU Trust in exchange for each dollar of such subsequent sale. Under these circumstances our existing stockholders would experience greater dilution. The sale of Common Shares under the ELOC could encourage short sales by third parties which could contribute to the further decline of the price of our Common Stock.
 
You could lose all of your investment.
 
An investment in our securities is speculative and involves a high degree of risk. Potential investors should be aware that the value of an investment in the Company may go down as well as up. In addition, there can be no certainty that the market value of an investment in the Company will fully reflect its underlying value. You could lose your entire investment.
 
Offers or availability for sale of a substantial number of shares of our common stock, for example, in connection with the 42,456,365 shares registered for resale herein, may cause the price of our common stock to decline.
 
If our stockholders sell substantial amounts of our common stock in the public market, including upon the expiration of any statutory holding period under Rule 144 or registration for resale, or issued upon the exercise of warrants, it could create a circumstance commonly referred to as an "overhang" and in anticipation of which the market price of our common stock could fall.  The existence of an overhang, whether or not sales have occurred or are occurring, also could make more difficult our ability to raise additional financing through the sale of equity or equity-related securities in the future at a time and price that we deem reasonable or appropriate.  As of June 6, 2016, we have 163,713,902 shares of common stock issued and outstanding. Following the effectiveness of the registration statement of which this prospectus forms a part, 42,456,365 shares of common stock will be immediately available for resale assuming the full amount available pursuant to the equity line of credit underlying this Prospectus is drawn down.  Only those shares underlying the convertible debentures and those shares already drawn down, if any, from the equity line of credit, subject to the 4.99% limitation, will be immediately available.  It is possible that the full amount allowed pursuant to the equity line of credit will never be drawn down and available for resale.
 
Investor relations activities, nominal "float" and supply and demand factors may affect the price of our stock.
 
The Company may utilize various techniques such as non-deal road shows and investor relations campaigns in order to create investor awareness for the Company.  These campaigns may include personal, video and telephone conferences with investors and prospective investors in which our business practices are described.  The Company may provide compensation to investor relations firms and pay for newsletters, websites, mailings and email campaigns that are produced by third-parties based upon publicly-available information concerning the Company. The Company does not intend to review or approve the content of such analysts' reports or other materials based upon analysts' own research or methods.  Investor relations firms should generally disclose when they are compensated for their efforts, but whether such disclosure is made or complete is not under our control.   In addition, investors in the Company may, from time to time, also take steps to encourage investor awareness through similar activities that may be undertaken at the expense of the investors.  Investor awareness activities may also be suspended or discontinued which may impact the trading market our common stock.
 
The SEC and FINRA enforce various statutes and regulations intended to prevent manipulative or deceptive devices in connection with the purchase or sale of any security and carefully scrutinize trading patterns and company news and other communications for false or misleading information, particularly in cases where the hallmarks of "pump and dump" activities may exist, such as rapid share price increases or decreases. We, and our shareholders, may be subjected to enhanced regulatory scrutiny due to the small number of holders who initially will own the registered shares of our common stock publicly available for resale. The Supreme Court has stated that manipulative action is a term of art connoting intentional or willful conduct designed to deceive or defraud investors by controlling or artificially affecting the price of securities. Often times, manipulation is associated by regulators with forces that upset the supply and demand factors that would normally determine trading prices.
8


Risks Related to the Equity Line of Credit
 
BOU Trust will pay less than the then-prevailing market price of our common stock, which could cause the price of our common stock to decline.
 
Our common stock to be issued under the ELOC will be purchased at a five percent (5%) discount to the lowest two (2) VWAPS during 5 consecutive Trading Days following the delivery by the Company of a notice.

BOU Trust has a financial incentive to sell our shares immediately upon receiving the shares to realize the profit between the discounted price and the market price. If BOU Trust sells our shares, the price of our common stock may decrease. If our stock price decreases, BOU Trust may have a further incentive to sell such shares. Accordingly, the discounted sales price may cause the price of our common stock to decline.

We are registering an aggregate of 42,456,365 shares of common stock to be issued under the equity line of credit. The sale of such shares could depress the market price of our common stock.
 
We are registering an aggregate of 42,456,365 shares of common stock under the registration statement of which this prospectus forms a part for issuance, a part of which is pursuant to the equity line of credit. The sale of these shares into the public market by BOU Trust could depress the market price of our common stock.
 
We may not have access to the full amount under the equity line of credit.
 
For the two consecutive trading days prior to July 19, 2016 the closing price of our common stock was $0.25. There is no assurance that the market price of our common stock will increase or remain the same substantially in the near future. The entire commitment under the equity line of credit is $10,000,000. The aggregate number of shares of common stock necessary to raise the entire $10,000,000 at $.25 per share is 40,000,000. We may not have access to the remaining commitment under the equity line of credit unless the market price of our common stock increases or remains stable. The Company's executive officers and directors fully recognize that the Company may not provide them access to the full line of credit.
 
Our common stock price may decline by our draw on our equity line of credit.
 
Pursuant to the ELOC, when we deem it necessary, we may raise capital through the private sale of our common stock to BOU Trust. Because the sales price is lower than the prevailing market price of our common stock, to the extent that the put right is exercised, your ownership interest will be diluted in direct proportion.
 
There may not be a sufficient price of our common stock to permit us to acquire adequate funds, which may adversely affect our liquidity.

The ELOC provides that the number of shares sold pursuant to each Notice plus the shares held by BOU Trust at that time shall not exceed 4.99% of the issued and outstanding shares of common stock of the Company. If the price our common stock is too low, it is possible that we may not be permitted to draw the full amount of proceeds of the drawdown request, which may not provide adequate funding for our planned operations and may materially decrease our liquidity.
 
We may draw on our equity line of credit to the extent that a change of control occurs.
 
The Company may continue to make drawdown requests while the Selling Stockholder holds shares of common stock or sells shares to a specific party, thereby causing such purchasing party to gain control of the Company. This could jeopardize the execution of the Company's business plan and may disrupt operations. The Company does not anticipate making drawdown requests under this scenario.
9

 
Draw Downs under the ELOC may cause dilution to existing shareholders.

BOU Trust has committed to purchase up to $10,000,000 worth of shares of our common stock. From time to time during the term of the ELOC, and at our sole discretion, we may present BOU Turst with a Draw Down Notice requiring BOU Trust to purchase shares of our common stock. The purchase price to be paid by BOU Trust will be at a 5% discount of the Market Price of our common stock.  We will be entitled to put to BOU Trust on each Draw Down Notice date such number of shares of common stock as equal to the lesser of (i) 4.99% of the then-current shares outstanding or (ii) the previous 10-day average trading volume of the draw down shares multiplied by 3; provided that the number of shares to be purchased by BOU Trust shall not exceed the number of such shares that, when added to the number of shares of our common stock then beneficially owned by BOU Trust, would exceed 4.99% of the number of shares of our common stock outstanding. As a result, our existing shareholders will experience immediate dilution upon the purchase of any of the shares by BOU Trust. The issue and sale of the shares under the ELOC may also have an adverse effect on the market price of the common shares. BOU Trust may resell some, if not all, of the shares that we issue to it under the ELOC and such sales could cause the market price of the common stock to decline significantly. To the extent of any such decline, any subsequent puts would require us to issue and sell a greater number of shares to BOU Trust in exchange for each dollar of the put amount. Under these circumstances, the existing shareholders of our company will experience greater dilution. The effect of this dilution may, in turn, cause the price of our common stock to decrease further, both because of the downward pressure on the stock price that would be caused by a large number of sales of our shares into the public market by BOU Trust, and because our existing stockholders may disagree with a decision to sell shares to BOU Trust at a time when our stock price is low, and may in response decide to sell additional shares, further decreasing our stock price.

The table below illustrates an issuance of shares of common stock to BOU Turst under the ELOC for a hypothetical draw down amount of $25,000 at an assumed Market Price of $0.15.

Draw Down Amount
   
Price to be Paid by SBII
   
Number of Shares to be Issued
 
$
25,000
   
$
0.14
     
178,571
 

By comparison, if the Market Price of our common stock was $0.12, the number of shares that we would be required to issue in order to have the same draw down amount of $25,000 would be greater, as shown by the following table:

Draw Down Amount
   
Price to be Paid by SBII
   
Number of Shares to be Issued
 
$
25,000
   
$
0.11
     
227,273
 

Accordingly, there would be dilution of an additional 48,702 shares issued due to the lower stock price of $0.12 per share. 
 
General market risks
 
We may not be able to access credit.
 
We face the risk that we may not be able to access credit, either from lenders or suppliers.  Failure to access credit from any of these sources could have a material adverse effect on our business, financial condition, results of operations and future prospects.
 
We may not be able to maintain effective internal controls.
 
If we fail to maintain the adequacy of our internal accounting controls, as such standards are modified, supplemented or amended from time to time, we may not be able to ensure that we can conclude on an on-going basis that we have effective internal controls over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002.  Failure to achieve and maintain an effective internal control environment could cause us to face regulatory action and also cause investors to lose confidence in our reported financial information, either of which could have a material adverse effect on our business, financial condition, results of operations and future prospects. 
 
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
 
This prospectus contains forward-looking statements. Such statements include statements regarding our expectations, hopes, beliefs or intentions regarding the future, including but not limited to statements regarding our market, strategy, competition, development plans (including acquisitions and expansion), financing, revenues, operations, and compliance with applicable laws. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. Factors that could cause actual results to differ materially from such forward-looking statements include the risks described in greater detail in the following paragraphs. All forward-looking statements in this document are made as of the date hereof, based on information available to us as of the date hereof, and we assume no obligation to update any forward-looking statement. Market data used throughout this prospectus is based on published third party reports or the good faith estimates of management, which estimates are based upon their review of internal surveys, independent industry publications and other publicly available information.
 
You should review carefully the section entitled "Risk Factors" within this prospectus for a discussion of these and other risks that relate to our business and investing in shares of our common stock.
 
USE OF PROCEEDS
 
The selling stockholders will receive all of the proceeds from the sale of the shares offered by them under this prospectus. We will not receive any proceeds from the sale of the shares by the selling stockholders covered by this prospectus.  We will receive proceeds from our initial sale of shares to BOU Trust.
10

 
MARKET FOR OUR COMMON STOCK AND RELATED STOCKHOLDER MATTERS
 
Market information
 
Our Common stock is traded on the OTCQB under the symbol "LEOM." 
 
The following table sets forth the high and low last reported sales prices of our Common stock for each quarterly period to date during 2015, 2014, and 2013.
 
 
 
High
   
Low
 
2013:
           
Fourth quarter
 
$
0.078
   
$
0.078
 
Third quarter
   
0.0385
     
0.0385
 
Second quarter
   
0.10
     
0.072
 
First quarter
   
0.099
     
0.085
 
 
 
 
High
   
Low
 
2014:
           
Fourth quarter
 
$
0.081
   
$
0.053
 
Third quarter
   
0.0705
     
0.067
 
Second quarter
   
0.045
     
0.0375
 
First quarter
   
0.08
     
0.07
 
 
               
 
2015:
 
High
   
Low
 
Fourth quarter
 
$
0.311
   
$
0.289
 
Third quarter
   
0.39
     
0.37
 
Second quarter
   
0.43
     
0.41
 
First quarter
   
0.071
     
0.07
 
 
On June 9, 2016, the Company's Common stock closed on the OTCQB at $0.29 per share.
 
As of June 6, 2016, there were 957 stockholders of record of our common stock.
 
Dividends
 
We have paid no dividends on our common stock to date and it is not anticipated that any dividends will be paid to holders of our common stock in the foreseeable future. While our future dividend policy will be based on the operating results and capital needs of the business, it is currently anticipated that any earnings will be retained to finance our future expansion and for the implementation of our business plan. As an investor, you should take note of the fact that a lack of a dividend can further affect the market value of our stock, and could significantly affect the value of any investment in our Company.
 
Securities authorized for issuance under equity compensation plans
 
No option grants were issued during the year ended December 31, 2015. Further reference is made to the information contained in the Equity Compensation Plan table contained in this prospectus.
 
11

MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION
 
This discussion should be read in conjunction with the other sections of this prospectus, including "Risk Factors," "Description of Business" and the Financial Statements attached hereto pursuant and the related exhibits. The various sections of this discussion contain a number of forward-looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risk factors described throughout this prospectus. See "Special Note on Forward-Looking Statements." Our actual results may differ materially. All amounts in this discussion are in thousands, except for share and per share data.
 
The following discussion and analysis of our results of operations and financial condition should be read in conjunction with (i) our unaudited interim condensed consolidated financial statements and related notes for the three months ended March 31, 2016 and 2015 (ii) audited financial statements for the fiscal years ended December 31, 2015 and 2014 and the notes thereto and (iii) the section entitled "Business," included elsewhere in this prospectus. Our condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").
  
Overview
 
Leo Motors, Inc. (the "Company") is a Nevada corporation incorporated on September 8, 2004.  The Company established a wholly-owned operating subsidiary in Korea named Leo Motors, Co. Ltd. ("Leozone") on July 1, 2006.  Through Leozone, the Company is engaged in the research and development ("R&D") of multiple products, prototypes, and conceptualizations based on proprietary, patented and patent pending electric power generation, drive train, and storage technologies.  Leozone operates through four unincorporated divisions: new product research & development ("R&D"), post R&D development (such as product testing), production, and sales. 

The Company's products include (i) E-Box electric energy storage system for solar and wind power generation devices; and (ii) electric vehicle ("EV") components that integrate electric batteries with electric motors such as EV Controllers that use a mini-computer to control torque drive.

The Company was previously actively engaged in the process of development and production of Electric Power Train Systems ("EPTS") encompassing electric scooters, electric sedans/SUVs/sports cars, and electric buses/trucks as well as several models of Electric Vehicle ("EV"). Our EPTS can replace internal combustion engines ("ICEs").  Company began sales of EPTS to auto makers and agricultural machinery manufacturers.

The Company has developed eight EPTS of increasing power rating: 3kW, 5kW, 7.5kW, 15kW, 30kW, 60kW, 120kW, and 240kW systems.  Each EPTS consists of a motor, a controller, and a battery power pack with a battery management system ("BMS").

The Company has successfully converted existing models of small cars (ICEs under 2,000cc), and also a 24 seat bus.  The Company has begun marketing its 60kW power train kits (for compact passenger cars and small trucks) and its 120kW kits (for ICE passenger cars, buses, and trucks under 5,000cc). The Company has developed a 240kW kit (for up to 10,000cc buses and trucks) as well, and is attempting to locate a strategic partner to fund the testing and production.  

The specific goals of the Company over the next twelve months include:

· 
Focus on the capitalization of the Company;
· 
Focus on the sale of the E-Boats and E-Box;
· 
Business development in China by establishing joint venture company in China, and in Japan;
· 
Continue with R&D of our EV's, electric boats, and related products as capital permits.

The E-Box can be used as an energy supplying device in an emergency situations or as a energy storage device for use by the military; municipal and industry; corporate; solar/wind power storage; electric coolers and heaters; yachts or small ships. The E-Box is offered in three power classes: 1kw, 3kw and 5kw.  E-Boxes for 10kw and 550kw will be developed in the future.  The E-Box is environmentally friendly with high energy density due to the use of lithium-polymer battery.  The E-Box uses a multiple cell voltage balancing system via a battery management system ("BMS").
 
The Company is developing new battery exchange system using its patented cartridge battery exchange system which will solve the cost barriers of the electric vehicle to make them less expensive than their Internal Combustion Engine (ICE) counterparts and to help solve battery charging problems. With evolutionary batter exchange system, the Company's EV's can exchange battery within one minute using simple and low cost equipment. This technology can be best used in fleet managed vehicles such as city buses, taxis, and garbage trucks because it can be used any road sides.
 
Results of operations
 
Three months ended March 31, 2016 and 2015
12

 
Revenues
 
Sales for the three months ended March 31, 2016 were $745,706 compared to $42,771 for the three months ended March 31, 2015, an increase of $702,935. This was the direct result of increased product line in conjunction with its acquired subsidiary sales.

General and Administrative Expenses

Expenses for the period quarter consisted of the following:

 
For the Three Months Ended
 
 
March 31,
 
March 31,
 
Total General and Administrative Expenses:
2016
 
2015
 
Salaries and Benefits
 
$
366,121
   
$
126,456
 
Consulting and Service Fees
   
155,938
     
54,324
 
Selling, General and Administrative
   
386,801
     
177,631
 
Total
 
$
908,860
   
$
358,411
 

Salaries and Benefits consist of total of common stock issued to our executive officers as compensation for their services as officers of the Company and cash compensation paid to our employees during the year and the cost of all benefits provided to our employees.
 
Consulting and Service Fees consist of consist of accounting, legal, and professional fees.
 
Selling, General and Administrative consists of travel expenses, entertainment expenses, communication expenses, utilities, taxes & dues, depreciation expenses, rent, repairs, vehicle maintenance, ordinary development expenses, shipping, education & training, printing, storage, advertising, insurance, office supplies and expense, payroll expenses, investor referral fees and other miscellaneous expenses.

Other Income (Expenses)

During the three months ended March 31, 2016, we incurred $3,998 in net other expenses, compared to $279,778 in the three months ended March 31, 2015, a decrease of $275,780. The majority of the decrease was reduced interest expense as the Company has been able to access different sources of capital.

Net Income (Loss)

The net loss for the three months ending March 31, 2016 decreased to $458,166 from $595,418 for the three months ending March 31, 2015, a decrease of $137,252. As outlined above the Company has had very limited sales as it restructures its product lines.
 
Liquidity and Capital Resources

Our liquidity and capital resources are limited. Accordingly, our ability to initiate our plan of operations and continue as a going concern is currently dependent on our ability to either generate significant new revenues or raise external capital through additional borrowing or the sale of additional equity.

The Company's total assets at March 31, 2016 were $6,199,394 and total current liabilities were $5,189,764.  Significant losses from operations have been incurred since inception and there is an accumulated deficit of $(25,822,119) as of March 31, 2016.  Continuation as a going concern is dependent upon attaining capital to achieve profitable operations while maintaining current fixed expense levels.

Off-Balance Sheet Arrangements
 
We do not have any off balance sheet arrangements that are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors.
 
Fiscal years ended December 31, 2015 versus 2014
 
Revenues
  
Sales for the year ended December 31, 2015 were $4,299,187 compared to $693,096 for the year ended December 31, 2014, reflecting an increase of $3,606,091. Most of this is revenue increase from our newly acquired subsidiaries Leo Motors Factory 1, Leo Motors Factory 2, and Leo Trading which generated $3,800,518 in the current year and none in 2014.

Cost of Sales

Costs of sales were $3,275,587 for the year ended December 31, 2015 compared to $379,066 for the year ending December 31, 2014, reflecting the cost of sales generated in our newly acquired subsidiaries Leo Motors Factory 1, Leo Motors Factory 2, and Leo Trading which generated $2,772,078 in the current year and none in 2014.
13


 Operating Expenses
 
During the year ended December 31, 2015, we incurred $5,421,508 in expenses, compared to $3,468,599 in the period ended December 31, 2014. With three additional operating subsidiaries in 2015 the increase in expenses for this current year is attributable to an increase in salaries and benefits as well as increased research and development expenses in 2015 as the company continues to explore new products. The detail is provided in the table below.
  
Expenses for the fiscal year 2015 and 2014 consisted of the following:
 
 
Year Ended
 
Expenses:
December 31,
2015
 
December 31,
2014
 
 
       
Salaries and Benefits
 
$
1,706,968
   
$
1,476,145
 
Consulting and Service Fees
 
$
758,702
   
$
0
 
Research and Development
 
$
1,278,402
   
$
1,027,676
 
Selling, General and Administrative
 
$
1,677,436
   
$
964,788
 
Total
 
$
5,421,508
   
$
3,468,609
 

Salaries and Benefits consist of total of common stock issued to our executive officers as compensation for their services as officers of the Company and cash compensation paid to our employees during the year and the cost of all benefits provided to our employees.
 
Consulting and Service Fees consist of consist of accounting, legal, and professional fees.
 
Selling, General and Administrative  consists of travel expenses, entertainment expenses, communication expenses, utilities, taxes & dues, depreciation expenses, rent, repairs, vehicle maintenance, ordinary development expenses, shipping, education & training, printing, storage, advertising, insurance, office supplies and expense, payroll expenses, investor referral fees and other miscellaneous expenses.

Other Income (Expenses)

During the year ended December 31, 2013 the company had net non-operating expense of $362,062 and for the year ended December 31, 2012 net non-operating income of $1,058,582, a decrease of $1,420,644. During the 2012 fiscal year the Company had a net non-operating income largely from the result of the forgiveness of debt for $1,309,028.  There was also stock sold for a profit of $52,893. These gains were offset in part by interest expense of $136,775 in 2013 and $197,634 in 2012 and miscellaneous items.

Liquidity and Capital Resources

Our liquidity and capital resources are limited. Accordingly, our ability to initiate our plan of operations and continue as a going concern is currently dependent on our ability to either generate significant new revenues or raise external capital through additional borrowing or the sale of additional equity.

The Company's total assets at December 31, 2014 were $1,395,845 and total current liabilities were $4,298,455, all of which were current.  Significant losses from operations have been incurred since inception and there is an accumulated deficit of $(21,357,211) as of December 31, 2014.  Continuation as a going concern is dependent upon attaining capital to achieve profitable operations while maintaining current fixed expense levels.
 
Off-Balance Sheet Arrangements
 
None.
 
Critical accounting policies and estimates
 
The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Certain accounting policies have a significant impact on amounts reported in the financial statements. A summary of those significant accounting policies can be found elsewhere in this registration statement.
 
Our discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The notes to the consolidated financial statements describe our significant accounting policies used in the preparation of the consolidated financial statements. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. We continually evaluate our critical accounting policies and estimates.
14

 
We believe the critical accounting policies listed below reflect significant judgments, estimates and assumptions used in the preparation of our consolidated financial statements.
 
Intangible assets
 
Estimates of future cash flows and timing of events for evaluating long-lived assets for impairment are based upon management's judgment. If any of our intangible or long-lived assets are considered to be impaired, the amount of impairment to be recognized is the excess of the carrying amount of the assets over its fair value. Applicable long-lived assets are amortized or depreciated over the shorter of their estimated useful lives, the estimated period that the assets will generate revenue, or the statutory or contractual term in the case of patents. Estimates of useful lives and periods of expected revenue generation are reviewed periodically for appropriateness and are based upon management's judgment.
 
 Goodwill
 
Goodwill represents the excess of the purchase price over the fair value of the assets acquired and liabilities assumed. The Company is required to perform impairment reviews at each of its reporting units annually and more frequently in certain circumstances.
 
In accordance with ASC 350-20 "Goodwill," the Company is able to make a qualitative assessment of whether it is more likely than not that a reporting unit's fair value is less than its carrying amount before applying the two-step goodwill impairment test. If the Company concludes that it is more likely than not that the fair value of a reporting unit is not less than its carrying amount it is not required to perform the two-step impairment test for that reporting unit.
 
Equity-based compensation
 
The Company recognizes compensation expense for all equity-based payments in accordance with ASC 718 "Compensation - Stock Compensation."  Under fair value recognition provisions, the Company recognizes equity-based compensation net of an estimated forfeiture rate and recognizes compensation cost only for those shares expected to vest over the requisite service period of the award.
 
Restricted stock awards are granted at the discretion of the Company. These awards are restricted as to the transfer of ownership and generally vest over the requisite service periods, typically over an eighteen-month period (vesting on a straight-line basis). The fair value of a stock award is equal to the fair market value of a share of Company stock on the grant date.
 
The fair value of option award is estimated on the date of grant using the Black-Scholes option valuation model. The Black-Scholes option valuation model requires the development of assumptions that are input into the model. These assumptions are the expected stock volatility, the risk-free interest rate, the option's expected life, the dividend yield on the underlying stock and the expected forfeiture rate. Expected volatility is calculated based on the historical volatility of our Common stock over the expected option life and other appropriate factors. Risk-free interest rates are calculated based on continuously compounded risk-free rates for the appropriate term. The dividend yield is assumed to be zero as the Company has never paid or declared any cash dividends on our Common stock and does not intend to pay dividends on our Common stock in the foreseeable future. The expected forfeiture rate is estimated based on historical experience.
 
Determining the appropriate fair value model and calculating the fair value of equity-based payment awards requires the input of the subjective assumptions described above. The assumptions used in calculating the fair value of equity-based payment awards represent management's best estimates, which involve inherent uncertainties and the application of management's judgment. As a result, if factors change and the Company uses different assumptions, our equity-based compensation could be materially different in the future. In addition, the Company is required to estimate the expected forfeiture rate and recognize expense only for those shares expected to vest. If our actual forfeiture rate is materially different from our estimate, the equity-based compensation could be significantly different from what the Company has recorded in the current period.
 
The Company accounts for share-based payments granted to non-employees in accordance with ASC 505-40, "Equity Based Payments to Non-Employees."  The Company determines the fair value of the stock-based payment as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.  If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty's performance is complete. The fair value of the equity instruments is re-measured each reporting period over the requisite service period.

Recent accounting pronouncements
 
In September 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-16, simplifying the Accounting for Measurement-Period Adjustments that eliminates the requirement to restate prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The new guidance does not change what constitutes a measurement period adjustment. The Company does not expect the adoption of this ASU to significantly impact the consolidated financial statements. In August 2015, the FASB issued ASU 2015-15 Interest- Imputation of Interest, final guidance that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. This publication has been updated to reflect an SEC staff member's comment in June 2015 that the staff will not object to an entity presenting the cost of securing a revolving line of credit as an asset, regardless of whether a balance is outstanding. The Company does not expect the adoption of this ASU to significantly impact the consolidated financial statements.
15


In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). This ASU removes, from the fair value hierarchy, investments which measure fair value using net asset value per share practical expedient. Instead, an entity is required to include those investments as a reconciling line item so that the total fair value amount of investments in the disclosure is consistent with the amount on the balance sheet. For public companies, this ASU is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendment should be applied retrospectively to all periods presented. The Company is expected to make the required changes to the fair value hierarchy disclosure as of the effective date of this new guidance.
 
In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). This ASU provides guidance about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the arrangement should be accounted for as a service contract. For public business entities, the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2015-05 on our financial statements and disclosures.
 
BUSINESS
 
General
 
Leo Motors, Inc. (the "Company") is a Nevada Corporation incorporated on September 8, 2004. The Company established a wholly-owned operating subsidiary in Korea named Leo Motors Co. Ltd. ("Leozone") on July 1, 2006. Through Leozone, the Company is engaged in the research and development ("R&D") of multiple products, prototypes, and conceptualizations based on proprietary, patented and patent pending electric power generation, drive train and storage technologies. Leozone operates through four unincorporated divisions: new product research & development ("R&D"), post R&D development such as product testing, production, and sales.

The Company's products include (i) E-Box electric energy storage system for solar and wind power generation devices; and (ii) EV components that integrate electric batteries with electric motors such as EV Controllers that use a mini-computer to control torque drive.
 
The Company was previously actively engaged in the process of development and production of Electric Power Train Systems ("EPTS") encompassing electric scooters, electric sedans/SUVs/sports cars, and electric buses/trucks and boats as well as several models of Electric Vehicle ("EV"). Our EPTS can replace internal combustion engines ("ICEs"). The Company began sales of EPTS to auto makers and agricultural machinery manufacturers.

The Company has developed eight EPTS of increasing power rating: 3kW, 5kW, 7.5kW, 15kW, 30kW, 60kW, 120kW, and 240kW systems. Each EPTS consists of a motor, a controller, and a battery power pack with a battery management system ("BMS").

The Company has successfully converted existing models of small cars (using ICEs under 2,000cc), and also a 24 seat bus. The Company has begun marketing its 60kW EPTS (for compact passenger cars and small trucks) and its 120kW EPTS (for passenger cars, buses, and trucks using under 5,000cc ICE). These EPTS' will be produced on a custom order basis. The Company has developed a 240kW EPTS (buses and trucks using up to 10,000cc ICE) as well, and is attempting to locate a strategic partner to fund the testing and production. .
 
Major components of EPTS include electric motors, controllers, battery management systems and battery cells. The Company has not started mass manufacturing and does not have any major suppliers for raw materials. When the Company starts mass manufacturing, it is going to source the raw material from suppliers in order to produce the motors, controllers and battery power packs, including BMS.

The Company plans to market its products internationally. The Company is interested in developing client bases in Korea, China, the Philippines and the Democratic Republic of Congo. However, the Company has not received any revenue from these markets yet. The market development has significant risks in costs and time because all of the Company's products need the approval from each respective government. In Korea, the Company received government approval for EPTS for electric fishing boats. However, the Company is not able to get government approvals from all of the countries it is interested in expanding to because of a limitation of funds. Whenever any sales materialize in a country, the Company will start the process to get the necessary government approval for the products to be delivered. Thus, it takes around six months to receive revenues, even after definitive sales contracts are made.

The development and marketing of EPTS are dependent upon government regulations. Generally, EPTS is more expensive than ICE's. Thus the sales are dependent on a government subsidy provided when purchasing electric vehicles. For example, this year, the Chinese government has suspended its once-generous consumer subsidies for EV buses using Lithium Ion Batteries. Subsidies will continue for less-advanced lithium-iron-phosphate (LFP) batteries. Because of this, the Company has changed the battery cells for battery power packs into LFP, which cost a lot of money because the Company developed its EPTS with Lithium Ion Batteries. This is one example of the risks the Company is exposed to by provable changes of government regulations.

The Company does not pay any cost to comply with environmental laws because it is still a development stage company, and thus does not have factory. The Company plans to make a manufacturing plant in China, and will need to research the environmental laws in China. For currently developing products, the Company considers only its final assembly factory which outsources all components. The Company does not think any environmental laws will incur significant costs or effect the Company's business much, but the environmental laws must be carefully reviewed, and be included in the manufacturing plan when the Company starts a manufacturing plant.
 
The specific goals of the Company over the next twelve months include:

· 
Focus on the capitalization of the developments made by the Company;
· 
Focus on the sale of the E-Boats, E-Bus, and E-Box;
· 
Business development in China by establishing a joint venture company in China; and
· 
Continue with R&D of our EV's, electric boats, and related products as capital permits.
   
The E-Box can be used as an energy supplying device in an emergency situations or as a n energy storage device for use by the military; municipal and industry; corporate; solar/wind power storage; electric coolers and heaters; yachts or small ships. The E-Box is offered in three power classes: 1kW, 3kW and 5kW . E-Boxes for 10kW and 50kW will be developed in the future. The E-Box is environmentally friendly with high energy density due to the use of lithium-polymer battery. The E-Box uses a multiple cell voltage balancing system via a battery management system ("BMS").
 
The Company is developing new battery exchange system using its patented cartridge battery exchange system which will solve the cost barriers of the electric vehicle to make them less expensive than their Internal Combustion Engine (ICE) counterparts and to help solve battery charging problems. With the batter y exchange system, the Company's EV's can exchange battery within minute s using simple and low cost equipment. This technology can be best used in fleet managed vehicles such as city buses, taxis, and garbage trucks because it can be used any road sides.
16

 
Conventional city buses drive for an average of 18 hours daily. Normally, this length of time may cause concern for most drivers of an electric bus because of charging time, but the buses developed by the Company utilize the patented battery replacement system which relieves any charging time.

The Company plans to not include the batteries in the electric buses at the time of sale. Instead the buses will rent charged batteries from innovative battery swap stations which the Company plans to deploy. By swapping the battery from these stations instead of charging, the drivers continuously drive the bus without spending any time charging the vehicle.

The batteries at the Company's battery swap stations belong to the station operators, not the owner of the electric vehicle. This not only reduces the price of the vehicle significantly but also neglects any concerns about battery life span. This battery swap concept is not a new concept. 'Better Place' and 'Tesla' tried to integrate this system to private electric vehicle owners but the idea never came to fruition. The reality is that an owner of a costly car like Model S (Tesla) would not swap his expensive, new battery for something pre-owned. Batteries comprise the biggest portion of the price of electric vehicles and once a battery swap is made, the resale value of the car surges significantly.

Another problem of precedent battery swap methods is that the station itself is extremely expensive. Swapping a battery power pack weighing more than 1,400 lbs. is not an easy task and requires an extravagant facility. To overcome this dilemma, the Company developed the CB (Cartridge Battery) technology. CB splits the battery into smaller, lightweight cartridges that are optimized for accessible handling.

When CB works in harmony with the Company's newly innovated Battery Swapping Machines, it decreases the time required to fuel vehicles of equivalent size with gas. The battery swapping machines are carts which replace battery cartridges instead of expensive robot arms that crawl out of the ground to handle massive battery packs. Using this shopping cart sized device, 20 cartridges can be replaced within 5 minutes.

The Company's battery power packs are connected through a mobile network via the driver's smart phone. Once the driver gets into the car, his or her smart phone automatically syncs with Leo's Electric Vehicle Operation System (EVOS). Using an IoT (Internet of Things) platform, the driver can monitor remaining battery life, receive re-placement alert services (which is automatically sent when the battery is running low) and information on nearest swap station. The Company's platform also provides cloud based electric power management data and condition of electric powertrain monitoring services as well as EV fleet management services, roadside emergency battery charging or swap services, and self-certification services of chargers. If battery life is insufficient to reach a swap center, it transmits the emergency battery swap truck to swap the battery at roadside.

The Company expanded its businesses into luxury car repairing and trading services by acquiring three companies in 2015. The Company acquired 50% ownership of each of three companies: Leo Motors Factory I, Leo Motors Factory II, and Leo Trading. The Company provides luxury car repairing services through Leo Motors Factory I and Leo Motors Factory II which have "high end" maintenance equipment and facilities. Leo Trading is specializing in trading luxury cars. Another objective of these acquisitions is for the Company to establish Korea's first "Electric Vehicle Repair Shop" designed to maintain and repair hybrid cars as well as pure electric cars to fulfill the growing needs of the large auto makers and "green" consumers. The Company also intends to add major electric vehicle dealerships to the Leo Trade lineup.

In 2016, the Company acquired 50% ownership of Lelcon Co., Ltd. ("Lelcon"). Lelcon has proprietary connected car technology crucial in development of smart electric vehicles (EV's). This strategic acquisition allows the Company to accelerate development of its fleet EV management systems based on Internet of Things (IoT) and Artificial Intelligence (AI) platforms. Lelcon has developed a system branded as "AutoNsight" that is an On-Board diagnostic and controlling device that detects, reports, and controls the status of power system components including motors, controllers, transmission, ABS breaking system, battery power packs, information and communication systems including on-board navigation, entertainment system, and a comfort system. Based on IoT platform, AutoNsight is connected through mobile internet.  EV status can be remotely monitored and controlled in the control tower through computer based devices including note books, tablets and smart phones.  AutoNsight is available for both EV and internal combustion engine vehicles, and is compatible with Google Auto and Apple Car Play.

Lelcon's AutoNsight is expected to reduce the Company's time to market the Company's connected electric buses and electric delivery trucks.  The Company will also enjoy significant savings in development costs.  For the Company's battery swapping system for fleet EV's, the Company has continued to invest in developing a mobile network based connected car system.  Lelcon's technology provides such mobile network based system without further investment.
 
Our principal executive offices are located at 3F Bokwang Bldg., Seowunro 6 Gil 14, Seocho Gu, Seoul, Korea, 137-863 and our telephone number is +82 70-4699-3583. Our web site address is www.leomotors.com. Information contained in or accessible through our website does not constitute part of this Annual Report on Form 10-K.
 
Corporate History

Leo Motors, Inc. (the "Company") was originally incorporated as Classic Auto Accessories of North America, a California Corporation on July 2, 1986. The Company then underwent several name changes from FCR Automotive Group, Inc. to Shini Precision Machinery, Inc. to Simco America Inc. and then to Leo Motors. The Company had been dormant since 1989, and effectuated a reverse merger on November 12, 2007 with Leozone Inc., a South Korean Company, which is the maker of electrical transportation devices. The merger essentially exchanges shares in Leo Motors, Inc. for shares in Leozone. As this is a reverse merger the accounting treatment of such is that of a combination of the two entities with the activity of Leozone, Inc. the surviving entity, going forward. The financial statements reflect the activity for all periods presented as if the merger had occurred January 1, 2007. Leozone has continued to operate as a separate subsidiary (Leo Motors Co. Ltd. of Korea) since that time.
 
On February 11, 2010, the Company acquired 50% of Leo B&T Corp., ("B&T") a Korean Corporation, from two shareholders of B&T in exchange for 7,000,000 shares of the Company's common stock. This percentage was reduced to 30% in 2011. Additionally, this investment was written down through an impairment expense during 2011 and the remaining investment was exchanged in 2012 for a return of Leo Motors stock.
 
On November 10, 2012, the Company signed an agreement with PDI C&D/RDC SPRL Inc. ("PDI"), an affiliate of PDI Global LLC, a major architectural design company in the U.S., to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo ("DRC"). This project has incurred an impairment charge as further detailed in our financial statements and the notes thereto. Due to unavoidable political/regional instability in the DRC, the contract with PDI was unable to be fulfilled and as of May 2015, the contract was terminated.
17

 
On July 1, 2014, the Company acquired all of the outstanding common stock of LGM Co. Ltd., an electric boat company incorporated in the Republic of Korea ("LGM"), from LGM's shareholders, which represents 813,747 shares of LGM common stock, in exchange for 47,352,450 shares of the Company's common stock pursuant to the Share Swap Agreement entered into by and between LGM and the Company. Pursuant to the Agreement, LGM became a wholly-owned subsidiary of the Company.

On March 31 of 2015, the Company acquired 50% of the outstanding common stock of Leo Motors Factory 1, Leo Motors Factory 2, and Leo Trading. These three companies became subsidiaries of the Company.
 
On July 31, 2015, the Company entered into a joint venture company agreement (the "JV Agreement") with Fushun Jinyuan Technology Machinery Manufacturing Co., Ltd., a company established and existing under the laws of the People's Republic of China, to establish a joint venture, Liaoning Senyuan Leo New Energy Electric Vehicle Co., Ltd. in China, to develop, manufacture and sell new energy electric vehicles. The joint venture company has not been incorporated yet because the Company's funding for the joint venture company is delayed. Pursuant to the JV Agreement, Senyuan Leo will have a registered capital of RMB 411,600,000 (approximately $66.3 million), with Fushun Jinyuan owning 51% and the Company owning 49%. The total capital contribution shall be completed no later than 90 days from the date Senyuan Leo is incorporated, which deadline may be further extended to 108 days from the date of incorporation. The Company will invest in Senyuan Leo through a cash contribution of RMB 201,684,000 (approximately $32.5 million) and Fushun Jinyuan will invest in Senyuan Leo through a cash contribution of RMB 200,000,000 (approximately $32.2 million).

On June 3, 2016, the Company acquired 50% ownership of Lelcon Co., Ltd. ("Lelcon"). The Company will issue 1,414,828 shares of its common stock at $0.30 per share in exchange for 50% equity in Lelcon.
 
Product Candidates

The Company's products include (i) E-Box electric energy storage system for solar and wind power generation devices; (ii) EV components that integrate electric battery power packages with electric motors with EV Controllers that use a mini-computer to control torque drive, (iii) E-Boat power trains including motor, controller, and cartridge battery power packs.

The Company has developed eight EPTS of increasing power rating: 3kW, 5kW, 7.5kW, 15kW, 30kW, 60kW, 120kW, and 240kW systems.  Each EPTS consists of a motor, a controller, and a battery power pack with a battery management system ("BMS").

The Company has successfully converted existing models of small cars (using ICEs under 2,000cc), and also a 24 seat bus. The Company has begun marketing its 60kW EPTS (for compact passenger cars and small trucks) and its 120kW EPTS (for passenger cars, buses, and trucks using under 5,000cc ICE). These EPTS will be produced on a custom order basis. The Company has developed a 240kW EPTS (buses and trucks using up to 10,000cc ICE) as well, and is attempting to locate a strategic partner to fund the testing and production.

Business Strategy

The specific goals of the Company over the next twelve months include:
 
 
Focus on the capitalization of the developments made by the Company;
 
Focus on the sale of the E-Boats, E-Buses, and E-Box;
 
Business development in China by establishing a joint venture company in China; and
 
Continue with R&D of our EV's, electric boats, and related products as capital permits.

 
There can be no assurance that the Company will adhere to any of the above goals.
 
The E-Box can be used as an energy supplying device in an emergency situations or as an energy storage device for use by the military; municipal and industry; corporate; solar/wind power storage; electric coolers and heaters; yachts or small boats. The E-Box is offered in three power classes: 1kw, 3kw and 5kw.  E-Boxes for 10kw and 550kw will be developed in the future.  The E-Box is environmentally friendly with high energy density due to the use of lithium-ion battery.  The E-Box uses a multiple cell voltage balancing system via a battery management system ("BMS").
 
 Marketing

We have directed our marketing efforts of e-Box energy solutions to companies involved in the sustainable housing segment that requires efficient electric storage solutions based on wind and solar power.

The Company has marketed its 60kW EPTS (for compact passenger cars and small trucks) and its 120kW EPTS (for passenger cars, buses, and trucks using under 5,000cc ICE) .
 
The primary market for the Company's EPTS and electric vehicles is China. The Company tries to supply electric city buses using battery swap system in China. To manufacture electric bus in China, the Company will find a supplier who will provide the body and chassis of the bus.

The primary market of the Company's electric fishing boat is Korea. The Korean government promotes the use of electric fishing boats for coastal environmental protection.

The Company has marketed electric fishing boats with 120 kW power trains. The 120W power train boat was registered to the National Federation of Fisheries Cooperatives as the first marketable electric boat product in Korea. With the registration, our customers of e-Fishing Boats can receive government subsidy when they purchase the 120kW power train boat from us. On May 4, 2016, the Company sold its first fishing boat to the Korean government. The Korean government is renting Company's electric fishing boats to the fishermen who are interested in electrifying their fishing boats .

Competition

We expect to compete with several companies including GS Yuasa, BYD, Eliiy Power, etc, and our competitors may:
 
    • 
develop and market products that are less expensive or more effective than our future products;
    • 
commercialize competing products before we, or our partners, can launch any products developed from our product candidates;
    • 
operate larger research and development programs or have substantially greater financial resources than we do;
    • 
have greater success in recruiting skilled technical and scientific workers from the limited pool of available talent;
    • 
more effectively negotiate third-party licenses and strategic relationships; and
    • 
take advantage of acquisition or other opportunities more readily than we can.

18

Intellectual Property
 
Registration date
Registration number
Name
Duration
Country
2015.08.31
1550568
Motor control system of boat
2015.05.11~2035.05.11
Rep. of Korea
2015.04.27
1517017
Battery cooling system and boat using it
2013.05.13~2033.05.13
Rep. of Korea
2015.02.11
1494524
Battery connection system
2013.05.13~2033.05.13
Rep. of Korea
2014.11.11
1462575
Refrigerating apparatus for refrigerating vehicle
2013.02.18~2033.02.18
Rep. of Korea
2014.11.11
1462576
Refrigerating apparatus for refrigerating vehicle
2013.02.18~2033.02.18
Rep. of Korea
2013.01.25
1228434
Zinc-air fuel cell assembly for ocean
2010.12.31~2030.12.31
Rep. of Korea
2013.01.25
1228435
Zinc-air fuel cell assembly for ocean
2010.12.31~2030.12.31
Rep. of Korea
2012.4.17
1140345
Electric vehicle power development apparatus
2009.04.06~2029.04.06
Rep. of Korea
2012.11.26
1206784
Zinc-air fuel cell system, and control method for the same
2010.10.28~2030.10.28
Rep. of Korea
2012.10.05
1187829
Zinc-air fuel cell assembly having zinc oxide secession means
2010.06.08~2030.06.08
Rep. of Korea
2012.10.05
1187866
Zinc-air fuel cell reaction cell structure
2010.09.14~2030.09.14
Rep. of Korea
2012.10.05
1187870
Zinc-air fuel cell reaction cell unit enabling simultaneous supply and emission of zinc-ball
2010.09.14~2030.09.14
Rep. of Korea
2012.09.26
662002
Scooter
2010.06.29~2027.09.26
Rep. of Korea
2012.09.26
662003
Scooter
2010.06.29~2027.09.26
Rep. of Korea
2012.09.26
662004
Scooter
2010.06.29~2027.09.26
Rep. of Korea
2012.09.13
1184335
Motor
2009.03.31~2029.03.31
Rep. of Korea
2012.09.06
1182336
Cell voltage balancing control method of battery management system
2009.09.14~2029.09.14
Rep. of Korea
2012.07.25
1170001
Motor
2010.03.19~2030.03.19
Rep. of Korea
2012.07.25
1170002
Battery stack assembly
2008.12.08~2028.12.08
Rep. of Korea
2012.07.19
1168597
Zinc-ball supplying apparatus
2010.05.11~2030.05.11
Rep. of Korea
2012.07.19
1168598
Zinc-air fuel cell assembly of radial shape stack structure
2010.06.08~2030.06.08
Rep. of Korea
2012.07.02
1163537
Electric vehicle fuel cell duality system
2010.03.19~2030.03.19
Rep. of Korea
2012.06.27
1161613
Electric automobile driving mode control method
2009.03.31~2029.03.31
Rep. of Korea
2012.06.07
1155993
Electric vehicle battery housing
2010.04.16~2030.04.16
Rep. of Korea
2012.05.29
1152790
Zinc-ball supplying apparatus
2010.05.11~2030.05.11
Rep. of Korea
2012.05.29
1152793
Zinc-ball supplying apparatus
2010.06.08~2030.06.08
Rep. of Korea
2012.05.24
1151779
Electric vehicle motor cooling apparatus
2010.11.17~2029.11.17
Rep. of Korea
2012.05.24
1151783
Zinc-ball supplying apparatus
2010.05.11~2030.05.11
Rep. of Korea
2012.05.16
1148980
Electric vehicle battery charging apparatus
2009.05.22~2029.05.22
Rep. of Korea
2012.04.30
1143406
Electric truck battery mounting structure
2010.07.15~2030.07.15
Rep. of Korea
2011.04.05
1028773
Electric vehicle powertrain gear apparatus
2009.07.08~2029.07.08
 
Rep. of Korea
2011.04.05
1028758
Electric automobile driving mode automatic control method
2009.02.19~2029.02.19
Rep. of Korea
2011.04.05
1028755
Electric vehicle motor cooling apparatus
2009.11.17~2029.11.17
Rep. of Korea
2011.04.05
1028756
Power input control circuit for battery management system
2009.09.10~2029.09.10
Rep. of Korea
2011.03.18
1024663
Zinc-Air fuel cell stack assembly
2009.03.31~2029.03.31
Rep. of Korea
2011.02.09
1015138
Battery stack assembly
2008.12.08~2028.12.08
Rep. of Korea
2011.01.17
1010235
Zinc-air fuel cell assembly
2008.12.08~2028.12.08
Rep. of Korea
2011.01.17
1010236
Zinc-air fuel cell assembly
2010.10.13~2030.03.19
Rep. of Korea
2011.01.05
1007554
Zinc-Air fuel cell stack assembly
2008.12.08~2028.12.08
Rep. of Korea
2011.01.05
1007593
Car velocity control method to electric vehicle battery charging state
2009.09.14~2029.09.14
Rep. of Korea
2010.12.22
1004621
Motor magnetic position fixing apparatus
2009.07.22~2029.07.22
Rep. of Korea
2010.12.15
1002963
Zinc-air fuel cell assembly
2010.03.19~2030.03.19
Rep. of Korea
2010.12.15
1002965
Zinc-ball supplying apparatus
2010.05.11~2030.05.11
Rep. of Korea
2010.12.10
1001982
Battery stack assembly
2010.09.17~2028.12.08
Rep. of Korea
2010.11.09
994438
Zinc-air fuel cell electrolyte emission system
2010.03.19~2030.03.19
Rep. of Korea
2010.09.29
985521
Battery stack assembly
2009.03.31~2029.03.31
Rep. of Korea
2010.08.11
977018
Zinc-air fuel cell reaction cell structure
2010.03.19~2030.03.19
Rep. of Korea
2010.08.11
976504
Zinc-air fuel cell assembly
2010.04.16~2030.04.16
Rep. of Korea
2010.07.30
831435
Hilless
2009.04.28~2020.07.30
Rep. of Korea
2008.05.06
490413
Vehicle
2007.06.29~2023.05.06
Rep. of Korea
2007.07.24
0744057
Embedded system and a graphic user interface displaying method thereof
2006.04.04~2026.01.04
Rep. of Korea
2007.05.30
0725405
Wireless receiving device without pll frequency synthesizer and wireless receiving method using the same
2005.10.20~2025.10.20
Rep. of Korea
2007.02.07
682489
A Multi Motor Device for Electric Vehicle
2005.05.19~2025.05.19
Rep. of Korea
2006.07.05
0599667
Separator for fuel cell using the metal coated with tin, method to prepare there it, and polymer electrolyte membrane fuel cell comprising the same
2004.03.23~2024,03,23
Rep. of Korea
 
Employees
 
We currently have 45 employees to manage our ongoing operation, though it is expected that selective hires will be made.

Legal Proceedings
 
We are not currently a party to any legal proceedings that, individually or in the aggregate, are deemed to be material to our financial condition or results of operations.
19

  
MANAGEMENT
 
NAME OF DIRECTOR OR OFFICER
AGE
POSITION
 
 
 
Shi Chul Kang
55
Co-Chief Executive Officer and Director
Jun Heng Park 
45  Co-Chief Executive Officer and Director
Jeong Youl Choi
46
Chief Financial Officer and Director
Jun Hee Won  36  Director 
Seok Hoe  47  Director 
  
Directors are elected based on experience, qualifications and in accordance with the Company's by-laws to serve until the next annual stockholders meeting and until their successors are elected in their stead.  Officers are appointed by the Board and hold office until their successors are chosen and qualified, until their death or until they resign or have been removed from office. All corporate officers serve at the discretion of the Board. There are no family relationships between any director or executive officer and any other director or executive officer of the Company.
 
Shi Chul (Robert) Kang – Co-Chief Executive Officer (Principal Executive Officer) and Director

Dr. Kang holds a Ph. D. degree in marketing and has worked in international advertising and corporate marketing areas for more than 30 years. He began his career at Oricom, the largest advertising agency in Korea and a McCann Ericson affiliate. He founded Ad Express and On&Off and managed the firms for 11 years. He served as president of Pico North Asian, a multinational global event marketing company in Hong Kong. Dr. Kang previously served as the Company's CEO and interim CFO from 2008 to 2011. Currently, he is working as the chairman of Talent Donation Consultant Association and Head Professor of Business Consultant Starter School of the City Government of Seoul. Dr. Kang will focus on business development and financing of Leo Motors.  Dr. Kang received his BS in literature from Korea University, his MA in advertising from University of Oregon, and his Ph. D. in marketing from Dongguk University in Korea. We believe Mr. Kang is qualified to serve on our Board of Directors because of his extensive corporate, advertising, and managerial experience.
 
Jun Heng Park – Co-Chief Executive Officer and Director

Mr. Park has been a director of the Company since October 15, 2012 and has led the Company with regards to its business planning and strategy since his appointment.  Mr. Park has managed several businesses, including Chief Executive Officer of the World Cyber Games in 2002.  Mr. Park was Chief Executive Officer of IAG KOREA Co. Ltd, Major Insurance Company in 2006.  Mr. Park was Chief Executive Officer of Unitech Co. Ltd., a computer assembly company in Korea from 2009 to 2010.  Mr. Park received his bachelor's degree at Centennial College, Toronto, Canada and has a business degree from George Brown College, Toronto, Canada. We believe Mr. Park is qualified to serve on our Board of Directors because of his extensive managerial experience.

Jeong Youl Choi – Chief Financial Officer and Director

Mr. Choi joined the Company in January of 2012.   Mr. Choi was Chief Executive Officer of Neo solar, a solar power company, from 2006 to 2007. Mr. Choi was Chief Executive Officer of Good EMG, total entertainment company, from 2007 to 2008.   Mr. Choi helped lead the A1 Grand prix Korea, World Motor Racing Challenge for National team, 2007 while at Good EMG. We believe Mr. Choi is qualified to serve on our Board of Directors because of his extensive managerial experience.  
 
Jun Hee Won  Director

Mr. Jun Hee Won has worked in Leo Motors as a Research Engineer since its inception in 2012. He holds a bachelor's degree in Aerospace and Electronic Engineering from Sejong University as well as a master's degree in Converging Technology from Hansung University. We believe that Mr. Jun is qualified to serve as a director because of his engineering and technical background.

Seok Hoe  Director

Mr. Seok Hoe has worked as a programmer at Samsung since 2011. Mr. Seok also worked at Naver, Korea's largest portal site, as a content developer. Prior to Samsung, Mr. Seok served as Chief Technology Officer in various start up's including OneQ.com, C-Able, K-League, Summer Lane Communication, and Temple Littcher Entertainment. At Leo Motors, Mr. Seok is responsible for the development of fleet management solutions for electric public buses and delivery trucks. He holds a bachelor's degree in Computer Science from Korea Advanced Institute of Science, and master's degree in the Computer Science from Yonsei University. We believe that Mr. Jun is qualified to serve as a director because of his programming and executive background.
  
Arrangements relative to appointment as Director
 
None.
20

 
Involvement in certain legal proceedings
 
To the best of our knowledge, during the past ten years, none of the following occurred with respect to any director, director nominee or executive officer:
 
 
(1)
any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;
 
 
(2)
any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);
 
 
(3)
being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his or her involvement in any type of business, securities or banking activities;
 
 
(4)
being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodities Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated;
 
 
(5)
being the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:
 
 
(i)
any federal or state securities or commodities law or regulation;
 
 
(ii)
any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or
 
 
(iii)
any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or
 
 
(6)
being the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member (covering stock, commodities or derivatives exchanges, or other SROs).
 
Corporate code of ethics
 
We have not adopted a code of ethics to date.  We are in the process of evaluating  the standards of conduct necessary for the deterrence of malfeasance and  the  promotion  of  ethical  conduct  and accountability,  and  will determine whether a code of ethics is necessary based on  our  evaluation.
 
Audit Committee and Audit Committee financial expert
 
The Company's board of directors does not have a standing Audit Committee.  Additionally, we do not have a financial expert serving on our board of directors.
 

21

EXECUTIVE COMPENSATION
 
All amounts in this Executive Compensation section are in thousands, except for share and per share data.
 
SUMMARY COMPENSATION TABLE

The following table sets forth the annual and long-term compensation paid to our Chief Executive Officer and the other executive officers who earned more than $100,000 per year at the end of the last two completed fiscal years. We refer to all of these officers collectively as our named executive officers (our "Named Executive Officers" or "NEOs").

Officer
Year
 
Salary
 
Awards
Awards
 
Comp
   
Total
 
Jun Heng Park (1)
2015
 
$
400,000
 
$ Nil
$ Nil
 
 
     
$
400,000
 
 
2014
 
400,000
 
$ Nil
$ Nil
           400,000  
 
 
       
 
 
               
Shi Chul Kang (2)
2015
 
$
400,000
 
$ Nil
$ Nil
 
 
     
$
400,000
 
 
2014
   400,000  
$ Nil
$ Nil
           400,000  
                               
Jeong Yoel Choi (3)
2015
 
$
300,000
 
$ Nil
$ Nil
 
 
     
$
300,000
 
 
2014
   300,000  
$ Nil
$ Nil
           300,000  
(1) Jun Heng Park was appointed the Company's Co-CEO and President on October 15, 2012.
 
(2) Shi Chul Kang was appointed Co-CEO and Chairman on November 4, 2013.

(3) Jeong Youl Choi was appointed the Company's CFO on July 17, 2014.
 
Employment agreements
 
On January 1, 2014, Co-CEO Jun Heng Park agreed to enter into a one year employment agreement with the Company. The agreed annual compensation is $400,000 for services.

On November 4, 2013, Co-CEO Shi Chul Kang agreed to enter into a one year employment agreement with the Company. The agreed annual compensation is $400,000 for services.

On January 1, 2014, CFO Jong Youl Choi agreed to enter into a one year employment agreement with the Company. The agreed annual compensation is $300,000 for services.
 
These agreements have been renewed, most recently as of December 1, 2015.
 
The material terms of each of the employment agreements are as follows:

Salary: Salary is decided by discussion between the Company and an employee before signing the agreement. When the employee signs the "Letter of Appointment," salary is mutually confirmed.

Working Hours: Employees are required, from time to time, to work beyond working hours, including Saturdays, Sundays and Public Holidays. Employees are required to work at such times and for such periods as the efficient and conscientious discharge of your duties requires.

Mandatory Provident Fund: The Company and employees will contribute towards a Mandatory Provident Fund in accordance with the provisions of the Mandatory Provident Fund and the Company Policy, if applicable.

Overseas Work: Employees may be required to work overseas from time to time. The Company arranges travel, accommodation and expenses in accordance with the Company Policy.

Medical Insurance: As per the standard local medical & insurance benefit of the Company.

Training: Employees will be selected for training courses or on-the-job-training from time to time. According to the Company Policy, the full amount of training subsidy will be reimbursed to the Company through the deduction of the employee's salary if he/she tenders resignation within certain period of time depending on the subsidy amount.

Devotion to duties: Employees shall devote the whole of his/her time attention and abilities during normal business hours and at such other times as the Company or your duties may reasonably require to the business and affairs of the Company unless prevented by ill health from so doing and shall not during the term of this Agreement either on his/her own account or as the employer of other or otherwise be engaged or connected in any business or engagement other than that of the Company or any of its affiliated companies except with the prior written consent of the Company.

Conflict of Interest: Employees shall inform the Company of any intention to pursue a secondary interest or engagement, whether related or unrelated to the Company's business, and obtains prior written consent before engaging in any such interest or engagement.

Post Termination Obligations:

1. Employees shall not during the period of twelve months after termination of his/her employment (howsoever occasioned) solicit or endeavor to entice away from, or discourage from being employed by, the Company any employee who to your knowledge was an employee thereof at the date of such termination or whom to your knowledge he/she has at that date agreed to be engaged as an employee of the Company.

2. Employees shall not for a period of twelve months after termination of his/her employment (without the previous consent in writing on your own account or for any other person, firm or company) solicit or endeavor to entice away from the Company any person, firm or company (I) who or which in the preceding 3 years shall have been a customer of or in the habit of dealing with the Company and (II) with whom or which he/she had contact during the employment.

3. Employees shall not for a period of twelve months after termination of your employment (without the previous consent in writing of the Company) directly or indirectly do any business with or have any dealings with any person, firm or company who was a client, customer or supplier (agent or distributor) of the Company during the period of the employment and with whom he/she had contact during the employment provided that nothing contained in this sub-clause shall prohibit his/her activities which are not in direct or indirect competition with any business carried on by the Company at the date of the termination of this Agreement.

4. Employees shall not for a period of twelve months after termination of his/her employment (howsoever occasioned) (without the previous consent in writing of the Company) be engaged or interested (whether as principal, servant, agent, consultant or otherwise) in any trade or business which is similar to or competing with any trade or business being carried on at the end of the employment by the Company or any other Group Company with which you shall have been directly or indirectly connected during the employment.
 

22

Securities authorized for issuance under equity compensation plans
 
No option grants were issued during the year ended December 31, 2015. The table below provides information on our equity compensation plans as of December 31, 2015:
 
 
Number of securities
to be issued upon
exercise of
outstanding options,
warrants and rights
 
Weighted-average
exercise price of
outstanding options,
warrants and rights
 
Number of securities
remaining available
for future issuance
under equity
compensation plans
(excluding securities
reflected in column
(a))
 
Plan category:
(a)
 
(b)
 
(c)
 
Equity compensation plans approved by security holders
   
-
   
$
-
   
$Nil
 
Equity compensation plans not approved by security holders
   
-
     
-
     
-
 
Total
   
-
     
-
   
Nil
 
 

Director compensation
 
The following table sets forth the compensation of persons who served as a member of our Board of Directors during all or part of 2015.

 
 
 
 
 
Name
 
 
 
 
Fees Earned
or Paid in
Cash ($)
 
 
 
 
Stock
Awards
($)
 
 
 
 
Option
Awards
($)
 
 
Non-Equity
Incentive Plan
Compensation
($)
Change in
Pension
Value and
Nonqualified
Deferred
Compensation
Earnings
 
 
 
All Other
Compensation
($)
 
 
 
 
 
Total ($)
Jun Heng Park
 
 
 
 
 
 
Nil
Jeong Youl Choi
 
 
 
 
 
 
Nil
Shi Chul Kang
 
 
 
 
 
 
Nil
 
Independent director compensation
 
The Company does not have any independent directors on its Board, as that term is defined by the NASDAQ Capital Market.
 
 
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
 
SEC rules require us to disclose any transaction or currently proposed transaction in which the Company is a participant and in which any related person has or will have a direct or indirect material interest involving the lesser of $120 or one percent (1%) of the average of the Company's total assets as of the end of last two completed fiscal years. A related person is any executive officer, director, nominee for director, or holder of 5% or more of the Company's common stock, or an immediate family member of any of those persons.
 
On June 25, 2012, the Company, through its subsidiary, Leomotors Korea, Inc., entered into a stock purchase agreement (the "Agreement") with Shi Chul Kang, the Company's current co-chief executive officer. At the time of the Agreement, Mr. Kang was not a related party of the Company.  He joined the Company as co-chief executive officer on November 1, 2013. However, the Company had failed to pay the full allotment due under the Agreement and is therefore indebted to its now current officer for advances. Repayment is on demand without interest. The balance was $140,396 at December 31, 2015 and $150,637 at December 31, 2014. 
23

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
 
The following tables set forth certain information regarding beneficial ownership and voting power of the Common stock as of June 6, 2016, of:
 
·
Each person serving as a director, a nominee for director, or executive officer of the Company;
 
·
All executive officers and directors of the Company as a group; and
 
·
All persons who, to our knowledge, beneficially own more than five percent of our common stock.
"Beneficial ownership" here means direct or indirect voting or investment power over outstanding stock and stock which a person has the right to acquire now or within 60 days after June 6, 2016. See the accompanying footnotes to the tables below for more detailed explanations of the holdings. Except as noted, to our knowledge, the persons named in the tables beneficially own and have sole voting and investment power over all shares listed
 
The following table shows the beneficial ownership of our common stock as of December 31, 2015.  The table shows the amount of shares owned by:

(1)     each  person known to us who owns beneficially more than five percent of the  outstanding shares of any class of the Company's stock, based on the number of  shares  outstanding  as  of  December 31,  2015;

(2)     Each of the Company's Directors and Executive Officers; and

(3)     all  of  its  Directors  and  Executive  Officers  as  a  group.  
 

PERSON OR GROUP
 
AMOUNT OF
SHARES
BENEFICIALLY
OWNED
   
PERCENT OF
SHARES
BENEFICIALLY
OWNED(1,2)
 
CLASS
 
           
    
Jun Heng Park(2)
           
     
Co-CEO and President
   
7,600,000
     
4.64
%
Common
 
               
       
Jun Hee Won
               
     
Director
   
20,396,223
     
12.46
%
Common
 
               
       
Shi Chul Kang (2)
               
     
Co-CEO and Chairman
   
2,185,000
     
1.33
%
Common
 
               
       
Jeon Youl Choi (3)
               
     
CFO
   
3,600,000
     
2.20
%
Common
 
Officers and  Directors as a group (4 persons)
   
33,781,223
     
20.63
%
Common
 
(1)  The  percentage  of  shares  owned  is  based  on 163,713,902 shares being outstanding  as  of  June 6, 2016.  If  the beneficially owned shares of any individual  or  group in the above table include any options, warrants, or other rights  to purchase shares in the Company's stock, such right to purchase share is disclosed  by  footnote  below and the percentage of shares owned includes  such  shares  as  if  the  right  to purchase had been duly exercised.
 
(2)  BENEFICIAL  OWNERSHIP  OF  SECURITIES:  Pursuant  to  Rule  13d-3 under the Securities Exchange  Act  of  1934,  involving  the determination of beneficial owners of securities, a beneficial owner of securities is person who directly or indirectly,  through  any  contract, arrangement, understanding, relationship or otherwise  has,  or shares, voting power and/or investment power with respect to the securities, and any person who has the right to acquire beneficial ownership of  the  security  within sixty days through means including the exercise of any option,  warrant  or  conversion  of  a  security.
  
SELLING STOCKHOLDERS
 
Up to 42,456,365 shares of common stock are being offered by this prospectus, all of which are being registered for sale for the account of the selling stockholders and include the following:
 
· 38,986,355 shares of the Company's common stock issuable under an equity line of credit, pursuant to a securities purchase agreement by and between the Company and an accredited investor, dated May 17, 2016.
 
· 3,134,921 shares of the Company's common stock underlying a convertible debenture issued in to an accredited investor, dated May 18, 2016. 
 
· 335,089 shares of the Company's common stock previously issued to various individuals and consultants.
 
24

Each of the transactions by which the selling stockholders acquired their securities from us was exempt under the registration provisions of the Securities Act.
 
The 42,456,365 shares of common stock referred to above are being registered to permit public sales of the shares, and the selling stockholders may offer the shares for resale from time to time pursuant to this prospectus.  The selling stockholders may also sell, transfer or otherwise dispose of all or a portion of their shares in transactions exempt from the registration requirements of the Securities Act or pursuant to another effective registration statement covering those shares. We may from time to time include additional selling stockholders in supplements or amendments to this prospectus.
 
The table below sets forth certain information regarding the selling stockholders and the shares of our common stock offered by them in this prospectus. The selling stockholders have not had a material relationship with us within the past three years other than as described above, in the footnotes to the table below or as a result of acquisition of other of our securities. None of the selling stockholders is a broker dealer or an affiliate of a broker dealer other than as described in the footnotes to the table below.
 
Beneficial ownership is determined in accordance with the rules of the SEC. The selling stockholders' percentage of ownership of our outstanding shares in the table below is based upon 163,713,902 shares of common stock issued and outstanding as of June 6, 2016.
 
Name of Selling Stockholder
 
Common Stock
Beneficially
Owned Prior to the
Offering(1)
   
Common Stock
Covered
by this
Prospectus
   
Percentage of
Common
Stock Owned Prior to this
Offering(1)(3)
   
Common Stock
Owned Upon
Completion of
this Offering(1)(2)
   
Percentage of
Common
Stock Owned Upon
Completion of this
Offering(1)
 
BOU Trust(4)
   
-
     
38,986,355
     
18.9
%
   
0
     
*
 
 
                                       
RDM Capital LLC(5)
   
-
     
3,314,921
     
1.52
%
   
0
     
*
 
 
                                       
Darrin M. Ocasio (6)
   
335,089
     
335,089
     
0.16
%
   
0
     
*
 
 
                                       
TOTAL
   
335,089
     
42,456,365
     
20.31
%
   
0
     
*
 
 
* represents less than 1%.
 
 
(1)
Under applicable SEC rules, a person is deemed to beneficially own securities which the person as the right to acquire within 60 days through the exercise of any option or warrant or through the conversion of a convertible security. Also under applicable SEC rules, a person is deemed to be the "beneficial owner" of a security with regard to which the person directly or indirectly, has or shares (a) voting power, which includes the power to vote or direct the voting of the security, or (b) investment power, which includes the power to dispose, or direct the disposition, of the security, in each case, irrespective of the person's economic interest in the security. Each listed selling stockholder has the sole investment and voting power with respect to all shares of common stock shown as beneficially owned by such selling stockholder, except as otherwise indicated in the footnotes to the table.
 
(2)
Represents the amount of shares that will be held by the selling stockholders after completion of this offering based on the assumptions that (a) all shares registered for sale by the registration statement of which this prospectus is part will be sold and (b) that no other shares of our common stock beneficially owned by the selling stockholders are acquired or are sold prior to completion of this offering by the selling stockholders.
 
(3)
In determining the percent of common stock beneficially owned by a selling stockholder prior to the offering, (a) the numerator is the number of shares of common stock beneficially owned by such selling stockholder (including shares that he has the right to acquire within 60 days of June 6, 2016, and (b) the denominator is the sum of (i) the shares outstanding prior offering based upon 163,713,902 shares of common stock outstanding on June 6, 2016 and (ii) the number of shares of common stock which such selling stockholders has the right to acquire within 60 days of June 6, 2016 after the offering.
 
(4)
Alan Uryniak is the Trustee of the BOU Trust, and as such has voting and investment power over the securities owned by the Selling Shareholder
 
(5)
John Denobile is the Managing Member of RDW Capital LLC, and as such has voting and investment power over the securities owned by the Selling Shareholder.
  (6)   Represents 335,089 shares of the Company's common stock issued in lieu of payment for various legal services. 
 
25

DESCRIPTION OF SECURITIES
 
We have authorized capital stock consisting of 300,000,000 shares of common stock.
 
Common Stock
 
The holders of common stock are entitled to one vote per share.  Our certificate of incorporation does not provide for cumulative voting.  The holders of our common stock are entitled to receive ratably such dividends, if any, as may be declared by the Board of Directors out of legally available funds.  Upon liquidation, dissolution or winding-up, the holders of our common stock are entitled to share ratably in all assets that are legally available for distribution.  The holders of our common stock have no preemptive, subscription, redemption or conversion rights.  Our common stock is listed and traded on the OTCQB exchange under the symbol "LEOM." 

Debentures
 
The Company also entered into a securities purchase agreement with an accredited investor (the "Investor") for the issuance of a series of convertible debentures (each a "Debenture," collectively, the "Debentures"). The shares of common stock underlying the Debentures are part of this Prospectus.  Each Debenture has a maturity date which is one year after the date of issuance and has an interest rate of ten (10%) percent per annum. Each Debenture is convertible into shares of the Company's Common Stock at any time after the sooner to occur of 180 days from the original issue date or when the shares issuable upon conversion of the Debenture have been registered on a registration statement that has been declared effective by the Securities and Exchange Commission and until the Debenture is no longer outstanding. The Debentures are convertible at a conversion price equal to the lower of (i) $0.50 per share or (ii) 70% of the lowest VWAP for the previous 20 trading days prior to conversion. The Company is permitted to prepay the Debentures at any time upon ten (10) days written notice to the Investor.
 
Stock Option Plans and Restricted Shares
 
2010 Stock Option Plan
 
The Company's board of directors established the 2010 Stock Incentive Plan (the "2010 Plan") on February 1, 2010. The Plan is administered by the board of directors, which determines the individuals to whom awards shall be granted as well as the type, terms and conditions of each award, the option price and the duration of each award.  
 
No option grants were issued pursuant to the 2010 Plan during the three months ended March 31, 2016 and 2015, or in the year ended December 31, 2015 and 2014.  As of June 6, 2016, there were no options to purchase shares issued and outstanding under the 2010 Plan.
 
2016 Equity Incentive Plan
 
The Company's board of directors established the 2016 Equity Incentive Plan (the "2016 Plan") on June 7, 2016. The Plan is administered by the board of directors, which determines the individuals to whom awards shall be granted as well as the type, terms and conditions of each award, the option price and the duration of each award. To date, no option grants or other equity incentives have been issued pursuant to the 2016 Plan.
 
Restricted Shares - Directors, Officers, Employees and Non-Employees
 
As of June 6, 2016, the Company has 67,015,533 restricted shares issued and outstanding. The restricted shares are valued using the closing market price on the date of grant, and the compensation expense is recognized over their vesting period. The unvested shares are subject to forfeiture if the applicable recipient is not a director, officer and/or employee of the Company at the time the restricted shares are to vest.
 
 Indemnification of Directors and Officers
 
Under the Nevada Revised Statutes, a corporation has the power to indemnify any person who is made a party to any civil, criminal, administrative or investigative proceeding, other than an action by or in the right of the corporation, by reason of the fact that such person was a director, officer, employee or agent of the corporation, against expenses, including reasonable attorneys' fees, judgments, fines and amounts paid in settlement of any such actions; provided, however, in any criminal proceeding, the indemnified person shall have had no reason to believe the conduct committed was unlawful.
 
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of Leo Motors, Inc. pursuant to the foregoing provisions, or otherwise, we have been advised that, in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in such Act and is, therefore, unenforceable.
 
PLAN OF DISTRIBUTION
 
Each selling stockholder of the common stock and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their shares of common stock on the OTCQB or any other stock exchange, market or trading facility on which the shares are traded or in private transactions; provided, however, that BOU Trust has agreed not to execute any short sales of the Company's common stock. These sales may be at fixed or negotiated prices. A selling stockholder may use any one or more of the following methods when selling shares:
 
 
·     ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

·     block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;

·     purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

·     an exchange distribution in accordance with the rules of the applicable exchange;

·     privately negotiated transactions;

·     settlement of short sales entered into after the effective date of the registration statement of which this prospectus is a part;

·     broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share;

·     through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise; a combination of any such methods of sale; or

·     any other method permitted pursuant to applicable law.

26

The selling stockholders may also sell shares under Rule 144 under the Securities Act, if available, rather than under this prospectus.
 
Broker-dealers engaged by the selling stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with FINRA Rule 2440; and in the case of a principal transaction a markup or markdown in compliance with FINRA IM-2440.
 
In connection with the sale of the common stock or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the common stock in the course of hedging the positions they assume. The selling stockholders may also sell shares of the common stock short and deliver these securities to close out their short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities. The selling stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).
 
The selling stockholders and any broker-dealers or agents that are involved in selling the shares may be deemed to be "underwriters" within the meaning of the Securities Act, in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. Each selling stockholder has informed us that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the common stock. In no event shall any broker-dealer receive fees, commissions and markups which, in the aggregate, would exceed eight percent (8%).
 
Because selling stockholders may be deemed to be "underwriters" within the meaning of the Securities Act, they will be subject to the prospectus delivery requirements of the Securities Act, including Rule 172 thereunder. In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than under this prospectus. BOU Trust is deemed to be an underwriter with respect to the 38,986,355 shares that it is offering in this prospectus.
 
Under applicable rules and regulations under the Securities Exchange Act of 1934, as amended, any person engaged in the distribution of the resale shares may not simultaneously engage in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution. In addition, the selling stockholders will be subject to applicable provisions of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of shares of the common stock by the selling stockholders or any other person. We will make copies of this prospectus available to the selling stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act).
 
LEGAL MATTERS
 
Sichenzia Ross Friedman Ference LLP of New York, New York, will pass upon the validity of the shares of common stock offered by the selling stockholders under this prospectus.  
 
EXPERTS
 
The consolidated balance sheets of Leo Motors, Inc. and subsidiaries as of December 31, 2015 and 2014, and the related consolidated statements of operations, changes in stockholders' equity and cash flows for the years then ended were audited by Scrudato & Co., PA, an independent registered public accounting firm, as stated in their report which appears elsewhere herein in reliance on the report of such firm given upon their authority as experts in accounting and auditing.
27

 
WHERE YOU CAN FIND ADDITIONAL INFORMATION
 
We file annual, quarterly, and current reports, proxy statements and other information with the Securities and Exchange Commission ("SEC"). Our SEC filings are available to the public over the Internet at the SEC's web site at www.sec.gov and on the "Shareholder Information," "SEC Filings" page of our website at www.leomotors.com. Information on our web site is not part of this prospectus, and we do not desire to incorporate by reference such information herein. You may also read and copy any document we file with the SEC at the SEC's Public Reference Room at 100 F Street N.E., Washington, D.C. 20549. You can also obtain copies of the documents upon the payment of a duplicating fee to the SEC. Please call the SEC at 1-800-SEC-0330 for further information on the operation of the Public Reference Room. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC like us. Our SEC filings are also available to the public from the SEC's website at http://www.sec.gov.
 
This prospectus is part of the registration statement and does not contain all of the information included in the registration statement. Whenever a reference is made in this prospectus to any of our contracts or other documents, the reference may not be complete and, for a copy of the contract or document, you should refer to the exhibits that are a part of the registration statement.
  
This prospectus omits some information contained in the registration statement in accordance with SEC rules and regulations. You should review the information and exhibits included in the registration statement for further information about us and the securities we are offering. Statements in this prospectus concerning any document we filed as an exhibit to the registration statement or that we otherwise filed with the SEC are not intended to be comprehensive and are qualified by reference to these filings and documents. You should review the complete document to evaluate these statements.
 
28

 
 
INDEX TO FINANCIAL STATEMENTS
 

 
Page
 
 
Report of Independent Registered Public Accounting Firm
 F-1
Consolidated Balance Sheets – December 31, 2015 and 2014
 F-2
Consolidated Statements of Operations – December 31, 2015 and 2014
 F-3
Changes in Stockholders' Equity
 F-4
Consolidated Statements of Cash Flows – December 31, 2015 and 2014
 F-5
Notes to the Consolidated Financial Statements
 F-6
 
 
Condensed Consolidated Balance Sheets – March 31, 2016 (unaudited) and March 31, 2015
 F-14
Condensed Consolidated Statements of Operations – for the three months ended March 31, 2016 (unaudited) and 2015 (unaudited)
 F-15
Condensed Consolidated Statements of Cash Flows – for the three months ended March 31, 2016 (unaudited) and 2015 (unaudited)
 F-16
Notes to Condensed Consolidated Financial Statements
 F-17
 
 
 
29

 
Scrudato & Co., PA
CERTIFIED PUBLIC ACCOUNTING FIRM

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of
Leo Motors, Inc.

We have audited the accompanying balance sheet of Leo Motors, Inc. as of December 31, 2015 and 2014 and the related consolidated statements of operations, changes in stockholders' equity and cash flows for the years then ended. These financial statements are the responsibility of the Company management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Leo Motors, Inc. at December 31, 2015 and 2014, and the results of their operations and their cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 6, the Company has incurred significant accumulated deficits, recurring operating losses and a negative working capital. This and other factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also discussed in Note 6. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ John Scrudato CPA

Califon, New Jersey
March 28, 2016

F-1


LEO MOTORS, INC.
 
CONSOLIDATED BALANCE SHEETS
 
(AMOUNTS EXPRESSED IN US DOLLAR)
 
 
           
 
 
Balance at
 
 
 
12/31/2015
   
12/31/2014
 
 
 
(Audited)
   
(Audited)
 
Assets
 
Current Assets
           
Cash and cash equivalents
 
$
243,809
   
$
217,178
 
Accounts receivable
   
1,565,114
     
542,210
 
Inventories
   
496,971
     
279,783
 
Prepayment to suppliers
   
279,229
     
306,969
 
Other current assets
   
32,107
     
49,705
 
Total Current Assets
   
2,617,230
     
1,395,845
 
Fixed assets, net
   
163,001
     
38,620
 
Deposit
   
346,659
     
51,601
 
Intangible assets
   
63,831
     
63,831
 
Goodwill
   
3,057,003
     
2,444,558
 
Total Assets
 
$
6,247,724
   
$
3,994,455
 
Liabilities and Equity(Deficit)
 
Current Liabilities:
               
Accounts payable and accrued expenses
 
$
4,082,198
   
$
2,152,951
 
Short term borrowings
   
7,661
     
448,801
 
Advance from customers
   
795,431
     
40,951
 
Due to related parties
   
140,396
     
150,637
 
Taxes payable
   
99,584
     
159,478
 
Notes Payable current portion
   
49,397
     
526,257
 
Derivative liability
   
0
     
819,922
 
Total Current Liabilities
   
5,174,667
     
4,298,997
 
Accrued retirement benefits
   
92,948
     
2,150
 
Notes payable long term
   
273,646
     
145,316
 
Other long term liabilities
   
129,748
     
0
 
Total Liabilities
   
5,671,009
     
4,446,463
 
Commitments (Note 8)
   
-
     
-
 
Leo Motors, Inc.("LEOM") Equity(Deficit):
               
Common stock ($0.001 par value; 300,000,000 shares authorized); 158,948,604  and 138,624,206 shares issued and outstanding at December 31,  2015 and December 31, 2014
   
158,949
     
138,624
 
Additional paid-in capital
   
20,367,272
     
17,723,248
 
Accumulated other comprehensive income
   
1,251,120
     
511,229
 
Accumulated loss
   
(25,404,609
)
   
(21,357,211
)
Total Equity(Deficit) Leo Motors, Inc.
   
(3,627,268
)
   
(2,984,110
)
Non-controlling interest
   
4,203,983
     
2,532,102
 
Total Equity(Deficit)
   
576,715
     
(452,008
)
Total Liabilities and Equity(Deficit)
 
$
6,247,724
   
$
3,994,455
 
 
               
"See accompanying notes to consolidated financial statements"
 
 

F-2


LEO MOTORS, INC.
 
CONSOLIDATED STATEMENTS OF OPERATIONS
 
(AMOUNTS EXPRESSED IN US DOLLAR)
 
 
           
 
 
For the Years Ended December 31,
 
 
 
2015
   
2014
 
 
 
(Audited)
   
(Audited)
 
Revenues
 
$
4,299,187
   
$
693,096
 
 
               
Cost of Revenues
   
3,275,587
     
379,066
 
Gross Profit
   
1,023,600
     
314,030
 
 
               
Operating Expenses
   
5,421,508
     
3,468,599
 
Income(loss) from Continuing Operations
   
(4,397,908
)
   
(3,154,569
)
 
               
Other Income (Expenses)
               
Interest expense
   
(319,054
)
   
(1,325,975
)
Non-Operating (expense) income
   
225,990
     
0
 
Total Other Income (Expenses)
   
(93,064
)
   
(1,325,975
)
 
               
Income(loss) from Continuing Operations Before Income Taxes
   
(4,490,972
)
   
(4,480,544
)
 
               
Income Tax Expense
   
0
     
0
 
Net Income(Loss)
 
$
(4,490,972
)
 
$
(4,480,544
)
 
               
Income(loss) attributable to non-controlling interest
 
$
(443,574
)
 
$
(4,817
)
 
               
Net Income(Loss) Attributable To Leo Motors, Inc.
   
(4,047,398
)
   
(4,485,361
)
 
               
Other Comprehensive Income:
               
Net Income(loss)
 
$
(4,490,972
)
 
$
(4,480,544
)
Unrealized foreign currency translation gain
   
739,891
     
(42,899
)
 
               
Comprehensive Income(loss) Attributable to Leo Motors, Inc.
 
$
(3,751,081
)
 
$
(4,523,443
)
Net Loss per Common Share:
               
Basic
 
$
(0.03
)
 
$
(0.05
)
Diluted
 
$
(0.03
)
 
$
(0.05
)
Weighted Average Common Shares Outstanding:
               
Basic
 
$
155,866,313
   
$
97,393,209
 
Diluted
 
$
155,866,313
   
$
98,056,098
 
 
               
"See accompanying notes to consolidated financial statements"
 

 
F-3


LEO MOTORS, INC.
 
CONSOLIDATED STATEMENTS OF OPERATIONS
 
(AMOUNTS EXPRESSED IN US DOLLAR)
 
FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (AUDITED)
 
 
                                         
 
 
Common Stock
   
Additional
         
Accumulated Other
   
Non-
   
Total
 
 
 
Number of
         
Paid-in
   
Accumulated
   
Comprehensive
   
Controlling
   
Stockholders'
 
 
 
Stocks
   
Amount
   
Capital
   
Loss
   
Income
   
Interest
   
Equity
 
 
                                         
Balance, December 31, 2013
   
67,833,662
     
67,834
     
13,290,081
     
(16,871,850
)
   
468,330
     
2,527,285
     
(518,320
)
 
                                                       
Stock-based compensation
   
16,610,000
     
16,610
     
1,395,854
     
-
     
-
     
-
     
1,412,464
 
 
                                                       
Stock Issued in payment of debt
   
5,965,990
     
5,965
     
278,678
     
-
     
-
     
-
     
284,643
 
 
                                                       
Stock Issued for investment
   
45,977,264
     
45,978
     
2,758,635
     
-
     
-
     
-
     
2,804,613
 
 
                                                       
Minority interest contributions
   
2,237,290
     
2,237
     
-
     
-
     
-
     
0
     
2,237
 
 
                                                       
Net loss for the year 2014
   
-
     
-
     
-
     
(4,485,361
)
   
-
     
4,817
     
(4,480,544
)
 
                                                       
Foreign currency translation adjustment
   
-
     
-
     
-
     
-
     
42,899
             
42,899
 
 
                                                       
Balance, December 31, 2014
   
138,624,206
   
$
138,624
   
$
17,723,248
   
$
(21,357,211
)
 
$
511,229
   
$
2,532,102
   
$
(452,008
)
 
                                                       
Stock-based compensation
   
20,324,398
     
20,325
     
1,795,065
     
-
     
-
     
-
     
1,815,390
 
 
                                                       
Retirement of derivatives
   
-
     
-
     
819,922
     
-
     
-
     
-
     
819,922
 
 
                                                       
Warrants issued for investment
   
-
     
-
     
29,037
     
-
     
-
     
-
     
29,037
 
 
                                                       
Minority interest contributions
   
-
     
-
     
-
     
-
     
-
     
2,115,455
     
2,115,455
 
 
                                                       
Net loss for the year 2014
   
-
     
-
     
-
     
(4,047,398
)
   
-
     
(443,574
)
   
(4,490,972
)
 
                                                       
Foreign currency translation adjustment
   
-
     
-
     
-
     
-
     
739,891
             
739,891
 
 
                                                       
Balance, December 31, 2015
   
158,948,604
   
$
158,949
   
$
20,367,272
   
$
(25,404,609
)
 
$
1,251,120
   
$
4,203,983
   
$
576,715
 
 
 
"See accompanying notes to consolidated financial statements"
F-4


LEO MOTORS, INC.
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
(AMOUNTS EXPRESSED IN US DOLLAR)
 
  
 
For the Years Ended December 31,
 
 
 
2015
   
2014
 
  
 
(Audited)
   
(Audited)
 
Cash flows from Operating Activities:
           
Net loss
 
$
(4,490,972
)
 
$
(4,480,544
)
Adjustments to reconcile net loss to net cash used in operating activities:
               
Depreciation and amortization
   
207,837
     
19,470
 
Loss on conversion of debt
   
0
     
24,376
 
Amortization debt discount
   
275,176
     
340,568
 
Foreign currency translation
   
739,891
     
42,899
 
Stock-based compensation
   
903,704
     
284,643
 
Gain on derivative liabilites
   
0
     
(5,607
)
Impairment of investment
   
0
     
762,000
 
Changes in assets and liabilities:
               
Accounts Receivable
   
(1,022,904
)
   
(542,210
)
Inventories
   
(217,188
)
   
(279,783
)
Prepayment to suppliers
   
27,740
     
(108,996
)
Other assets
   
17,598
     
(19,522
)
Accounts payable, other payables and accrued expenses
   
1,929,247
     
1,033,656
 
Accrued retirement benefits
   
90,798
     
(59,886
)
Advances from customers
   
883,658
     
(394,488
)
Taxes payable
   
(59,894
)
   
12,628
 
Net cash used in operating activities:
   
(715,309
)
   
(3,370,796
)
Cash flows from investing activities:
               
Investment in equipment
   
(332,218
)
   
(16,846
)
Payments on deposits
   
(295,058
)
   
0
 
Net cash provided(used) in investing activities:
   
(627,276
)
   
(16,846
)
Cash flows from financing activities:
               
Proceeds from notes payable
   
427,208
     
801,433
 
Payments on related party debt net
   
(10,241
)
   
0
 
Payments on notes payable
   
(441,140
)
   
0
 
Proceeds from issuance of stock & warrants
   
1,393,389
     
2,801,613
 
Net cash provided(used) by financing activities:
   
1,369,216
     
3,603,046
 
Net Increase in cash and cash equivalents:
   
26,631
     
215,404
 
 
               
Cash and cash equivalents - beginning of year
   
217,178
     
1,774
 
 
               
Cash and cash equivalents - end of year
 
$
243,809
   
$
217,178
 
Supplemental disclosure of cash flow activities:
               
Interest
 
$
43,878
   
$
0
 
Income taxes
 
$
0
   
$
4,817
 
Supplemental disclosures of non cash activities:
               
Conversion of derivative liability
 
$
819,922
   
$
569,584
 
Goodwill on acquisition
 
$
612,445
   
$
0
 
Conversion of debt for common stock
 
$
1,901,433
   
$
98,496
 
Common stock issued for services
 
$
903,704
   
$
284,643
 
 
               
"See accompanying notes to consolidated financial statements"
 

 
F-5

NOTE 1 - COMPANY BACKGROUND
 
Leo Motors, Inc. (the "Company," or "we") is currently in development, assembly and sales of the energy storage devices and electric vehicle components.
 
The Company was originally incorporated in California as N. Org., Inc. on December 12, 1983. The Company then underwent several name changes from Natural Organics Corporation to Classic Auto Accessories of North America and then to FCR Automotive Group, Inc. On September 20, 2004, the Company reincorporated in Delaware by merging into FCR Group, Inc., a Delaware Automotive corporation, which was organized on September 8, 2004. On July26, 2005, the Company acquired Shinil Precision Co., Ltd., a Korean Company, as its operating business and on July 18, 2005, changed its name to Shinil Precision Machinery, Inc. to reflect its anticipated new business. Upon failure of certain terms and conditions of the acquisition agreement, the Company returned the shares of Shinil and recovered and cancelled the Company's shares issued in the acquisition. In 2012, the Company changed its domicile to Nevada.

The Company had been dormant since 1989, and consummated a reverse merger on November 12, 2007 with Leozone Inc., a South Korean company, which is the maker of electrical transportation devices. The merger essentially exchanges shares in Leo Motors, Inc. for shares in Leozone. As this is a reverse merger the accounting treatment of such is that of a combination of the two entities with the activity of Leozone, Inc. the surviving entity, going forward. The financial statements reflect the activity for all periods presented as if the merger had occurred January 1, 2007. Leozone has continued to operate as a separate subsidiary Leo Motors Co. Ltd. of Korea since that time.

On February 11, 2010, the Company acquired 50% of Leo B&T Corp., a South Korean corporation ("B&T"), from two shareholders of B&T in exchange for 7,000,000 shares of the Company's common stock. Our ownership in B&T was reduced to 30% in 2011. Additionally, this investment was written down as impairment expense during 2011 and the remaining investment was exchanged in 2012 for a return of Leo Motors stock.
 

On November 10, 2012, the Company signed an agreement with PDI C&D/RDC SPRL Inc. ("PDI"), an affiliate of PDI Global LLC, a major architectural design company in the U.S., to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo ("DRC"). The Company had a 10% interest in the overall project. This project has incurred an impairment charge as further detailed in our financial statements and the notes thereto. Due to unavoidable political/regional instability in the DRC, the contract with PDI was unable to be fulfilled and as of May 2015, the contract was terminated.
 
On July 1, 2014, the Company acquired all of the outstanding common stock of LGM Co. Ltd., a corporation incorporated in the Republic of Korea ("LGM"), from LGM's shareholders, which represented 813,747 shares of LGM common stock, in exchange for 47,352,450 shares of the Company's common stock pursuant to the Share Swap Agreement entered into by and between LGM and the Company. Upon closing of the Share Swap Agreement, LGM became a wholly-owned subsidiary of the Company.
 
On March 31, 2015, the Company acquired 50% interest in each of Leo Motors Factory, Inc. ("Leo Factory 1") and Leo Motors Factory 2, Inc. ("Leo Factory 2") which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired 50% interest in Leo Trading Inc. (formerly Erum Motors, Inc.) ("Leo Trade") specializing in the trading of luxury cars. These acquired entities will be presented on a consolidated basis as the parent company has significant control of the business through the Board of Directors which can decide decisions split on strictly on common share ownership percentages.
 
On July 31, 2015, the Company entered into a joint venture company agreement (the "JV Agreement") with Fushun Jinyuan Technology Machinery Manufacturing Co., Ltd., a company established and existing under the laws of the People's Republic of China, to establish a joint venture, Liaoning Senyuan Leo New Energy Electric Vehicle Co., Ltd. in China, to develop, manufacture and sell new energy electric vehicles. The joint venture company has not been incorporated yet because the Company's funding for the joint venture company is delayed. Pursuant to the JV Agreement, Senyuan Leo will have a registered capital of RMB 411,600,000 (approximately $66.3 million), with Fushun Jinyuan owning 51% and the Company owning 49%. The total capital contribution shall be completed no later than 90 days from the date Senyuan Leo is incorporated, which deadline may be further extended to 108 days from the date of incorporation. The Company will invest in Senyuan Leo through a cash contribution of RMB 201,684,000 (approximately $32.5 million) and Fushun Jinyuan will invest in Senyuan Leo through a cash contribution of RMB 200,000,000 (approximately $32.2 million).

On June 3, 2016, the Company acquired 50% ownership of Lelcon Co., Ltd. ("Lelcon"). The Company will issue 1,414,828 shares of its common stock at $0.30 per share in exchange for 50% equity in Lelcon.
POLICIES

This summary of significant account policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and the notes are the representation of the Company's management, who are responsible for their integrity and objectivity. These accounting policies conform to U.S. generally accepted accounting principles ("USGAAP") and have been consistently applied in the preparation of the financial statements.
 
Basis of Presentation and Consolidation

These financial statements and related notes are expressed in US dollars. The Company's fiscal year-end is December 31. The consolidated financial statements include the financial statements of the Leo Motors Co. Ltd. Korea and LGM Co. LTD where Leo Motors, Inc. has significant control. All inter-company transactions and balances have been eliminated upon consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value of Financial Instruments

For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable inventory and prepaid expenses, accounts payable and deferred revenues, the carrying amounts approximate fair value due to their short maturities.
F-6


Revenue Recognition

The Company follows the guidance of the Securities and Exchange Commission's Staff Accounting Bulletin No. 104, "Revenue Recognition in Financial Statements." In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company.

The Company generates revenue from the delivery of goods and records revenues when the sales are completed, already collected or collectability is reasonably assured, there is no future obligation and there is remote chance of future claim or refund to the customers.

Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the delivery of professional services. Pricing is fixed and determinable according to the Company's published brochures and price lists.

Accounts Receivables

Accounts receivables of the Company are reviewed to determine if their carrying value has become impaired. The Company considers the assets to be impaired if the balances are greater than one-year old. Management regularly reviews accounts receivable and will establish an allowance for potentially uncollectible amounts when appropriate. When accounts are written off, they will be charged against the allowance.

Receivables are not collateralized and do not bear interest.

Cash Equivalents

For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalent.

Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which is generally 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).

The Company will periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful lives of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability.

Intangible and Long Lived Assets

The Company follows ASC 360-10, "Property, Plant, and Equipment," which established a "primary asset" approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through December 31, 2015, the Company had not experienced impairment losses on its long-lived assets.

Income Taxes

The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, "Accounting for 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 available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is "more likely than not" that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable.
F-7


Loss per Share

Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period.

Stock-Based Compensation

SFAS No. 123, "Accounting for Stock-Based Compensation," establishes and encourages the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with SFAS No. 123 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model.
 
Foreign Currency Translation and Comprehensive Income

The reporting currency of the Company is the U.S. Dollars ("US$"). The functional currency of the parent company is the US$ and the functional currency of the Company's operating subsidiary is Korean Won ("KRW"). The subsidiary's results of operations and cash flows are translated at average exchange rates during the year, assets and liabilities are translated at the unified exchange rate at the end of the year, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into US$ are included in determining comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company does not enter any material transaction in foreign currencies and accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company.

Recent Accounting Pronouncements

The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company's financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable.
NOTE 3 - EARNINGS PER SHARE

The Company reports basic and diluted earnings per share (EPS) according to the provisions of ASC Topic 260, which requires the presentation of basic EPS and, for companies with complex capital structures, diluted EPS. Basic EPS excludes dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) available to common stockholders, adjusted by other changes in income or loss that would result from the assumed conversion of those potential common shares, by the weighted number of common shares and common share equivalents (unless their effect is antidilutive) outstanding. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports a loss because to do so would be antidilutive. Thus, these equivalents are not included in the calculation of diluted loss per share, resulting in basic and diluted loss per share being equal. The following is a reconciliation of the computation for basic and diluted EPS for the years ended December 31, 2015 and 2014:

 
 
For the periods ended
 
 
 
12/31/2015
   
12/31/2014
 
 
           
Net Income (Loss)
 
$
(4,490,972
)
 
$
(4,480,544
)
 
               
 
               
Weighted-average common stock Outstanding -  basic
   
155,866,313
     
97,393,209
 
Equivalents
               
   Stock options
   
-
     
0
 
   Warrants
   
-
     
0
 
   Convertible Notes
   
0
     
662,889
 
Weighted-average common shares
               
outstanding-  Diluted
   
155,866,313
     
98,056,098
 
 
F-8

NOTE 4 - DUE TO RELATED PARTY

The company is indebted to its officer for advances. Repayment is on demand without interest. The balance was $140,396 at December 31, 2015 and $150,637 at December 31, 2014

NOTE 5 - PAYMENTS RECEIVED IN ADVANCE
 
The Company during the periods received payments from potential customers, or deposits, on future orders. The Company's policy is to record these payments as a liability until the product is completed and shipped to the customer at which the Company recognizes revenue. As of December 31, 2015 and December 31, 2014, the balance of payments received in advance was $279,229 and $ 306,969, respectively.
  
NOTE 6 - GOING CONCERN

As reported in the consolidated financial statements, the Company has accumulated deficits of $25,404,609 as of December 31, 2015 and its current liabilities exceeded its current assets. These negative trends have been consistent over the last few years except for asset sales.

These factors create uncertainty about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable and to create operations that contribute capital from normal operations. If the Company cannot obtain adequate capital it could be forced to cease operations.

In order to continue as a going concern, develop and generate revenues and achieve a profitable level of operations, the Company will need, among other things, additional capital resources. Management's plans to obtain such resources for the  Company  include  (1) raising additional capital through sales of common stock, (2) converting  promissory notes into  common  stock  and (3) entering into acquisition agreements  with profitable  entities  with   significant   operations.   In   addition, management is continually seeking to streamline its operations and expand the business through a variety of industries, including real estate and financial management.

However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations.  The accompanying   consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
 
NOTE 7 - COMMITMENTS AND CONTINGENCIES

(a) Lease Commitments

The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the years ending December 31, 2015 through December 31, 2018 are listed on the table below.
 
For the Year Ending
 
Amount
 
 
     
2016
 
$
220,827
 
2017
   
101,249
 
2018 and beyond
   
0
 
 
       
Total Commitment
 
$
322,076
 
 
(b) Strategic Investment


On November 10, 2012, the Company and PDI C&D/RDC SPRL Inc. ("PDI"), an affiliate of PDI Global LLC, a major architectural design company in the U.S., signed a contract to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo ("DRC"). The Company had a commitment to raise $1,000,000 to fulfill its part of the contract for strategic investment. This investment was impaired in full as of December 31, 2014 as d ue to unavoidable political/regional instability in the DRC, the contract with PDI was unable to be fulfilled and as of May 2015, the contract was terminated.

NOTE 8 - INVENTORIES

Inventories consist of the following:
 
 
31-Dec-15
   
31-Dec-14
 
 
 
US$
   
US$
 
Raw material
 
$
0
   
$
0
 
Work in process
   
496,971
     
279,783
 
Finished goods
   
0
     
0
 
 
 
$
496,971
   
$
279,783
 


F-9

 
NOTE 9 - PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:
 
 
31-Dec-15
   
31-Dec-14
 
 
           
Vehicles
 
$
146,268
   
$
7,581
 
Tools
   
95,771
     
12,906
 
Office
   
109,447
     
79,963
 
Facility equipment
   
210,502
     
157,966
 
 
               
  Total property and equipment
   
561,988
     
258,416
 
 
               
Accumulated depreciation
   
(398,987
)
   
(219,796
)
Property and equipment, net
 
$
163,001
   
$
38,620
 

Depreciation expense for the years ended December 31, 2015 and 2014 amounted to $207,837 and $19,470,  respectively.

NOTE 10 - INVESTMENTS

During 2012, the Company invested in a housing project in the Republic of the Congo which would use our E-Box power storage device. $270,000 had been invested. Their interest has been recorded using the cost investment of accounting for investments. During the year ended December 31, 2014, the completion of this project has come into question. Due to this and other factors the Company has impaired the investments in full with a charge off of $762,000.

NOTE 11 - SHORT TERM BORROWINGS AND NOTES PAYABLE

The Company continues to fund itself through borrowing and equity sales until sales return to historical levels.

At December 31, 2014, the Company had short term borrowings of $448,801. The notes are short term working capital advances that have been advanced to their Korean Subsidiary from various local parties. These advances are due on demand, interest free and unsecured.

Additionally the company borrowed $819,922 in short term convertible notes at a 4% interest rate. These funds were used to fund expansion of our LGM acquisition in 2014. The derivative components are detailed in footnote 15 and these loans were completely converted in February 2015 into 14,924,263 shares of our common stock.

As of December 31, 2015 the major components of our notes and borrowings consisted of the following:

 
 
12/31/15
 
Hana Bank six month note extended with 12 month term
     
renewable periods with a variable interest rate currently at 3.65%
     
interest only payable monthly and securred by the company.
 
$
45,505
 
 
       
Hana Bank six month note extended with 12 month term
       
renewable periods with a variable interest rate currently at 6.24%
       
interest only payable monthly.
   
75,775
 
 
       
Hana Bank six month note extended with 12 month term
       
renewable periods with a variable interest rate currently at 3.64%
       
interest only payable monthly and securred by the company.
   
46,800
 
 
       
KookMin Bank six month note extended with 12 month term
       
renewable periods with a variable interest rate currently at 3.28%
       
interest only payable monthly and securred by the company
   
85,245
 
 
       
Industrial Bank of Korea Bank four year note extended with 12 month
       
extension fully amortizing with a variable interest rate currently at 3.83%
       
payable monthly.
   
35,718
 
 
       
NH Bank six month note extended with 12 month term
       
renewable periods with a variable interest rate currently at 7.25%
       
interest only payable monthly.
   
34,000
 
 
       
Total Liabilities
   
323,043
 
 
       
Less current portion
   
49,397
 
 
       
Long tem debt
 
$
273,646
 
 
F-10

 NOTE 12 - INCOME TAXES

The Company has experienced losses during most years since its inception. As a result, it has incurred no Federal income tax. The Internal Revenue Code allows net operating losses (NOL's) to be carried forward and applied against future profits for a period of twenty years; an NOL of $25,404,609 had accumulated at December 31, 2015 on U.S. operations and has been carried forward. The potential tax benefit of the NOL's has been recognized on the books of the Company, and is offset by a valuation allowance.

Under current accounting guidance, recognition of deferred tax assets is permitted unless it is more likely than not that the assets will not be realized. The Company has recorded deferred tax assets using statutory rates, as presented below. The valuation reserve increased by $1,376,115 during the year ended December 31, 2015.
 
 
Total
 
Deferred Tax Assets
   
8,637,567
 
Realization Allowance
   
(8,637,567
)
Balance Recognized
 
$
-
 
 
The effective tax rate is as follows:

Statutory Federal Rate
   
34
%
Effect of Valuation Allowance
   
(34
%)
Effective Rate
   
0
%

NOTE 13 - INTANGIBLE ASSETS

The Company accounts for its long-lived assets in accordance with Accounting Standards Codification ("ASC") Topic 360-10-05, "Accounting for the Impairment or Disposal of Long-Lived Assets."  ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate.  The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition.  If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value.  The Company increased goodwill as a result of its first quarter acquisitions by $612,445 and also determined that none of its long-term assets at December 31, 2015 and December 31, 2014 were impaired.

 
 
31-Dec-15
   
31-Dec-14
 
Patents
 
$
63,554
   
$
63,554
 
Trademarks
   
277
     
277
 
Goodwill
   
3,057,003
     
2,444,558
 
Intangible assets
   
3,120,834
     
2,508,389
 
Less impairments
   
0
     
0
 
Intangible assets, net
 
$
3,120,834
   
$
2,508,389
 
 
F-11

NOTE 14 - SEGMENT INFORMATION

ASC Topic 280 requires use of the "management approach" model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. During the years ended December 31, 2015 and 2014, the Company operated in one reportable business segment: the sale and manufacture of specialized electric vehicle. The Company's reportable segment is a strategic business unit that offers its product.
 
NOTE 15 – DERIVATIVE LIABILITY

The Company accounts for derivative financial instruments in accordance with ASC 815, which requires that all derivative financial instruments be recorded in the balance sheets either as assets or liabilities at fair value.

The Company's derivative liability is an embedded derivative associated with one of the Company's convertible promissory notes. The convertible promissory note was issued on July 31, 2014, (the "Note"), is a hybrid instruments which contain an embedded derivative feature which would individually warrant separate accounting as a derivative instrument under Paragraph 815-10-05-4.  The embedded derivative feature includes the conversion feature to the Note. Pursuant to Paragraph 815-10-05-4, the value of the embedded derivative liability have been bifurcated from the debt host contract and recorded as a derivative liability resulting in a reduction of the initial carrying amount (as unamortized discount) of the notes, which are amortized as debt discount to be presented in other (income) expenses in the statements of operations using the effective interest method over the life of the notes.

The embedded derivative within the note have been valued using the Black Scholes approach, recorded at fair value at the date of issuance; and marked-to-market at each reporting period end date with changes in fair value recorded in the Company's statements of operations as "change in the fair value of derivative instrument".

As of December 31, 2015 and December 31, 2014, the estimated fair value of derivative liability was determined to be $0 and $819,922, respectively. On July 31, 2014, the derivative liability was recognized with a debt discount of $825,529. During the year ended December 31, 2015, the loan was converted to common stock and the remaining unamortized debt discount of $275,176 was recorded against as a charge to interest expense.

Summary of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheet:
 
   
Fair Value Measurement Using
 
Carrying Value
 
Level 1
 
Level 2
 
Level 3
 
Total
 
   
-0-
     
-
     
-
     
-0-
     
-0-
 
 
$
-0-
   
$
-
   
$
-
   
$
-0-
   
$
-0-
 

Summary of the Changes in Fair Value of Level 3 Financial Liabilities

The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during year ended December 31, 2015.

 
 
Derivative Liability
 
Fair value, December 31, 2014 
 
$
819,922
 
Additions
   
-0-
 
Change in fair value
   
-0-
 
Transfers in and/or out of Level 3
   
(819,922
)
Fair value, December 31, 2015 
 
$
-0-
 
 
F-12

 NOTE 16 - ACQUISITIONS

On March 29, 2015, the Company acquired a 50% interest in each of Leo Motors Factory 1 and 2 which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired a 50% interest in Leo Trade specializing in trading luxury cars.  The consolidation of these acquisitions is presented below.


Leo Motors consolidation
 
LEO Motors
   
LEO Motors
   
LGM
   
LEO Motors
   
LEO Motors
   
LEO Trade
   
ELIM
   
Consolidated
 
March 31, 2015
 
US
   
Korea
         
Factory 1
   
Factory 2
   
(f/k/a/ Erum)
   
ENTRIES
   
Statements
 
All numbers shown in  US Dollars
                                     
DR(CR)
   
3/31/2015
 
ASSETS
                                               
Cash and cash equivalents
 
$
374
     
67853
     
211,957
     
91,187
     
2914
     
92173
     
0
     
466,458
 
Accounts receivable
   
0
     
0
     
476,777
     
8,754
     
48,425
     
418,422
     
0
     
952,378
 
Inventories
   
0
     
0
     
295,159
     
0
     
0
     
0
     
0
     
295,159
 
Prepayment to suppliers
   
0
     
137,236
     
160,484
     
0
     
0
     
0
     
0
     
297,720
 
Other current assets
   
0
     
7,297
     
57,403
     
1,595
     
125,212
     
36,685
     
0
     
228,192
 
Total Current Assets
   
374
     
212,386
     
1,201,780
     
101,536
     
176,551
     
547,280
             
2,239,907
 
 
                                                               
Fixed assets, net
   
6,744
     
10,530
     
16,846
     
63,683
     
88,181
     
0
     
0
     
185,984
 
Deposit
   
0
     
46,234
     
22,637
     
4,804
     
145,196
     
9,025
     
0
     
227,896
 
Intangible assets
   
0
     
63,831
     
0
     
0
     
0
     
0
     
0
     
63,831
 
Goodwill
   
0
     
0
     
0
     
0
     
0
     
0
     
3,057,003
     
3,057,003
 
Investment in subsidiaries
   
8,089,368
     
0
     
0
     
0
     
0
     
0
     
-8,089,368
     
0
 
Total Non-Current Assets
   
8,096,112
     
120,595
     
39,483
     
68,487
     
233,377
     
9,025
             
3,534,714
 
 
                                                               
Total Assets
 
$
8,096,486
     
332,981
     
1,241,263
     
170,023
     
409,928
     
556,305
     
-5,032,365
     
5,774,621
 
LIABILITIES AND STOCKHOLDERS' EQUITY
                                                         
Current Liabilities:
                                                               
Accounts payable and accrued expenses
 
$
1,139,889
     
1,060,342
     
291,900
     
97,840
     
307,112
     
416,183
     
0
     
3,313,266
 
Short term borrowings
   
0
     
256,392
     
183,245
     
32,052
     
0
     
0
     
0
     
471,689
 
Advance from customers
   
0
     
30,381
     
9,141
     
0
     
4,513
     
0
     
0
     
44,035
 
Due to related parties
   
0
     
116,617
     
0
     
0
     
0
     
0
     
0
     
116,617
 
Taxes payable
   
0
     
137,780
     
10,673
     
13,559
     
78,783
     
226
     
0
     
241,021
 
Notes Payable current portion
   
0
     
0
     
0
     
0
     
0
     
353,747
     
0
     
353,747
 
Total Current Liabilities
   
1,139,889
     
1,601,512
     
494,959
     
143,451
     
390,408
     
770,156
             
4,540,375
 
 
                                                               
Long Term Notes
   
0
     
36,698
     
117,075
     
0
     
173,928
     
0
     
0
     
327,701
 
Accrued severance benefits
   
0
     
2,075
     
0
     
0
     
0
     
0
     
0
     
2,075
 
 
                                                               
Total Liabilities
   
1,139,889
     
1,640,285
     
612,034
     
143,451
     
564,336
     
770,156
             
4,870,151
 
Stockholders' Equity:
                                                               
Common stock
   
154,144
     
2,831,276
     
284,870
     
90,253
     
135,379
     
180,505
     
(3,522,283
)
   
154,144
 
Additional paid-in capital
   
21,253,084
     
1,831,184
     
1,285,902
     
0
     
0
     
0
     
(4,973,230
)
   
19,396,940
 
Accumulated other comprehensive income
   
277,678
     
225,403
     
4,893
     
0
     
0
     
0
     
0
     
507,974
 
Accumulated loss
   
(14,728,309
)
   
(6,195,167
)
   
(946,436
)
   
(63,681
)
   
(289,787
)
   
(394,356
)
   
733,773
     
(21,883,963
)
Total Stockholders' Deficit attributable to LEO MOTORS, INC.
   
6,956,597
     
(1,307,304
)
   
629,229
     
26,572
     
(154,408
)
   
(213,851
)
           
(1,824,905
)
Non-controlling interest
   
0
     
0
     
0
     
0
     
0
     
0
     
2,729,375
     
2,729,375
 
Total Stockholders' Deficit
   
6,956,597
     
(1,307,304
)
   
629,229
     
26,572
     
(154,408
)
   
(213,851
)
           
904,470
 
Total Liabilities and Stockholders' Deficit
 
$
8,096,486
     
332,981
     
1,241,263
     
170,023
     
409,928
     
556,305
     
(5,032,365
)
   
5,774,621
 

 
F-13


 
LEO MOTORS, INC.
 
CONSOLIDATED BALANCE SHEETS
 
(AMOUNTS EXPRESSED IN US DOLLAR)
 
 
           
 
 
Balance at
 
 
 
3/31/2016
   
12/31/2015
 
 
           
Assets
           
Current Assets
           
Cash and cash equivalents
 
$
130,874
   
$
243,809
 
Accounts receivable
   
1,015,447
     
1,565,114
 
Inventories
   
838,785
     
496,971
 
Prepayment to suppliers
   
382,545
     
279,229
 
Other current assets
   
199,073
     
32,107
 
Total Current Assets
   
2,566,724
     
2,617,230
 
Fixed assets, net
   
142,137
     
163,001
 
Deposit
   
346,255
     
346,659
 
Intangible assets
   
87,275
     
63,831
 
Goodwill
   
3,057,003
     
3,057,003
 
Total Assets
 
$
6,199,394
   
$
6,247,724
 
Liabilities and  Equity(Deficit)
               
Current Liabilities:
               
Accounts payable and accrued expenses
 
$
3,748,487
   
$
4,082,198
 
Short term borrowings
   
0
     
7,661
 
Advance from customers
   
496,385
     
795,431
 
Due to related parties
   
136,887
     
140,396
 
Taxes payable
   
155,151
     
99,584
 
Notes Payable current portion
   
264,158
     
49,397
 
Total Current Liabilities
   
4,801,068
     
5,174,667
 
Accrued retirement benefits
   
96,518
     
92,948
 
Notes payable long term
   
95,599
     
273,646
 
Other long term liabilities
   
196,579
     
129,748
 
Total Liabilities
   
5,189,764
     
5,671,009
 
Commitments (Note 8)
   
-
     
-
 
Leo Motors, Inc.("LEOM") Equity(Deficit):
               
Common stock ($0.001 par value; 300,000,000 shares authorized); 163,198,512  and 158,948,604 shares issued and outstanding at March 31,  2016 and December 31, 2015
   
163,199
     
158,949
 
Additional paid-in capital
   
20,990,286
     
20,367,272
 
Accumulated other comprehensive income
   
1,329,240
     
1,251,120
 
Accumulated loss
   
(25,827,119
)
   
(25,404,609
)
Total Equity(Deficit) Leo Motors, Inc.
   
(3,344,394
)
   
(3,627,268
)
Non-controlling interest
   
4,354,024
     
4,203,983
 
Total Equity(Deficit)
   
1,009,630
     
576,715
 
Total Liabilities and Equity(Deficit)
 
$
6,199,394
   
$
6,247,724
 
 
               
"See accompanying notes to consolidated financial statements"
 
 
F-14


LEO MOTORS, INC.
 
CONSOLIDATED STATEMENTS OF OPERATIONS
 
(AMOUNTS EXPRESSED IN US DOLLAR)
 
 
           
 
 
For the Three Months Ended March 31,
 
 
 
2016
   
2015
 
 
           
Revenues
 
$
745,706
   
$
42,771
 
 
               
Cost of Revenues
   
291,014
     
0
 
Gross Profit
   
454,692
     
42,771
 
 
               
Operating Expenses
   
908,860
     
358,411
 
Income(loss) from Continuing Operations
   
(454,168
)
   
(315,640
)
 
               
Other Income (Expenses)
               
Interest expense
   
(9,328
)
   
(280,975
)
Non-Operating (expense) income
   
5,330
     
1,197
 
Total Other Income (Expenses)
   
(3,998
)
   
(279,778
)
 
               
Income(loss) from Continuing Operations Before Income Taxes
   
(458,166
)
   
(595,418
)
 
               
Income Tax Expense
   
0
     
0
 
Net Income(Loss)
 
$
(458,166
)
 
$
(595,418
)
 
               
Income(loss) attributable to non-controlling interest
 
$
(35,655
)
 
$
(68,666
)
 
               
Net Income(Loss) Attributable To Leo Motors, Inc.
   
(422,511
)
   
(526,752
)
 
               
Other Comprehensive Income:
               
Net Income(loss)
 
$
(422,511
)
 
$
(526,752
)
Unrealized foreign currency translation gain
   
78,120
     
(3,255
)
 
               
Comprehensive Income(loss) Attributable to Leo Motors, Inc.
 
$
(344,391
)
 
$
(530,007
)
Net Loss per Common Share:
               
Basic
 
$
(0.00
)
 
$
(0.00
)
Diluted
 
$
(0.00
)
 
$
(0.00
)
Weighted Average Common Shares Outstanding:
               
Basic
 
$
161,878,686
   
$
149,069,490
 
Diluted
 
$
161,878,686
   
$
149,972,010
 
 
               
"See accompanying notes to consolidated financial statements"
 

F-15


LEO MOTORS, INC.
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
(AMOUNTS EXPRESSED IN US DOLLAR)
 
  
 
For the Three Months Ended March 31,
 
 
 
2016
   
2015
 
 
           
Cash flows from Operating Activities:
           
Net loss
 
$
(458,166
)
 
$
(595,418
)
Adjustments to reconcile net loss to net cash
               
used in operating activities:
               
Depreciation and amortization
   
20,864
     
4,500
 
Amortization debt discount
   
0
     
275,176
 
Foreign currency translation
   
78,120
     
(3,255
)
Stock-based compensation
   
115,938
     
38,820
 
Changes in assets and liabilities:
               
Accounts Receivable
   
549,667
     
(410,168
)
Inventories
   
(341,814
)
   
(15,376
)
Prepayment to suppliers
   
(103,316
)
   
9,249
 
Other assets
   
(166,966
)
   
(178,487
)
Accounts payable, other payables and accrued expenses
   
(266,880
)
   
1,160,315
 
Accrued retirement benefits
   
3,570
     
(75
)
Advances from customers
   
(299,046
)
   
3,084
 
Taxes payable
   
55,567
     
81,543
 
Net cash used in operating activities:
   
(812,462
)
   
369,908
 
Cash flows from investing activities:
               
Investment in assets
   
(23,444
)
   
(151,864
)
Payments on deposits
   
(404
)
   
(176,295
)
Net cash provided(used) in investing activities:
   
(23,848
)
   
(328,159
)
Cash flows from financing activities:
               
Proceeds from notes payable
   
32,373
     
201,380
 
Payments on related party debt net
   
(3,509
)
   
0
 
Payments on notes payable
   
(7,661
)
   
(22,886
)
Capital contributions
   
186,973
     
0
 
Proceeds from issuance of stock & warrants
   
515,199
     
29,037
 
Net cash provided(used) by financing activities:
   
723,375
     
207,531
 
Net Increase in cash and cash equivalents:
   
(112,935
)
   
249,280
 
 
               
Cash and cash equivalents - beginning of year
   
243,809
     
217,178
 
 
               
Cash and cash equivalents - end of year
 
$
130,874
   
$
466,458
 
Supplemental disclosure of cash flow activities:
               
Interest
 
$
9,328
   
$
4,817
 
Income taxes
 
$
0
   
$
0
 
Supplemental disclosures of non cash activities:
               
Conversion of derivative liability
 
$
0
   
$
819,922
 
Goodwill on acquisition
 
$
0
   
$
641,687
 
Conversion of debt for common stock
 
$
0
   
$
801,433
 
Common stock issued for services
 
$
115,938
   
$
38,820
 
 
               
"See accompanying notes to consolidated financial statements"
 

F-16

 
NOTE 1 - COMPANY BACKGROUND
 
Leo Motors, Inc. (the "Company," or "we") is currently in development, assembly and sales of the energy storage devices and electric vehicle components.

The Company was originally incorporated in California as N. Org., Inc. on December 12, 1983. The Company then underwent several name changes from Natural Organics Corporation to Classic Auto Accessories of North America and then to FCR Automotive Group, Inc. On September 20, 2004, the Company reincorporated  in  Delaware by merging into FCR Group, Inc.,  a  Delaware Automotive corporation,  which  was  organized  on  September  8, 2004. On July  26,  2005,  the  Company acquired Shinil Precision Co., Ltd., a Korean Company,  as  its  operating  business  and on July 18, 2005, changed its name to Shinil  Precision Machinery, Inc. to reflect its anticipated new business. Upon failure of certain terms  and  conditions  of  the acquisition agreement, the Company  returned the shares of Shinil and recovered and cancelled the Company's shares  issued  in  the  acquisition. In 2012, the Company changed its domicile to Nevada.

The Company had been dormant since 1989, and consummated a reverse merger on November 12, 2007 with Leozone Inc., a South Korean company, which is the maker of electrical transportation devices. The merger essentially exchanges shares in Leo Motors, Inc. for shares in Leozone. As this is a reverse merger the accounting treatment of such is that of a combination of the two entities with the activity of Leozone, Inc. the surviving entity, going forward. The financial statements reflect the activity for all periods presented as if the merger had occurred January 1, 2007. Leozone has continued to operate as a separate subsidiary Leo Motors Co. Ltd. of Korea since that time.

On February 11, 2010, the Company acquired 50% of Leo B&T Corp., a South Korean corporation ("B&T"), from two shareholders of B&T in exchange for 7,000,000 shares of the Company's common stock. Our ownership in B&T was reduced to 30% in 2011. Additionally, this investment was written down as impairment expense during 2011 and the remaining investment was exchanged in 2012 for a return of Leo Motors stock.

On November 10, 2012, the Company signed an agreement with PDI C&D/RDC SPRL Inc. ("PDI"), an affiliate of PDI Global LLC, a major architectural design company in the U.S., to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo ("DRC"). This project has incurred an impairment charge as detailed in these footnotes.

On July 1, 2014, the Company acquired all of the outstanding common stock of LGM Co. Ltd., a corporation incorporated in the Republic of Korea ("LGM"), from LGM's shareholders, which represents 813,747 shares of LGM common stock, in exchange for 47,352,450 shares of the Company's common stock pursuant to the Share Swap Agreement entered into by and between LGM and the Company. Upon closing of the Share Swap Agreement, LGM became a wholly-owned subsidiary of the Company.

On March 31, 2015, the Company acquired 50% interest in each of  Leo Motors Factory, Inc. ("Leo Factory 1") and Leo Motors Factory 2, Inc. ("Leo Factory 2") which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired 50% interest in Leo Trading Inc.(formerly Erum Motors, Inc.) ("Leo Trade") specializing in the trading of luxury cars. These acquired entities will be presented on a consolidated basis as the parent company has significant control of the business through the Board of Directors which can decide decisions split on strictly on common share ownership percentages.

POLICIES

This summary of significant account policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and the notes are the representation of the Company's management, who are responsible for their integrity and objectivity. These accounting policies conform to U.S. generally accepted accounting principles ("USGAAP") and have been consistently applied in the preparation of the financial statements.
 
Basis of Presentation and Consolidation

These financial statements and related notes are expressed in US dollars. The Company's fiscal year-end is December 31. The consolidated financial statements include the financial statements of the Leo Motors Co. Ltd. Korea and LGM Co. LTD where the Parent Company has significant control. All inter-company transactions and balances have been eliminated upon consolidation.

  Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

F-17

Fair Value of Financial Instruments

For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable inventory and prepaid expenses, accounts payable and deferred revenues, the carrying amounts approximate fair value due to their short maturities.

Revenue Recognition

The Company follows the guidance of the Securities and Exchange Commission's Staff Accounting Bulletin No. 104, "Revenue Recognition in Financial Statements". In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company.

The Company generates revenue from the delivery of goods and records revenues when the sales are completed, already collected or collectability is reasonably assured, there is no future obligation and there is remote chance of future claim or refund to the customers.

Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the delivery of professional services. Pricing is fixed and determinable according to the Company's published brochures and price lists.

Accounts Receivables

Accounts receivables of the Company are reviewed to determine if their carrying value has become impaired.
The Company considers the assets to be impaired if the balances are greater than one-year old. Management regularly reviews accounts receivable and will establish an allowance for potentially uncollectible amounts when appropriate. When accounts are written off, they will be charged against the allowance.

Receivables are not collateralized and do not bear interest.

Cash Equivalents

For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalent.

Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which is generally 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).

The Company will periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful lives of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability.

Intangible and Long Lived Assets

The Company follows ASC 360-10, "Property, Plant, and Equipment," which established a "primary asset" approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through March 31, 2016, the Company had not experienced impairment losses on its long-lived assets.

Income Taxes

The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, "Accounting for 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 available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is "more likely than not" that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable.
F-18


Loss per Share

Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period.

Stock-Based Compensation

SFAS No. 123, "Accounting for Stock-Based Compensation," establishes and encourages the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with SFAS No. 123 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model.

Foreign Currency Translation And Comprehensive Income

The reporting currency of the Company is the US$. The functional currency of the parent company is the US$ and the functional currency of the Company's operating subsidiary is Korean Won ("KRW"). The subsidiary's results of operations and cash flows are translated at average exchange rates during the year, assets and liabilities are translated at the unified exchange rate at the end of the year, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into US$ are included in determining comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company does not enter any material transaction in foreign currencies and accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company.
 
Recent Accounting Pronouncements
 
The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company's financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable.
 
NOTE 3 - EARNINGS PER SHARE

The Company reports basic and diluted earnings per share (EPS) according to the provisions of ASC Topic 260, which requires the presentation of basic EPS and, for companies with complex capital structures, diluted EPS. Basic EPS excludes dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) available to common stockholders, adjusted by other changes in income or loss that would result from the assumed conversion of those potential common shares, by the weighted number of common shares and common share equivalents (unless their effect is antidilutive) outstanding. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports a loss because to do so would be antidilutive. Thus, these equivalents are not included in the calculation of diluted loss per share, resulting in basic and diluted loss per share being equal. The following is a reconciliation of the computation for basic and diluted EPS for the three months ended March 31, 2016 and 2015:
 
 
 
For the periods ended
 
 
 
3/31/2016
   
3/31/2015
 
 
           
Net Income (Loss)
 
$
(458,166
)
 
$
(595,418
)
 
               
Weighted-average common stock Outstanding -  basic
   
161,878,686
     
149,069,490
 
Equivalents
               
  Stock options
   
-
     
0
 
  Warrants
   
-
     
0
 
  Convertible Notes
   
0
     
902,520
 
Weighted-average common shares
               
outstanding-  Diluted
   
161,878,686
     
149,972,010
 

F-19

NOTE 4 - DUE TO RELATED PARTY

The company is indebted to its officer for advances. Repayment is on demand without interest. The balance was $136,887 at March 31, 2016 and $140,396 at December 31, 2015.

  NOTE 5 - PAYMENTS RECEIVED IN ADVANCE

The Company during the periods received payments from potential customers, or deposits, on future orders. The Company's policy is to record these payments as a liability until the product is completed and shipped to the customer at which the Company recognizes revenue. As of March 31, 2016 and December 31, 2015, the balance of payments received in advance was $382,545 and $ 279,229, respectively.
 
NOTE 6 - GOING CONCERN

As reported in the consolidated financial statements, the Company has accumulated deficits of  25,404,609 as of December 31, 2015 and its current liabilities exceeded its current assets. These negative trends have been consistent over the last few years except for asset sales.

These factors  create  uncertainty  about  the  Company's  ability  to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable and to create operations that contribute capital from normal operations. If the Company cannot obtain  adequate  capital  it  could  be  forced  to  cease operations.

In order to continue as a going concern, develop and generate revenues and achieve a  profitable  level of operations, the Company will need, among other things, additional capital resources. Management's plans to obtain such resources for the  Company  include  (1) raising additional capital through sales of common stock, (2) converting  promissory notes into  common  stock  and (3) entering into acquisition agreements  with profitable  entities  with   significant   operations.   In   addition, management is continually seeking to streamline its operations and expand the business through a variety of industries, including real estate and financial management.

However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations.  The accompanying   consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

NOTE 7 - COMMITMENTS AND CONTINGENCIES

(a) Lease Commitments

The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the period ending March 31, 2016 through December 31, 2018 are listed on the table below.
 
For the Year Ending
Amount
 
2016
 
$
165,620
 
2017
   
101,249
 
2018 and beyond
   
0
 
Total Commitment 
 
$
266,869
 
 
(b) Strategic Investment

On November 10, 2012, the Company and PDI C&D/RDC SPRL Inc. ("PDI"), an affiliate of PDI Global LLC, a major architectural design company in the U.S., signed a contract to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo ("DRC"). The Company had a commitment to raise $1,000,000 to fulfill its part of the contract for strategic investment. This investment was impaired in full as of December 31, 2014 as d ue to unavoidable political/regional instability in the DRC, the contract with PDI was unable to be fulfilled and as of May 2015, the contract was terminated
 
F-20


NOTE 8 - INVENTORIES

Inventories consist of the following:

 
 
31-Mar-16
   
31-Dec-15
 
 
 
US$
   
US$
 
Raw material
 
$
0
   
$
0
 
Work in process
   
838,785
     
496,971
 
Finished goods
   
0
     
0
 
 
 
$
838,785
   
$
496,971
 


NOTE 9 - PROPERTY AND EQUIPMENT

 Property and equipment consisted of the following:
  
 
 
31-Mar-16
   
31-Dec-15
 
 
           
Vehicles
 
$
146,268
   
$
146,268
 
Tools
   
95,771
     
95,771
 
Office
   
109,447
     
109,447
 
Facility equipment
   
210,502
     
210,502
 
 
               
 Total property and equipment
   
561,988
     
561,988
 
 
               
Accumulated depreciation
   
(419,851
)
   
(398,987
)
Property and equipment, net
 
$
142,137
   
$
163,001
 

Depreciation expense for the three months ended March 31, 2016 and 2015 amounted to $20,864 and $4,500, respectively.

NOTE 10 - INVESTMENTS

During 2012, the Company invested in a housing project in the Republic of the Congo which would use our E-Box power storage device. $270,000 had been invested. Their interest has been recorded using the cost investment of accounting for investments. During the year ended December 31, 2014, the completion of this project has come into question. Due to this and other factors the Company has impaired the investments in full with a charge off of $762,000.
 
NOTE 11 - SHORT TERM BORROWINGS AND NOTES PAYABLE

The Company continues to fund itself through borrowing and equity sales until sales return to historical levels.

At March 31, 2015, the Company had short term borrowings of $359,757. The notes are short term working capital advances that have been advanced to their Korean Subsidiary from various local parties. These advances are due on demand, interest free and unsecured.

As of March 31, 2016 the major components of our notes and borrowings consisted of the following:

 
 
3/31/16
 
Hana Bank six month note extended with 12 month term
     
renewable periods with a variable interest rate currently at 3.65%
     
interest only payable monthly and securred by the company.
 
$
62,883
 
 
       
Hana Bank six month note extended with 12 month term
       
renewable periods with a variable interest rate currently at 6.24%
       
interest only payable monthly.
   
76,479
 
 
       
KookMin Bank six month note extended with 12 month term
       
renewable periods with a variable interest rate currently at 3.28%
       
interest only payable monthly and securred by the company
   
84,977
 
 
       
Industrial Bank of Korea Bank four year note extended with 12 month
       
extension fully amortizing with a variable interest rate currently at 3.83%
       
payable monthly.
   
127,465
 
 
       
NH Bank six month note extended with 12 month term
       
renewable periods with a variable interest rate currently at 7.25%
       
interest only payable monthly.
   
7,954
 
 
       
Total Liabilities
   
359,757
 
 
       
Less current portion
   
264,158
 
 
       
Long tem debt
 
$
95,599
 
F-21



 NOTE 12 - INCOME TAXES

The Company has experienced losses during most years since its inception. As a result, it has incurred no Federal income tax. The Internal Revenue Code allows net operating losses (NOL's) to be carried forward and applied against future profits for a period of twenty years; an NOL of $25,827,119 had accumulated at March 31, 2016 on U.S. operations and has been carried forward. The potential tax benefit of the NOL's has been recognized on the books of the Company, and is offset by a valuation allowance.

Under current accounting guidance, recognition of deferred tax assets is permitted unless it is more likely than not that the assets will not be realized. The Company has recorded deferred tax assets using statutory rates, as presented below. The valuation reserve increased by $155,766 during the quarter ended March 31, 2016.
 
 
 
Total
 
Deferred Tax Assets
   
8,781,220
 
Realization Allowance
   
(8,781,220
)
Balance Recognized
 
$
-
 

The effective tax rate is as follows:

Statutory Federal Rate
   
34
%
Effect of Valuation Allowance
   
(34
%)
Effective Rate
   
0
%

NOTE 13 - INTANGIBLE ASSETS

The Company accounts for its long-lived assets in accordance with Accounting Standards Codification ("ASC") Topic 360-10-05, "Accounting for the Impairment or Disposal of Long-Lived Assets."  ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate.  The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition.  If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value.  The Company increased goodwill as a result of its first quarter acquisitions by $612,445 and also determined that none of its long-term assets at March 31, 2016 and December 31, 2015 were impaired.

 
 
31-Mar-16
   
31-Dec-15
 
Patents
 
$
86,998
   
$
63,554
 
Trademarks
   
277
     
277
 
Goodwill
   
3,057,003
     
3,057,003
 
Intangible assets
   
3,144,278
     
3,120,834
 
Less impairments
   
0
     
0
 
Intangible assets, net
 
$
3,144,278
   
$
3,120,834
 

F-22


NOTE 14 - SEGMENT INFORMATION

ASC Topic 280 requires use of the "management approach" model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. During the three months ended March 31, 2016 and 2015, the Company operated in one reportable business segment: the sale and manufacture of specialized electric vehicle. The Company's reportable segment is a strategic business unit that offers its product.


NOTE 15 - ACQUISITIONS

 On March 29, 2015, the Company acquired a 50% interest in each of Leo Motors Factory 1 and 2 which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired a 50% interest in Leo Trade specializing in trading luxury cars. The consolidation of these acquisitions is presented below.

Leo Motors consolidation
 
LEO Motors
   
LEO Motors
   
LGM
   
LEO Motors
   
LEO Motors
   
LEO Trade
   
ELIM
   
Consolidated
 
March 31, 2015
 
US
   
Korea
         
Factory 1
   
Factory 2
   
(f/k/a/ Erum)
   
ENTRIES
   
Statements
 
All numbers shown in  US Dollars
                                     
DR(CR)
   
3/31/2015
 
ASSETS
                                               
Cash and cash equivalents
 
$
374
     
67853
     
211,957
     
91,187
     
2914
     
92173
     
0
     
466,458
 
Accounts receivable
   
0
     
0
     
476,777
     
8,754
     
48,425
     
418,422
     
0
     
952,378
 
Inventories
   
0
     
0
     
295,159
     
0
     
0
     
0
     
0
     
295,159
 
Prepayment to suppliers
   
0
     
137,236
     
160,484
     
0
     
0
     
0
     
0
     
297,720
 
Other current assets
   
0
     
7,297
     
57,403
     
1,595
     
125,212
     
36,685
     
0
     
228,192
 
Total Current Assets
   
374
     
212,386
     
1,201,780
     
101,536
     
176,551
     
547,280
             
2,239,907
 
 
                                                               
Fixed assets, net
   
6,744
     
10,530
     
16,846
     
63,683
     
88,181
     
0
     
0
     
185,984
 
Deposit
   
0
     
46,234
     
22,637
     
4,804
     
145,196
     
9,025
     
0
     
227,896
 
Intangible assets
   
0
     
63,831
     
0
     
0
     
0
     
0
     
0
     
63,831
 
Goodwill
   
0
     
0
     
0
     
0
     
0
     
0
     
3,057,003
     
3,057,003
 
Investment in subsidiaries
   
8,089,368
     
0
     
0
     
0
     
0
     
0
     
-8,089,368
     
0
 
Total Non-Current Assets
   
8,096,112
     
120,595
     
39,483
     
68,487
     
233,377
     
9,025
             
3,534,714
 
 
                                                               
Total Assets
 
$
8,096,486
     
332,981
     
1,241,263
     
170,023
     
409,928
     
556,305
     
-5,032,365
     
5,774,621
 
LIABILITIES AND STOCKHOLDERS' EQUITY
                                                         
Current Liabilities:
                                                               
Accounts payable and accrued expenses
 
$
1,139,889
     
1,060,342
     
291,900
     
97,840
     
307,112
     
416,183
     
0
     
3,313,266
 
Short term borrowings
   
0
     
256,392
     
183,245
     
32,052
     
0
     
0
     
0
     
471,689
 
Advance from customers
   
0
     
30,381
     
9,141
     
0
     
4,513
     
0
     
0
     
44,035
 
Due to related parties
   
0
     
116,617
     
0
     
0
     
0
     
0
     
0
     
116,617
 
Taxes payable
   
0
     
137,780
     
10,673
     
13,559
     
78,783
     
226
     
0
     
241,021
 
Notes Payable current portion
   
0
     
0
     
0
     
0
     
0
     
353,747
     
0
     
353,747
 
Total Current Liabilities
   
1,139,889
     
1,601,512
     
494,959
     
143,451
     
390,408
     
770,156
             
4,540,375
 
 
                                                               
Long Term Notes
   
0
     
36,698
     
117,075
     
0
     
173,928
     
0
     
0
     
327,701
 
Accrued severance benefits
   
0
     
2,075
     
0
     
0
     
0
     
0
     
0
     
2,075
 
 
                                                               
Total Liabilities
   
1,139,889
     
1,640,285
     
612,034
     
143,451
     
564,336
     
770,156
             
4,870,151
 
Stockholders' Equity:
                                                               
Common stock
   
154,144
     
2,831,276
     
284,870
     
90,253
     
135,379
     
180,505
     
(3,522,283
)
   
154,144
 
Additional paid-in capital
   
21,253,084
     
1,831,184
     
1,285,902
     
0
     
0
     
0
     
(4,973,230
)
   
19,396,940
 
Accumulated other comprehensive income
   
277,678
     
225,403
     
4,893
     
0
     
0
     
0
     
0
     
507,974
 
Accumulated loss
   
(14,728,309
)
   
(6,195,167
)
   
(946,436
)
   
(63,681
)
   
(289,787
)
   
(394,356
)
   
733,773
     
(21,883,963
)
Total Stockholders' Deficit attributable to LEO MOTORS, INC.
   
6,956,597
     
(1,307,304
)
   
629,229
     
26,572
     
(154,408
)
   
(213,851
)
           
(1,824,905
)
Non-controlling interest
   
0
     
0
     
0
     
0
     
0
     
0
     
2,729,375
     
2,729,375
 
Total Stockholders' Deficit
   
6,956,597
     
(1,307,304
)
   
629,229
     
26,572
     
(154,408
)
   
(213,851
)
           
904,470
 
Total Liabilities and Stockholders' Deficit
 
$
8,096,486
     
332,981
     
1,241,263
     
170,023
     
409,928
     
556,305
     
(5,032,365
)
   
5,774,621
 




F-23

INFORMATION NOT REQUIRED IN PROSPECTUS
 
Item 13.   Other Expenses of Issuance and Distribution.
 
The following table sets forth expenses payable by the Company in connection with the issuance and distribution of the securities being registered. All the amounts shown are estimates, except for the SEC registration fee:
 
Description
 
Amount to be Paid
 
 
     
Filing Fee - Securities and Exchange Commission
 
$
1,068.84
 
Attorney's fees and expenses
 
$
*
 
Accountant's fees and expenses
 
$
*
 
Other
 
$
*
 
 
 
$
   
Total
 
$
*
 
 
* To be filed by amendment

Item 14.   Indemnification of Directors and Officers.
 
Section 78.7502(1) of the Nevada Revised Statutes provides that a corporation may indemnify any person who was or is a party, or is threatened to be made a party, to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (except in an action brought by or on behalf of the corporation) if that person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or enterprise, against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by that person in connection with such action, suit or proceeding, if that person acted in good faith and in a manner which that person reasonably believed to be in, or not opposed to, the best interests of the corporation, and, with respect to any criminal action or proceedings, had no reasonable cause to believe his conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction or upon a plea of nolo contendere or its equivalent, alone, does not create a presumption that the person did not act in good faith and in a manner which the person reasonably believed to be in, or not opposed to, the best interests of the corporation, and that, with respect to any criminal action or proceeding, the person had reasonable cause to believe his action was unlawful.
 
Section 78.7502(2) of the Nevada Revised Statutes provides that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit brought by or on behalf of the corporation to procure a judgment in its favor because the person acted in any of the capacities set forth above, against expenses, including amounts paid in settlement and attorneys' fees, actually and reasonably incurred by that person in connection with the defense or settlement of such action or suit, if the person acted in accordance with the standard set forth above, except that no indemnification may be made in respect of any claim, issue or matter as to which such person shall have been adjudged by a court of competent jurisdiction after exhaustion of all appeals therefrom to be liable to the corporation or for amounts paid in settlement to the corporation unless and only to the extent that the court in which such action or suit was brought or other court of competent jurisdiction determines that, in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper.
 
Section 78.7502(3) of the Nevada Revised Statutes further provides that, to the extent a director or officer of a corporation has been successful on the merits or otherwise in the defense of any action, suit or proceeding referred to in subsections 1 and 2 thereof, or in the defense of any claim, issue or matter therein, that person shall be indemnified by the corporation against expenses (including attorneys' fees) actually and reasonably incurred by that person in connection therewith.
 
Section 78.751 of the Nevada Revised Statutes provides that unless indemnification is ordered by a court, the determination to provide indemnification must be made by the stockholders, by a majority vote of a quorum of the board of directors who were not parties to the action, suit or proceeding, or in specified circumstances by independent legal counsel in a written opinion. In addition, the articles of incorporation, bylaws or an agreement made by the corporation may provide for the payment of the expenses of a director or officer of the expenses of defending an action as incurred upon receipt of an undertaking to repay the amount if it is ultimately determined by a court of competent jurisdiction that the person is not entitled to indemnification. Section 78.751 of the Nevada Revised Statutes further provides that the indemnification provided for therein shall not be deemed exclusive of any other rights to which the indemnified party may be entitled and that the scope of indemnification shall continue as to directors, officers, employees or agents who have ceased to hold such positions, and to their heirs, executors and administrators.
 
Section 78.752 of the Nevada Revised Statutes provides that a corporation may purchase and maintain insurance on behalf of a director, officer, employee or agent of the corporation against any liability asserted against him or incurred by him in any such capacity or arising out of his status as such whether or not the corporation would have the authority to indemnify him against such liabilities and expenses.
 
Articles of Incorporation and Bylaws
 
Neither our articles of incorporation nor our bylaws, as amended, include specific provisions relating to the indemnification of our directors or officers.
 
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of Leo Motors, Inc. pursuant to the foregoing provisions, or otherwise, we have been advised that, in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in such Act and is, therefore, unenforceable.
II - 1

 
Item 15.   Recent Sales of Unregistered Securities.
 
On March 1, 2013 we issued 248,756 shares to Asher Enterprises, Inc. in conversion of outstanding debt in the amount of $15,000.00. This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended.

On March 8, 2013 we issued 265,018 shares to Asher Enterprises, Inc. in conversion of outstanding debt in the amount of $15,000.00. This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended.

On March 19, 2013 we issued 404,558 shares to Asher Enterprises, Inc. in conversion of outstanding debt in the amount of $12,500.00. This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended.

On May 28, 2013 we issued 2,000,000 shares for consulting services. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On November 1, 2013, we issued 2,651,706 shares to Joung Dai Lee as compensation. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

In March  2013,  we issued 4,000,000 shares to Vynewood Group Limited in conversion of outstanding debt in the amount of $200,000.00. This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended.

On January 28, 2014 we issued 800,000 shares for services to Jung Young Lee. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On January 28, 2014 we issued 3,600,000 shares for services to Jeong Youl Choi. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On January 28, 2014 we issued 4,600,000 shares for services to Jun Hen Park. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On January 28, 2014 we issued 200,000 shares for services to Sang Hyun Sim. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On January 28, 2014 we issued 500,000 shares for services to Sang Youn Lee. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On January 28, 2014 we issued 400,000 shares for services to Hyeong Koo Kim. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On January 28, 2014 we issued 1,500,000 shares for services to Thomas Cheong. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On January 28, 2014 we issued 700,000 shares for services to Shi Chul Kang. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On January 28, 2014 we issued 250,000 shares for services to Man Ho Kang. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On April 15, 2014, we issued 1,500,000 restricted common shares to a third party as compensation for service provided pursuant to an Investor Relations Program Agreement. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On April 29, 2014 we issued 560,000 shares for consulting services to Darrin M. Ocasio. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On April 29, 2014 we issued 1,500,000 shares for consulting services to JSR Partners. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On June 10, 2014 we issued 485,000 shares for the exchange of 500,000 stocks of Leo Motors Co., Ltd., its Korea subsidiary, which was owned by Shi Chul Kang. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On June 10, 2014 we issued 1,073,390 shares for the exchange of 1,106,666 stocks of Leo Motors Co., Ltd., its Korea subsidiary, which was owned by Sangeon Park. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On June 10, 2014 we issued 678,900 shares for the exchange of 700,000 stocks of Leo Motors Co., Ltd., its Korea subsidiary, which was owned by Sang Hyun Shim. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On June 10, 2014 we issued 563,910 shares to Asher Enterprises, Inc. in conversion of outstanding debt in the amount of $28,195.50. This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended

On June 30, 2014 we issued 621,762 shares to Asher Enterprises, Inc. in conversion of outstanding debt in the amount of $27,979.29. This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended

On July 7, 2014 we issued 1,302,083 shares to Asher Enterprises, Inc. in conversion of outstanding debt in the amount of $25,000.00. This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended

On July 15, 2014 we issued 688,073 shares to Asher Enterprises, Inc. in conversion of outstanding debt in the amount of $ 15,000.00 This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended

On July 23, 2014 we issued 1,127,273 shares to Asher Enterprises, Inc. in conversion of outstanding debt in the amount of $19,840.00 This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended

On July 28, 2014 we issued 593,220 shares for consulting services to Darrin M. Ocasio. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On July 28, 2014 we issued 20,396,223 shares for the exchange of 350,507 stocks of LGM, Ltd., which was owned by Jun Hee Won. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On July 28, 2014 we issued 4,364,297 shares for the exchange of 75,000 stocks of LGM, Ltd., which was owned by Woong Han. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On July 28, 2014 we issued 2,056,631 shares for the exchange of 35,343 stocks of LGM, Ltd., which was owned by Shin Kon Kim. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On July 28, 2014 we issued 1,616,012 shares for the exchange of 27,771 stocks of LGM, Ltd., which was owned by Seung Yong Seong. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On July 28, 2014 we issued 4,656,821 shares for the exchange of 80,027 stocks of LGM, Ltd., which was owned by Young Ho Park. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On July 28, 2014 we issued 4,807,826 shares for the exchange of 82,622 stocks of LGM, Ltd., which was owned by Jung Ho Lee. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On July 28, 2014 we issued 4,225,920 shares for the exchange of 72,622 stocks of LGM, Ltd., which was owned by Kang Mook Kim. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On July 28, 2014 we issued 1,008,153 shares for the exchange of 17,325 stocks of LGM, Ltd., which was owned by YeunSik Wi. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On July 28, 2014 we issued 929,072 shares for the exchange of 15,966 stocks of LGM, Ltd., which was owned by Duk Ho Kang. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On July 28, 2014 we issued 2,000,012 shares for the exchange of 34,370 stocks of LGM, Ltd., which was owned by Joon Ho Kim. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On July 31, 2014, the Company sold three convertible promissory notes (each a "Note") for an aggregate principal amount of $961,540 to two Korean accredited investors pursuant to a Securities Purchase Agreement (the "Agreement"). Each note has a maturity date which is three years after the date of issuance. Each Note has an interest rate of four (4%) percent per annum. Each note is convertible into restricted shares of the Company's common stock ("Common Stock") at any time on the date that is three months after the date such Note was issued at an exercise price equal to $0.10 per share, which may be adjusted, subject to certain terms and conditions, to a price equal to the greater of (i) par value of the Common Stock, or (ii) seventy-five (75%) of the average trading price of the Common Stock for the 3 months immediately preceding the date of conversion. The Company claimed an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Act"), for the issuance of the securities referenced herein pursuant to Section 4(a)(2) of the Act and Regulation D promulgated thereunder.

On September 30, 2014, the Company granted 2,000,000 restricted common shares to a third-party as compensation for a license granted by such third-party, pursuant to a license agreement with TPT Co., Ltd. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On October 13, 2014 we issued 424,929 shares to Asher Enterprises, Inc. in conversion of outstanding debt in the amount of $ 15,000.00 This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended

On October 17, 2014 we issued 237,960 shares to Asher Enterprises, Inc. in conversion of outstanding debt in the amount of $7,500.00 This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended.

On October 20, 2014 we issued 323,077 shares for consulting services to Darrin M. Ocasio. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On January 28, 2015 we issued 295,775 shares for the legal services to Darrin M. Ocasio. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On February 4, 2015 we issued 295,775 shares for the legal services to Darrin M. Ocasio. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On February 4, 2015 we issued 5,693,165 shares to Yong Woo Kim, according to the security purchase agreement in the amount of $305,723; This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended.

On February 4, 2015 we issued 4,754,655 shares to Mi Sun Jung according to the security purchase agreement in the amount of $255,325; This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended.

On February 4, 2015 we issued 4,476,443 shares to Yong Woo Kim, according to the security purchase agreement in the amount of $240,385. This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended.

On February 13, 2015 we issued 300,000 shares for consulting services to Princeton Research Inc. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On March 31, 2015 the Company entered into Cash Investment Agreements (the "Investment Agreements") with two non-United States investors (the "Investors"), pursuant to which the Company sold an aggregate of 2,702,703 shares of the Company's common stock to the Investors for an aggregate purchase price of 300,000,000 Korean Won. This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a) (9) of the Securities Act of 1933, as amended.

Also on March 31, 2015, the Company entered into a Securities Purchase Agreement (the "SPA") with a non-United States accredited investor (the "SPA Investor") pursuant to which the Company issued to the SPA Investor a (i) convertible promissory note (the "Note") in the principal amount of $90,424 (the "Principal Amount"), (ii) warrants (the "Warrants") to purchase shares of the Company's common stock up to the amount of shares equal to (x) the Principal Amount, divided by, (y) $0.10. The Note has a maturity date of the date three months after the date of issuance. The Note has an interest rate equal to 12% per annum. The Note is convertible into shares of the Company's common stock at a conversion price equal to $0.10 per share. The Warrants may be exercise at any time after issuance up to the date which is 365 days after the Note is repaid in full (the "Exercise Period"). At any time during the exercise period, the SPA Investor may use the unpaid balance of the Note in whole or in part as consideration in exercising the Warrants on a cashless basis. The Company claimed an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Act"), for the issuance of the securities referenced herein pursuant to Section 4(a)(2) of the Act and Regulation D promulgated thereunder.

On April 21, 2015, we issued 1,801,802 shares of common stock to Mr. Uk Hee Jo for a cash payment of $180,180.20. This issuance was intended to be exempt from the registration requirements pursuant to Section 4(a) (2) of the Securities Act of 1933, as amended (the "Securities Act").

On April 21, 2015, we issued 900,901 shares of common stock to Mr. Chul Hun Choi for a cash payment of $90,090.10. This issuance was intended to be exempt from the registration requirements pursuant to Section 4(a) (2) of the Securities Act.

On April 27, 2015 we issued 350,000 shares for the legal services to Darrin M. Ocasio. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On July 2, 2015 we issued 61,738 shares for the legal services to Darrin M. Ocasio. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On July 2, 2015, the Company sold three convertible promissory notes (each a "Note," collectively, the "Notes") for an aggregate principal amount of KRW500,000,000 (approximately $447,275) and warrants to purchase an aggregate of 2,978,850 shares of common stock of the Company, par value $0.001 per share (the "Common Stock"), to three Korean accredited investors pursuant to certain amended and restated securities purchase agreements (the "Agreements"), which agreements replace and supersede the securities purchase agreements dated June 24, 2015 by and between the Company and the investors. The Company also agreed to issue warrants to holders of the Notes three months after the issuance of the Notes. The warrants entitle the holders to purchase an aggregate of 2,978,850 shares of the Company's Common Stock at $0.15 per share, which may be adjusted, at the holder's option, to a price equal to eighty-five (85%) of the average trading price of the Common Stock for the 30 days immediately preceding the date of exercise. The warrants expire in nine months after issuance and are exercisable at any time prior to expiration. The warrants may be exercised on a cashless basis. The Company claimed an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Act"), for the issuance of the securities referenced herein pursuant to Section 4(a)(2) of the Act and Regulation D promulgated thereunder.

On July 6, 2015, the Company entered into a loan conversion agreement ("Conversion Agreement") with Leo Motors Co., Ltd., its majority owned Korean subsidiary ("Leo Korea"). Pursuant to the Conversion Agreement, the Company converted its loans to Leo Korea in the aggregate of 253,708,213 Korean Won (approximately $223,355) in exchange for the issuance of a total of 2,537,081 or 5.28% of the total issued and outstanding shares of Leo Korea. In addition, on June 16, 2015, the Company acquired an aggregate of 1,710,897 shares of Leo Korea, representing 3.56% of the total issued and outstanding shares of Leo Korea, from its two shareholders in exchange for 855,791 shares of the Company's common stock pursuant to certain share swap agreements. The Company claimed an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Act"), for the issuance of the securities referenced herein pursuant to Section 4(a)(2) of the Act and Regulation D promulgated thereunder.

On July 17, 2015 we issued 61,738 shares for the legal services to Darrin M. Ocasio. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On September 22, 2015 we issued 68,093 shares for the legal services to Darrin M. Ocasio. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On October 30, 2015 we issued 18,832 shares for the legal services to Darrin M. Ocasio. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On November 11, 2015 we issued 140,000 shares for the advisory services to Myong Yong Jung. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On November 11, 2015 we issued 100,000 shares for the advisory services to Sun Chuan Chun. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On November 11, 2015 we issued 60,000 shares for the advisory services to Seung Uk Yuh. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On November 11, 2015 we issued 60,000 shares for the advisory services to Kwan Sun Park. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On November 11, 2015 we issued 60,000 shares for the advisory services to Yao QI. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On November 11, 2015 we issued 60,000 shares for the advisory services to Huai Yang. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend. But we are going to cancel this issuance because he informed to us that he cannot provide the services as corporate advisor.

On November 30, 2015 we issued 29,203 shares for the legal services to Darrin M. Ocasio. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On December 04, 2015 we issued 40,000 shares for the advisory services to Myong Yong Jung. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On December 2, 2015 we issued 50,400 shares to Min Jung Kang, according to the security purchase agreement in the amount of $12,096; This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended.

On December 2, 2015 we issued 36,000 shares to Hyung Geun Kim, according to the security purchase agreement in the amount of $8,640; This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended.

On December 2, 2015 we issued 111,600 shares to Chang In Yim, according to the security purchase agreement in the amount of $26,784; This issuance was intended to be exempt from the registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended.

On January 06, 2016 the Company issued 50,000 shares for Investment Banking Engagement services Trevor Michael Saliba of NMS Capital Advisors, LLC. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On January 06, 2016 the Company issued 92,880 shares for consulting services to Eul Hyung Choi. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On January 19, 2016 the Company issued 132,890 shares for Investor Relations services to Mike King of Princeton Research. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On January 19, 2016 the Company issued 45,647 shares for consulting services to Darrin M. Ocasio. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On February 12, 2016 the Company issued 25,000 shares for consulting services to Darrin M. Ocasio. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On March 14, 2016 the Company issued 30,987 shares for consulting services to Darrin M. Ocasio. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On April 04, 2016 the Company Canceled 60,000 shares for services to Huai Yang. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend

On May 12, 2016 the Company issued 24,964 shares for consulting services to Darrin M. Ocasio. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On February 11, 2016 the Company issued 297,886 shares to Mr. Chae Yong Lim for the exercise of warrant of 50,000,000 KRW. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On February 11, 2016 the Company issued 297,886 shares to Mr. Ho Seok Kim for the exercise of warrant of 50,000,000 KRW. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On February 11, 2016 the Company issued 744,711 shares to Mr. Myong Yong Jung for the exercise of warrant of 125,000,000 KRW. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On February 11, 2016 the Company issued 744,711 shares to Mr. Mok Kang for the exercise of warrant of 125,000,000 KRW. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On April 07, 2016 the Company issued 893,656 shares to Lisheng Chou, for the exercise of warrant of 150,000,000 KRW. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.

On May 24, 2016, the Company entered into a securities purchase agreement with an accredited investor (the "Investor") for the issuance of a series of convertible debentures (each a "Debenture"). The shares of common stock underlying the Debentures are part of this registration statement. Each Debenture has a maturity date which is one year after the date of issuance and has an interest rate of ten (10%) percent per annum. Each Debenture is convertible into shares of the Company's Common Stock at any time after the sooner to occur of 180 days from the original issue date or when the shares issuable upon conversion of the Debenture have been registered on a registration statement that has been declared effective by the Securities and Exchange Commission and until the Debenture is no longer outstanding. The Debentures are convertible at a conversion price equal to the lower of (i) $0.50 per share or (ii) 70% of the lowest VWAP for the previous 20 trading days prior to conversion. The Company is permitted to prepay the Debentures at any time upon ten (10) days written notice to the Investor. The Company claimed an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Act"), for the issuance of the securities referenced herein pursuant to Section 4(a)(2) of the Act and Regulation D promulgated thereunder.

On June 9, 2016, the Company entered into a Share Swap Agreement (the "Share Swap Agreement") with an accredited investor (the "Investor"), pursuant to which the Company acquired shares held by the Investor, which, in the aggregate, represent fifty percent (50%) of Lelcon Co., Ltd. a Korean corporation (the "Lelcon Shares"), in exchange for the issuance of 1,414,828 shares of the Company's common stock. As a result of the Share Swap Agreement, Lelcon Co., Ltd. is now a subsidiary of the Company. This issuance was completed in accordance with Section 4(2) of the Securities Act in an offering without any public offering or distribution. These shares are restricted securities and include an appropriate restrictive legend.
 
Item 16.   Exhibits and Financial Statement Schedules.
 
(d)           Exhibits.
 
The following exhibits are filed as part of this Registration Statement.
 
Item 15.  Exhibits, Financial Statement Schedules
 
Exhibit No.
 
Description
3.1
 
Amended Articles of Incorporation (Incorporated by reference to the Company's Registration Statement on Form 10 filed on December 10, 2008)
3.2
 
Restates Bylaws (Incorporated by reference to the Company's Registration Statement on Form 10 filed on December 10, 2008)
5.1
 
Opinion of Sichenzia Ross Friedman Ference LLP**
10. 1
 
2010  Employee  Stock  Option  Plan (incorporated by reference from the Company's Current Report on  Form 8-K filed February 3, 2010)
10. 2
 
Purchase Agreement between Leo Motors, Inc.  and  Leo B&T Co. Ltd. (incorporated by reference from the Company Current Report on Form 8-K filed on February 16, 2010)
10. 3
 
Agreement between Leo Motors, Inc. and M&M Corp. dated March 26, 2010 (incorporated by reference from the Company's Current Report on Form 8-K filed March 26, 2010)
10. 4
 
Employment Agreement between Leo Motors, Inc. and Jung Yong Lee dated January 1, 2012 (incorporated by reference from the Company Annual Report on Form 10-K filed on April 16, 2013) 
10.5
 
Stock Purchase Agreement between Leomotors Korea, Inc. and Shi Chul Kang dated June 25, 2012 (translated)*
10.6
 
Employment Agreement between Leo Motors, Inc. and Jun Heng Park dated December 1, 2015*
10.7
 
Employment Agreement between Leo Motors, Inc. and Shi Chul Kang dated December 1, 2015*
10.8
 
Employment Agreement between Leo Motors, Inc. and Jong Youl Choi dated December 1, 2015*
10.9
 
Investor Relations Program Agreement between Leo Motors, Inc. and JSR Partners Limited, dated April 15, 2014 (incorporated by reference from the Company's Current Report on Form 8-K filed on July 8, 2015)
10. 10
 
Share Swap Agreement by and between Leo Motors, Inc. and LGM Co. Ltd.,  dated as of July 1, 2014(incorporated by reference from the Company's Current Report on Form 8-K filed on April 25, 2014)
10. 11
 
Form of Securities Purchase Agreement(incorporated by reference from the Company's Current Report on Form 8-K filed on August 6, 2015)
10. 12
 
Non-exclusive Execution Rights on Patent Technology Settlment& Registration Contract, dated September 19, 2014, by and between Leo Motors, Inc. and TPT, Co., Ltd. (incorporated by reference from the Company's  Current Report on Form 8-K filed on September 25, 2014)
10. 13
 
Joint Venture Company Agreement, dated July 31, 2015, by and between the Company and Fushun Jinyuan Technology Machinery Manufacturing Co., Ltd. (incorporated by reference from the Company's Current Report on Form 8-K filed on August 6, 2015)
10. 14
 
Securities Purchase Agreement by and between the Company and the BOU Trust, dated May 17, 2016 *
10. 15
 
Registration Rights Agreement by and between the Company and the BOU Trust, dated May 17, 2016 *
10. 16
 
Form of Convertible Debenture, dated May 18, 2016 (incorporated by reference from the Company's Current Report on Form 8-K filed on May 24 , 2016)
10. 17
 
Form of Securities Purchase Agreement, dated May 18, 2016 (incorporated by reference from the Company's Current Report on Form 8-K filed on May 24 , 2016)
21
 
List of Subsidiaries (incorporated by reference from the Company's Annual Report on Form 10-K filed on March 30, 2016)
23.1
 
Consent of Scrudato & Co., PA, Independent Registered Public Accounting Firm *
23.2
 
Consent of Sichenzia Ross Friedman Ference LLP (included in Exhibit 5.1)**
 
*      Filed herewith
**    Previously Filed
 
II - 2

 Item 17.   Undertakings.
 
The undersigned registrant hereby undertakes:
 
    (1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
 
 
(i)
To include any prospectus required by Section 10(a)(3) of the Securities Act;
 
 
 
 
(ii)
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement; and
 
 
 
 
(iii)
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.
 
(2) That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of the securities at that time shall be deemed to be the initial bona fide offering thereof.
 
(3) To remove from registration by means of a post-effective amendment any of the securities being registered that remain unsold at the termination of the offering.
 
(4) That, for the purpose of determining liability of the undersigned registrant under the Securities Act to any purchaser in the initial distribution of the securities:
 
The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
 
 
(i)
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424 (§ 230.424 of this chapter);
 
 
(ii)
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
 
 
(iii)
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
 
 
 
 
(iv)
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
 
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.
  
In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
 
For the purpose of determining liability under the Securities Act to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A (§ 230.430A of this chapter), shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness.  Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.
 
II - 3

 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Act of 1933, the Registrant has duly caused this Amendment No. 1 to the R egistration Statement on Form S-1 to be signed on its behalf by the undersigned, thereunto duly authorized, in Seoul, Republic of Korea, on the 20th day of July , 2016.
 
LEO MOTORS, INC.
 
 
 
 
 
 
July 20 , 2016
By:
/s/  Shi Chul Kang
 
 
 
Shi Chul Kang
 
 
 
Chief Executive Officer (Principal Executive Officer) and Director
 
 
 
 
 
July 20 , 2016
By:
/s/ Jeong Youl Choi
 
 
 
JeongYoul Choi
 
 
 
Chief Financial Officer (Principal Financial and Accounting Officer) and Director
 
 
Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the date indicated.
 
/s/  Shi Chul Kang
 
 
 
 
Shi Chul Kang
 
Co-Chief Executive Officer (Principal Executive Officer) and Director
 
July 20 , 2016
 
 
 
 
 
/s/ Jeong Youl Choi
 
 
 
 
JeongYoul Choi
 
Chief Financial Officer (Principal Financial and Accounting Officer) and Director
 
July 20 , 2016
 
 
 
 
 
 /s/ Jun Heng Park
 
 
 
July 20 , 2016
  Jun Heng Park
 
Co-Chief Executive Officer and Director
 
 
 
 

EX-10.5 2 ex105.htm EXHIBIT 10.5
Exhibit 10.5
 
STOCK PURCHASE AGREEMENT


This Stock Purchase Agreement (hereinafter called Agreement) was entered between Shi Chul Kang with an address at 102-1505 Lotte Castle, Shincheon-Dong, Songpa-Gu, Seoul, Republic of Korea (hereinafter called "SELLER)") and Leomotors Korea, Inc. with an address at 291-1, Hasangok-dong, Hanam City, Gyeonggi-do, Republic of Korea (hereinafter called "BUYER") as of this 25th day of June, 2012, WHEREAS "SELLER" wishes to sell and "BUYER" wishes to purchase, 3,750,000 shares of Common Stocks of Leo Motors Inc. owned by "SELLER" on terms and conditions herein set forth, NOW THEREFORE, the parties hereto agree as follows:

1. "SELLER" shall sell and "BUYER" shall purchase 3,750,000 shares of the Common Shares of Leo Motors, Inc., at US$ 0.20 (with conversion rate of US$1.00 to be Korean Won 1,150) per stock. Thetotal share price shall be Korean Won 862,500,000 payable in full at the Closing by December 31, 2012.

2. Contract Payment: Korean Won 50, 000,000 will be paid with signing of this agreement.

3. 1st interim payment: Korean Won 20, 000,000 will be paid on September 24, 2012.

4. 2nd interim payment: Korean Won 80, 000,000 will be paid on November 23, 2012.

5. 3rd interim payment: Korean Won 252,500,000 will be paid before December 31, 2012. When the 3rd payment is made the SELLER deliver 1,750,000 shares to BUYER.

6. Final Payment: Korean Won 20, 000,000 will be paid on September 24, 2012. When the final payment is made, the SELL deliver 2,000,000 shares to SELLER.

7. If the whole payment is not made until December 31, 2016, this agreement is automatically terminated.

8. If the payment is not made to the 2nd interim payment, this agreement is automatically terminated. In this case, the Contract Payment is not refunded by the SELLER.

9. The share transfer must be followed by BUYER's requests.

10. Any expenses or tax incurred by this share transaction shell be paid by the beneficiary party.

In WITHNESSTH WHEREOF, the parties to this Agreement have duly executed it as of the day and year first above written.

 

By:
_____________________________
"SELLER": Shi Chul Kang



By:
_____________________________
"BUYER": Leomotors Korea, Inc.


 
 
 
 
EX-10.6 3 ex106.htm EXHIBIT 10.6
Exhibit 10.6
 

Name Jun Heng Park
Our Ref.: LEO-15-HR0123
 
 
 
December 1, 2015
 
Dear Mr. Jun Heng Park
 
 
LETTER OF APPOINTMENT

We are pleased to offer you the position of Co-CEO with effect from January 1, 2016. Your salary package will be as follows:

Basic Salary: US$ 400,000

You will not be entitled to any overtime payment should you be required to work outside office hours. Other terms and conditions are as stated in the attached and in the Company Policy. Notwithstanding that the Company reserves the right at all times to amend the Company Policy and all its employee benefit package at its sole discretion. If you accept the above offer and the terms and conditions of employment, kindly sign the letter and return the copy to us.

We take this opportunity to wish you a meaningful career with us and look forward to your contribution to the success of the Company.

Yours sincerely



For and on behalf of

Leo Motors, Inc.


 
 
 
 
 
 
 
 
Shi Chul Kang  
Jun Heng Park
 
 
 
 
 
Co-CEO  
Co-CEO
 


I, Jun Heng Park, accept the above offer and the terms and conditions of employment as stated. I will be able to commence employment on November 1, 2013.



 
 December 1, 2015
 
 
 
 
 
 
Signature  
 
 
 




TERMS & CONDITIONS OF EMPLOYMENT



Position: Co-CEO



Probation: Six months. However, the company may extend or shorten this probationary period according to the individual's performance. For the first month, either party reserves the right to terminate this contract of service by serving one day's notice. For the 2nd & 3rd  month, seven days' notice or payment-in-lieu is required. For the rest of the probationary period, one month's notice or payment-in lieu is required.

Your employment will only be confirmed upon receiving the letter of confirmation from the Company, otherwise your probationary period will deem to be extended.

Working Hour: This position requires you, from time to time, to work beyond working hours, including Saturdays, Sundays and Public Holidays. You are required to work at such times and for such periods as the efficient and conscientious discharge of your duties requires.

Place of Work: You will work at the offices of the Company but you shall, if required to do so, work in such place or places as the Company may reasonably require for the proper and efficient performance of your duties hereunder.

Annual Return Air-ticket: You will be entitled to one return economy air-ticket to your city of origin after each year of service. The company will provide economy air-ticket from your city of origin to Korea for your arrival and also for the return flight back after at least one-year service.

Mandatory Provident Fund: The Company and you will contribute towards a Mandatory Provident Fund in accordance with the provisions of the Mandatory Provident Fund and the Company Policy, if applicable.

Annual Leave: On completion of one year's service, you will be entitled to 21 days of paid leave per annum. However, if you leave the company within 1 year of employment, you will only entitle to 7 days of paid leave per annum. The utilization and availability of the annual leave are laid down in the Company Policy and amendments thereof.
 
 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 

Page 2 - Terms & Conditions of Employment
 
Personal Taxation: You shall bear all income tax liabilities for the remuneration and benefits you received from the Company.

Overseas Work: You may be required to work overseas from time to time. The Company will arrange your travel, accommodation and expenses in accordance with the Company Policy.

Medical Insurance: As per the standard local medical & insurance benefit of the Company. Training: You may be selected for Training Courses or on-the-job-training from time to time. According to our Company Policy, the full amount of training subsidy will be reimbursed to the Company through the deduction of the employee's salary if he/she tenders resignation within certain period of time depending on the subsidy amount. Any breach in this commitment on the part of the employee would mean total refund of the costs involved:

a) Course fee Company paid

b) Salary received during the course duration c) Local traveling costs incurred
 
*d) air-tickets incurred

*e) overseas allowance received

*f) accommodation provided by Company

* Applicable for overseas training

Devotion to duties: You shall devote the whole of your time attention and abilities during normal business hours and at such other times as the Company or your duties may reasonably require to the business and affairs of the Company unless prevented by ill health from so doing and shall not during the term of this Agreement either on your own account or as the employer of other or otherwise be engaged or connected in any business or engagement other than that of the Company or any of its affiliated companies except with the prior written consent of the Company.
 
 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 
2

Page 3 - Terms & Conditions of Employment
 
Conflict of Interest: You shall inform the Company of any intention to pursue a secondary interest or engagement, whether related or unrelated to the Company's business, and obtain prior written consent before engaging in any such interest or engagement.

Confidentiality Clause: You shall not either during the employment otherwise than in the proper course of your duties or thereafter without the consent in writing of the Company being first obtained divulge to any person, firm or company and shall during the continuance of this Agreement use your best endeavors to prevent the publication or disclosure of any confidential information concerning the business, accounts, affairs or finances of the Company or the Group or their clients or business associates or any of their dealings or transactions which may have come or may come to your knowledge during the employment or previously or otherwise.

Notice & Terms of Termination: The contract of service may be terminated by either party by giving three months' notice or three months' pay in lieu. The Company reserves the right at all times to terminate the contract on grounds of misconduct, misdemeanor, negligence or a breach of contract or rules and regulation laid down by the Company from time to time. If such termination constitutes a dismissal, no notice nor pay in lieu need be given.

Notices: Any notice given under this Agreement shall be deemed to have been duly given if handed personally to the others party or their authorized representatives or if dispatched by either party hereto by ordinary post addressed to the other party at that other party registered office or at that other party last known address and such notice shall be deemed to have been given on the day on which in the ordinary course of post it would be delivered.

Delivery of Documents: Upon the termination of the employment, you shall deliver up to the Company or its authorized representative all plans, statistics, records, papers or property of whatsoever nature which may be in your possession or control and related in any way to the business or affairs of the Company and its subsidiaries and no copies of documents shall be retained by you.

 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 

3

Page 4 - Terms & Conditions of Employment
 
Post Termination Obligations:

1. You shall not during the period of twelve months after termination of your employment (howsoever occasioned) solicit or endeavor to entice away from, or discourage from being employed by, the Company any employee who to your knowledge was an employee thereof at the date of such termination or whom to your knowledge he has at that date agreed to be engaged as an employee of the Company.

2. You shall not for a period of twelve months after termination of your employment (without the previous consent in writing on your own account or for any other person, firm or company) solicit or endeavor to entice away from the Company any person, firm or company (I) who or which in the preceding 3 years shall have been a customer of or in the habit of dealing with the Company and (II) with whom or which you had contact during the employment.

3. You shall not for a period of twelve months after termination of your employment (without the previous consent in writing of the Company) directly or indirectly do any business with or have any dealings with any person, firm or company who was a client, customer or supplier (agent or distributor) of the Company during the period of the employment and with whom you had contact during the employment provided that nothing contained in this sub-clause shall prohibit your activities which are not in direct or indirect competition with any business carried on by the Company at the date of the termination of this Agreement

4. You shall not for a period of twelve months after termination of your employment (howsoever occasioned) (without the previous consent in writing of the Company) be engaged or interested (whether as principal, servant, agent, consultant or otherwise) in any trade or business which is similar to or competing with any trade or business being carried on at the end of the employment by the Company or any other Group Company with which you shall have been directly or indirectly connected during the employment.

 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 

4

Page 5 - Terms & Conditions of Employment
 
Post Termination Obligations (Cont'd)
 
5. You shall acknowledge:

(a) That each of the foregoing sub-clauses of this clause constitutes an entirely separate and independent restriction on you; and (b) Whilst at the date of this Agreement, the duration, extent and application of each of the restrictions are considered by the parties no greater than is necessary for the protection of the Company's interests and reasonable in all the circumstances. It is acknowledged that restrictions of such a nature may be invalid because of changing circumstances and accordingly if any of the restrictions shall be adjudged to be invalid or ineffective for whatever reason but would be adjudged to be valid or effective if part of the wording thereof were deleted or the periods thereof reduced shall apply with such modifications as any be necessary to make them valid and effective. 6. The rights to all work, designs, systems and all other intellectual properties produced by you while in our employment shall remain the sole ownership of the Company

Governing Law: The construction, validity and performance of this employment contract and all disputes or differences arising hereunder shall in all respects be governed by the laws of Korea. You and the Company agree to submit to the non-exclusive jurisdiction of the Courts of Korea.

Company Policy: In addition to the terms and conditions contained in this Agreement, your employment is subject to the terms and conditions of the Company Policy prevailing at any time. The Company Policy can be amended by the Company at its sole discretion from time to time. A copy of the current Company Policy is available on the intranet and can be obtained from the Company's Human Resources Department.

------------------------End----------------------

 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 


5


 
EX-10.7 4 ex107.htm EXHIBIT 10.7
Exhibit 10.7
 
Name: Shi Chul Kang
Our Ref.: LEO-15-HR0122
 
 
 
December 1, 2015

Dear Dr. Shi Chul Kang



LETTER OF APPOINTMENT

We are pleased to offer you the position of Co-CEO and Chairman with effect from January 1, 2016. Your salary package will be as follows:

Basic Salary: US$ 400,000

You will not be entitled to any overtime payment should you be required to work outside office hours. Other terms and conditions are as stated in the attached and in the Company Policy. Notwithstanding that the Company reserves the right at all times to amend the Company Policy and all its employee benefit package at its sole discretion. If you accept the above offer and the terms and conditions of employment, kindly sign the letter and return the copy to us.

We take this opportunity to wish you a meaningful career with us and look forward to your contribution to the success of the Company.
 
Yours sincerely



For and on behalf of

Leo Motors, Inc.


 
 
 
 
 
 
 
 
Shi Chul Kang  
Jun Heng Park
 
 
 
 
 
Co-CEO  
Co-CEO
 

 
I, Shi Chul Kang, accept the above offer and the terms and conditions of employment as stated. I will be able to commence employment on November 1, 2013.


 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 

 


 
TERMS & CONDITIONS OF EMPLOYMENT



Position: CEO and Chairman



Probation: Six months. However, the company may extend or shorten this probationary period according to the individual's performance. For the first month, either party reserves the right to terminate this contract of service by serving one day's notice. For the 2nd & 3rd  month, seven days' notice or payment-in-lieu is required. For the rest of the probationary period, one month's notice or payment-in lieu is required.

Your employment will only be confirmed upon receiving the letter of confirmation from the Company, otherwise your probationary period will deem to be extended.

Working Hour: This position requires you, from time to time, to work beyond working hours, including Saturdays, Sundays and Public Holidays. You are required to work at such times and for such periods as the efficient and conscientious discharge of your duties requires.

Place of Work: You will work at the offices of the Company but you shall, if required to do so, work in such place or places as the Company may reasonably require for the proper and efficient performance of your duties hereunder.

Annual Return Air-ticket: You will be entitled to one return economy air-ticket to your city of origin after each year of service. The company will provide economy air-ticket from your city of origin to Korea for your arrival and also for the return flight back after at least one-year service.

Mandatory Provident Fund: The Company and you will contribute towards a Mandatory Provident Fund in accordance with the provisions of the Mandatory Provident Fund and the Company Policy, if applicable.

Annual Leave: On completion of one year's service, you will be entitled to 21 days of paid leave per annum. However, if you leave the company within 1 year of employment, you will only entitle to 7 days of paid leave per annum. The utilization and availability of the annual leave are laid down in the Company Policy and amendments thereof.
 
 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 
 

Page 2 - Terms & Conditions of Employment

Personal Taxation: You shall bear all income tax liabilities for the remuneration and benefits you received from the Company.

Overseas Work: You may be required to work overseas from time to time. The Company will arrange your travel, accommodation and expenses in accordance with the Company Policy.

Medical Insurance: As per the standard local medical & insurance benefit of the Company. Training: You may be selected for Training Courses or on-the-job-training from time to time. According to our Company Policy, the full amount of training subsidy will be reimbursed to the Company through the deduction of the employee's salary if he/she tenders resignation within certain period of time depending on the subsidy amount. Any breach in this commitment on the part of the employee would mean total refund of the costs involved:

a) Course fee Company paid

b) Salary received during the course duration c) Local traveling costs incurred
 
*d) air-tickets incurred

*e) overseas allowance received

*f) accommodation provided by Company

* Applicable for overseas training
Devotion to duties: You shall devote the whole of your time attention and abilities during normal business hours and at such other times as the Company or your duties may reasonably require to the business and affairs of the Company unless prevented by ill health from so doing and shall not during the term of this Agreement either on your own account or as the employer of other or otherwise be engaged or connected in any business or engagement other than that of the Company or any of its affiliated companies except with the prior written consent of the Company.
 
 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 
2

Page 3 - Terms & Conditions of Employment

Conflict of Interest: You shall inform the Company of any intention to pursue a secondary interest or engagement, whether related or unrelated to the Company's business, and obtain prior written consent before engaging in any such interest or engagement.

Confidentiality Clause: You shall not either during the employment otherwise than in the proper course of your duties or thereafter without the consent in writing of the Company being first obtained divulge to any person, firm or company and shall during the continuance of this Agreement use your best endeavors to prevent the publication or disclosure of any confidential information concerning the business, accounts, affairs or finances of the Company or the Group or their clients or business associates or any of their dealings or transactions which may have come or may come to your knowledge during the employment or previously or otherwise.

Notice & Terms of Termination: The contract of service may be terminated by either party by giving three months' notice or three months' pay in lieu. The Company reserves the right at all times to terminate the contract on grounds of misconduct, misdemeanor, negligence or a breach of contract or rules and regulation laid down by the Company from time to time. If such termination constitutes a dismissal, no notice nor pay in lieu need be given.

Notices: Any notice given under this Agreement shall be deemed to have been duly given if handed personally to the others party or their authorized representatives or if dispatched by either party hereto by ordinary post addressed to the other party at that other party registered office or at that other party last known address and such notice shall be deemed to have been given on the day on which in the ordinary course of post it would be delivered.

Delivery of Documents: Upon the termination of the employment, you shall deliver up to the Company or its authorized representative all plans, statistics, records, papers or property of whatsoever nature which may be in your possession or control and related in any way to the business or affairs of the Company and its subsidiaries and no copies of documents shall be retained by you.
 
 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 
3

Page 4 - Terms & Conditions of Employment
 
Post Termination Obligations:

1. You shall not during the period of twelve months after termination of your employment (howsoever occasioned) solicit or endeavor to entice away from, or discourage from being employed by, the Company any employee who to your knowledge was an employee thereof at the date of such termination or whom to your knowledge he has at that date agreed to be engaged as an employee of the Company.

2. You shall not for a period of twelve months after termination of your employment (without the previous consent in writing on your own account or for any other person, firm or company) solicit or endeavor to entice away from the Company any person, firm or company (I) who or which in the preceding 3 years shall have been a customer of or in the habit of dealing with the Company and (II) with whom or which you had contact during the employment.

3. You shall not for a period of twelve months after termination of your employment (without the previous consent in writing of the Company) directly or indirectly do any business with or have any dealings with any person, firm or company who was a client, customer or supplier (agent or distributor) of the Company during the period of the employment and with whom you had contact during the employment provided that nothing contained in this sub-clause shall prohibit your activities which are not in direct or indirect competition with any business carried on by the Company at the date of the termination of this Agreement

4. You shall not for a period of twelve months after termination of your employment (howsoever occasioned) (without the previous consent in writing of the Company) be engaged or interested (whether as principal, servant, agent, consultant or otherwise) in any trade or business which is similar to or competing with any trade or business being carried on at the end of the employment by the Company or any other Group Company with which you shall have been directly or indirectly connected during the employment.
 
 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 
4

Page 5 - Terms & Conditions of Employment
 
Post Termination Obligations (Cont'd)

5. You shall acknowledge:

(a) That each of the foregoing sub-clauses of this clause constitutes an entirely separate and independent restriction on you; and (b) Whilst at the date of this Agreement, the duration, extent and application of each of the restrictions are considered by the parties no greater than is necessary for the protection of the Company's interests and reasonable in all the circumstances. It is acknowledged that restrictions of such a nature may be invalid because of changing circumstances and accordingly if any of the restrictions shall be adjudged to be invalid or ineffective for whatever reason but would be adjudged to be valid or effective if part of the wording thereof were deleted or the periods thereof reduced shall apply with such modifications as any be necessary to make them valid and effective. 6. The rights to all work, designs, systems and all other intellectual properties produced by you while in our employment shall remain the sole ownership of the Company

Governing Law: The construction, validity and performance of this employment contract and all disputes or differences arising hereunder shall in all respects be governed by the laws of Korea. You and the Company agree to submit to the non-exclusive jurisdiction of the Courts of Korea.

Company Policy: In addition to the terms and conditions contained in this Agreement, your employment is subject to the terms and conditions of the Company Policy prevailing at any time. The Company Policy can be amended by the Company at its sole discretion from time to time. A copy of the current Company Policy is available on the intranet and can be obtained from the Company's Human Resources Department.

------------------------End----------------------
 
 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 
 
5

EX-10.8 5 ex108.htm EXHIBIT 10.8
Exhibit 10.8
 

Name Jeong Youl Choi  
Our Ref.: LEO-15-HR0124
 
 
 
December 1, 2015

Dear Mr. Jeong Youl Choi



LETTER OF APPOINTMENT

We are pleased to offer you the position of Director and CFO with effect from January 1, 2016. Your salary package will be as follows:

Basic Salary: US$ 300,000

You will not be entitled to any overtime payment should you be required to work outside office hours. Other terms and conditions are as stated in the attached and in the Company Policy. Notwithstanding that the Company reserves the right at all times to amend the Company Policy and all its employee benefit package at its sole discretion. If you accept the above offer and the terms and conditions of employment, kindly sign the letter and return the copy to us.

We take this opportunity to wish you a meaningful career with us and look forward to your contribution to the success of the Company.
 
Yours sincerely



For and on behalf of

Leo Motors, Inc.


 
 
 
 
 
 
 
 
Shi Chul Kang  
Jun Heng Park
 
 
 
 
 
Co-CEO  
Co-CEO
 


I, Jeong Youl Choi, accept the above offer and the terms and conditions of employment as stated. I will be able to commence employment on November 1, 2013.
 
 
 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 
 

 
TERMS & CONDITIONS OF EMPLOYMENT



Position: Director and CFO



Probation: Six months. However, the company may extend or shorten this probationary period according to the individual's performance. For the first month, either party reserves the right to terminate this contract of service by serving one day's notice. For the 2nd & 3rd  month, seven days' notice or payment-in-lieu is required. For the rest of the probationary period, one month's notice or payment-in lieu is required.

Your employment will only be confirmed upon receiving the letter of confirmation from the Company, otherwise your probationary period will deem to be extended.

Working Hour: This position requires you, from time to time, to work beyond working hours, including Saturdays, Sundays and Public Holidays. You are required to work at such times and for such periods as the efficient and conscientious discharge of your duties requires.
Place of Work: You will work at the offices of the Company but you shall, if required to do so, work in such place or places as the Company may reasonably require for the proper and efficient performance of your duties hereunder.

Annual Return Air-ticket: You will be entitled to one return economy air-ticket to your city of origin after each year of service. The company will provide economy air-ticket from your city of origin to Korea for your arrival and also for the return flight back after at least one-year service.

Mandatory Provident Fund: The Company and you will contribute towards a Mandatory Provident Fund in accordance with the provisions of the Mandatory Provident Fund and the Company Policy, if applicable.

Annual Leave: On completion of one year's service, you will be entitled to 21 days of paid leave per annum. However, if you leave the company within 1 year of employment, you will only entitle to 7 days of paid leave per annum. The utilization and availability of the annual leave are laid down in the Company Policy and amendments thereof.
 
 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 

 
Page 2 - Terms & Conditions of Employment
 
Personal Taxation: You shall bear all income tax liabilities for the remuneration and benefits you received from the Company.

Overseas Work: You may be required to work overseas from time to time. The Company will arrange your travel, accommodation and expenses in accordance with the Company Policy.

Medical Insurance: As per the standard local medical & insurance benefit of the Company. Training: You may be selected for Training Courses or on-the-job-training from time to time. According to our Company Policy, the full amount of training subsidy will be reimbursed to the Company through the deduction of the employee's salary if he/she tenders resignation within certain period of time depending on the subsidy amount. Any breach in this commitment on the part of the employee would mean total refund of the costs involved:

a) Course fee Company paid

b) Salary received during the course duration c) Local traveling costs incurred*d) air-tickets incurred

*e) overseas allowance received

*f) accommodation provided by Company

* Applicable for overseas training

Devotion to duties: You shall devote the whole of your time attention and abilities during normal business hours and at such other times as the Company or your duties may reasonably require to the business and affairs of the Company unless prevented by ill health from so doing and shall not during the term of this Agreement either on your own account or as the employer of other or otherwise be engaged or connected in any business or engagement other than that of the Company or any of its affiliated companies except with the prior written consent of the Company.
 
 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 
2

 
Page 3 - Terms & Conditions of Employment
 
Conflict of Interest: You shall inform the Company of any intention to pursue a secondary interest or engagement, whether related or unrelated to the Company's business, and obtain prior written consent before engaging in any such interest or engagement.

Confidentiality Clause: You shall not either during the employment otherwise than in the proper course of your duties or thereafter without the consent in writing of the Company being first obtained divulge to any person, firm or company and shall during the continuance of this Agreement use your best endeavors to prevent the publication or disclosure of any confidential information concerning the business, accounts, affairs or finances of the Company or the Group or their clients or business associates or any of their dealings or transactions which may have come or may come to your knowledge during the employment or previously or otherwise.

Notice & Terms of Termination: The contract of service may be terminated by either party by giving three months' notice or three months' pay in lieu. The Company reserves the right at all times to terminate the contract on grounds of misconduct, misdemeanor, negligence or a breach of contract or rules and regulation laid down by the Company from time to time. If such termination constitutes a dismissal, no notice nor pay in lieu need be given.

Notices: Any notice given under this Agreement shall be deemed to have been duly given if handed personally to the others party or their authorized representatives or if dispatched by either party hereto by ordinary post addressed to the other party at that other party registered office or at that other party last known address and such notice shall be deemed to have been given on the day on which in the ordinary course of post it would be delivered.

Delivery of Documents: Upon the termination of the employment, you shall deliver up to the Company or its authorized representative all plans, statistics, records, papers or property of whatsoever nature which may be in your possession or control and related in any way to the business or affairs of the Company and its subsidiaries and no copies of documents shall be retained by you.
 
 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 
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Page 4 - Terms & Conditions of Employment
 
Post Termination Obligations:

1. You shall not during the period of twelve months after termination of your employment (howsoever occasioned) solicit or endeavor to entice away from, or discourage from being employed by, the Company any employee who to your knowledge was an employee thereof at the date of such termination or whom to your knowledge he has at that date agreed to be engaged as an employee of the Company.

2. You shall not for a period of twelve months after termination of your employment (without the previous consent in writing on your own account or for any other person, firm or company) solicit or endeavor to entice away from the Company any person, firm or company (I) who or which in the preceding 3 years shall have been a customer of or in the habit of dealing with the Company and (II) with whom or which you had contact during the employment.

3. You shall not for a period of twelve months after termination of your employment (without the previous consent in writing of the Company) directly or indirectly do any business with or have any dealings with any person, firm or company who was a client, customer or supplier (agent or distributor) of the Company during the period of the employment and with whom you had contact during the employment provided that nothing contained in this sub-clause shall prohibit your activities which are not in direct or indirect competition with any business carried on by the Company at the date of the termination of this Agreement

4. You shall not for a period of twelve months after termination of your employment (howsoever occasioned) (without the previous consent in writing of the Company) be engaged or interested (whether as principal, servant, agent, consultant or otherwise) in any trade or business which is similar to or competing with any trade or business being carried on at the end of the employment by the Company or any other Group Company with which you shall have been directly or indirectly connected during the employment.
 
 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 
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Page 5 - Terms & Conditions of Employment
 
Post Termination Obligations (Cont'd)

5. You shall acknowledge:

(a) That each of the foregoing sub-clauses of this clause constitutes an entirely separate and independent restriction on you; and (b) Whilst at the date of this Agreement, the duration, extent and application of each of the restrictions are considered by the parties no greater than is necessary for the protection of the Company's interests and reasonable in all the circumstances. It is acknowledged that restrictions of such a nature may be invalid because of changing circumstances and accordingly if any of the restrictions shall be adjudged to be invalid or ineffective for whatever reason but would be adjudged to be valid or effective if part of the wording thereof were deleted or the periods thereof reduced shall apply with such modifications as any be necessary to make them valid and effective. 6. The rights to all work, designs, systems and all other intellectual properties produced by you while in our employment shall remain the sole ownership of the Company

Governing Law: The construction, validity and performance of this employment contract and all disputes or differences arising hereunder shall in all respects be governed by the laws of Korea. You and the Company agree to submit to the non-exclusive jurisdiction of the Courts of Korea.

Company Policy: In addition to the terms and conditions contained in this Agreement, your employment is subject to the terms and conditions of the Company Policy prevailing at any time. The Company Policy can be amended by the Company at its sole discretion from time to time. A copy of the current Company Policy is available on the intranet and can be obtained from the Company's Human Resources Department.

------------------------End----------------------
 
 
December 1, 2015
 
 
 
 
 
 
Signature  
 
 
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EX-10.14 6 ex1014.htm EXHIBIT 10.14
Exhibit 10.14
 

SECURITIES PURCHASE AGREEMENT

This Securities Purchase Agreement (this "Agreement") is dated as of May 17, 2016 by and between Leo Motors, Inc., a Nevada corporation (the "Company") and BOU Trust (the "Purchaser). Capitalized terms used in this Agreement and not otherwise defined shall have the meanings ascribed to them in Article 1.

WHEREAS, the parties desire that, upon the terms and subject to the conditions contained herein, the Company shall have the right to issue and sell to Purchaser from time to time as provided herein, and Purchaser shall be obligated to purchase from the Company up to $10,000,000 worth of shares of the Company's Common Stock on a private placement basis pursuant to an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended; and

WHEREAS, the Purchaser shall be entitled to resell shares of Common Stock acquired hereunder pursuant to a resale registration statement established by the Company pursuant to the terms of the Registration Rights Agreement between the Company and the Purchaser which shall be declared effective by the Commission prior to the delivery of the first Draw Down Notice.

NOW, THEREFORE, in consideration of the foregoing premises, and the promises and covenants herein contained, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties, intending to be legally bound, hereby agree as follows:


ARTICLE I.
DEFINITIONS

1.1 Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings indicated in this Section 1.1:

"Action" shall have the meaning ascribed to such term in Section 3.1(j).

"Affiliate" means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 144 under the Securities Act. With respect to the Purchaser, any investment fund or managed account that is managed on a discretionary basis by the same investment manager as the Purchaser will be deemed to be an Affiliate of the Purchaser.

"Business Day" means any day except Saturday, Sunday, any day which shall be a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

"Closing Price" means the price of the Common Stock on the last Trading Day of the respective Draw Down Period.

"Commission" means the Securities and Exchange Commission.

"Commencement Date" shall mean the Trading Day immediately following the date on which the applicable Draw Down Notice is delivered to the Purchaser.

"Commitment Amount" shall have the meaning assigned to such term in Section 2.1 hereof.
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after the Effective Date of the final Registration Statement, or until such time that the Purchaser has purchased $10,000,000 of the Common Stock, whichever is earlier.

"Common Stock" means the common stock of the Company, par value $0.001 per share, and any other class of securities into which such securities may hereafter be reclassified or changed into.

"Common Stock Equivalents" means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

"Company Counsel" means Sichenzia Ross Friedman Ference LLP.

"Consolidation Event" shall mean a sale of all or substantially all of the Company's assets or a merger pursuant to which the holders of the voting securities of the Company prior to the merger do not own a majority of the voting securities of the surviving entity.

"Disclosure Schedules" means the Disclosure Schedules of the Company delivered concurrently herewith.

"Draw Down" shall have the meaning assigned to such term in Section 6.1(a) hereof.

"Draw Down Notice" shall have the meaning assigned to such term in Section 6.1(e) hereof.

"Draw Down Pricing Period" shall mean each period of 5 consecutive Trading Days following the delivery by the Company of a Draw Down Notice, the first of such periods commencing on the date specified in the Draw Down Notice; provided, however, the first Draw Down Pricing Period and any subsequent Draw Down Pricing Period commencing after a suspension notice is delivered, shall not begin before the day on which receipt of such notice is delivered to Purchaser pursuant to Section 8.3 herein.
 
"Draw Down Shares" shall mean the shares of Common Stock issuable pursuant to a Draw Down.

"DTC" shall have the meaning assigned to such term in Section 6.1(f).

"DWAC" shall have the meaning assigned to such term in Section 6.1(f).

"Effective Date" means the date that the initial Registration Statement filed by the Company pursuant to the Registration Rights Agreement is first declared effective by the Commission and the date that each subsequent Registration Statement filed by the Company pursuant to the Registration Rights Agreement is declared effective by the Commission.

"Equity Conditions" shall mean, during the period in question, (i) all liquidated damages and other amounts owing to the Purchaser pursuant to the Transaction Documents have been paid, (ii) there is an effective Registration Statement pursuant to which the Purchaser is permitted to utilize the prospectus thereunder to resell all of the Draw Down Shares (issued and to be issued pursuant to the applicable Draw Down and the Company believes, in good faith, that such effectiveness will continue uninterrupted for the foreseeable future), (iii) the Common Stock is trading on the Trading Market and all of the shares issuable pursuant to the Transaction Documents are listed or quoted (if applicable) for trading on a Trading Market (and the Company believes, in good faith, that trading of the Common Stock on a Trading Market will have been imposed by the SEC or any other governmental or regulatory body with respect to public trading in the Common Stock), (iv) there is a sufficient number of authorized but unissued and otherwise unreserved shares of Common Stock for the issuance of all of the Draw Down Shares (issued and to be issued pursuant to the applicable Draw Down), (v) the issuance of the Draw Down Shares subject to the applicable Draw Down would not violate the limitations set forth in Section 4.12, and (vi) the Company, directly or indirectly, has not provided the Purchaser with any material, non-public information that has not been made publicly available in a widely disseminated release.
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"Evaluation Date" shall have the meaning ascribed to such term in Section 3.1(r).

"Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"SRFF" means Sichenzia Ross Friedman Ference LLP with offices located at 61 Broadway, 32nd Floor, New York, NY 10006.

"GAAP" shall have the meaning ascribed to such term in Section 3.1(h).

"Initial Closing" shall have the meaning assigned to such term in Section 2.2 hereof.

"Initial Closing Date" shall have the meaning assigned to such term in Section 2.2 hereof.

"Intellectual Property Rights" shall have the meaning ascribed to such term in Section 3.1(o).

"Investment Amount" shall have the meaning assigned to such term in Section 6.1(c) hereof.

"Legend Removal Date" shall have the meaning ascribed to such term in Section 4.1(c).

"Liens" means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

"Material Adverse Effect" shall have the meaning assigned to such term in Section 3.1(b).

"Material Permits" shall have the meaning ascribed to such term in Section 3.1(m).

"Person" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

"Proceeding" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

"Purchase Price" shall mean, with respect to Draw Down Shares purchased during each applicable Settlement Period, the average of the lowest two (2) VWAPS during the Draw Down Pricing Period plus a 5% discount.

"Purchaser Party" shall have the meaning ascribed to such term in Section 4.7.

"Registration Rights Agreement" means the Registration Rights Agreement, dated the date hereof, between the Company and the Purchaser, in the form of Exhibit A attached hereto.
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"Registration Statement" means a registration statement meeting the requirements set forth in the Registration Rights Agreement and covering the resale by the Purchaser of the Draw Down Shares.

"Required Approvals" shall have the meaning ascribed to such term in Section 3.1(e).

"Rule 144" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

"Rule 424" means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

"SEC Reports" shall have the meaning ascribed to such term in Section 3.1(h).

"Securities" means the Draw Down Shares.

"Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"Settlement" shall mean the delivery of the Draw Down Shares into the Purchaser's DTC account via DTC's DWAC system and the Purchaser's delivery of payment therefor.

"Settlement Date" shall have the meaning assigned to such term in Section 6.1(b).

"Settlement Period" shall have the meaning assigned to such term in Section 6.1(b).

"Short Sales" shall include all "short sales" as defined in Rule 200 of Regulation SHO under the Exchange Act; provided, however, that in no event shall either the sale of Draw Down Shares to be received but not yet delivered pursuant to a pending Draw Down during a Draw Down Pricing Period be deemed a Short Sale or the sale of any Securities issued under this Agreement after the date hereof be deemed a Short Sale.

"Subsidiary" shall have the meaning ascribed to such term in Section 3.1(a).
 
"Trading Cushion" shall mean the mandatory 2 Trading Days between Draw Down Pricing Periods.

"Trading Day" means a day on which the Common Stock is traded on a Trading Market.

"Trading Market" means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the Nasdaq Capital Market, the NYSE MKT, the New York Stock Exchange, the Nasdaq National Market, or the OTC Markets.

"Transaction Documents" means this Agreement, and the Registration Rights Agreement and any other documents or agreements executed in connection with the transactions contemplated hereunder.

"VWAP" means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted for trading as reported by Bloomberg Financial L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time or (b) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company.
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ARTICLE II.
PURCHASE AND SALE

2.1 Purchase and Sale of Draw Down Shares. Upon the terms and subject to the conditions of this Agreement, the Company may sell and issue to the Purchaser and the Purchaser shall be obligated to purchase from the Company, up to an aggregate of $10,000,000 worth of shares of Common Stock (the "Commitment Amount").

2.2 Initial Closing. The execution and delivery of this Agreement and the other agreements referred to herein (the "Initial Closing") shall take place at the offices of SRFF, 61 Broadway, 32nd Floor, New York, NY 10006 or at such other time and place or on such date as the Purchaser and the Company may agree upon (the "Initial Closing Date"). Each party shall deliver the following documents, instruments and writings at or prior to the Initial Closing:

(a) The Company shall deliver or cause to be delivered to the Purchaser the following:

i. this Agreement duly executed by the Company; and

ii. the Registration Rights Agreement duly executed by the Company.


(b) The Purchaser shall deliver or cause to be delivered to the Company the following:

i. this Agreement duly executed by the Purchaser; and

ii. the Registration Rights Agreement duly executed by the Purchaser.

ARTICLE III.
REPRESENTATIONS AND WARRANTIES

3.1 Representations and Warranties of the Company. Except as set forth either in the SEC Reports or under the corresponding section of the Disclosure Schedules which Disclosure Schedules shall be deemed a part hereof and to qualify any representation or warranty otherwise made herein to the extent of such disclosure, the Company hereby makes the representations and warranties set forth below to the Purchaser:

(a) Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company owns, directly or indirectly, the capital stock or other equity interests of each Subsidiary, in the amounts set forth on Schedule 3.1(a), free and clear of any Liens, and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. If the Company has no subsidiaries, then all other references in the Transaction Documents to the Subsidiaries or any of them will be disregarded.

(b) Organization and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company's ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a "Material Adverse Effect") and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.
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(c) Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, its board of directors or its stockholders in connection therewith other than in connection with the Required Approvals. Each Transaction Document has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

(d) No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company, the issuance and sale of the Securities and the consummation by the Company of the other transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any provision of the Company's or any Subsidiary's certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

(e) Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than (i) filings required pursuant to Section 4.4 of this Agreement, (ii) the filing with the Commission of the Registration Statement, (iii) application(s) to each applicable Trading Market for the listing of the Securities for trading thereon in the time and manner required thereby, and (iv) the filing of Form D with the Commission and such filings as are required to be made under applicable state securities laws (collectively, the "Required Approvals").
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(f) Issuance of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement.

(g) Capitalization. The capitalization of the Company is as set forth on Schedule 3.1(g). The Company has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options under the Company's stock option plans and pursuant to the conversion or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except pursuant to the Securities Purchase Agreement dated the date hereof, as a result of the purchase and sale of the Securities, there are no outstanding options, warrants, script rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. As of the date hereof, the issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Purchaser) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors of the Company or others is required for the issuance and sale of the Securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company's capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company's stockholders.

(h) SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required to be filed by it under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the "SEC Reports") on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved ("GAAP"), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.
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(i) Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report, (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock option plans. The Company does not have pending before the Commission any request for confidential treatment of information. Except for the issuance of the Securities contemplated by this Agreement or as set forth on Schedule 3.1(i), no event, liability or development has occurred or exists with respect to the Company or its Subsidiaries or their respective business, properties, operations or financial condition, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed at least 1 Trading Day prior to the date that this representation is made.

(j) Litigation. Except as set forth in the Company's Form 10-K for the year ended December 31, 2015, there is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an "Action") which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

(k) Labor Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company's or its Subsidiaries' employees is a member of a union that relates to such employee's relationship with the Company, and neither the Company or any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good. No executive officer, to the knowledge of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
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(l) Compliance. Neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business and all such laws that affect the environment, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

(m) Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits could not have or reasonably be expected to result in a Material Adverse Effect ("Material Permits"), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit.

(n) Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them that is material to the business of the Company and the Subsidiaries and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance.

(o) Patents and Trademarks. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights necessary or material for use in connection with their respective businesses as described in the SEC Reports and which the failure to so have could have a Material Adverse Effect (collectively, the "Intellectual PropertyRights"). Neither the Company nor any Subsidiary has received a notice (written or otherwise) that the Intellectual Property Rights used by the Company or any Subsidiary violates or infringes upon the rights of any Person. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

(p) Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage at least equal to the aggregate Commitment Amount. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost.
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(q) Transactions With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, in each case in excess of $50,000 other than (i) for payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) for other employee benefits, including stock option agreements under any stock option plan of the Company.

(r) Sarbanes-Oxley; Internal Accounting Controls. The Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the Closing Date. The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management's general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms. The Company's certifying officers have evaluated the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by the Company's most recently filed periodic report under the Exchange Act (such date, the "Evaluation Date"). The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the Company's internal control over financial reporting (as such term is defined in the Exchange Act) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

(s) Certain Fees. Except as disclosed on Schedule 3.1(s), no brokerage or finder's fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Purchaser shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Transaction Documents.

(t) Private Placement. Assuming the accuracy of the Purchaser representations and warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchaser as contemplated hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Trading Market.

(u) Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will not be or be an Affiliate of, an "investment company" within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business in a manner so that it will not become subject to the Investment Company Act.
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(v) Registration Rights. Other than the Purchaser, and pursuant to the Securities Purchase Agreement dated May 17, 2016, and the transaction documents associated therewith, between the Company and certain purchasers set forth therein, no Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company.

(w) Listing and Maintenance Requirements. The Company's Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration. The Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.

(x) Application of Takeover Protections. The Company and its Board of Directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti- takeover provision under the Company's Certificate of Incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchaser as a result of the Purchaser and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation as a result of the Company's issuance of the Securities and the Purchaser's ownership of the Securities.

(y) Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that, neither it nor any other Person acting on its behalf has provided any of the Purchaser or their agents or counsel with any information that it believes constitutes or might constitute material, non-public information. The Company understands and confirms that the Purchaser will rely on the foregoing representation in effecting transactions in securities of the Company. All disclosure furnished by or on behalf of the Company to the Purchaser regarding the Company, its business and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, with respect to the representations and warranties made herein are true and correct with respect to such representations and warranties and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during the twelve months preceding the date of this Agreement taken as a whole do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements, in light of the circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.

(z) No Integrated Offering. Assuming the accuracy of the Purchaser's representations and warranties set forth in Section 3.2, neither the Company, nor any of its affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of the Securities Act or any applicable shareholder approval provisions of any Trading Market on which any of the securities of the Company are listed or designated.
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(aa) Solvency. Based on the financial condition of the Company as of the Closing Date after giving effect to the receipt by the Company of the proceeds from the sale of the Securities hereunder, (i) the fair saleable value of the Company's assets exceeds the amount that will be required to be paid on or in respect of the Company's existing debts and other liabilities (including known contingent liabilities) as they mature; (ii) the Company's assets do not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company, and projected capital requirements and capital availability thereof; and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. The SEC Reports set forth as of the dates thereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of this Agreement, "Indebtedness" shall mean (a) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary course of business), (b) all guaranties, endorsements and other contingent obligations in respect of Indebtedness of others, whether or not the same are or should be reflected in the Company's balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (c) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

(bb) Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and each Subsidiary has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been asserted or threatened against the Company or any Subsidiary.

(cc) No General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Securities by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Purchaser and certain other "accredited investors" within the meaning of Rule 501 under the Securities Act.

(dd) Foreign Corrupt Practices. Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

(ee) Accountants. The Company's accountants are set forth on Schedule 3.1(ee) of the Disclosure Schedule. To the knowledge of the Company, such accountants, who the Company expects will express their opinion with respect to the financial statements to be included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, are a registered public accounting firm as required by the Exchange Act.
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(ff) Acknowledgment Regar ding Purc has er 's Purcha se of Secur it ies . The Company acknowledges and agrees that the Purchaser is acting solely in the capacity of an arm's length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. The Company further acknowledges that Purchaser not is acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by Purchaser or any of Purchaser's respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchaser's purchase of the Securities. The Company further represents to the Purchaser that the Company's decision to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

(gg) Acknowledgement Regar di ng Purc hase r' s Tra di ng Act i vi t y . Anything in this Agreement or elsewhere herein to the contrary notwithstanding (except for Section 4.10 and 4.16 hereof), it is understood and acknowledged by the Company (i) that the Purchaser has not been asked to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or short, securities of the Company, or "derivative" securities based on securities issued by the Company or to hold the Securities for any specified term; (ii) that past or future open market or other transactions by Purchaser, including Short Sales, and specifically including, without limitation, Short Sales or "derivative" transactions, before or after the closing of this or future private placement transactions, may negatively impact the market price of the Company's publicly-traded securities; and (iii) that the Purchaser shall not be deemed to have any affiliation with or control over any arm's length counter-party in any "derivative" transaction. The Company further understands and acknowledges that (a) the Purchaser may engage in hedging activities at various times during the period that the Securities are outstanding, including, without limitation, during the periods that the value of the Draw Down Shares deliverable with respect to Securities are being determined and (b) such hedging activities (if any) could reduce the value of the existing stockholders' equity interests in the Company at and after the time that the hedging activities are being conducted. The Company acknowledges that such aforementioned hedging activities do not constitute a breach of any of the Transaction Documents.

(hh) Regulation M Compliance. The Company has not, and will not during the term of this Agreement, and to its knowledge no one acting on its behalf has, or will during the term of this Agreement, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any person any compensation for soliciting another to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company's placement agent in connection with the placement of the Securities.

3.2 Representations and Warranties of the Purchaser. Purchaser hereby represents and warrants as of the date hereof and as of each Closing Date to the Company as follows:

(a) Organization; Authority. Purchaser is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution, delivery and performance by the Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate or similar action on the part of the Purchaser. Each Transaction Document to which it is a party has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Purchaser, enforceable against it in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.
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(b) Own Account. Purchaser understands that the Securities are "restricted securities" and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Securities at the Initial Closing as principal for its own account and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities (this representation and warranty not limiting the Purchaser's right to sell the Securities pursuant to the Registration Statement or otherwise in compliance with applicable federal and state securities laws) in violation of the Securities Act or any applicable state securities law. Purchaser is acquiring the Securities hereunder in the ordinary course of its business.

(c) Purchaser Status. At the time the Purchaser was offered the Securities, it was, and at the date hereof it is, either: (i) an "accredited investor" as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a "qualified institutional buyer" as defined in Rule 144A(a) under the Securities Act.

(d) Experience of Purchaser. Purchaser has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

(e) General Solicitation. Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement.

ARTICLE IV.
OTHER AGREEMENTS OF THE PARTIES

4.1 Transfer Restrictions.

(a) The Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, to the Company or to an affiliate of the Purchaser or in connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights of the Purchaser under this Agreement and the Registration Rights Agreement, as to issued Securities only.
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(b) The Purchaser agrees to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Draw Down Shares in the following form:

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN "ACCREDITED INVESTOR" AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

The Company acknowledges and agrees that the Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an "accredited investor" as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement and the Registration Rights Agreement and, if required under the terms of such arrangement, the Purchaser may transfer pledged or secured Securities to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge. At the Purchaser's expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities, including, if the Securities are subject to registration pursuant to the Registration Rights Agreement, the preparation and filing of any required prospectus supplement under Rule 424(b)(3) under the Securities Act or other applicable provision of the Securities Act to appropriately amend the list of Selling Stockholders thereunder.

(c) Certificates (or electronic transfer, at the election of the Company) evidencing the Draw Down Shares shall not contain any legend (including the legend set forth in Section 4.1(b)), (i) while a registration statement (including the Registration Statement) covering the resale of such security is effective under the Securities Act, or (ii) following any sale of such Draw Down Shares pursuant to Rule
144, or (iii) if such Draw Down Shares are eligible for sale under Rule 144, or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and
pronouncements issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Company's transfer agent promptly after the applicable Effective Date if required by the Company's transfer agent to effect the removal of the legend hereunder. The Company agrees that following the applicable Effective Date or at such time as such legend is no longer required under this Section 4.1(c), it will, no later than three Trading Days following the delivery by the Purchaser to the Company or the Company's transfer agent of a certificate representing Draw Down Shares as the case may be, issued with a restrictive legend (such third Trading Day, the "Legend Removal Date"), deliver or cause to be delivered to the Purchaser a certificate representing such shares that is free from all restrictive and other legends. All Draw Down Shares shall be delivered without any restrictive legends. The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on transfer set forth in this Section. Certificates for Securities subject to legend removal hereunder shall be transmitted by the transfer agent of the Company to the Purchaser by crediting the account of the Purchaser's prime broker with the Depository Trust Company System.
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(d) In addition to the Purchaser's other available remedies, the Company shall pay to the Purchaser, in cash, as partial liquidated damages and not as a penalty, for each $1,000 of Draw Down Shares (based on the VWAP of the Common Stock on the date such Securities are submitted to the Company's transfer agent) delivered for removal of the restrictive legend and subject to Section 4.1(c), $100 per Trading Day (increasing to $200 per Trading Day five (5) Trading Days after such damages have begun to accrue) for each Trading Day after the Legend Removal Date until such certificate is delivered without a legend. Nothing herein shall limit the Purchaser's right to pursue actual damages for the Company's failure to deliver certificates representing any Securities as required by the Transaction Documents, and the Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.

(e) Purchaser agrees that the removal of the restrictive legend from certificates representing Securities as set forth in this Section 4.1 is predicated upon the Company's reliance that the Purchaser will sell any Securities pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if Securities are sold pursuant to a Registration Statement, they will be sold in compliance with the plan of distribution set forth therein.

4.2 Furnishing of Information. As long as Purchaser owns any Securities, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. As long as the Purchaser owns any Securities, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish to the Purchaser and make publicly available in accordance with Rule 144(c) such information as is required for the Purchaser to sell the Securities under Rule 144. The Company further covenants that it will take such further action as any holder of Securities may reasonably request, to the extent required from time to time to enable such Person to sell such Securities without registration under the Securities Act within the requirements of the exemption provided by Rule 144.

4.3 Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the Securities to the Purchaser or that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction.

4.4 Securities Laws Disclosure; Publicity. By the second Trading Day immediately following the date hereof, the Company shall file with the Commission a Current Report on Form 8-K, disclosing the material terms of the transactions contemplated hereby, and shall attach the Transaction Documents thereto. The Company and the Purchaser shall consult with each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither the Company nor the Purchaser shall issue any such press release or otherwise make any such public statement without the prior consent of the Company, with respect to any press release of the Purchaser, or without the prior consent of the Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or communication.
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4.5 Shareholder Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that the Purchaser is an "Acquiring Person" under any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company, or that the Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchaser.

4.6 Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company covenants and agrees that neither it nor any other Person acting on its behalf will provide the Purchaser or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto the Purchaser shall have executed a written agreement regarding the confidentiality and use of such information. The Company understands and confirms that the Purchaser shall be relying on the foregoing representations in effecting transactions in securities of the Company.

4.7 Indemnification of Purchaser. Subject to the provisions of this Section 4.7, the Company will indemnify and hold the Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls the Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a "Purchaser Party") harmless from any and all losses, liabilities, or other obligations.

4.8 Reservation of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available at all times, free of preemptive rights, a number of shares of Common Stock, for the purpose of enabling the Company to issue Draw Down Shares pursuant to this Agreement.

4.9 Listing of Common Stock. The Company hereby agrees to use best efforts to maintain the listing or quotation of the Common Stock on a Trading Market, and as soon as reasonably practicable following the Initial Closing (but not later than the Effective Date of the initial Registration Statement) to list or quote all of the Draw Down Shares on such Trading Market. The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will include in such application all of the Draw Down Shares, and will take such other action as is necessary to cause all of the Draw Down Shares to be listed or quoted on such other Trading Market as promptly as possible. The Company will take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market and will comply in all respects with the Company's reporting, filing and other obligations under the bylaws or rules of the Trading Market. claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys' fees and costs of investigation that any Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against the Purchaser, or any of its Affiliates, by any stockholder of the Company who is not an Affiliate of the Purchaser, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of the Purchaser's representations, warranties or covenants under the Transaction Documents or any agreements or understandings the Purchaser may have with any such stockholder or any violations by the Purchaser of state or federal securities laws or any conduct by the Purchaser which constitutes fraud, gross negligence, willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, the Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of the Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of such separate counsel, a material conflict on any material issue between the position of the Company and the position of the Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement (i) for any settlement by the Purchaser Party effected without the Company's prior written consent, which shall not be unreasonably withheld or delayed; or (ii) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party's breach of any of the representations, warranties, covenants or agreements made by the Purchaser Party in this Agreement or in the other Transaction Documents.
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4.10 Confidentiality After The Date Hereof. Purchaser covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company as described in Section 4.4, the Purchaser will maintain the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction.

4.11 Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation D and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchaser at the Closing under applicable securities or "Blue Sky" laws of the states of the United States, and shall provide evidence of such actions promptly upon request of Purchaser.

4.12 The Shares. Notwithstanding, anything in this Agreement to the contrary, (i) the Company may not make a Draw Down to the extent that such Draw Down exceeds 4.99% of the then outstanding shares of Common Stock, and (ii) at no time will the Company request a Draw Down which would result in the issuance of an aggregate number of shares of Common Stock pursuant to this Agreement which exceeds 19.9% of the number of shares of Common Stock issued and outstanding on the date hereof without first obtaining stockholder approval of such excess issuance, or such other amount as would require stockholder approval under rules of the principal Trading Market or otherwise without first obtaining stockholder approval, if any, of such excess issuance. Furthermore, in no event shall the number of shares issuable to Purchaser cause the Purchaser to own in excess of 4.99% of the then outstanding Common Stock, provided however, the 4.99% limitation set forth herein may be increased by the Purchaser to up to 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of any shares of Common Stock to the Purchaser upon not less than 61 days' prior notice to the Company.

4.13 Accuracy of Registration Statement. On each Settlement Date, the Registration Statement and the prospectus therein (including any prospectus supplement) shall not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein not misleading in light of the circumstances under which they were made; and on such Settlement Date the Registration Statement and the prospectus therein will not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, the Company makes no representations or warranties as to the information contained in or omitted from the Registration Statement and the prospectus therein in reliance upon and in conformity with the information furnished in writing to the Company by the Purchaser specifically for inclusion in the Registration Statement and the prospectus therein.
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4.14 Notice of Certain Events Affecting Registration; Suspension of Right to Request a DrawDown. The Company will promptly notify the Purchaser in writing upon the occurrence of any of the events set forth in Section 3(d) of the Registration Rights Agreement. The Company shall not deliver to the Purchaser any Draw Down Notice during the continuation of any of the foregoing events. The Company shall promptly make available to the Purchaser any such supplements or amendments to the related prospectus, at which time, provided that the registration statement and any supplements and amendments thereto are then effective, the Company may recommence the delivery of Draw Down Notices.

4.15 Reserved.

4.16 Short Sales. After the date hereof and prior to the termination of this Agreement, the Purchaser hereby agrees not to execute any Short Sales of the Common Stock.

ARTICLE V.
CONDITIONS TO INITIAL CLOSING AND DRAW DOWNS

5.1 Conditions Precedent to the Obligation of the Company to Sell the Draw Down Shares. The obligation hereunder of the Company to proceed to close this Agreement and to issue and sell the Draw Down Shares to the Purchaser is subject to the satisfaction or waiver, at or before the Initial Closing, and as of each Settlement Date of each of the conditions set forth below. These conditions are for the Company's sole benefit and may be waived by the Company in writing at any time in its sole discretion.

(a) Accuracy of the Purchaser's Representations and Warranties. The representations and warranties of the Purchaser shall be true and correct in all material respects as of the date when made and as of the Initial Closing and as of each Settlement Date as though made at that time (except for representations and warranties that speak as of a particular date, which shall be true and correct in all material respects as of such dates).

(b) Performance by the Purchaser. The Purchaser shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Purchaser at or prior to the Initial Closing and as of each Settlement Date.

(c) No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this Agreement.

(d) No Proceedings or Litigation. No material Action shall have been commenced against the Purchaser or the Company or any subsidiary, or any of the officers, directors or affiliates of the Company or any subsidiary, seeking to restrain, prevent or change the transactions contemplated by this Agreement, or seeking damages in connection with such transactions.
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(e) Initial Closing Deliveries. The delivery by the Purchaser of the items set forth in Section 2.2(b) of this Agreement.

5.2 Conditions Precedent to the Obligation of the Purchaser to Close. The obligation hereunder of the Purchaser to perform its obligations under this Agreement and to purchase the Draw Down Shares is subject to the satisfaction or waiver, at or before the Initial Closing, of each of the conditions set forth below. These conditions are for the Purchaser's sole benefit and may be waived by the Purchaser in writing at any time in its sole discretion.

(a) Accuracy of the Company's Representations and Warranties. Each of the representations and warranties of the Company shall be true and correct in all material respects as of the date when made and as of the Initial Closing as though made at that time (except for representations and warranties that speak as of a particular date, which shall be true and correct in all material respects as of such date).

(b) Performance by the Company. The Company shall have performed, satisfied and complied in all material respects with all material covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Initial Closing.

(c) No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this Agreement.

(d) No Proceedings or Litigation. No material Action shall have been commenced, against the Purchaser or the Company or any subsidiary, or any of the officers, directors or affiliates of the Company or any subsidiary seeking to restrain, prevent or change the transactions contemplated by this Agreement, or seeking damages in connection with such transactions.

(e) Initial Closing Deliveries. The delivery by the Company of the items set forth in Section 2.2(a) of this Agreement.

5.3 Conditions Precedent to the Obligation of the Purchaser to Accept a Draw Down andPurchase the Draw Down Shares. The obligation hereunder of the Purchaser to accept a Draw Down request and to acquire and pay for the Draw Down Shares is subject to the satisfaction at or before each Settlement Date, of each of the conditions set forth below.

(a) Satisfaction of Conditions to Initial Closing. The Company shall have satisfied at the Initial Closing, or the Purchaser shall have waived at the Initial Closing, the conditions set forth in Section 5.2 hereof.

(b) No Suspension. Trading in the Common Stock shall not have been suspended by the Commission or the principal Trading Market (except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior to the delivery of each Draw Down Notice), and, at any time prior to such Draw Down Notice, trading in securities generally as reported on the principal Trading Market shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported on the principal Trading Market unless the general suspension or limitation shall have been terminated prior to the delivery of such Draw Down Notice.
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(c) Material Adverse Effect. No Material Adverse Effect and no Consolidation Event where the successor entity has not agreed to deliver to the Purchaser such shares of stock and/or securities as the Purchaser is entitled to receive pursuant to this Agreement.

(d) Threshold Price. During the Draw Down Pricing Period through the Settlement Date, the Common Stock shall have a price of at least $0.10 per share as quoted on the relevant Trading Market.

(e) Equity Conditions. During the Draw Down Pricing Period through the Settlement Date, all of the Equity Conditions shall have been met.

ARTICLE VI.
DRAW DOWN TERMS

6.1 Draw Down Terms. Subject to the satisfaction of the conditions set forth in this Agreement, the parties agree as follows:

(a) The Company may, in its sole discretion, issue and exercise draw downs against the Commitment Amount (each a "Draw Down") during the Commitment Period, which Draw Downs the Purchaser shall be obligated to accept, subject to the terms and conditions of this Agreement. Before the Company shall exercise a Draw Down, the Company shall have caused a sufficient number of shares of Common Stock to be registered to cover the Draw Down Shares to be issued in connection with such Draw Down.

(b) Only one Draw Down shall be allowed in each Draw Down Pricing Period and any subsequent Draw Down Pricing Period shall not commence until the Trading Cushion has elapsed since the end of the previous Draw Down Pricing Period. The number of shares of Common Stock purchased by the Purchaser with respect to each Draw Down shall be determined as set forth in Section 6.1(d) herein and settled on the second Trading Day immediately following the end of the applicable Draw Down Pricing period (each such settlement period and each such settlement date shall be referred to as a "Settlement Period" and a "Settlement Date", respectively)

(c) The quantity of Draw Down Shares as to each Draw Down shall be limited to the lesser of: (i) 4.99% of the then-current shares outstanding or (ii) the previous 10-day average trading volume of the Draw Down Shares multiplied by 3. There shall be a minimum Draw Down Investment Amount (the "Investment Amount") of $25,000 and a maximum Draw Down Investment Amount of $1,000,000 unless otherwise agreed upon by the Company and the Purchaser. For avoidance of doubt, the calculation provided for herein shall be done at the beginning of the Draw Down Pricing Period.

(d) The issuance of Draw Down Shares of Common Stock to be issued on each Settlement Date shall subject to the following adjustments:

(i) if during any Trading Day during the Draw Down Pricing Period trading of the Common Stock on the Trading Market is suspended for more than 3 hours, in the aggregate, or if any Trading Day during the Draw Down Pricing Period is shortened because of a public holiday, then such Trading Day shall be withdrawn from the Draw Down Pricing Period; and

(e) The Company must inform the Purchaser as to the Investment Amount of the Draw Down the Company wishes to exercise by delivering a draw down notice, in the form of Exhibit B hereto (the "Draw Down Notice"), via facsimile transmission in accordance with Section 8.3. The Draw Down Notice shall also inform the Purchaser of the first day of the Draw Down Pricing Period, which, unless otherwise agreed to in writing by the parties, shall be the first Trading Day following the date such Draw Down Notice is received (the "Commencement Date"). At no time shall the Purchaser be required to purchase more than the maximum Investment Amount for a given Draw Down Pricing Period. On or before any Trading Day that a Draw Down Notice is delivered, the Company shall have filed with the Commission a prospectus supplement pursuant to Rule 424 under the Securities Act setting forth the terms of the Draw Down Notice. Draw Down Notices shall be made no less than 10 Business Days apart, unless otherwise agreed upon by the Company and the Purchaser.
21

 
(f) On the Trading Day immediately following the last day of the Settlement Period, the Company shall deliver, and the Purchaser shall acknowledge receipt of, a settlement statement (the "Settlement Statement") setting forth the number of Draw Down Shares issuable and the aggregate Purchase Price as to such Settlement Period. On the Settlement Date as to such Draw Down, the Draw Down Shares purchased pursuant to such Settlement Statement shall be delivered to the Depository Trust Company ("DTC") account of the Purchaser, or its designees, as designated by the Purchaser in the Settlement Statement, via DTC's Deposit Withdrawal Agent Commission system ("DWAC"). Upon the Company electronically delivering such Draw Down Shares to the DTC account of the Purchaser, or its designees, via DWAC by 1:00 p.m. ET, the Purchaser shall, on the same day (or the next Business Day if such day is not a Business Day) wire transfer immediately available funds to the Company's bank account, as designated by the Company in the Settlement Statement, for the amount of the aggregate Purchase Price of such Draw Down Shares. Upon the Company electronically delivering the Draw Down Shares to the Purchaser or its designee's DTC account via DWAC after 1:00 p.m. ET, the Purchaser shall wire transfer next day available funds to the Company's designated account on such day. At the sole election of the Purchaser, the Purchaser may elect to pay any broker fees disclosed in the schedules attached to this Agreement directly to the brokers pursuant to written instructions from any such broker.

(g) The Company understands that a delay in the delivery of the Draw Down Shares to the Purchaser beyond the Settlement Date could result in economic loss to the Purchaser. In addition to the Purchaser's other available remedies, the Company shall pay to the Purchaser, in cash, as partial liquidated damages and not as a penalty, for each $1,000 of Draw Down Shares (based on the Closing Price of the Common Stock on the applicable Settlement Date) required to be delivered on the Settlement Date, $100 per Trading Day (increasing to $200 per Trading Day five (5) Trading Days after such damages have begun to accrue) for each Trading Day after the Settlement Date until such Draw Down Shares are delivered pursuant to this Article VI. Nothing herein shall limit the Purchaser's right to pursue actual damages for the Company's failure to deliver certificates (via DWAC) representing any Securities as required by the Transaction Documents, including but not limited to the cost of any buy-in to the Purchaser, and the Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.

ARTICLE VII.
TERMINATION

7.1 Term. The term of this Agreement shall begin on the date hereof and shall end at the earlier of: 18 months from the Effective Date of the Registration Statement or when the Purchaser has purchased $10,000,000 of Common Stock, or as otherwise set forth in Section 7.2.

7.2 Other Termination.

(a) This Agreement shall terminate if (i) the Common Stock is de-listed from a Trading Market unless such de-listing is in connection with a subsequent listing on another Trading Market, (ii) the Company files for protection from creditors under any applicable law or (iii) the Registration Statement is not declared effective by the Commission on the 9-month anniversary of the date hereof.
22

 
(b) The Company may terminate this Agreement upon 5 Trading Days' notice if the Purchaser shall fail to fund a properly noticed Draw Down within 10 Trading Days of the end of the applicable Settlement Period.

7.3 Effect of Termination. In the event of termination of this Agreement pursuant to Section 7.2 herein, written notice thereof shall forthwith be given to the other party and the transactions contemplated by this Agreement shall be terminated without further action by either party. If this Agreement is terminated as provided in Section 7.1 or 7.2 herein, this Agreement shall become void and of no further force and effect, except for Section 4.7 and Article 8 herein, which shall survive the termination of this Agreement. Nothing in this Section 7.3 shall be deemed to release the Company or the Purchaser from any liability for any breach under this Agreement, or to impair the rights of the Company or the Purchaser to compel specific performance by the other party of its obligations under this Agreement.

ARTICLE VIII.

MISCELLANEOUS

8.1 Fees and Expenses. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchaser.

8.2 Use of Proceeds. Notwithstanding Section 3.1(aa) hereof, nothing in this Agreement shall prohibit the Company from using up to 50% of the proceeds derived from the transactions contemplated herein to service existing Indebtedness of the Company; providedhowever, that the Company acknowledges and agrees that any Indebtedness owed to the Purchaser under the terms of this Agreement and/or any other Agreement between the Company and the Purchaser shall be deemed senior to any other Indebtedness of the Company so serviced.

8.3 Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

8.4 Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the 2nd Trading Day following the date of transmission if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.

8.5 Amendments; Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment, by the Company and the Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.
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8.6 Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

8.7 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors. Neither party may assign this Agreement or any rights or obligations hereunder (other than by merger).

8.8 No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.7.

8.9 Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. The parties hereby waive all rights to a trial by jury. If either party shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys' fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

8.10 Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the Draw Down Shares.

8.11 Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf" signature page were an original thereof.
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8.12 Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

8.13 Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.

8.14 Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchaser and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agrees to waive and not to assert in any action for specific performance of any such obligation the defense that a remedy at law would be adequate.

8.15 Liquidated Damages. The Company's obligations to pay any partial liquidated damages or other amounts owing under the Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages or other amounts are due and payable shall have been canceled.

8.16 Construction. The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments hereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement
 


(Signature Pages Follow)
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26



27

EXHIBIT B

DRAW DOWN NOTICE/COMPLIANCE CERTIFICATE LEO MOTORS, INC.

The undersigned hereby certifies, with respect to shares of Common Stock of Leo Motors, Inc. (the "Company") issuable in connection with this Draw Down Notice and Compliance Certificate dated (the "Notice"), delivered pursuant to the Securities Purchase Agreement dated as of May, 2016 (the "Agreement"), as follows:

1. The undersigned is the duly appointed Chief Executive Officer or Chief Financial Officer of the Company.

2. Except as set forth on the schedules attached hereto or in the SEC Reports (as defined in the Agreement), the representations and warranties of the Company set forth in the Agreement are true and correct in all material respects as though made on and as of the date hereof, except for representations and warranties are expressly made as of a particular date.

3. The Company has performed in all material respects all covenants and agreements and conditions required under the Agreement to be performed by the Company on or prior to the date of this Draw Down Notice.

4. The Investment Amount is $___________________.

5. Draw Downs shall commence on __________________.

The undersigned has executed this Certificate this ______ day of _______. _______
 
 
LEO MOTORS, INC.
 
 
 
 
 
 
 
By:
 
 
 
Name:
 
 
 
Title:
 
 
 
 
28

 
Schedule 3.1(a)
 
Subsidiaries
 
Name of Entity
Jurisdiction of Incorporation
Ownership
Leomotors Korea., Inc.
Republic of Korea
49.9%
LGM Co. Ltd.
Republic of Korea
49.9%
Leo Trading, Inc.
Republic of Korea
50%
Leo Motors Factory 1, inc.
Republic of Korea
50%
Leo Motors Factory 2, Inc. Republic of Korea 50%
29


Schedule 3.1(g)
 
Capitalization
Total Shares 162,299,074 (As of May 12, 2016)

955 Shareholders Qualified

Major Shareholders:
 
ame
Shares Held
Pro-rata Ownership (%)
Relationship
CEDE & CO
48,206,585
29.702
 
JUN HEE WON
20,396,223
12.567
Director of the Company
YONG WOO KIM
10,169,608
6.266
 
JUN HENG PARK
7,600,000
4.683
co-CEO of the Company
MYONG YONG JUNG 4,937,225
3.042
   
JUNG HO LEE
4,807,826
2.962
 
MI SUN JUNG
4,754,655
2.93
 
YOUNG HO PARK
4,656,821
2.869
 
WOONG HAN
4,364,297
2.689
 
JEONG YOUL CHOI
3,600,000
2.218
CFO of the Company

30


Schedule 3.1(i)

Undisclosed Events, Liabilities or Developments


None.
31


Schedule 3.1(s) Certain Fees

Amount equal to four percent (4%) of the total transaction value due and payable upon receipt by the Company of the draw down amount to NMS Capital Advisors, LLC pursuant to the Investment Banking Engagement Letter between the Company and NMS Capital Advisors, LLC, dated December 16, 2015, and the Mutual Acknowledgment Letter dated May 12, 2016. If the Company does not elect to take any draws, then no fees shall be due to NMS.
32


Schedule 3.1(ee)

Accountants

John Scrudato CPA
7 Valley View Drive
Califon, NJ, 07830
United States
 
33


EX-10.15 7 ex1015.htm EXHIBIT 10.15
Exhibit 10.15
 

REGISTRATION RIGHTS AGREEMENT


THIS REGISTRATION RIGHTS AGREEMENT, is by and between Leo Motors, Inc., a Nevada corporation (the "Company"), and BOU Trust (the "Holder"), and is made pursuant to that certain Securities Purchase Agreement between the Company and the Holder, dated as of the date hereof (the "Purchase Agreement").

WHEREAS, pursuant to the terms of and in order to induce the Holder to enter into the Purchase Agreement, the Company and the Holder have agreed to enter into this Agreement.

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, the Company and the Holder hereby agree as follows:

1. Mandatory Registration. The Company shall file a registration statement with the Securities and Exchange Commission (the "SEC") which seeks to register the shares of the Company's common stock, par value $0.001 (the "Common Stock") issuable to the Holder pursuant to the terms of the Purchase Agreement (the "Registerable Securities") under the Securities Act of 1933 (the "1933 Act") and pursuant to the applicable rule and regulations of the SEC, no later than forty-five (45) days after the final closing date of the Purchase Agreement. The Company will use its best efforts to cause such registration statement to be declared effective by the SEC within one hundred twenty (120) days after the initial filing with the SEC.

2. Cooperation with Company. The Holder will cooperate with the Company in all respects in connection with this Agreement, including, timely supplying all information reasonably requested by the Company and executing and returning all documents reasonably requested in connection with the registration and sale of the Registerable Securities, at no expense to the Holder.

3. Registration Procedures. If and whenever the Company is required by any of the provisions of this Agreement to use its best efforts to effect the registration of any of the Registerable Securities under the 1933 Act, the Company shall (except as otherwise provided in this Agreement), as expeditiously as possible:

a. prepare and file with the SEC a registration statement using its best efforts to cause such registration statement to become effective and remain effective until all the Registerable Securities are sold or become capable of being publicly sold without registration under the 1933 Act.

b. prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective and to comply with the provisions of the 1933 Act with respect to the sale or other disposition of all securities covered by such registration statement whenever the Holder shall desire to sell or otherwise dispose of the same (including prospectus supplements with respect to the sales of securities from time to time in connection with a registration statement pursuant to Rule 415 of the SEC);

c. furnish to the Holder such numbers of copies of a summary prospectus or other prospectus, including a preliminary prospectus or any amendment or supplement to any prospectus, in conformity with the requirements of the 1933 Act, and such other documents, as the Holder may reasonably request in order to facilitate the public sale or other disposition of the securities owned by the Holder;

d. use its best efforts to register and qualify the securities covered by such registration statement under such other securities or blue sky laws of such jurisdictions as the Holder shall reasonably request, and do any and all other acts and things which may be necessary or advisable to enable the Holder to consummate the public sale or other disposition in such jurisdiction of the securities owned by the Holder, except that the Company shall not for any such purpose be required to qualify to do business as a foreign corporation in any jurisdiction wherein it is not so qualified or to file therein any general consent to service of process;
1

 
e. use its best efforts to list such securities on any securities exchange on which any securities of the Company is then listed, if the listing of such securities is then permitted under the rules of such exchange;

f. enter into and perform its obligations under an underwriting agreement, if the offering is an underwritten offering, in usual and customary form, with the managing underwriter or underwriters of such underwritten offering;

g. notify the Holder of Registerable Securities covered by such registration statement, at any time when a prospectus relating thereto covered by such registration statement is required to be delivered under the 1933 Act, of the happening of any event of which it has knowledge as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing; and

h. furnish, at the request of the Holder on the date such Registerable Securities are delivered to the underwriters for sale pursuant to such registration or, if such Registerable Securities are not being sold through underwriters, on the date the registration statement with respect to such Registerable Securities becomes effective, (i) an opinion, dated such date, of the counsel representing the Company for the purpose of such registration, addressed to the underwriters, if any, and to the Holder, covering such legal matters with respect to the registration in respect of which such opinion is being given as the Holder may reasonably request and are customarily included in such an opinion and (ii) letters, dated, respectively, (1) the effective date of the registration statement and (2) the date such Registerable Securities are delivered to the underwriters, if any, for sale pursuant to such registration from a firm of independent certified public accountants of recognized standing reasonably selected by the Company, addressed to the underwriters, if any, and to the Holder, covering such financial, statistical and accounting matters with respect to the registration in respect of which such letters are being given as the Holder may reasonably request and are customarily included in such letters.

4. Expenses. All expenses incurred in any registration of the Holder's Registerable Securities under this Agreement shall be paid by the Company, including, without limitation, printing expenses, fees and disbursements of counsel for the Company, expenses of any audits to which the Company shall agree or which shall be necessary to comply with governmental requirements in connection with any such registration, all registration and filing fees for the Holder's Registerable Securities under federal and State securities laws, and expenses of complying with the securities or blue sky laws of any jurisdictions pursuant to Section 3(h)(i); provided, however, the Company shall not be liable for (a) any discounts or commissions to any underwriter; (b) any stock transfer taxes incurred with respect to Registerable Securities sold in the Offering or (c) the fees and expenses of counsel for any Holder, provided that the Company will pay the costs and expenses of Company counsel when the Company's counsel is representing any or all selling security holders.

5. Indemnification. In the event any Registerable Securities are included in a registration statement pursuant to this Agreement:
2

 
a. Company Indemnity. Without limitation of any other indemnity provided to the Holder, to the extent permitted by law, the Company shall indemnify and hold harmless the Holder, its affiliates, officers, directors and partners, any underwriter (as defined in the 1933 Act) for the Holder, and each person, if any, who controls the Holder or underwriter (within the meaning of the 1933 Act or the Securities Exchange Act of 1934 (the "Exchange Act"), against any losses, claims, damages or liabilities (joint or several) to which they may become subject under the 1933 Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a "Violation"): (i) any alleged untrue statement of a material fact contained in such registration statement including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the 1933 Act, the Exchange Act, or any state securities law or any rule or regulation promulgated under the 1933 Act, the Exchange Act or any state securities law, and the Company shall reimburse each such Holder, affiliate, officer or director or partner, underwriter or controlling person for any legal or other expenses incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable to the Holder in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Holder or any other officer, director or controlling person thereof.

b. Holder Indemnity. The Holder shall indemnify and hold harmless the Company, its affiliates, its counsel, officers, directors and representatives, any underwriter (as defined in the 1933 Act) and each person, if any, who controls the Company or the underwriter (within the meaning of the 1933 Act or the Exchange Act, against any losses, claims, damages or liabilities (joint or several) to which they may become subject under the 1933 Act, the Exchange Act or any state securities law, and the Company shall reimburse each such Holder, affiliate, officer or director or partner, underwriter or controlling person for any legal or other expenses incurred by them in connection with investigating or defending any loss, claim, damage, liability or action; insofar as such losses, claims, damages or liabilities (or actions and respect thereof) arise out of or are based upon any statements or information provided by the Holder to the Company expressly for use in connection with the offer or sale of Registerable Securities.

c. Notice; Right to Defend. Promptly after receipt by an indemnified party under this Section 5 of notice of the commencement of any action (including any governmental action), such indemnified party shall, if a claim in respect thereof is to be made against any indemnifying party under this Section 5 deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in and if the indemnifying party agrees in writing that it will be responsible for any costs, expenses, judgments, damages and losses incurred by the indemnified party with respect to such claim, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and expenses to be paid by the indemnifying party, if the indemnified party reasonably believes that representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of any liability to the indemnified party under this Agreement only if and to the extent that such failure is prejudicial to its ability to defend such action, and the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Agreement.
3

 
d. Contribution. If the indemnification provided for in this Agreement is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the responsibility of the indemnifying party on the one hand and the indemnified party on the other hand in connection with the statements or omissions which resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable considerations. The relevant fault of the indemnifying party and the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. Notwithstanding the foregoing, the amount the Holder shall be obligated to contribute pursuant to this Agreement shall be limited to an amount equal to the proceeds to such Holder of the Registerable Securities sold pursuant to the registration statement which gives rise to such obligation to contribute (less the aggregate amount of any damages which the Holder has otherwise been required to pay in respect of such loss, claim, damage, liability or action or any substantially similar loss, claim, damage, liability or action arising from the sale of such Registerable Securities).

e. Survival of Indemnity. The indemnification provided by this Agreement shall be a continuing right to indemnification and shall survive the registration and sale of any Registerable Securities by any person entitled to indemnification hereunder and the expiration or termination of this Agreement.

6. Remedies.

a. Time is of Essence. The Company agrees that time is of the essence of each of the covenants contained herein and that, in the event of a dispute hereunder, this Agreement is to be interpreted and construed in a manner that will enable the Holder to sell its Registerable Securities as quickly as possible after the Holder has indicated to the Company that they desire its Registerable Securities to be registered. Any delay on the part of the Company not expressly permitted under this Agreement, whether material or not, shall be deemed a material breach of this Agreement.

b. Remedies Upon Default or Delay. The Company acknowledges the breach of any part of this Agreement may cause irreparable harm to the Holder and that monetary damages alone may be inadequate. The Company therefore agrees that the Holder shall be entitled to injunctive relief or such other applicable remedy as a court of competent jurisdiction may provide. Nothing contained herein will be construed to limit the Holder's right to any remedies at law, including recovery of damages for breach of any part of this Agreement.

7. Notices.

a. All communications under this Agreement shall be in writing and shall be mailed by first class mail, postage prepaid, or telegraphed or telexed with confirmation of receipt or delivered by hand or by overnight delivery service,
4

 
b. If to the Company, at:
 
Leo Motors, Inc.
3F Bokwang Bldg., Seowunro 6 Gil 14
Seocho Gu, Seoul, Korea, 137-863
Attn:

or at such other address as it may have furnished in writing to the Holder of Registerable Securities at the time outstanding, or
 
c. If to the Holder:
 
BOU Trust
110 Chestnut Ridge Road #146
Montvale, NJ 07645
Attn:

d. Any notice so addressed, when mailed by registered or certified mail shall be deemed to be given three (3) days after so mailed, when telegraphed or telexed shall be deemed to be given when transmitted, or when delivered by hand or overnight shall be deemed to be given when delivered.

8. Successors and Assigns. Except as otherwise expressly provided herein, this Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the Holder.

9. Amendment and Waiver. This Agreement may be amended, and the observance of any term of this Agreement may be waived, but only with the written consent of the Company and the Holder; provided, however, that no such amendment or waiver shall take away any registration right of the Holder or reduce the amount of reimbursable costs to the Holder in connection with any registration hereunder without the consent of such Holder. No delay on the part of any party in the exercise of any right, power or remedy shall operate as a waiver thereof, nor shall any single or partial exercise by any party of any right, power or remedy preclude any other or further exercise thereof, or the exercise of any other right, power or remedy.

10. Counterparts; Attorney's Fees . One or more counterparts of this Agreement may be signed by the parties, each of which shall be an original but all of which together shall constitute one and the same instrument. The prevailing party in any action or proceeding relating to or arising out of this Agreement shall recover its reasonable attorney's fees and other costs from the non-prevailing party, in addition to any other relief to which such prevailing party is entitled.

11. Governing Law. This Agreement shall be construed in accordance with and governed by the internal laws of the State of New York, without giving effect to conflicts of law principles.

12. Invalidity of Provisions. If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby.
5

 
13. Headings. The headings in this Agreement are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.



[Intentionally Blank]
6


7



 
 



[SIGNATURE PAGE FOR REGISTRATION RIGHTS AGREEMENT]
8


EX-23.1 8 ex231.htm EXHIBIT 23.1
Exhibit 23.1
 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


We have reviewed the entire S-1 filing statement for Leo Motors, Inc.

We have also analyzed the analytical sections and their conclusions as derived from the Audited Financial Statements. We are in agreement as to their correctness as presented in this document. We hereby consent to the use in their Registration Statement pertaining to the registration of 42,456,365 shares of common stock of Leo Motors, Inc.  of our Audit Report dated March 28, 2016 with respect to the financial statements of Leo Motors, Inc.  as of December 31, 2015 and 2014 and for years then ended. We also consent to the reference to us as "Experts" in the above referenced Registration Statement.


/s/ Scrudato & Co., PA
Califon New Jersey
July 18, 2016




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(the &quot;Company,&quot; or &quot;we&quot;) is currently in development, assembly and sales of the energy storage devices and electric vehicle components.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;background:white'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify;background:white'>The Company was originally incorporated in California as N. Org., Inc. on December 12, 1983. The Company then underwent several name changes from Natural Organics Corporation to Classic Auto Accessories of North America and then to FCR Automotive Group, Inc. On September 20, 2004, the Company reincorporated&nbsp;&nbsp;in&nbsp;&nbsp;Delaware by merging into FCR Group, Inc.,&nbsp;&nbsp;a&nbsp;&nbsp;Delaware Automotive&nbsp; &nbsp; &nbsp;&nbsp; corporation,&nbsp;&nbsp;which&nbsp;&nbsp;was&nbsp;&nbsp;organized&nbsp;&nbsp;on&nbsp;&nbsp;September&nbsp;&nbsp;8, 2004. On July&nbsp;&nbsp;26,&nbsp;&nbsp;2005,&nbsp;&nbsp;the&nbsp;&nbsp;Company acquired Shinil Precision Co., Ltd., a Korean Company,&nbsp;&nbsp;as&nbsp;&nbsp;its&nbsp;&nbsp;operating&nbsp;&nbsp;business&nbsp;&nbsp;and on July 18, 2005, changed its name to Shinil&nbsp;&nbsp;Precision Machinery, Inc. to reflect its anticipated new business. Upon failure of certain terms&nbsp;&nbsp;and&nbsp;&nbsp;conditions&nbsp;&nbsp;of&nbsp;&nbsp;the acquisition agreement, the Company&nbsp;&nbsp;returned the shares of Shinil and recovered and cancelled the Company's shares&nbsp;&nbsp;issued&nbsp;&nbsp;in&nbsp;&nbsp;the&nbsp;&nbsp;acquisition. In 2012, the Company changed its domicile to Nevada.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;background:white'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify;background:white'>The Company had been dormant since 1989, and consummated a reverse merger on November 12, 2007 with Leozone Inc., a South Korean company, which is the maker of electrical transportation devices. The merger essentially exchanges shares in Leo Motors, Inc. for shares in Leozone. As this is a reverse merger the accounting treatment of such is that of a combination of the two entities with the activity of Leozone, Inc. the surviving entity, going forward. The financial statements reflect the activity for all periods presented as if the merger had occurred January 1, 2007. Leozone has continued to operate as a separate subsidiary Leo Motors Co. Ltd. of Korea since that time.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;background:white'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify;background:white'>On February 11, 2010, the Company acquired 50% of Leo B&amp;T Corp., a South Korean corporation (&quot;B&amp;T&quot;), from two shareholders of B&amp;T in exchange for 7,000,000 shares of the Company's common stock. Our ownership in B&amp;T was reduced to 30% in 2011. Additionally, this investment was written down as impairment expense during 2011 and the remaining investment was exchanged in 2012 for a return of Leo Motors stock.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;background:white'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>On November 10, 2012, the Company signed an agreement withPDI C&amp;D/RDC SPRL Inc. (&quot;PDI&quot;), an affiliate of PDI Global LLC, a major architectural design company in the U.S., to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo (&quot;DRC&quot;). This project has incurred an impairment charge as detailed in these footnotes.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify;background:white'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify;background:white'>On July 1, 2014, the Company acquired all of the outstanding common stock of LGM Co. Ltd., a corporation incorporated in the Republic of Korea (&quot;LGM&quot;), from LGM's shareholders, which represents 813,747 shares of LGM common stock, in exchange for 47,352,450 shares of the Company's common stock pursuant to the Share Swap Agreement entered into by and between LGM and the Company. Upon closing of the Share Swap Agreement, LGM became a wholly-owned subsidiary of the Company.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;background:white'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify;background:white'>On March 31, 2015, the Company acquired 50% interest in each of&nbsp;<font style='background:white'>Leo Motors Factory, Inc. (&quot;Leo Factory 1&quot;) and Leo Motors Factory 2, Inc. (&quot;Leo Factory 2&quot;)</font>which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired 50% interest in Leo Trading Inc.(formerly Erum Motors, Inc.) (&quot;Leo Trade&quot;) specializing in the trading of luxury cars. These acquired entities will be presented on a consolidated basis as the parent company has significant control of the business through the Board of Directors which can decide decisions split on strictly on common share ownership percentages.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify;background:white'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify;background:white'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify;background:white'>&nbsp;</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>POLICIES</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>This summary of significant account policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and the notes are the representation of the Company's management, who are responsible for their integrity and objectivity. These accounting policies conform to U.S. generally accepted accounting principles (&quot;USGAAP&quot;) and have been consistently applied in the preparation of the financial statements.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>&nbsp;</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Basis of Presentation and Consolidation</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>These financial statements and related notes are expressed in US dollars. The Company's fiscal year-end is December 31. The consolidated financial statements include the financial statements of the Leo Motors Co. Ltd. Korea and LGM Co. LTD where the Parent Company has significant control. All inter-company transactions and balances have been eliminated upon consolidation.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Use of Estimates</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Fair Value of Financial Instruments</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable inventory and prepaid expenses, accounts payable and deferred revenues, the carrying amounts approximate fair value due to their short maturities. </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp; </p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Revenue Recognition</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company follows the guidance of the Securities and Exchange Commission's Staff Accounting Bulletin No. 104, &quot;Revenue Recognition in Financial Statements&quot;. In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company generates revenue from the delivery of goods and records revenues when the sales are completed, already collected or collectability is reasonably assured, there is no future obligation and there is remote chance of future claim or refund to the customers.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the delivery of professional services. Pricing is fixed and determinable according to the Company's published brochures and price lists.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Accounts Receivables</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Accounts receivables of the Company are reviewed to determine if their carrying value has become impaired.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company considers the assets to be impaired if the balances are greater than one-year old. Management regularly reviews accounts receivable and will establish an allowance for potentially uncollectible amounts when appropriate. When accounts are written off, they will be charged against the allowance.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Receivables are not collateralized and do not bear interest.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Cash Equivalents</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalent.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Fixed Assets</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Fixed assets are stated at cost, less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which is generally 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company will periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful lives of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Intangible and Long Lived Assets</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company follows ASC 360-10,<i> &quot;Property, Plant, and Equipment,&quot;</i> which established a &quot;primary asset&quot; approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through March 31, 2016, the Company had not experienced impairment losses on its long-lived assets.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Income Taxes</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, &quot;Accounting for Income Taxes.&quot; 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 available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is &quot;more likely than not&quot; that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>Loss per Share</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of both common and preferred stock outstanding for the period.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>Stock-Based Compensation</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>SFAS No. 123, &quot;Accounting for Stock-Based Compensation,&quot; establishes and encourages the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with SFAS No. 123 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>Foreign Currency Translation And Comprehensive Income</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The reporting currency of the Company is the US$. The functional currency of the parent company is the US$ and the functional currency of the Company's operating subsidiary is Korean Won (&quot;KRW&quot;). The subsidiary's results of operations and cash flows are translated at average exchange rates during the year, assets and liabilities are translated at the unified exchange rate at the end of the year, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into US$ are included in determining comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company does not enter any material transaction in foreign currencies and accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>Recent Accounting Pronouncements</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company's financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 3 - EARNINGS PER SHARE</b></p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'> The Company reports basic and diluted earnings per share (EPS) according to the provisions of ASC Topic 260, which requires the presentation of basic EPS and, for companies with complex capital structures, diluted EPS. Basic EPS excludes dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) available to common stockholders, adjusted by other changes in income or loss that would result from the assumed conversion of those potential common shares, by the weighted number of common shares and common share equivalents (unless their effect is antidilutive) outstanding. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports a loss because to do so would be antidilutive. Thus, these equivalents are not included in the calculation of diluted loss per share, resulting in basic and diluted loss per share being equal. </p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>The following is a reconciliation of the computation for basic and diluted EPS for the three months ended March 31, 2016 and 2015:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="299" colspan="2" valign="top" style='width:224.45pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>For the periods ended</p> </td> </tr> <tr align="left"> <td width="828" valign="bottom" style='width:620.8pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="145" valign="bottom" style='width:108.85pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>3/31/2016</p> </td> <td width="154" valign="bottom" style='width:115.6pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>3/31/2015</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="145" valign="top" style='width:108.85pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="154" valign="top" style='width:115.6pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Net Income (Loss)</p> </td> <td width="145" valign="bottom" style='width:108.85pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$(458,166)</p> </td> <td width="154" valign="bottom" style='width:115.6pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$(595,418)</p> </td> </tr> <tr style='height:13.5pt'> <td width="828" valign="top" style='width:620.8pt;background:white;padding:0;height:13.5pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="145" valign="bottom" style='width:108.85pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="154" valign="bottom" style='width:115.6pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="145" valign="bottom" style='width:108.85pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="154" valign="bottom" style='width:115.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Weighted-average common stock Outstanding -&nbsp;&nbsp;basic</p> </td> <td width="145" valign="bottom" style='width:108.85pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>161,878,686</p> </td> <td width="154" valign="bottom" style='width:115.6pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>149,069,490</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Equivalents</p> </td> <td width="145" valign="bottom" style='width:108.85pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="154" valign="bottom" style='width:115.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;Stock options</p> </td> <td width="145" valign="bottom" style='width:108.85pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="154" valign="bottom" style='width:115.6pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;Warrants</p> </td> <td width="145" valign="bottom" style='width:108.85pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="154" valign="bottom" style='width:115.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;Convertible Notes</p> </td> <td width="145" valign="bottom" style='width:108.85pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="154" valign="bottom" style='width:115.6pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>902,520</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:#CCEEFF;padding:0'></td> <td width="145" valign="bottom" style='width:108.85pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="154" valign="bottom" style='width:115.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Weighted-average common shares outstanding-&nbsp;&nbsp;Diluted</p> </td> <td width="145" valign="bottom" style='width:108.85pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>161,878,686</p> </td> <td width="154" valign="bottom" style='width:115.6pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>149,972,010</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 4 - DUE TO RELATED PARTY</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The company is indebted to its officer for advances. Repayment is on demand without interest. The balance was $136,887 at March&nbsp; 31, 2016 and $140,396 at December 31, 2015.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>&nbsp;<b>NOTE 5 - PAYMENTS RECEIVED IN ADVANCE</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company during the periods received payments from potential customers, or deposits, on future orders. The Company's policy is to record these payments as a liability until the product is completed and shipped to the customer at which the Company recognizes revenue. As of March 31, 2016 and December 31, 2015, the balance of payments received in advance was $382,545 and $ 279,229, respectively.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 6 - GOING CONCERN</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>As reported in the consolidated financial statements, the Company has accumulated deficits of $25,404,609 as of December 31, 2015 and its current liabilities exceeded its current assets. These negative trends have been consistent over the last few years except for asset sales.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>These factors&nbsp;&nbsp;create&nbsp;&nbsp;uncertainty&nbsp;&nbsp;about&nbsp;&nbsp;the&nbsp;&nbsp;Company's&nbsp;&nbsp;ability&nbsp;&nbsp;to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable and to create operations that contribute capital from normal operations. If the Company cannot&nbsp;obtain&nbsp;&nbsp;adequate&nbsp;&nbsp;capital&nbsp;&nbsp;it&nbsp;&nbsp;could&nbsp;&nbsp;be&nbsp;&nbsp;forced&nbsp;&nbsp;to&nbsp;&nbsp;cease operations.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>In order to continue as a going concern, develop and generate revenues and achieve a&nbsp;&nbsp;profitable&nbsp;&nbsp;level of operations, the Company will need, among other things, additional capital resources. Management's plans to obtain such resources for the&nbsp;&nbsp;Company&nbsp;&nbsp;include&nbsp;&nbsp;(1) raising additional capital through sales of common stock, (2) converting&nbsp;&nbsp;promissory notes into&nbsp;&nbsp;common&nbsp;&nbsp;stock&nbsp;&nbsp;and (3) entering into acquisition agreements&nbsp;&nbsp;with profitable&nbsp;&nbsp;entities&nbsp;&nbsp;with&nbsp;&nbsp;&nbsp;significant&nbsp;&nbsp;&nbsp;operations.&nbsp;&nbsp;&nbsp;In&nbsp;&nbsp;&nbsp;addition, management is continually seeking to streamline its operations and expand the business through a variety of industries, including real estate and financial management.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations.&nbsp;&nbsp;The accompanying&nbsp;&nbsp;&nbsp;consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 7 - COMMITMENTS AND CONTINGENCIES</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>(a) Lease Commitments</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the period ending March 31, 2016 through December 31, 2018 are listed on the table below.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr align="left"> <td width="75" valign="top" style='width:56.2pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>&nbsp;</b></p> </td> <td width="165" valign="top" style='width:124.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>For the Year</b></p> </td> <td width="68" valign="top" style='width:51.3pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Amount</b></p> </td> <td width="3" valign="bottom" style='width:2.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="75" valign="top" style='width:56.2pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>&nbsp;</b></p> </td> <td width="165" valign="top" style='width:124.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>Ending</b></p> </td> <td width="68" valign="top" style='width:51.3pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="3" valign="bottom" style='width:2.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="75" valign="top" style='width:56.2pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="165" valign="top" style='width:124.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="68" valign="top" style='width:51.3pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="3" valign="bottom" style='width:2.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="75" valign="top" style='width:56.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2016</p> </td> <td width="165" valign="top" style='width:124.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="68" valign="bottom" style='width:51.3pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$165,620</p> </td> <td width="3" valign="bottom" style='width:2.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="75" valign="top" style='width:56.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2017</p> </td> <td width="165" valign="top" style='width:124.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="68" valign="bottom" style='width:51.3pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>101,249</p> </td> <td width="3" valign="bottom" style='width:2.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr style='height:13.5pt'> <td width="75" valign="top" style='width:56.2pt;background:#CCEEFF;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2018</p> </td> <td width="165" valign="top" style='width:124.0pt;background:#CCEEFF;padding:0;height:13.5pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;and beyond</p> </td> <td width="68" valign="bottom" style='width:51.3pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="3" valign="bottom" style='width:2.5pt;background:#CCEEFF;padding:0;height:13.5pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr style='height:9.75pt'> <td width="75" valign="top" style='width:56.2pt;background:white;padding:0;height:9.75pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="165" valign="top" style='width:124.0pt;background:white;padding:0;height:9.75pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="68" valign="bottom" style='width:51.3pt;background:white;padding:0;height:9.75pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3" valign="bottom" style='width:2.5pt;background:white;padding:0;height:9.75pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="75" valign="top" style='width:56.2pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="165" valign="top" style='width:124.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Total Commitment&nbsp;</p> </td> <td width="68" valign="bottom" style='width:51.3pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$266,869</p> </td> <td width="3" valign="bottom" style='width:2.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>(b) Strategic Investment</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>On November 10, 2012, the Company and PDI C&amp;D/RDC SPRL Inc. (&quot;PDI&quot;), an affiliate of PDI Global LLC, a major architectural design company in the U.S., signed a contract to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo (&quot;DRC&quot;). The Company had a commitment to raise $1,000,000 to fulfill its part of the contract for strategic investment. This investment was impaired in full as of December 31, 2014 as due to unavoidable political/regional instability in the DRC, the contract with PDI was unable to be fulfilled and as of May 2015, the contract was terminated.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 8 - INVENTORIES</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Inventories consist of the following:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="top" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Mar-16</p> </td> <td width="147" valign="top" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Dec-15</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="top" style='width:110.25pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>US$</p> </td> <td width="147" valign="top" style='width:110.25pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>US$</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Raw material</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$0</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$0</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Work in process</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>838,785</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>496,971</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Finished goods</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$838,785</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$496,971</p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>279283</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 9 - PROPERTY AND EQUIPMENT</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Property and equipment consisted of the following:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>&nbsp;&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="top" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Mar-16</p> </td> <td width="147" valign="top" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Dec-15</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="top" style='width:110.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="top" style='width:110.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Vehicles</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$146,268</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$146,268</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Tools</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>95,771</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>95,771</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Office</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>109,447</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>109,447</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Facility equipment</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>210,502</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>210,502</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;Total property and equipment</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>561,988</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>561,988</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Accumulated depreciation</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(419,851)</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(398,987)</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Property and equipment, net</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$142,137</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$163,001</p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Depreciation expense for the three months ended March 31, 2016 and 2015 amounted to $20,864 and $4,500,&nbsp; respectively.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 10 - INVESTMENTS</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>During 2012, the Company invested in a housing project in the Republic of the Congo which would use our E-Box power storage device. $270,000 had been invested. Their interest has been recorded using the cost investment of accounting for investments. During the year ended December 31, 2014, the completion of this project has come into question. Due to this and other factors the Company has impaired the investments in full with a charge off of $762,000.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 11 - SHORT TERM BORROWINGS AND NOTES PAYABLE</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company continues to fund itself through borrowing and equity sales until sales return to historical levels.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>At March 31, 2015, the Company had short term borrowings of $359,757. The notes are short term working capital advances that have been advanced to their Korean Subsidiary from various local parties. These advances are due on demand, interest free and unsecured.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>As of March 31, 2016 the major components of our notes and borrowings consisted of the following:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="top" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>3/31/16</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Hana Bank six month note extended with 12 month term</p> </td> <td width="147" valign="top" style='width:110.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 3.65%</p> </td> <td width="147" valign="top" style='width:110.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly and securred by the company.</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$62,883</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Hana Bank six month note extended with 12 month term</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 6.24%</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly.</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>76,479</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>KookMin Bank six month note extended with 12 month term</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr style='height:11.25pt'> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 3.28%</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0;height:11.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly and securred by the company</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>84,977</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Industrial Bank of Korea Bank four year note extended with 12 month</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>extension fully amortizing with a variable interest rate currently at 3.83%</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>payable monthly.</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>127,465</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>NH Bank six month note extended with 12 month term</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 7.25%</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly.</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>7,954</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Total Liabilities</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>359,757</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Less current portion</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>264,158</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Long tem debt</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$95,599</p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 12 - INCOME TAXES</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company has experienced losses during most years since its inception. As a result, it has incurred no Federal income tax. The Internal Revenue Code allows net operating losses (NOL's) to be carried forward and applied against future profits for a period of twenty years; an NOL of $25,827,119 had accumulated at March 31, 2016 on U.S. operations and has been carried forward. The potential tax benefit of the NOL's has been recognized on the books of the Company, and is offset by a valuation allowance.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Under current accounting guidance, recognition of deferred tax assets is permitted unless it is more likely than not that the assets will not be realized. The Company has recorded deferred tax assets using statutory rates, as presented below. The valuation reserve increased by $155,766 during the quarter ended March 31, 2016.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="top" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Total</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Deferred Tax Assets</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>8,781,220</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Realization Allowance</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(8,781,220)</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Balance Recognized</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$-</p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The effective tax rate is as follows:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr align="left"> <td width="483" style='width:362.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="79" style='width:59.2pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="483" valign="top" style='width:362.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Statutory Federal Rate</p> </td> <td width="79" valign="bottom" style='width:59.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>34%</p> </td> </tr> <tr align="left"> <td width="483" valign="top" style='width:362.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Effect of Valuation Allowance</p> </td> <td width="79" valign="bottom" style='width:59.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(34%)</p> </td> </tr> <tr align="left"> <td width="483" valign="top" style='width:362.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Effective Rate</p> </td> <td width="79" valign="bottom" style='width:59.2pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0%</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 13 - INTANGIBLE ASSETS</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company accounts for its long-lived assets in accordance with Accounting Standards Codification (&quot;ASC&quot;) Topic 360-10-05, &quot;Accounting for the Impairment or Disposal of Long-Lived Assets.&quot;&nbsp;&nbsp;ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate.&nbsp;&nbsp;The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition.&nbsp;&nbsp;If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value.&nbsp;&nbsp;The Company increased goodwill as a result of its first quarter acquisitions by $612,445 and also determined that none of its long-term assets at March 31, 2016 and December 31, 2015 were impaired.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr style='height:16.5pt'> <td width="791" valign="bottom" style='width:593.25pt;padding:0;height:16.5pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;padding:0;height:16.5pt'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Mar-16</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;padding:0;height:16.5pt'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Dec-15</p> </td> </tr> <tr align="left"> <td width="791" valign="bottom" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Patents</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$86,998</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$63,554</p> </td> </tr> <tr align="left"> <td width="791" valign="bottom" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Trademarks</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>277</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>277</p> </td> </tr> <tr align="left"> <td width="791" valign="bottom" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Goodwill</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,057,003</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,057,003</p> </td> </tr> <tr align="left"> <td width="791" valign="bottom" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Intangible assets</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,144,278</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,120,834</p> </td> </tr> <tr align="left"> <td width="791" valign="bottom" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Less impairments</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="791" valign="bottom" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Intangible assets, net</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$3,144,278</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$3,120,834</p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 14 -&nbsp; SEGMENT INFORMATION</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>ASC Topic 280 requires use of the &quot;management approach&quot; model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. During the three months ended March 31, 2016 and 2015, the Company operated in one reportable business segment: the sale and manufacture of specialized electric vehicle. The Company's reportable segment is a strategic business unit that offers its product.</p> <!--egx--> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>NOTE 15 - ACQUISITIONS</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;On March 29, 2015, the Company acquired a 50% interest in each of Leo Motors Factory 1 and 2 which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired a 50% interest in Leo Trade specializing in trading luxury cars. </p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The consolidation of these acquisitions is presented below.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Leo Motors consolidation</p> </td> <td width="69" valign="bottom" style='width:51.7pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Motors</p> </td> <td width="62" valign="bottom" style='width:46.7pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Motors</p> </td> <td width="53" valign="bottom" style='width:40.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LGM</p> </td> <td width="46" valign="bottom" style='width:34.2pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Motors</p> </td> <td width="52" valign="bottom" style='width:39.2pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Motors</p> </td> <td width="52" valign="bottom" style='width:39.2pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Trade</p> </td> <td width="62" valign="bottom" style='width:46.7pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>ELIM</p> </td> <td width="70" valign="bottom" style='width:52.8pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Consolidated</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>March 31, 2015</p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>US</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Korea</p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Factory 1</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Factory 2</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>(f/k/a/ Erum)</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>ENTRIES</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Statements</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>All numbers shown in&nbsp; US Dollars</p> </td> <td width="69" valign="bottom" style='width:51.7pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>DR(CR)</p> </td> <td width="70" valign="bottom" style='width:52.8pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>3/31/2015</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>ASSETS</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Cash and cash equivalents</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$374</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>67853</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>211,957</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>91,187</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2914</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>92173</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>466,458</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Accounts receivable</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>476,777</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>8,754</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>48,425</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>418,422</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>952,378</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Inventories</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>295,159</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>295,159</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Prepayment to suppliers</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>137,236</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>160,484</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>297,720</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Other current assets</p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>7,297</p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>57,403</p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1,595</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>125,212</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>36,685</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>228,192</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Current Assets</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>374</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>212,386</b></p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,201,780</b></p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>101,536</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>176,551</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>547,280</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>2,239,907</b></p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Fixed assets, net</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>6,744</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>10,530</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>16,846</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>63,683</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>88,181</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>185,984</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Deposit</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>46,234</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>22,637</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>4,804</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>145,196</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9,025</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>227,896</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Intangible assets</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>63,831</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>63,831</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Goodwill</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,057,003</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,057,003</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Investment in subsidiaries</p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>8,089,368</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-8,089,368</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Non-Current Assets</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>8,096,112</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>120,595</b></p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>39,483</b></p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>68,487</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>233,377</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>9,025</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>3,534,714</b></p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr style='height:15.0pt'> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0;height:15.0pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Assets</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>$8,096,486</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>332,981</b></p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,241,263</b></p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>170,023</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>409,928</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>556,305</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-5,032,365</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>5,774,621</b></p> </td> </tr> <tr align="left"> <td width="226" colspan="2" valign="bottom" style='width:2.35in;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>LIABILITIES AND STOCKHOLDERS' EQUITY</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>Current Liabilities:</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Accounts payable and accrued expenses</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$1,139,889</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1,060,342</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>291,900</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>97,840</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>307,112</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>416,183</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,313,266</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Short term borrowings</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>256,392</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>183,245</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>32,052</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>471,689</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Advance from customers</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>30,381</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9,141</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>4,513</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>44,035</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Due to related parties</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>116,617</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>116,617</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Taxes payable</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>137,780</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>10,673</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>13,559</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>78,783</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>226</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>241,021</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Notes Payable current portion</p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>353,747</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>353,747</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Current Liabilities</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,139,889</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,601,512</b></p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>494,959</b></p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>143,451</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>390,408</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>770,156</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>4,540,375</b></p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Long Term Notes</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>36,698</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>117,075</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>173,928</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>327,701</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Accrued severance benefits</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,075</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,075</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Liabilities</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,139,889</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,640,285</b></p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>612,034</b></p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>143,451</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>564,336</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>770,156</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>4,870,151</b></p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>Stockholders' Equity:</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Common stock</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>154,144</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,831,276</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>284,870</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>90,253</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>135,379</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>180,505</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(3,522,283)</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>154,144</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Additional paid-in capital</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>21,253,084</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1,831,184</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1,285,902</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(4,973,230)</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>19,396,940</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Accumulated other comprehensive income</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>277,678</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>225,403</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>4,893</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>507,974</p> </td> </tr> <tr style='height:16.5pt'> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0;height:16.5pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Accumulated loss</p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0;height:16.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(14,728,309)</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0;height:16.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(6,195,167)</p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0;height:16.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(946,436)</p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0;height:16.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(63,681)</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0;height:16.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(289,787)</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0;height:16.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(394,356)</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0;height:16.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>733,773</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0;height:16.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(21,883,963)</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:8.05pt'><b>Total Stockholders' Deficit attributable to LEO MOTORS, INC.</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>6,956,597</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(1,307,304)</b></p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>629,229</b></p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>26,572</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(154,408)</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(213,851)</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(1,824,905)</b></p> </td> </tr> <tr style='height:13.5pt'> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0;height:13.5pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Non-controlling interest</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,729,375</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,729,375</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:8.05pt'><b>Total Stockholders' Deficit</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>6,956,597</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(1,307,304)</b></p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>629,229</b></p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>26,572</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(154,408)</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(213,851)</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>904,470</b></p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>Total Liabilities and Stockholders' Deficit</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>$8,096,486</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>332,981</b></p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,241,263</b></p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>170,023</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>409,928</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>556,305</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(5,032,365)</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>5,774,621</b></p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;background:white'><b>NOTE 1 - COMPANY BACKGROUND</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;background:white'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;background:white'>Leo Motors, Inc. (the &quot;Company,&quot; or &quot;we&quot;) is currently in development, assembly and sales of the energy storage devices and electric vehicle components.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;background:white'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify;background:white'>The Company was originally incorporated in California as N. Org., Inc. on December 12, 1983. The Company then underwent several name changes from Natural Organics Corporation to Classic Auto Accessories of North America and then to FCR Automotive Group, Inc. On September 20, 2004, the Company reincorporatedinDelaware by merging into FCR Group, Inc.,aDelaware Automotive corporation,whichwasorganizedonSeptember8, 2004. On July26,2005,theCompany acquired Shinil Precision Co., Ltd., a Korean Company,asitsoperatingbusinessand on July 18, 2005, changed its name to ShinilPrecision Machinery, Inc. to reflect its anticipated new business. Upon failure of certain termsandconditionsofthe acquisition agreement, the Companyreturned the shares of Shinil and recovered and cancelled the Company's sharesissuedintheacquisition. In 2012, the Company changed its domicile to Nevada.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;background:white'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify;background:white'>The Company had been dormant since 1989, and consummated a reverse merger on November 12, 2007 with Leozone Inc., a South Korean company, which is the maker of electrical transportation devices. The merger essentially exchanges shares in Leo Motors, Inc. for shares in Leozone. As this is a reverse merger the accounting treatment of such is that of a combination of the two entities with the activity of Leozone, Inc. the surviving entity, going forward. The financial statements reflect the activity for all periods presented as if the merger had occurred January 1, 2007. Leozone has continued to operate as a separate subsidiary Leo Motors Co. Ltd. of Korea since that time.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;background:white'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify;background:white'>On February 11, 2010, the Company acquired 50% of Leo B&amp;T Corp., a South Korean corporation (&quot;B&amp;T&quot;), from two shareholders of B&amp;T in exchange for 7,000,000 shares of the Company's common stock. Our ownership in B&amp;T was reduced to 30% in 2011. Additionally, this investment was written down as impairment expense during 2011 and the remaining investment was exchanged in 2012 for a return of Leo Motors stock.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;background:white'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>On November 10, 2012, the Company signed an agreement withPDI C&amp;D/RDC SPRL Inc. (&quot;PDI&quot;), an affiliate of PDI Global LLC, a major architectural design company in the U.S., to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo (&quot;DRC&quot;). The Company had a 10% interest in the overall project. This project has incurred an impairment charge as further detailed in our financial statements and the notes thereto. Due to unavoidable political/regional instability in the DRC, the contract with PDI was unable to be fulfilled and as of May 2015, the contract was terminated.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;background:white'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify;background:white'>On July 1, 2014, the Company acquired all of the outstanding common stock of LGM Co. Ltd., a corporation incorporated in the Republic of Korea (&quot;LGM&quot;), from LGM's shareholders, which represents 813,747 shares of LGM common stock, in exchange for 47,352,450 shares of the Company's common stock pursuant to the Share Swap Agreement entered into by and between LGM and the Company. Upon closing of the Share Swap Agreement, LGM became a wholly-owned subsidiary of the Company.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;background:white'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify;background:white'>On March 31, 2015, the Company acquired 50% interest in each of<font style='background:white'>Leo Motors Factory, Inc. (&quot;Leo Factory 1&quot;) and Leo Motors Factory 2, Inc. (&quot;Leo Factory 2&quot;)</font>which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired 50% interest in Leo Trading Inc.(formerly Erum Motors, Inc.) (&quot;Leo Trade&quot;) specializing in the trading of luxury cars. These acquired entities will be presented on a consolidated basis as the parent company has significant control of the business through the Board of Directors which can decide decisions split on strictly on common share ownership percentages.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify;background:white'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>On July 31, 2015, the Company entered into a joint venture company agreement (the &quot;JV Agreement&quot;) with Fushun Jinyuan Technology Machinery Manufacturing Co., Ltd., a company established and existing under the laws of the People's Republic of China, to establish a joint venture, Liaoning Senyuan Leo New Energy Electric Vehicle Co., Ltd. in China, to develop, manufacture and sell new energy electric vehicles. The joint venture company has not been incorporated yet because the Company's funding for the joint venture company is delayed. Pursuant to the JV Agreement, Senyuan Leo will have a registered capital of RMB 411,600,000 (approximately $66.3 million), with Fushun Jinyuan owning 51% and the Company owning 49%. The total capital contribution shall be completed no later than 90 days from the date Senyuan Leo is incorporated, which deadline may be further extended to 108 days from the date of incorporation. The Company will invest in Senyuan Leo through a cash contribution of RMB 201,684,000 (approximately $32.5 million) and Fushun Jinyuan will invest in Senyuan Leo through a cash contribution of RMB 200,000,000 (approximately $32.2 million).</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>On June 3, 2016, the Company acquired 50% ownership of Lelcon Co., Ltd. (&quot;Lelcon&quot;). The Company will issue 1,414,828 shares of its common stock at $0.30 per share in exchange for 50% equity in Lelcon.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify;background:white'>&nbsp;</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>POLICIES</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>This summary of significant account policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and the notes are the representation of the</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Company's management, who are responsible for their integrity and objectivity. These accounting policies conform to U.S. generally accepted accounting principles (&quot;USGAAP&quot;) and have been consistently applied in the preparation of the financial statements.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Basis of Presentation and Consolidation</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>These financial statements and related notes are expressed in US dollars. The Company's fiscal year-end is December 31. The consolidated financial statements include the financial statements of the Leo Motors Co. Ltd. Korea and LGM Co. LTD where the Parent Company has significant control. All inter-company transactions and balances have been eliminated upon consolidation.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Use of Estimates</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Fair Value of Financial Instruments</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable inventory and prepaid expenses, accounts payable and deferred revenues, the carrying amounts approximate fair value due to their short maturities.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Revenue Recognition</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company follows the guidance of the Securities and Exchange Commission's Staff Accounting Bulletin No. 104, &quot;Revenue Recognition in Financial Statements&quot;. In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company generates revenue from the delivery of goods and records revenues when the sales are completed, already collected or collectability is reasonably assured, there is no future obligation and there is remote chance of future claim or refund to the customers.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the delivery of professional services. Pricing is fixed and determinable according to the Company's published brochures and price lists.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Accounts Receivables</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Accounts receivables of the Company are reviewed to determine if their carrying value has become impaired.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company considers the assets to be impaired if the balances are greater than one-year old. Management regularly reviews accounts receivable and will establish an allowance for potentially uncollectible amounts when appropriate. When accounts are written off, they will be charged against the allowance.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Receivables are not collateralized and do not bear interest.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Cash Equivalents</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalent.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Fixed Assets</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Fixed assets are stated at cost, less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which is generally 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company will periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful lives of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Intangible and Long Lived Assets</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company follows ASC 360-10,<i> &quot;Property, Plant, and Equipment,&quot;</i> which established a &quot;primary asset&quot; approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through December 31, 2015, the Company had not experienced impairment losses on its long-lived assets.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Income Taxes</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, &quot;Accounting for Income Taxes.&quot; 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 available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is &quot;more likely than not&quot; that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable. </p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp; </p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>Loss per Share</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of both common and preferred stock outstanding for the period.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>Stock-Based Compensation</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>SFAS No. 123, &quot;Accounting for Stock-Based Compensation,&quot; establishes and encourages the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with SFAS No. 123 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>&nbsp;</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>Foreign Currency Translation And Comprehensive Income</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The reporting currency of the Company is the US$. The functional currency of the parent company is the US$ and the functional currency of the Company's operating subsidiary is Korean Won (&quot;KRW&quot;). The subsidiary's results of operations and cash flows are translated at average exchange rates during the year, assets and liabilities are translated at the unified exchange rate at the end of the year, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into US$ are included in determining comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company does not enter any material transaction in foreign currencies and accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>Recent Accounting Pronouncements</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company's financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>NOTE 3 - EARNINGS PER SHARE</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The Company reports basic and diluted earnings per share (EPS) according to the provisions of ASC Topic 260, which requires the presentation of basic EPS and, for companies with complex capital structures, diluted EPS. Basic EPS excludes dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) available to common stockholders, adjusted by other changes in income or loss that would result from the assumed conversion of those potential common shares, by the weighted number of common shares and common share equivalents (unless their effect is antidilutive) outstanding. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports a loss because to do so would be antidilutive. Thus, these equivalents are not included in the calculation of diluted loss per share, resulting in basic and diluted loss per share being equal. </p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>The following is a reconciliation of the computation for basic and diluted EPS for the years ended December 31, 2015 and 2014:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="371" colspan="2" valign="bottom" style='width:278.25pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>For the periods ended</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>12/31/2015</p> </td> <td width="172" valign="bottom" style='width:129.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>12/31/2014</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Net Income (Loss)</p> </td> <td width="174" valign="bottom" style='width:130.5pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$(4,490,972)</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$(4,480,544)</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="174" valign="bottom" style='width:130.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="174" valign="bottom" style='width:130.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Weighted-average common stock Outstanding -&nbsp;&nbsp;basic</p> </td> <td width="174" valign="bottom" style='width:130.5pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>155,866,313</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>97,393,209</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Equivalents</p> </td> <td width="174" valign="bottom" style='width:130.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;Stock options</p> </td> <td width="174" valign="bottom" style='width:130.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;Warrants</p> </td> <td width="174" valign="bottom" style='width:130.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;Convertible Notes</p> </td> <td width="174" valign="bottom" style='width:130.5pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>662,889</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Weighted-average common shares</p> </td> <td width="174" valign="bottom" style='width:130.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>outstanding-&nbsp;&nbsp;Diluted</p> </td> <td width="174" valign="bottom" style='width:130.5pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>155,866,313</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>98,056,098</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 4 - DUE TO RELATED PARTY</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The company is indebted to its officer for advances. Repayment is on demand without interest. The balance was $140,396 at December 31, 2015 and $150,637 at December 31, 2014</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 5 - PAYMENTS RECEIVED IN ADVANCE</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>The Company during the periods received payments from potential customers, or deposits, on future orders. The Company's policy is to record these payments as a liability until the product is completed and shipped to the customer at which the Company recognizes revenue. As of December 31, 2015 and December 31, 2014, the balance of payments received in advance was $279,229 and $ 306,969, respectively.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>NOTE 6 - GOING CONCERN</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>As reported in the consolidated financial statements, the Company has accumulated deficits of $25,404,609 as of December 31, 2015 and its current liabilities exceeded its current assets. These negative trends have been consistent over the last few years except for asset sales.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>These factors&nbsp;&nbsp;create&nbsp;&nbsp;uncertainty&nbsp;&nbsp;about&nbsp;&nbsp;the&nbsp;&nbsp;Company's&nbsp;&nbsp;ability&nbsp;&nbsp;to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable and to create operations that contribute capital from normal operations. If the Company cannot&nbsp;obtain&nbsp;&nbsp;adequate&nbsp;&nbsp;capital&nbsp;&nbsp;it&nbsp;&nbsp;could&nbsp;&nbsp;be&nbsp;&nbsp;forced&nbsp;&nbsp;to&nbsp;&nbsp;cease operations.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>In order to continue as a going concern, develop and generate revenues and achieve a&nbsp;&nbsp;profitable&nbsp;&nbsp;level of operations, the Company will need, among other things, additional capital resources. Management's plans to obtain such resources for the&nbsp;&nbsp;Company&nbsp;&nbsp;include&nbsp;&nbsp;(1) raising additional capital through sales of common stock, (2) converting&nbsp;&nbsp;promissory notes into&nbsp;&nbsp;common&nbsp;&nbsp;stock&nbsp;&nbsp;and (3) entering into acquisition agreements&nbsp;&nbsp;with profitable&nbsp;&nbsp;entities&nbsp;&nbsp;with&nbsp;&nbsp;&nbsp;significant&nbsp;&nbsp;&nbsp;operations.&nbsp;&nbsp;&nbsp;In&nbsp;&nbsp;&nbsp;addition, management is continually seeking to streamline its operations and expand the business through a variety of industries, including real estate and financial management.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations.&nbsp;&nbsp;The accompanying&nbsp;&nbsp;&nbsp;consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 7 - COMMITMENTS AND CONTINGENCIES</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>(a) Lease Commitments</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the years ending December 31, 2015 through December 31, 2018 are listed on the table below.</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="726" style='width:544.5pt'> <tr align="left"> <td width="553" colspan="2" valign="bottom" style='width:414.75pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>For the Year</b></p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Amount</b></p> </td> </tr> <tr align="left"> <td width="553" colspan="2" valign="bottom" style='width:414.75pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Ending</b></p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="303" valign="bottom" style='width:227.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="251" valign="bottom" style='width:188.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="303" valign="bottom" style='width:227.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2016</p> </td> <td width="251" valign="bottom" style='width:188.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="162" valign="bottom" style='width:121.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$220,827</p> </td> </tr> <tr align="left"> <td width="303" valign="bottom" style='width:227.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2017</p> </td> <td width="251" valign="bottom" style='width:188.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="162" valign="bottom" style='width:121.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>101,249</p> </td> </tr> <tr align="left"> <td width="303" valign="bottom" style='width:227.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2018</p> </td> <td width="251" valign="bottom" style='width:188.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>and beyond</p> </td> <td width="162" valign="bottom" style='width:121.5pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="303" valign="bottom" style='width:227.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="251" valign="bottom" style='width:188.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="162" valign="bottom" style='width:121.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="553" colspan="2" valign="bottom" style='width:414.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Total Commitment</p> </td> <td width="162" valign="bottom" style='width:121.5pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$322,076</p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>(b) Strategic Investment</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>On November 10, 2012, the Company and PDI C&amp;D/RDC SPRL Inc. (&quot;PDI&quot;), an affiliate of PDI Global LLC, a major architectural design company in the U.S., signed a contract to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo (&quot;DRC&quot;). The Company had a commitment to raise $1,000,000 to fulfill its part of the contract for strategic investment. This investment was impaired in full as of December 31, 2014 as due to unavoidable political/regional instability in the DRC, the contract with PDI was unable to be fulfilled and as of May 2015, the contract was terminated.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 8 - INVENTORIES</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Inventories consist of the following:</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Dec-15</p> </td> <td width="172" valign="bottom" style='width:129.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Dec-14</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>US$</p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>US$</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Raw material</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$0</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$0</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Work in process</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>496,971</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>279,783</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Finished goods</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$496,971</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$279,783</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'><b>NOTE 9 - PROPERTY AND EQUIPMENT</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Property and equipment consisted of the following:</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="170" valign="bottom" style='width:127.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Dec-15</p> </td> <td width="172" valign="bottom" style='width:129.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Dec-14</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="170" valign="bottom" style='width:127.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Vehicles</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$146,268</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$7,581</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Tools</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>95,771</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>12,906</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Office</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>109,447</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>79,963</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Facility equipment</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>210,502</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>157,966</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;Total property and equipment</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>561,988</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>258,416</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Accumulated depreciation</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(398,987)</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(219,796)</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Property and equipment, net</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$163,001</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$38,620</p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>Depreciation expense for the years ended December 31, 2015 and 2014 amounted to $207,837 and $19,470,&nbsp; respectively.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 10 - INVESTMENTS</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>During 2012, the Company invested in a housing project in the Republic of the Congo which would use our E-Box power storage device. $270,000 had been invested. Their interest has been recorded using the cost investment of accounting for investments. During the year ended December 31, 2014, the completion of this project has come into question. Due to this and other factors the Company has impaired the investments in full with a charge off of $762,000 .</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 11 - SHORT TERM BORROWINGS AND NOTES PAYABLE</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company continues to fund itself through borrowing and equity sales until sales return to historical levels.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>At December 31, 2014, the Company had short term borrowings of $448,801. The notes are short term working capital advances that have been advanced to their Korean Subsidiary from various local parties. These advances are due on demand, interest free and unsecured.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Additionally the company borrowed $819,922 in short term convertible notes at a 4% interest rate. These funds were used to fund expansion of our LGM acquisition in 2014. The derivative components are detailed in footnote 15 and these loans were completely converted in February 2015 into 14,924,263 shares of our common stock.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>As of December 31, 2015 the major components of our notes and borrowings consisted of the following:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>12/31/15</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Hana Bank six month note extended with 12 month term</p> </td> <td width="172" valign="bottom" style='width:129.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 3.65%</p> </td> <td width="172" valign="bottom" style='width:129.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly and securred by the company.</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$45,505</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Hana Bank six month note extended with 12 month term</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 6.24%</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly.</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>75,775</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr style='height:14.25pt'> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0;height:14.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Hana Bank six month note extended with 12 month term</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0;height:14.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 3.64%</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly and securred by the company.</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>46,800</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>KookMin Bank six month note extended with 12 month term</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 3.28%</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly and securred by the company</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>85,245</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Industrial Bank of Korea Bank four year note extended with 12 month</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>extension fully amortizing with a variable interest rate currently at 3.83%</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>payable monthly.</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>35,718</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>NH Bank six month note extended with 12 month term</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 7.25%</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly.</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>34,000</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Total Liabilities</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>323,043</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Less current portion</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>49,397</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Long tem debt</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$273,646</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'><b>NOTE 12 - INCOME TAXES</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company has experienced losses during most years since its inception. As a result, it has incurred no Federal income tax. The Internal Revenue Code allows net operating losses (NOL's) to be carried forward and applied against future profits for a period of twenty years; an NOL of $25,404,609 had accumulated at December 31, 2015 on U.S. operations and has been carried forward. The potential tax benefit of the NOL's has been recognized on the books of the Company, and is offset by a valuation allowance.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Under current accounting guidance, recognition of deferred tax assets is permitted unless it is more likely than not that the assets will not be realized. The Company has recorded deferred tax assets using statutory rates, as presented below. The valuation reserve increased by $1,376,115 during the year ended December 31, 2015.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="1129" valign="top" style='width:846.75pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="top" style='width:129.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Total</p> </td> </tr> <tr align="left"> <td width="1129" valign="top" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Deferred Tax Assets</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>8,637,567</p> </td> </tr> <tr align="left"> <td width="1129" valign="top" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Realization Allowance</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(8,637,567)</p> </td> </tr> <tr align="left"> <td width="1129" valign="top" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Balance Recognized</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$-</p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>The effective tax rate is as follows:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="1127" style='width:845.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="166" style='width:124.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1127" style='width:845.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="166" style='width:124.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1127" valign="top" style='width:845.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Statutory Federal Rate</p> </td> <td width="152" valign="bottom" style='width:114.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>34%</p> </td> </tr> <tr align="left"> <td width="1127" valign="top" style='width:845.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Effect of Valuation Allowance</p> </td> <td width="152" valign="bottom" style='width:114.0pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(34%)</p> </td> </tr> <tr align="left"> <td width="1127" valign="top" style='width:845.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Effective Rate</p> </td> <td width="152" valign="bottom" style='width:114.0pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0%</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 13 - INTANGIBLE ASSETS</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company accounts for its long-lived assets in accordance with Accounting Standards Codification (&quot;ASC&quot;) Topic 360-10-05, &quot;Accounting for the Impairment or Disposal of Long-Lived Assets.&quot;&nbsp;&nbsp;ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate.&nbsp;&nbsp;The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition.&nbsp;&nbsp;If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value.&nbsp;&nbsp;The Company increased goodwill as a result of its first quarter acquisitions by $612,445 and also determined that none of its long-term assets at December 31, 2015 and December 31, 2014 were impaired.</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="998" valign="bottom" style='width:748.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="158" valign="bottom" style='width:118.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Dec-15</p> </td> <td width="158" valign="bottom" style='width:118.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Dec-14</p> </td> </tr> <tr align="left"> <td width="998" valign="bottom" style='width:748.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Patents</p> </td> <td width="148" valign="bottom" style='width:111.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$63,554</p> </td> <td width="148" valign="bottom" style='width:111.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$63,554</p> </td> </tr> <tr align="left"> <td width="998" valign="bottom" style='width:748.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Trademarks</p> </td> <td width="148" valign="bottom" style='width:111.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>277</p> </td> <td width="148" valign="bottom" style='width:111.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>277</p> </td> </tr> <tr style='height:18.75pt'> <td width="998" valign="bottom" style='width:748.5pt;background:#CCEEFF;padding:0;height:18.75pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Goodwill</p> </td> <td width="148" valign="bottom" style='width:111.0pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0;height:18.75pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,057,003</p> </td> <td width="148" valign="bottom" style='width:111.0pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0;height:18.75pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,444,558</p> </td> </tr> <tr align="left"> <td width="998" valign="bottom" style='width:748.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Intangible assets</p> </td> <td width="148" valign="bottom" style='width:111.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,120,834</p> </td> <td width="148" valign="bottom" style='width:111.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,508,389</p> </td> </tr> <tr align="left"> <td width="998" valign="bottom" style='width:748.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Less impairment</p> </td> <td width="148" valign="bottom" style='width:111.0pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="148" valign="bottom" style='width:111.0pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="998" valign="bottom" style='width:748.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Intangible assets, net</p> </td> <td width="148" valign="bottom" style='width:111.0pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$3,120,834</p> </td> <td width="148" valign="bottom" style='width:111.0pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$2,508,389</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'><b>NOTE 14 -&nbsp; SEGMENT INFORMATION</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>ASC Topic 280 requires use of the &quot;management approach&quot; model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. During the years ended December 31, 2015 and 2014, the Company operated in one reportable business segment: the sale and manufacture of specialized electric vehicle. The Company's reportable segment is a strategic business unit that offers its product.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 15 &#150; DERIVATIVE LIABILITY</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company accounts for derivative financial instruments in accordance with ASC 815, which requires that all derivative financial instruments be recorded in the balance&nbsp;sheets either as assets or liabilities at fair value.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company's derivative liability is an embedded derivative associated with one of the Company's convertible promissory notes. The convertible promissory note was issued on July 31, 2014, (the &quot;Note&quot;), is a hybrid instruments which contain an embedded derivative feature which would individually warrant separate accounting as a derivative instrument under Paragraph 815-10-05-4.&nbsp; The embedded derivative feature includes the conversion feature to the Note. Pursuant to Paragraph 815-10-05-4, the value of the embedded derivative liability have been bifurcated from the debt host contract and recorded as a derivative liability resulting in a reduction of the initial carrying amount (as unamortized discount) of the notes, which are amortized as debt discount to be presented in other (income) expenses in the statements of operations using the effective interest method over the life of the notes.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The embedded derivative within the note have been valued using the Black Scholes approach, recorded at fair value at the date of issuance; and marked-to-market at each reporting period end date with changes in fair value recorded in the Company's statements of operations as &quot;change in the fair value of derivative instrument&quot;.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>As of December 31, 2015 and December 31, 2014, the estimated fair value of derivative liability was determined to be $0 and $819,922, respectively. On July 31, 2014, the derivative liability was recognized with a debt discount of $825,529. During the year ended December 31, 2015, the loan was converted to common stock and the remaining unamortized debt discount of $275,176 was recorded against as a charge to interest expense.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><i><u>Summary of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis</u></i></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Financial assets and liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheet:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="242" style='width:181.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="242" style='width:181.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="242" style='width:181.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="242" style='width:181.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="242" style='width:181.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="242" valign="bottom" style='width:181.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1057" colspan="4" valign="bottom" style='width:792.75pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'><b>Fair Value Measurement Using</b></p> </td> </tr> <tr align="left"> <td width="242" valign="bottom" style='width:181.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Carrying Value</b></p> </td> <td width="242" valign="bottom" style='width:181.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Level 1</b></p> </td> <td width="257" valign="bottom" style='width:192.75pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Level 2</b></p> </td> <td width="257" valign="bottom" style='width:192.75pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Level 3</b></p> </td> <td width="257" valign="bottom" style='width:192.75pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Total</b></p> </td> </tr> <tr align="left"> <td width="228" valign="bottom" style='width:171.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-0-</p> </td> <td width="228" valign="bottom" style='width:171.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="228" valign="bottom" style='width:171.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="228" valign="bottom" style='width:171.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-0-</p> </td> <td width="228" valign="bottom" style='width:171.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-0-</p> </td> </tr> <tr align="left"> <td width="228" valign="bottom" style='width:171.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$-0-</p> </td> <td width="228" valign="bottom" style='width:171.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$-</p> </td> <td width="228" valign="bottom" style='width:171.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$-</p> </td> <td width="228" valign="bottom" style='width:171.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$-0-</p> </td> <td width="228" valign="bottom" style='width:171.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$-0-</p> </td> </tr> </table> </div> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><i><u>Summary of the Changes in Fair Value of Level 3 Financial Liabilities</u></i></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during year ended December 31, 2015.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'><b>Derivative Liability</b></p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Fair value, December 31, 2014&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$819,922</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Additions</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-0-</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Change in fair value</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-0-</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Transfers in and/or out of Level 3</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(819,922)</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Fair value, December 31, 2015&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$-0-</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>NOTE 16 - ACQUISITIONS</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>On March 29, 2015, the Company acquired a 50% interest in each of Leo Motors Factory 1 and 2 which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired a 50% interest in Leo Trade specializing in trading luxury cars.&nbsp; </p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The consolidation of these acquisitions is presented below.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Leo Motors consolidation</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Motors</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Motors</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LGM</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Motors</p> </td> <td width="103" valign="bottom" style='width:77.25pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Motors</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Trade</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>ELIM</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Consolidated</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>March 31, 2015</p> </td> <td width="106" valign="bottom" style='width:79.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>US</p> </td> <td width="106" valign="bottom" style='width:79.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Korea</p> </td> <td width="106" valign="bottom" style='width:79.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Factory 1</p> </td> <td width="103" valign="bottom" style='width:77.25pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Factory 2</p> </td> <td width="106" valign="bottom" style='width:79.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>(f/k/a/ Erum)</p> </td> <td width="106" valign="bottom" style='width:79.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>ENTRIES</p> </td> <td width="106" valign="bottom" style='width:79.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Statements</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>All numbers shown in&nbsp; US Dollars</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="103" valign="bottom" style='width:77.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>DR(CR)</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>3/31/2015</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>ASSETS</b></p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="103" valign="bottom" style='width:77.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Cash and cash equivalents</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$374</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>67853</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>211,957</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>91,187</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2914</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>92173</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>466,458</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Accounts receivable</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>476,777</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>8,754</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>48,425</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>418,422</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>952,378</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Inventories</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>295,159</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>295,159</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Prepayment to suppliers</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>137,236</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>160,484</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>297,720</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Other current assets</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>7,297</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>57,403</p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1,595</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>125,212</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>36,685</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>228,192</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Current Assets</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>374</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>212,386</b></p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,201,780</b></p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>101,536</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>176,551</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>547,280</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>2,239,907</b></p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Fixed assets, net</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>6,744</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>10,530</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>16,846</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>63,683</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>88,181</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>185,984</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Deposit</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>46,234</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>22,637</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>4,804</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>145,196</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9,025</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>227,896</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Intangible assets</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>63,831</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>63,831</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Goodwill</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,057,003</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,057,003</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Investment in subsidiaries</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>8,089,368</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-8,089,368</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Non-Current Assets</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>8,096,112</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>120,595</b></p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>39,483</b></p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>68,487</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>233,377</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>9,025</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>3,534,714</b></p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Assets</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>$8,096,486</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>332,981</b></p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,241,263</b></p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>170,023</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>409,928</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>556,305</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-5,032,365</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>5,774,621</b></p> </td> </tr> <tr align="left"> <td width="386" colspan="2" valign="bottom" style='width:289.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>LIABILITIES AND STOCKHOLDERS' EQUITY</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>Current Liabilities:</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Accounts payable and accrued expenses</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$1,139,889</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1,060,342</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>291,900</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>97,840</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>307,112</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>416,183</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,313,266</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Short term borrowings</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>256,392</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>183,245</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>32,052</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>471,689</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Advance from customers</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>30,381</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9,141</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>4,513</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>44,035</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Due to related parties</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>116,617</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>116,617</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Taxes payable</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>137,780</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>10,673</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>13,559</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>78,783</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>226</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>241,021</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Notes Payable current portion</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>353,747</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>353,747</p> </td> </tr> <tr style='height:17.25pt'> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0;height:17.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Current Liabilities</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:17.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,139,889</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:17.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,601,512</b></p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0;height:17.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>494,959</b></p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0;height:17.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>143,451</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:17.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>390,408</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:17.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>770,156</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:17.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:17.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>4,540,375</b></p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Long Term Notes</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>36,698</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>117,075</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>173,928</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>327,701</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Accrued severance benefits</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,075</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,075</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Liabilities</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,139,889</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,640,285</b></p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>612,034</b></p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>143,451</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>564,336</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>770,156</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>4,870,151</b></p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>Stockholders' Equity</b><b>:</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Common stock</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>154,144</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,831,276</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>284,870</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>90,253</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>135,379</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>180,505</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(3,522,283)</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>154,144</p> </td> </tr> <tr style='height:15.0pt'> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0;height:15.0pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Additional paid-in capital</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>21,253,084</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1,831,184</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1,285,902</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(4,973,230)</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>19,396,940</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Accumulated other comprehensive income</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>277,678</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>225,403</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>4,893</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>507,974</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Accumulated loss</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(14,728,309)</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(6,195,167)</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(946,436)</p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(63,681)</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(289,787)</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(394,356)</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>733,773</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(21,883,963)</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:8.05pt'><b>Total Stockholders' Deficit attributable to LEO MOTORS, INC.</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>6,956,597</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(1,307,304</b></p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>629,229</b></p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>26,572</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(154,408)</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(213,851)</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(1,824,905)</b></p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Non-controlling interest</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,729,375</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,729,375</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:8.05pt'><b>Total Stockholders' Deficit</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>6,956,597</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(1,307,304</b></p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>629,229</b></p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>26,572</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(154,408)</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(213,851)</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>904,470</b></p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>Total Liabilities and Stockholders' Deficit</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>$8,096,486</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>332,981</b></p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,241,263</b></p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>170,023</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>409,928</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>556,305</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(5,032,365)</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>5,774,621</b></p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Basis of Presentation and Consolidation</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>These financial statements and related notes are expressed in US dollars. The Company's fiscal year-end is December 31. The consolidated financial statements include the financial statements of the Leo Motors Co. Ltd. Korea and LGM Co. LTD where the Parent Company has significant control. All inter-company transactions and balances have been eliminated upon consolidation.</p> <!--egx--> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Use of Estimates</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Fair Value of Financial Instruments</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable inventory and prepaid expenses, accounts payable and deferred revenues, the carrying amounts approximate fair value due to their short maturities.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Revenue Recognition</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company follows the guidance of the Securities and Exchange Commission's Staff Accounting Bulletin No. 104, &quot;Revenue Recognition in Financial Statements&quot;. In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company generates revenue from the delivery of goods and records revenues when the sales are completed, already collected or collectability is reasonably assured, there is no future obligation and there is remote chance of future claim or refund to the customers.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the delivery of professional services. Pricing is fixed and determinable according to the Company's published brochures and price lists.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Accounts Receivables</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Accounts receivables of the Company are reviewed to determine if their carrying value has become impaired.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company considers the assets to be impaired if the balances are greater than one-year old. Management regularly reviews accounts receivable and will establish an allowance for potentially uncollectible amounts when appropriate. When accounts are written off, they will be charged against the allowance.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Receivables are not collateralized and do not bear interest.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Cash Equivalents</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalent.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Fixed Assets</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Fixed assets are stated at cost, less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which is generally 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company will periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful lives of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Intangible and Long Lived Assets</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company follows ASC 360-10,<i> &quot;Property, Plant, and Equipment,&quot;</i> which established a &quot;primary asset&quot; approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through March 31, 2016, the Company had not experienced impairment losses on its long-lived assets.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Income Taxes</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, &quot;Accounting for Income Taxes.&quot; 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 available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is &quot;more likely than not&quot; that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>Loss per Share</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of both common and preferred stock outstanding for the period.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>Stock-Based Compensation</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>SFAS No. 123, &quot;Accounting for Stock-Based Compensation,&quot; establishes and encourages the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with SFAS No. 123 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>Foreign Currency Translation And Comprehensive Income</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The reporting currency of the Company is the US$. The functional currency of the parent company is the US$ and the functional currency of the Company's operating subsidiary is Korean Won (&quot;KRW&quot;). The subsidiary's results of operations and cash flows are translated at average exchange rates during the year, assets and liabilities are translated at the unified exchange rate at the end of the year, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into US$ are included in determining comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company does not enter any material transaction in foreign currencies and accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>Recent Accounting Pronouncements</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company's financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Basis of Presentation and Consolidation</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>These financial statements and related notes are expressed in US dollars. The Company's fiscal year-end is December 31. The consolidated financial statements include the financial statements of the Leo Motors Co. Ltd. Korea and LGM Co. LTD where the Parent Company has significant control. All inter-company transactions and balances have been eliminated upon consolidation.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Use of Estimates</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Fair Value of Financial Instruments</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable inventory and prepaid expenses, accounts payable and deferred revenues, the carrying amounts approximate fair value due to their short maturities.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Revenue Recognition</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company follows the guidance of the Securities and Exchange Commission's Staff Accounting Bulletin No. 104, &quot;Revenue Recognition in Financial Statements&quot;. In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company generates revenue from the delivery of goods and records revenues when the sales are completed, already collected or collectability is reasonably assured, there is no future obligation and there is remote chance of future claim or refund to the customers.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the delivery of professional services. Pricing is fixed and determinable according to the Company's published brochures and price lists.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Accounts Receivables</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Accounts receivables of the Company are reviewed to determine if their carrying value has become impaired.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company considers the assets to be impaired if the balances are greater than one-year old. Management regularly reviews accounts receivable and will establish an allowance for potentially uncollectible amounts when appropriate. When accounts are written off, they will be charged against the allowance.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Receivables are not collateralized and do not bear interest.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Cash Equivalents</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalent.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Fixed Assets</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Fixed assets are stated at cost, less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which is generally 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company will periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful lives of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Intangible and Long Lived Assets</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company follows ASC 360-10,<i> &quot;Property, Plant, and Equipment,&quot;</i> which established a &quot;primary asset&quot; approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through December 31, 2015, the Company had not experienced impairment losses on its long-lived assets.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b><i>Income Taxes</i></b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, &quot;Accounting for Income Taxes.&quot; 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 available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is &quot;more likely than not&quot; that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>Loss per Share</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of both common and preferred stock outstanding for the period.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>Stock-Based Compensation</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>SFAS No. 123, &quot;Accounting for Stock-Based Compensation,&quot; establishes and encourages the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with SFAS No. 123 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model.</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>Foreign Currency Translation And Comprehensive Income</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>The reporting currency of the Company is the US$. The functional currency of the parent company is the US$ and the functional currency of the Company's operating subsidiary is Korean Won (&quot;KRW&quot;). The subsidiary's results of operations and cash flows are translated at average exchange rates during the year, assets and liabilities are translated at the unified exchange rate at the end of the year, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into US$ are included in determining comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company does not enter any material transaction in foreign currencies and accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company</p> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'><b>Recent Accounting Pronouncements</b></p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company's financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable.</p> <!--egx--> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>The following is a reconciliation of the computation for basic and diluted EPS for the three months ended March 31, 2016 and 2015:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="299" colspan="2" valign="top" style='width:224.45pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>For the periods ended</p> </td> </tr> <tr align="left"> <td width="828" valign="bottom" style='width:620.8pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="145" valign="bottom" style='width:108.85pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>3/31/2016</p> </td> <td width="154" valign="bottom" style='width:115.6pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>3/31/2015</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="145" valign="top" style='width:108.85pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="154" valign="top" style='width:115.6pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Net Income (Loss)</p> </td> <td width="145" valign="bottom" style='width:108.85pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$(458,166)</p> </td> <td width="154" valign="bottom" style='width:115.6pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$(595,418)</p> </td> </tr> <tr style='height:13.5pt'> <td width="828" valign="top" style='width:620.8pt;background:white;padding:0;height:13.5pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="145" valign="bottom" style='width:108.85pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="154" valign="bottom" style='width:115.6pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="145" valign="bottom" style='width:108.85pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="154" valign="bottom" style='width:115.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Weighted-average common stock Outstanding -&nbsp;&nbsp;basic</p> </td> <td width="145" valign="bottom" style='width:108.85pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>161,878,686</p> </td> <td width="154" valign="bottom" style='width:115.6pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>149,069,490</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Equivalents</p> </td> <td width="145" valign="bottom" style='width:108.85pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="154" valign="bottom" style='width:115.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;Stock options</p> </td> <td width="145" valign="bottom" style='width:108.85pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="154" valign="bottom" style='width:115.6pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;Warrants</p> </td> <td width="145" valign="bottom" style='width:108.85pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="154" valign="bottom" style='width:115.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;Convertible Notes</p> </td> <td width="145" valign="bottom" style='width:108.85pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="154" valign="bottom" style='width:115.6pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>902,520</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:#CCEEFF;padding:0'></td> <td width="145" valign="bottom" style='width:108.85pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="154" valign="bottom" style='width:115.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="828" valign="top" style='width:620.8pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Weighted-average common shares outstanding-&nbsp;&nbsp;Diluted</p> </td> <td width="145" valign="bottom" style='width:108.85pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>161,878,686</p> </td> <td width="154" valign="bottom" style='width:115.6pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>149,972,010</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the period ending March 31, 2016 through December 31, 2018 are listed on the table below.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr align="left"> <td width="75" valign="top" style='width:56.2pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>&nbsp;</b></p> </td> <td width="165" valign="top" style='width:124.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>For the Year</b></p> </td> <td width="68" valign="top" style='width:51.3pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Amount</b></p> </td> <td width="3" valign="bottom" style='width:2.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="75" valign="top" style='width:56.2pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>&nbsp;</b></p> </td> <td width="165" valign="top" style='width:124.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>Ending</b></p> </td> <td width="68" valign="top" style='width:51.3pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="3" valign="bottom" style='width:2.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="75" valign="top" style='width:56.2pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="165" valign="top" style='width:124.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="68" valign="top" style='width:51.3pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="3" valign="bottom" style='width:2.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="75" valign="top" style='width:56.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2016</p> </td> <td width="165" valign="top" style='width:124.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="68" valign="bottom" style='width:51.3pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$165,620</p> </td> <td width="3" valign="bottom" style='width:2.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="75" valign="top" style='width:56.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2017</p> </td> <td width="165" valign="top" style='width:124.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="68" valign="bottom" style='width:51.3pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>101,249</p> </td> <td width="3" valign="bottom" style='width:2.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr style='height:13.5pt'> <td width="75" valign="top" style='width:56.2pt;background:#CCEEFF;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2018</p> </td> <td width="165" valign="top" style='width:124.0pt;background:#CCEEFF;padding:0;height:13.5pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;and beyond</p> </td> <td width="68" valign="bottom" style='width:51.3pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="3" valign="bottom" style='width:2.5pt;background:#CCEEFF;padding:0;height:13.5pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr style='height:9.75pt'> <td width="75" valign="top" style='width:56.2pt;background:white;padding:0;height:9.75pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="165" valign="top" style='width:124.0pt;background:white;padding:0;height:9.75pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="68" valign="bottom" style='width:51.3pt;background:white;padding:0;height:9.75pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="3" valign="bottom" style='width:2.5pt;background:white;padding:0;height:9.75pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="75" valign="top" style='width:56.2pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="165" valign="top" style='width:124.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Total Commitment&nbsp;</p> </td> <td width="68" valign="bottom" style='width:51.3pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$266,869</p> </td> <td width="3" valign="bottom" style='width:2.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Inventories consist of the following:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="top" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Mar-16</p> </td> <td width="147" valign="top" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Dec-15</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="top" style='width:110.25pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>US$</p> </td> <td width="147" valign="top" style='width:110.25pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>US$</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Raw material</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$0</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$0</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Work in process</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>838,785</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>496,971</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Finished goods</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$838,785</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$496,971</p> </td> </tr> </table> </div> <!--egx--> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Property and equipment consisted of the following:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>&nbsp;&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="top" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Mar-16</p> </td> <td width="147" valign="top" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Dec-15</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="top" style='width:110.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="top" style='width:110.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Vehicles</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$146,268</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$146,268</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Tools</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>95,771</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>95,771</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Office</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>109,447</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>109,447</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Facility equipment</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>210,502</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>210,502</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;Total property and equipment</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>561,988</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>561,988</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Accumulated depreciation</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(419,851)</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(398,987)</p> </td> </tr> <tr align="left"> <td width="791" valign="top" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Property and equipment, net</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$142,137</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$163,001</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>As of March 31, 2016 the major components of our notes and borrowings consisted of the following:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="top" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>3/31/16</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Hana Bank six month note extended with 12 month term</p> </td> <td width="147" valign="top" style='width:110.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 3.65%</p> </td> <td width="147" valign="top" style='width:110.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly and securred by the company.</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$62,883</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Hana Bank six month note extended with 12 month term</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 6.24%</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly.</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>76,479</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>KookMin Bank six month note extended with 12 month term</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr style='height:11.25pt'> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0;height:11.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 3.28%</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0;height:11.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly and securred by the company</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>84,977</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Industrial Bank of Korea Bank four year note extended with 12 month</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>extension fully amortizing with a variable interest rate currently at 3.83%</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>payable monthly.</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>127,465</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>NH Bank six month note extended with 12 month term</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 7.25%</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly.</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>7,954</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Total Liabilities</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>359,757</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Less current portion</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>264,158</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Long tem debt</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$95,599</p> </td> </tr> </table> </div> <!--egx--> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="top" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Total</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Deferred Tax Assets</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>8,781,220</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Realization Allowance</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(8,781,220)</p> </td> </tr> <tr align="left"> <td width="961" valign="top" style='width:720.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Balance Recognized</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$-</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The effective tax rate is as follows:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr align="left"> <td width="483" style='width:362.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="79" style='width:59.2pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="483" valign="top" style='width:362.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Statutory Federal Rate</p> </td> <td width="79" valign="bottom" style='width:59.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>34%</p> </td> </tr> <tr align="left"> <td width="483" valign="top" style='width:362.0pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Effect of Valuation Allowance</p> </td> <td width="79" valign="bottom" style='width:59.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(34%)</p> </td> </tr> <tr align="left"> <td width="483" valign="top" style='width:362.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Effective Rate</p> </td> <td width="79" valign="bottom" style='width:59.2pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0%</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr style='height:16.5pt'> <td width="791" valign="bottom" style='width:593.25pt;padding:0;height:16.5pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;padding:0;height:16.5pt'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Mar-16</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;padding:0;height:16.5pt'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Dec-15</p> </td> </tr> <tr align="left"> <td width="791" valign="bottom" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Patents</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$86,998</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$63,554</p> </td> </tr> <tr align="left"> <td width="791" valign="bottom" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Trademarks</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>277</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>277</p> </td> </tr> <tr align="left"> <td width="791" valign="bottom" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Goodwill</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,057,003</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,057,003</p> </td> </tr> <tr align="left"> <td width="791" valign="bottom" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Intangible assets</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,144,278</p> </td> <td width="147" valign="bottom" style='width:110.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,120,834</p> </td> </tr> <tr align="left"> <td width="791" valign="bottom" style='width:593.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Less impairments</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="791" valign="bottom" style='width:593.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Intangible assets, net</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$3,144,278</p> </td> <td width="147" valign="bottom" style='width:110.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$3,120,834</p> </td> </tr> </table> </div> <!--egx--> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The consolidation of these acquisitions is presented below.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="624"> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Leo Motors consolidation</p> </td> <td width="69" valign="bottom" style='width:51.7pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Motors</p> </td> <td width="62" valign="bottom" style='width:46.7pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Motors</p> </td> <td width="53" valign="bottom" style='width:40.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LGM</p> </td> <td width="46" valign="bottom" style='width:34.2pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Motors</p> </td> <td width="52" valign="bottom" style='width:39.2pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Motors</p> </td> <td width="52" valign="bottom" style='width:39.2pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Trade</p> </td> <td width="62" valign="bottom" style='width:46.7pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>ELIM</p> </td> <td width="70" valign="bottom" style='width:52.8pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Consolidated</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>March 31, 2015</p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>US</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Korea</p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Factory 1</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Factory 2</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>(f/k/a/ Erum)</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>ENTRIES</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Statements</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>All numbers shown in&nbsp; US Dollars</p> </td> <td width="69" valign="bottom" style='width:51.7pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>DR(CR)</p> </td> <td width="70" valign="bottom" style='width:52.8pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>3/31/2015</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>ASSETS</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Cash and cash equivalents</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$374</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>67853</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>211,957</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>91,187</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2914</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>92173</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>466,458</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Accounts receivable</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>476,777</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>8,754</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>48,425</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>418,422</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>952,378</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Inventories</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>295,159</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>295,159</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Prepayment to suppliers</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>137,236</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>160,484</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>297,720</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Other current assets</p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>7,297</p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>57,403</p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1,595</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>125,212</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>36,685</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>228,192</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Current Assets</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>374</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>212,386</b></p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,201,780</b></p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>101,536</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>176,551</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>547,280</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>2,239,907</b></p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Fixed assets, net</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>6,744</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>10,530</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>16,846</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>63,683</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>88,181</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>185,984</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Deposit</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>46,234</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>22,637</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>4,804</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>145,196</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9,025</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>227,896</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Intangible assets</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>63,831</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>63,831</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Goodwill</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,057,003</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,057,003</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Investment in subsidiaries</p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>8,089,368</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-8,089,368</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Non-Current Assets</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>8,096,112</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>120,595</b></p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>39,483</b></p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>68,487</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>233,377</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>9,025</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>3,534,714</b></p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr style='height:15.0pt'> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0;height:15.0pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Assets</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>$8,096,486</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>332,981</b></p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,241,263</b></p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>170,023</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>409,928</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>556,305</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-5,032,365</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>5,774,621</b></p> </td> </tr> <tr align="left"> <td width="226" colspan="2" valign="bottom" style='width:2.35in;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>LIABILITIES AND STOCKHOLDERS' EQUITY</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>Current Liabilities:</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Accounts payable and accrued expenses</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$1,139,889</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1,060,342</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>291,900</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>97,840</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>307,112</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>416,183</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,313,266</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Short term borrowings</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>256,392</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>183,245</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>32,052</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>471,689</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Advance from customers</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>30,381</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9,141</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>4,513</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>44,035</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Due to related parties</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>116,617</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>116,617</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Taxes payable</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>137,780</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>10,673</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>13,559</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>78,783</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>226</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>241,021</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Notes Payable current portion</p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>353,747</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>353,747</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Current Liabilities</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,139,889</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,601,512</b></p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>494,959</b></p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>143,451</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>390,408</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>770,156</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>4,540,375</b></p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Long Term Notes</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>36,698</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>117,075</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>173,928</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>327,701</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Accrued severance benefits</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,075</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,075</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Liabilities</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,139,889</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,640,285</b></p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>612,034</b></p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>143,451</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>564,336</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>770,156</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>4,870,151</b></p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>Stockholders' Equity:</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Common stock</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>154,144</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,831,276</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>284,870</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>90,253</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>135,379</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>180,505</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(3,522,283)</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>154,144</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Additional paid-in capital</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>21,253,084</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1,831,184</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1,285,902</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(4,973,230)</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>19,396,940</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Accumulated other comprehensive income</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>277,678</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>225,403</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>4,893</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>507,974</p> </td> </tr> <tr style='height:16.5pt'> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0;height:16.5pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Accumulated loss</p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0;height:16.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(14,728,309)</p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0;height:16.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(6,195,167)</p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0;height:16.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(946,436)</p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0;height:16.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(63,681)</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0;height:16.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(289,787)</p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0;height:16.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(394,356)</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0;height:16.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>733,773</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0;height:16.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(21,883,963)</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:8.05pt'><b>Total Stockholders' Deficit attributable to LEO MOTORS, INC.</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>6,956,597</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(1,307,304)</b></p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>629,229</b></p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>26,572</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(154,408)</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(213,851)</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(1,824,905)</b></p> </td> </tr> <tr style='height:13.5pt'> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0;height:13.5pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Non-controlling interest</p> </td> <td width="69" valign="bottom" style='width:51.7pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="53" valign="bottom" style='width:40.0pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="46" valign="bottom" style='width:34.2pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="52" valign="bottom" style='width:39.2pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="62" valign="bottom" style='width:46.7pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,729,375</p> </td> <td width="70" valign="bottom" style='width:52.8pt;background:white;padding:0;height:13.5pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,729,375</p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:8.05pt'><b>Total Stockholders' Deficit</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>6,956,597</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(1,307,304)</b></p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>629,229</b></p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>26,572</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(154,408)</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(213,851)</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>904,470</b></p> </td> </tr> <tr align="left"> <td width="157" valign="bottom" style='width:117.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>Total Liabilities and Stockholders' Deficit</b></p> </td> <td width="69" valign="bottom" style='width:51.7pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>$8,096,486</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>332,981</b></p> </td> <td width="53" valign="bottom" style='width:40.0pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,241,263</b></p> </td> <td width="46" valign="bottom" style='width:34.2pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>170,023</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>409,928</b></p> </td> <td width="52" valign="bottom" style='width:39.2pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>556,305</b></p> </td> <td width="62" valign="bottom" style='width:46.7pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(5,032,365)</p> </td> <td width="70" valign="bottom" style='width:52.8pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>5,774,621</b></p> </td> </tr> </table> </div> <!--egx--> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>The following is a reconciliation of the computation for basic and diluted EPS for the years ended December 31, 2015 and 2014:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="371" colspan="2" valign="bottom" style='width:278.25pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>For the periods ended</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>12/31/2015</p> </td> <td width="172" valign="bottom" style='width:129.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>12/31/2014</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Net Income (Loss)</p> </td> <td width="174" valign="bottom" style='width:130.5pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$(4,490,972)</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$(4,480,544)</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="174" valign="bottom" style='width:130.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="174" valign="bottom" style='width:130.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Weighted-average common stock Outstanding -&nbsp;&nbsp;basic</p> </td> <td width="174" valign="bottom" style='width:130.5pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>155,866,313</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>97,393,209</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Equivalents</p> </td> <td width="174" valign="bottom" style='width:130.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;Stock options</p> </td> <td width="174" valign="bottom" style='width:130.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;Warrants</p> </td> <td width="174" valign="bottom" style='width:130.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;Convertible Notes</p> </td> <td width="174" valign="bottom" style='width:130.5pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>662,889</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Weighted-average common shares</p> </td> <td width="174" valign="bottom" style='width:130.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>outstanding-&nbsp;&nbsp;Diluted</p> </td> <td width="174" valign="bottom" style='width:130.5pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>155,866,313</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>98,056,098</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the years ending December 31, 2015 through December 31, 2018 are listed on the table below.</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="726" style='width:544.5pt'> <tr align="left"> <td width="553" colspan="2" valign="bottom" style='width:414.75pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>For the Year</b></p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Amount</b></p> </td> </tr> <tr align="left"> <td width="553" colspan="2" valign="bottom" style='width:414.75pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Ending</b></p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="303" valign="bottom" style='width:227.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="251" valign="bottom" style='width:188.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="303" valign="bottom" style='width:227.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2016</p> </td> <td width="251" valign="bottom" style='width:188.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="162" valign="bottom" style='width:121.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$220,827</p> </td> </tr> <tr align="left"> <td width="303" valign="bottom" style='width:227.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2017</p> </td> <td width="251" valign="bottom" style='width:188.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="162" valign="bottom" style='width:121.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>101,249</p> </td> </tr> <tr align="left"> <td width="303" valign="bottom" style='width:227.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2018</p> </td> <td width="251" valign="bottom" style='width:188.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>and beyond</p> </td> <td width="162" valign="bottom" style='width:121.5pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="303" valign="bottom" style='width:227.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="251" valign="bottom" style='width:188.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="162" valign="bottom" style='width:121.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="553" colspan="2" valign="bottom" style='width:414.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Total Commitment</p> </td> <td width="162" valign="bottom" style='width:121.5pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$322,076</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Inventories consist of the following:</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Dec-15</p> </td> <td width="172" valign="bottom" style='width:129.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Dec-14</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>US$</p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>US$</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Raw material</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$0</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$0</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Work in process</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>496,971</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>279,783</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Finished goods</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$496,971</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$279,783</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Property and equipment consisted of the following:</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="170" valign="bottom" style='width:127.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Dec-15</p> </td> <td width="172" valign="bottom" style='width:129.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>31-Dec-14</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="170" valign="bottom" style='width:127.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Vehicles</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$146,268</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$7,581</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Tools</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>95,771</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>12,906</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Office</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>109,447</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>79,963</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Facility equipment</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>210,502</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>157,966</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;Total property and equipment</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>561,988</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>258,416</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Accumulated depreciation</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(398,987)</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(219,796)</p> </td> </tr> <tr align="left"> <td width="930" valign="bottom" style='width:697.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Property and equipment, net</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$163,001</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$38,620</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>12/31/15</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Hana Bank six month note extended with 12 month term</p> </td> <td width="172" valign="bottom" style='width:129.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 3.65%</p> </td> <td width="172" valign="bottom" style='width:129.0pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly and securred by the company.</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$45,505</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Hana Bank six month note extended with 12 month term</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 6.24%</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly.</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>75,775</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr style='height:14.25pt'> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0;height:14.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Hana Bank six month note extended with 12 month term</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0;height:14.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 3.64%</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly and securred by the company.</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>46,800</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>KookMin Bank six month note extended with 12 month term</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 3.28%</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly and securred by the company</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>85,245</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Industrial Bank of Korea Bank four year note extended with 12 month</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>extension fully amortizing with a variable interest rate currently at 3.83%</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>payable monthly.</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>35,718</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>NH Bank six month note extended with 12 month term</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>renewable periods with a variable interest rate currently at 7.25%</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>interest only payable monthly.</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>34,000</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Total Liabilities</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>323,043</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Less current portion</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>49,397</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Long tem debt</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$273,646</p> </td> </tr> </table> </div> <!--egx--> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="1129" valign="top" style='width:846.75pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="172" valign="top" style='width:129.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Total</p> </td> </tr> <tr align="left"> <td width="1129" valign="top" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Deferred Tax Assets</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>8,637,567</p> </td> </tr> <tr align="left"> <td width="1129" valign="top" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Realization Allowance</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(8,637,567)</p> </td> </tr> <tr align="left"> <td width="1129" valign="top" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Balance Recognized</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$-</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>The effective tax rate is as follows:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="1127" style='width:845.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="166" style='width:124.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1127" style='width:845.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="166" style='width:124.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="1127" valign="top" style='width:845.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Statutory Federal Rate</p> </td> <td width="152" valign="bottom" style='width:114.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>34%</p> </td> </tr> <tr align="left"> <td width="1127" valign="top" style='width:845.25pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Effect of Valuation Allowance</p> </td> <td width="152" valign="bottom" style='width:114.0pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(34%)</p> </td> </tr> <tr align="left"> <td width="1127" valign="top" style='width:845.25pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Effective Rate</p> </td> <td width="152" valign="bottom" style='width:114.0pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0%</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>Financial assets and liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheet:</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="242" style='width:181.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="242" style='width:181.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="242" style='width:181.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="242" style='width:181.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="242" style='width:181.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="242" valign="bottom" style='width:181.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="1057" colspan="4" valign="bottom" style='width:792.75pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'><b>Fair Value Measurement Using</b></p> </td> </tr> <tr align="left"> <td width="242" valign="bottom" style='width:181.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Carrying Value</b></p> </td> <td width="242" valign="bottom" style='width:181.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Level 1</b></p> </td> <td width="257" valign="bottom" style='width:192.75pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Level 2</b></p> </td> <td width="257" valign="bottom" style='width:192.75pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Level 3</b></p> </td> <td width="257" valign="bottom" style='width:192.75pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>Total</b></p> </td> </tr> <tr align="left"> <td width="228" valign="bottom" style='width:171.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-0-</p> </td> <td width="228" valign="bottom" style='width:171.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="228" valign="bottom" style='width:171.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="228" valign="bottom" style='width:171.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-0-</p> </td> <td width="228" valign="bottom" style='width:171.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-0-</p> </td> </tr> <tr align="left"> <td width="228" valign="bottom" style='width:171.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$-0-</p> </td> <td width="228" valign="bottom" style='width:171.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$-</p> </td> <td width="228" valign="bottom" style='width:171.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$-</p> </td> <td width="228" valign="bottom" style='width:171.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$-0-</p> </td> <td width="228" valign="bottom" style='width:171.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$-0-</p> </td> </tr> </table> </div> <!--egx--><p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during year ended December 31, 2015.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> </td> <td width="172" valign="bottom" style='width:129.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'><b>Derivative Liability</b></p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Fair value, December 31, 2014&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$819,922</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Additions</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-0-</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Change in fair value</p> </td> <td width="159" valign="bottom" style='width:119.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-0-</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Transfers in and/or out of Level 3</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(819,922)</p> </td> </tr> <tr align="left"> <td width="1129" valign="bottom" style='width:846.75pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:justify'>Fair value, December 31, 2015&nbsp;</p> </td> <td width="159" valign="bottom" style='width:119.25pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$-0-</p> </td> </tr> </table> </div> <!--egx--> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;text-align:justify'>The consolidation of these acquisitions is presented below.</p> <p style='margin-right:0in;margin-left:0in;margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="768" style='width:8.0in'> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Leo Motors consolidation</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Motors</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Motors</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LGM</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Motors</p> </td> <td width="103" valign="bottom" style='width:77.25pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Motors</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>LEO Trade</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>ELIM</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Consolidated</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>March 31, 2015</p> </td> <td width="106" valign="bottom" style='width:79.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>US</p> </td> <td width="106" valign="bottom" style='width:79.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Korea</p> </td> <td width="106" valign="bottom" style='width:79.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Factory 1</p> </td> <td width="103" valign="bottom" style='width:77.25pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Factory 2</p> </td> <td width="106" valign="bottom" style='width:79.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>(f/k/a/ Erum)</p> </td> <td width="106" valign="bottom" style='width:79.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>ENTRIES</p> </td> <td width="106" valign="bottom" style='width:79.5pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>Statements</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>All numbers shown in&nbsp; US Dollars</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="103" valign="bottom" style='width:77.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>DR(CR)</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'>3/31/2015</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;padding:0'> <p align="center" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:center'><b>ASSETS</b></p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="103" valign="bottom" style='width:77.25pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="106" valign="bottom" style='width:79.5pt;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Cash and cash equivalents</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$374</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>67853</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>211,957</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>91,187</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2914</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>92173</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>466,458</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Accounts receivable</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>476,777</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>8,754</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>48,425</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>418,422</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>952,378</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Inventories</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>295,159</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>295,159</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Prepayment to suppliers</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>137,236</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>160,484</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>297,720</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Other current assets</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>7,297</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>57,403</p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1,595</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>125,212</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>36,685</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>228,192</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Current Assets</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>374</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>212,386</b></p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,201,780</b></p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>101,536</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>176,551</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>547,280</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>2,239,907</b></p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Fixed assets, net</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>6,744</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>10,530</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>16,846</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>63,683</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>88,181</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>185,984</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Deposit</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>46,234</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>22,637</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>4,804</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>145,196</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9,025</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>227,896</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Intangible assets</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>63,831</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>63,831</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Goodwill</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,057,003</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,057,003</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Investment in subsidiaries</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>8,089,368</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-8,089,368</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Non-Current Assets</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>8,096,112</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>120,595</b></p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>39,483</b></p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>68,487</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>233,377</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>9,025</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>3,534,714</b></p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Assets</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>$8,096,486</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>332,981</b></p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,241,263</b></p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>170,023</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>409,928</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>556,305</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>-5,032,365</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>5,774,621</b></p> </td> </tr> <tr align="left"> <td width="386" colspan="2" valign="bottom" style='width:289.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>LIABILITIES AND STOCKHOLDERS' EQUITY</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>Current Liabilities:</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Accounts payable and accrued expenses</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>$1,139,889</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1,060,342</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>291,900</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>97,840</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>307,112</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>416,183</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>3,313,266</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Short term borrowings</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>256,392</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>183,245</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>32,052</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>471,689</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Advance from customers</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>30,381</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>9,141</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>4,513</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>44,035</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Due to related parties</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>116,617</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>116,617</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Taxes payable</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>137,780</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>10,673</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>13,559</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>78,783</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>226</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>241,021</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Notes Payable current portion</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>353,747</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>353,747</p> </td> </tr> <tr style='height:17.25pt'> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0;height:17.25pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Current Liabilities</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:17.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,139,889</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:17.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,601,512</b></p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0;height:17.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>494,959</b></p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0;height:17.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>143,451</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:17.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>390,408</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:17.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>770,156</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:17.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:17.25pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>4,540,375</b></p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Long Term Notes</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>36,698</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>117,075</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>173,928</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>327,701</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Accrued severance benefits</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,075</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,075</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:16.05pt'><b>Total Liabilities</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,139,889</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,640,285</b></p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>612,034</b></p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>143,451</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>564,336</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>770,156</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>4,870,151</b></p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>Stockholders' Equity</b><b>:</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Common stock</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>154,144</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,831,276</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>284,870</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>90,253</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>135,379</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>180,505</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(3,522,283)</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>154,144</p> </td> </tr> <tr style='height:15.0pt'> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0;height:15.0pt'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Additional paid-in capital</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>21,253,084</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1,831,184</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>1,285,902</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(4,973,230)</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0;height:15.0pt'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>19,396,940</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Accumulated other comprehensive income</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>277,678</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>225,403</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>4,893</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>507,974</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:.5in'>Accumulated loss</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(14,728,309)</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(6,195,167)</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(946,436)</p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(63,681)</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(289,787)</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(394,356)</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>733,773</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(21,883,963)</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:8.05pt'><b>Total Stockholders' Deficit attributable to LEO MOTORS, INC.</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>6,956,597</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(1,307,304</b></p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>629,229</b></p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>26,572</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(154,408)</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(213,851)</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(1,824,905)</b></p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'>Non-controlling interest</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="98" valign="bottom" style='width:73.5pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,729,375</p> </td> <td width="93" valign="bottom" style='width:69.75pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>2,729,375</p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-indent:8.05pt'><b>Total Stockholders' Deficit</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>6,956,597</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(1,307,304</b></p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>629,229</b></p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>26,572</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(154,408)</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>(213,851)</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:solid black 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>904,470</b></p> </td> </tr> <tr align="left"> <td width="266" valign="bottom" style='width:199.5pt;background:white;padding:0'> <p style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt'><b>Total Liabilities and Stockholders' Deficit</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>$8,096,486</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>332,981</b></p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>1,241,263</b></p> </td> <td width="98" valign="bottom" style='width:73.5pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>170,023</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>409,928</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>556,305</b></p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'>(5,032,365)</p> </td> <td width="93" valign="bottom" style='width:69.75pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-right:0in;margin-left:0in;margin:0in;margin-bottom:.0001pt;text-align:right'><b>5,774,621</b></p> </td> </tr> </table> </div> 813747 47352450 -458166 -595418 161878686 149069490 0 0 0 0 0 902520 161878686 149972010 136887 382545 165620 101249 0 266869 0 838785 0 838785 146268 95771 109447 210502 561988 419851 142137 20864 4500 270000 359757 0.0365 62883 0.0624 76479 0.0328 84977 0.0383 127465 0.0725 7954 359757 264158 95599 25827119 155766 8781220 8781220 0 0.3400 0.3400 0.0000 86998 277 3057003 3144278 0 3144278 0.5000 0.5000 0.5000 7000000 0.3000 0.1000 813747 47352450 66300000 0.5100 0.4900 32500000 32200000 0.5000 1414828 0.30 -4490972 -4480544 155866313 97393209 0 0 0 0 0 662889 155866313 98056098 140396 150637 279229 306969 -25404609 220827 101249 0 322076 1000000 0 0 496971 279783 0 0 496971 279783 146268 7581 95771 12906 109447 79963 210502 157966 561988 258416 398987 219796 163001 38620 207837 19470 270000 762000 448801 819922 0.0400 14924263 0.0365 45505 0.0624 75775 0.0364 46800 0.0328 85245 0.0383 35718 0.0725 34000 323043 49397 273646 25404609 1376115 8637567 8637567 0 0.3400 0.3400 0.0000 63554 63554 277 277 3057003 2444558 3120834 2508389 0 0 3120834 2508389 819922 825529 275176 0 0 0 0 819922 0 0 819922 0 0.5000 0.5000 374 67853 211957 91187 2914 92173 0 466458 0 0 476777 8754 48425 418422 0 952378 0 0 295159 0 0 0 0 295159 0 137236 160484 0 0 0 0 297720 0 7297 57403 1595 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Document and Entity Information - shares
3 Months Ended
Mar. 31, 2016
May 12, 2016
Document and Entity Information    
Entity Registrant Name Leo Motors, Inc.  
Document Type S-1  
Document Period End Date Mar. 31, 2016  
Amendment Flag true  
Entity Central Index Key 0001356564  
Current Fiscal Year End Date --12-31  
Entity Common Stock, Shares Outstanding   162,299,074
Entity Filer Category Smaller Reporting Company  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Well-known Seasoned Issuer No  
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus FY  
Trading Symbol leom  
Amendment Description The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission acting pursuant to said Section 8(a) may determine.  
XML 25 R2.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONSOLIDATED BALANCE SHEETS - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Current Assets      
Cash and cash equivalents $ 130,874 $ 243,809 $ 217,178
Accounts receivable 1,015,447 1,565,114 542,210
Inventories 838,785 496,971 279,783
Prepayment to suppliers 382,545 279,229 306,969
Other current assets 199,073 32,107 49,705
Total Current Assets 2,566,724 2,617,230 1,395,845
Fixed assets, net 142,137 163,001 38,620
Deposit 346,255 346,659 51,601
Intangible assets 87,275 63,831 63,831
Goodwill 3,057,003 3,057,003 2,444,558
Total Assets 6,199,394 6,247,724 3,994,455
Current Liabilities:      
Accounts payable and accrued expenses 3,748,487 4,082,198 2,152,951
Short term borrowings 0 7,661 448,801
Advance from customers 496,385 795,431 40,951
Due to related parties 136,887 140,396 150,637
Taxes payable 155,151 99,584 159,478
Derivative liability 819,922
Notes Payable current portion 264,158 49,397 526,257
Total Current Liabilities 4,801,068 5,174,667 4,298,997
Accrued retirement benefits 96,518 92,948 2,150
Notes payable long term 95,599 273,646 145,316
Other long term liabilities 196,579 129,748 0
Total Liabilities 5,189,764 5,671,009 4,446,463
Commitments (Note 8)
Leo Motors, Inc.("LEOM") Equity(Deficit):      
Common stock ($0.001 par value; 300,000,000 shares authorized); 163,198,512 and 158,948,604 shares issued and outstanding at March 31, 2016 and December 31, 2015 163,199 158,949 138,624
Additional paid-in capital 20,990,286 20,367,272 17,723,248
Accumulated other comprehensive income 1,329,240 1,251,120 511,229
Accumulated loss (25,827,119) (25,404,609) (21,357,211)
Total Equity(Deficit) Leo Motors, Inc. (3,344,394) (3,627,268) (2,984,110)
Non-controlling interest 4,354,024 4,203,983 2,532,102
Total Equity(Deficit) 1,009,630 576,715 (452,008)
Total Liabilities and Equity(Deficit) $ 6,199,394 $ 6,247,724 $ 3,994,455
XML 26 R3.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares
Mar. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Statement of Financial Position      
Common Stock, par or stated value $ 0.001 $ 0.001 $ 0.001
Common Stock, shares authorized 300,000,000 220,000,000 220,000,000
Common Stock, shares issued 163,198,512 158,948,604 138,624,206
Common Stock, shares outstanding 163,198,512 158,948,604 138,624,206
XML 27 R4.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Dec. 31, 2014
Income Statement        
Revenues $ 745,706 $ 42,771 $ 4,299,187 $ 693,096
Cost of Revenues 291,014 0 3,275,587 379,066
Gross Profit 454,692 42,771 1,023,600 314,030
Operating Expenses 908,860 358,411 5,421,508 3,468,599
Income(loss) from Continuing Operations (454,168) (315,640) (4,397,908) (3,154,569)
Other Income (Expenses)        
Interest expense (9,328) (280,975) (319,054) (1,325,975)
Non-Operating (expense) income 5,330 1,197 225,990 0
Total Other Income (Expenses) (3,998) (279,778) (93,064) (1,325,975)
Income(loss) from Continuing Operations Before Income Taxes (458,166) (595,418) (4,490,972) (4,480,544)
Income Tax Expense 0 0 0 0
Net Income(Loss) (458,166) (595,418) (4,490,972) (4,480,544)
Income(loss) attributable to non-controlling interest (35,655) (68,666) (443,574) (4,817)
Net Income(Loss) Attributable To Leo Motors, Inc. (422,511) (526,752) (4,047,398) (4,485,361)
Other Comprehensive Income:        
Net Income(Loss) (458,166) (595,418) (4,490,972) (4,480,544)
Unrealized foreign currency translation gain 78,120 (3,255) 739,891 (42,899)
Comprehensive Income(loss) Attributable to Leo Motors, Inc. $ (344,391) $ (530,007) $ (3,751,081) $ (4,523,443)
Net Loss per Common Share:        
Basic $ (0.00) $ (0.00) $ (0.03) $ (0.05)
Diluted $ (0.00) $ (0.00) $ (0.03) $ (0.05)
Weighted Average Common Shares Outstanding:        
Basic 161,878,686 149,069,490 155,866,313 97,393,209
Diluted 161,878,686 149,972,010 155,866,313 98,056,098
XML 28 R5.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
Common Stock
Additional Paid-in Capital
Accumulated Loss
Accumulated Other Comprehensive Income
Non-Controlling Interest
Total
Equity Balance, beginning of period, Value at Dec. 31, 2013 $ 67,834 $ 13,290,081 $ (16,871,850) $ 468,330 $ 2,527,285 $ (518,320)
Equity Balance, beginning of period, Shares at Dec. 31, 2013 67,833,662          
Stock-based compensation, Value $ 16,610 1,395,854       1,412,464
Stock-based compensation, Shares 16,610,000          
Stock Issued in payment of debt, Value $ 5,965 278,678       284,643
Stock Issued in payment of debt, Shares 5,965,990          
Stock Issued for investment, Value $ 45,978 2,758,635       2,804,613
Stock Issued for investment, Shares 45,977,264          
Minority interest contributions, Value $ 2,237       0 2,237
Minority interest contributions, Shares 2,237,290          
Net loss     (4,485,361)   4,817 (4,480,544)
Foreign currency translation adjustment       42,899   42,899
Equity Balance, end of period, Value at Dec. 31, 2014 $ 138,624 17,723,248 (21,357,211) 511,229 2,532,102 (452,008)
Equity Balance, end of period, Shares at Dec. 31, 2014 138,624,206          
Net loss           (595,418)
Equity Balance, end of period, Value at Mar. 31, 2015           904,470
Equity Balance, beginning of period, Value at Dec. 31, 2014 $ 138,624 17,723,248 (21,357,211) 511,229 2,532,102 (452,008)
Equity Balance, beginning of period, Shares at Dec. 31, 2014 138,624,206          
Stock-based compensation, Value $ 20,325 1,795,065       1,815,390
Stock-based compensation, Shares 20,324,398          
Retirement of derivatives   819,922       819,922
Warrants issued for investment   29,037       29,037
Minority interest contributions         2,115,455 2,115,455
Net loss     (4,047,398)   (443,574) (4,490,972)
Foreign currency translation adjustment       739,891   739,891
Equity Balance, end of period, Value at Dec. 31, 2015 $ 158,949 $ 20,367,272 $ (25,404,609) $ 1,251,120 $ 4,203,983 576,715
Equity Balance, end of period, Shares at Dec. 31, 2015 158,948,604          
Net loss           (458,166)
Equity Balance, end of period, Value at Mar. 31, 2016           $ 1,009,630
XML 29 R6.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Dec. 31, 2014
Cash flows from Operating Activities:        
Net loss $ (458,166) $ (595,418) $ (4,490,972) $ (4,480,544)
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization 20,864 4,500 207,837 19,470
Loss on conversion of debt     0 24,376
Amortization debt discount 0 275,176 275,176 340,568
Foreign currency translation 78,120 (3,255) 739,891 42,899
Stock-based compensation 115,938 38,820 903,704 284,643
Gain on derivative liabilites     0 (5,607)
Impairment of investment     0 762,000
Changes in assets and liabilities:        
Accounts Receivable 549,667 (410,168) (1,022,904) (542,210)
Inventories (341,814) (15,376) (217,188) (279,783)
Prepayment to suppliers (103,316) 9,249 27,740 (108,996)
Other assets (166,966) (178,487) 17,598 (19,522)
Accounts payable, other payables and accrued expenses (266,880) 1,160,315 1,929,247 1,033,656
Accrued retirement benefits 3,570 (75) 90,798 (59,886)
Advances from customers (299,046) 3,084 883,658 (394,488)
Taxes payable 55,567 81,543 (59,894) 12,628
Net cash used in operating activities: (812,462) 369,908 (715,309) (3,370,796)
Cash flows from investing activities:        
Investment in equipment (23,444) (151,864) (332,218) (16,846)
Payments on deposits (404) (176,295) (295,058) 0
Net cash provided(used) in investing activities: (23,848) (328,159) (627,276) (16,846)
Cash flows from financing activities:        
Proceeds from notes payable 32,373 201,380 427,208 801,433
Payments on related party debt net (3,509) 0 (10,241) 0
Payments on notes payable (7,661) (22,886) (441,140) 0
Capital contributions 186,973 0
Proceeds from issuance of stock & warrants 515,199 29,037 1,393,389 2,801,613
Net cash provided(used) by financing activities: 723,375 207,531 1,369,216 3,603,046
Net Increase in cash and cash equivalents: (112,935) 249,280 26,631 215,404
Cash and cash equivalents - beginning of year 243,809 217,178 217,178 1,774
Cash and cash equivalents - end of year 130,874 466,458 243,809 217,178
Supplemental disclosure of cash flow activities:        
Interest 9,328 4,817 43,878 0
Income taxes 0 0 0 4,817
Supplemental disclosures of non cash activities:        
Conversion of derivative liability 0 819,922 819,922 569,584
Goodwill on acquisition 0 641,687 612,445 0
Conversion of debt for common stock 0 801,433 1,901,433 98,496
Common stock issued for services $ 115,938 $ 38,820 $ 903,704 $ 284,643
XML 30 R7.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 1 - Company Background
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes    
Note 1 - Company Background

NOTE 1 - COMPANY BACKGROUND

 

Leo Motors, Inc. (the "Company," or "we") is currently in development, assembly and sales of the energy storage devices and electric vehicle components.

 

The Company was originally incorporated in California as N. Org., Inc. on December 12, 1983. The Company then underwent several name changes from Natural Organics Corporation to Classic Auto Accessories of North America and then to FCR Automotive Group, Inc. On September 20, 2004, the Company reincorporated  in  Delaware by merging into FCR Group, Inc.,  a  Delaware Automotive       corporation,  which  was  organized  on  September  8, 2004. On July  26,  2005,  the  Company acquired Shinil Precision Co., Ltd., a Korean Company,  as  its  operating  business  and on July 18, 2005, changed its name to Shinil  Precision Machinery, Inc. to reflect its anticipated new business. Upon failure of certain terms  and  conditions  of  the acquisition agreement, the Company  returned the shares of Shinil and recovered and cancelled the Company's shares  issued  in  the  acquisition. In 2012, the Company changed its domicile to Nevada.

 

The Company had been dormant since 1989, and consummated a reverse merger on November 12, 2007 with Leozone Inc., a South Korean company, which is the maker of electrical transportation devices. The merger essentially exchanges shares in Leo Motors, Inc. for shares in Leozone. As this is a reverse merger the accounting treatment of such is that of a combination of the two entities with the activity of Leozone, Inc. the surviving entity, going forward. The financial statements reflect the activity for all periods presented as if the merger had occurred January 1, 2007. Leozone has continued to operate as a separate subsidiary Leo Motors Co. Ltd. of Korea since that time.

 

On February 11, 2010, the Company acquired 50% of Leo B&T Corp., a South Korean corporation ("B&T"), from two shareholders of B&T in exchange for 7,000,000 shares of the Company's common stock. Our ownership in B&T was reduced to 30% in 2011. Additionally, this investment was written down as impairment expense during 2011 and the remaining investment was exchanged in 2012 for a return of Leo Motors stock.

 

On November 10, 2012, the Company signed an agreement withPDI C&D/RDC SPRL Inc. ("PDI"), an affiliate of PDI Global LLC, a major architectural design company in the U.S., to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo ("DRC"). This project has incurred an impairment charge as detailed in these footnotes.

 

On July 1, 2014, the Company acquired all of the outstanding common stock of LGM Co. Ltd., a corporation incorporated in the Republic of Korea ("LGM"), from LGM's shareholders, which represents 813,747 shares of LGM common stock, in exchange for 47,352,450 shares of the Company's common stock pursuant to the Share Swap Agreement entered into by and between LGM and the Company. Upon closing of the Share Swap Agreement, LGM became a wholly-owned subsidiary of the Company.

 

On March 31, 2015, the Company acquired 50% interest in each of Leo Motors Factory, Inc. ("Leo Factory 1") and Leo Motors Factory 2, Inc. ("Leo Factory 2")which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired 50% interest in Leo Trading Inc.(formerly Erum Motors, Inc.) ("Leo Trade") specializing in the trading of luxury cars. These acquired entities will be presented on a consolidated basis as the parent company has significant control of the business through the Board of Directors which can decide decisions split on strictly on common share ownership percentages.

 

 

 

NOTE 1 - COMPANY BACKGROUND

 

Leo Motors, Inc. (the "Company," or "we") is currently in development, assembly and sales of the energy storage devices and electric vehicle components.

 

The Company was originally incorporated in California as N. Org., Inc. on December 12, 1983. The Company then underwent several name changes from Natural Organics Corporation to Classic Auto Accessories of North America and then to FCR Automotive Group, Inc. On September 20, 2004, the Company reincorporatedinDelaware by merging into FCR Group, Inc.,aDelaware Automotive corporation,whichwasorganizedonSeptember8, 2004. On July26,2005,theCompany acquired Shinil Precision Co., Ltd., a Korean Company,asitsoperatingbusinessand on July 18, 2005, changed its name to ShinilPrecision Machinery, Inc. to reflect its anticipated new business. Upon failure of certain termsandconditionsofthe acquisition agreement, the Companyreturned the shares of Shinil and recovered and cancelled the Company's sharesissuedintheacquisition. In 2012, the Company changed its domicile to Nevada.

 

The Company had been dormant since 1989, and consummated a reverse merger on November 12, 2007 with Leozone Inc., a South Korean company, which is the maker of electrical transportation devices. The merger essentially exchanges shares in Leo Motors, Inc. for shares in Leozone. As this is a reverse merger the accounting treatment of such is that of a combination of the two entities with the activity of Leozone, Inc. the surviving entity, going forward. The financial statements reflect the activity for all periods presented as if the merger had occurred January 1, 2007. Leozone has continued to operate as a separate subsidiary Leo Motors Co. Ltd. of Korea since that time.

 

On February 11, 2010, the Company acquired 50% of Leo B&T Corp., a South Korean corporation ("B&T"), from two shareholders of B&T in exchange for 7,000,000 shares of the Company's common stock. Our ownership in B&T was reduced to 30% in 2011. Additionally, this investment was written down as impairment expense during 2011 and the remaining investment was exchanged in 2012 for a return of Leo Motors stock.

 

On November 10, 2012, the Company signed an agreement withPDI C&D/RDC SPRL Inc. ("PDI"), an affiliate of PDI Global LLC, a major architectural design company in the U.S., to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo ("DRC"). The Company had a 10% interest in the overall project. This project has incurred an impairment charge as further detailed in our financial statements and the notes thereto. Due to unavoidable political/regional instability in the DRC, the contract with PDI was unable to be fulfilled and as of May 2015, the contract was terminated.

 

On July 1, 2014, the Company acquired all of the outstanding common stock of LGM Co. Ltd., a corporation incorporated in the Republic of Korea ("LGM"), from LGM's shareholders, which represents 813,747 shares of LGM common stock, in exchange for 47,352,450 shares of the Company's common stock pursuant to the Share Swap Agreement entered into by and between LGM and the Company. Upon closing of the Share Swap Agreement, LGM became a wholly-owned subsidiary of the Company.

 

On March 31, 2015, the Company acquired 50% interest in each ofLeo Motors Factory, Inc. ("Leo Factory 1") and Leo Motors Factory 2, Inc. ("Leo Factory 2")which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired 50% interest in Leo Trading Inc.(formerly Erum Motors, Inc.) ("Leo Trade") specializing in the trading of luxury cars. These acquired entities will be presented on a consolidated basis as the parent company has significant control of the business through the Board of Directors which can decide decisions split on strictly on common share ownership percentages.

 

On July 31, 2015, the Company entered into a joint venture company agreement (the "JV Agreement") with Fushun Jinyuan Technology Machinery Manufacturing Co., Ltd., a company established and existing under the laws of the People's Republic of China, to establish a joint venture, Liaoning Senyuan Leo New Energy Electric Vehicle Co., Ltd. in China, to develop, manufacture and sell new energy electric vehicles. The joint venture company has not been incorporated yet because the Company's funding for the joint venture company is delayed. Pursuant to the JV Agreement, Senyuan Leo will have a registered capital of RMB 411,600,000 (approximately $66.3 million), with Fushun Jinyuan owning 51% and the Company owning 49%. The total capital contribution shall be completed no later than 90 days from the date Senyuan Leo is incorporated, which deadline may be further extended to 108 days from the date of incorporation. The Company will invest in Senyuan Leo through a cash contribution of RMB 201,684,000 (approximately $32.5 million) and Fushun Jinyuan will invest in Senyuan Leo through a cash contribution of RMB 200,000,000 (approximately $32.2 million).

 

On June 3, 2016, the Company acquired 50% ownership of Lelcon Co., Ltd. ("Lelcon"). The Company will issue 1,414,828 shares of its common stock at $0.30 per share in exchange for 50% equity in Lelcon.

 

XML 31 R8.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 2 - Policies
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes    
Note 2 - Policies

POLICIES

 

This summary of significant account policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and the notes are the representation of the Company's management, who are responsible for their integrity and objectivity. These accounting policies conform to U.S. generally accepted accounting principles ("USGAAP") and have been consistently applied in the preparation of the financial statements.

 

Basis of Presentation and Consolidation

 

These financial statements and related notes are expressed in US dollars. The Company's fiscal year-end is December 31. The consolidated financial statements include the financial statements of the Leo Motors Co. Ltd. Korea and LGM Co. LTD where the Parent Company has significant control. All inter-company transactions and balances have been eliminated upon consolidation.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Fair Value of Financial Instruments

 

For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable inventory and prepaid expenses, accounts payable and deferred revenues, the carrying amounts approximate fair value due to their short maturities.

 

Revenue Recognition

 

The Company follows the guidance of the Securities and Exchange Commission's Staff Accounting Bulletin No. 104, "Revenue Recognition in Financial Statements". In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company.

 

The Company generates revenue from the delivery of goods and records revenues when the sales are completed, already collected or collectability is reasonably assured, there is no future obligation and there is remote chance of future claim or refund to the customers.

 

Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the delivery of professional services. Pricing is fixed and determinable according to the Company's published brochures and price lists.

 

Accounts Receivables

 

Accounts receivables of the Company are reviewed to determine if their carrying value has become impaired.

The Company considers the assets to be impaired if the balances are greater than one-year old. Management regularly reviews accounts receivable and will establish an allowance for potentially uncollectible amounts when appropriate. When accounts are written off, they will be charged against the allowance.

 

Receivables are not collateralized and do not bear interest.

 

Cash Equivalents

 

For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalent.

 

Fixed Assets

 

Fixed assets are stated at cost, less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which is generally 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).

 

The Company will periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful lives of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability.

 

Intangible and Long Lived Assets

 

The Company follows ASC 360-10, "Property, Plant, and Equipment," which established a "primary asset" approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through March 31, 2016, the Company had not experienced impairment losses on its long-lived assets.

 

Income Taxes

 

The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, "Accounting for 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 available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

 

ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is "more likely than not" that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable.

 

Loss per Share

 

Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of both common and preferred stock outstanding for the period.

 

Stock-Based Compensation

 

SFAS No. 123, "Accounting for Stock-Based Compensation," establishes and encourages the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with SFAS No. 123 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model.

 

Foreign Currency Translation And Comprehensive Income

 

The reporting currency of the Company is the US$. The functional currency of the parent company is the US$ and the functional currency of the Company's operating subsidiary is Korean Won ("KRW"). The subsidiary's results of operations and cash flows are translated at average exchange rates during the year, assets and liabilities are translated at the unified exchange rate at the end of the year, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into US$ are included in determining comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company does not enter any material transaction in foreign currencies and accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company.

 

Recent Accounting Pronouncements

 

The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company's financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable.

POLICIES

 

This summary of significant account policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and the notes are the representation of the

 

Company's management, who are responsible for their integrity and objectivity. These accounting policies conform to U.S. generally accepted accounting principles ("USGAAP") and have been consistently applied in the preparation of the financial statements.

 

Basis of Presentation and Consolidation

 

These financial statements and related notes are expressed in US dollars. The Company's fiscal year-end is December 31. The consolidated financial statements include the financial statements of the Leo Motors Co. Ltd. Korea and LGM Co. LTD where the Parent Company has significant control. All inter-company transactions and balances have been eliminated upon consolidation.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Fair Value of Financial Instruments

 

For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable inventory and prepaid expenses, accounts payable and deferred revenues, the carrying amounts approximate fair value due to their short maturities.

 

Revenue Recognition

 

The Company follows the guidance of the Securities and Exchange Commission's Staff Accounting Bulletin No. 104, "Revenue Recognition in Financial Statements". In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company.

 

The Company generates revenue from the delivery of goods and records revenues when the sales are completed, already collected or collectability is reasonably assured, there is no future obligation and there is remote chance of future claim or refund to the customers.

 

Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the delivery of professional services. Pricing is fixed and determinable according to the Company's published brochures and price lists.

 

Accounts Receivables

 

Accounts receivables of the Company are reviewed to determine if their carrying value has become impaired.

The Company considers the assets to be impaired if the balances are greater than one-year old. Management regularly reviews accounts receivable and will establish an allowance for potentially uncollectible amounts when appropriate. When accounts are written off, they will be charged against the allowance.

 

Receivables are not collateralized and do not bear interest.

 

Cash Equivalents

 

For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalent.

 

Fixed Assets

 

Fixed assets are stated at cost, less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which is generally 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).

 

The Company will periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful lives of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability.

 

Intangible and Long Lived Assets

 

The Company follows ASC 360-10, "Property, Plant, and Equipment," which established a "primary asset" approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through December 31, 2015, the Company had not experienced impairment losses on its long-lived assets.

 

Income Taxes

 

The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, "Accounting for 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 available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

 

ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is "more likely than not" that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable.

 

Loss per Share

 

Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of both common and preferred stock outstanding for the period.

 

Stock-Based Compensation

 

SFAS No. 123, "Accounting for Stock-Based Compensation," establishes and encourages the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with SFAS No. 123 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model.

 

Foreign Currency Translation And Comprehensive Income

 

The reporting currency of the Company is the US$. The functional currency of the parent company is the US$ and the functional currency of the Company's operating subsidiary is Korean Won ("KRW"). The subsidiary's results of operations and cash flows are translated at average exchange rates during the year, assets and liabilities are translated at the unified exchange rate at the end of the year, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into US$ are included in determining comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company does not enter any material transaction in foreign currencies and accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company

.

 

Recent Accounting Pronouncements

 

The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company's financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable.

XML 32 R9.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 3 - Earnings Per Share
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes    
Note 3 - Earnings Per Share

NOTE 3 - EARNINGS PER SHARE

The Company reports basic and diluted earnings per share (EPS) according to the provisions of ASC Topic 260, which requires the presentation of basic EPS and, for companies with complex capital structures, diluted EPS. Basic EPS excludes dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) available to common stockholders, adjusted by other changes in income or loss that would result from the assumed conversion of those potential common shares, by the weighted number of common shares and common share equivalents (unless their effect is antidilutive) outstanding. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports a loss because to do so would be antidilutive. Thus, these equivalents are not included in the calculation of diluted loss per share, resulting in basic and diluted loss per share being equal.

The following is a reconciliation of the computation for basic and diluted EPS for the three months ended March 31, 2016 and 2015:

 

 

For the periods ended

 

3/31/2016

3/31/2015

 

 

 

Net Income (Loss)

$(458,166)

$(595,418)

 

 

 

 

 

 

Weighted-average common stock Outstanding -  basic

161,878,686

149,069,490

Equivalents

 

 

  Stock options

-

0

  Warrants

-

0

  Convertible Notes

0

902,520

 

 

Weighted-average common shares outstanding-  Diluted

161,878,686

149,972,010

NOTE 3 - EARNINGS PER SHARE

 

The Company reports basic and diluted earnings per share (EPS) according to the provisions of ASC Topic 260, which requires the presentation of basic EPS and, for companies with complex capital structures, diluted EPS. Basic EPS excludes dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) available to common stockholders, adjusted by other changes in income or loss that would result from the assumed conversion of those potential common shares, by the weighted number of common shares and common share equivalents (unless their effect is antidilutive) outstanding. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports a loss because to do so would be antidilutive. Thus, these equivalents are not included in the calculation of diluted loss per share, resulting in basic and diluted loss per share being equal.

The following is a reconciliation of the computation for basic and diluted EPS for the years ended December 31, 2015 and 2014:

 

 

For the periods ended

 

12/31/2015

12/31/2014

 

 

 

Net Income (Loss)

$(4,490,972)

$(4,480,544)

 

 

 

 

 

 

Weighted-average common stock Outstanding -  basic

155,866,313

97,393,209

Equivalents

 

 

  Stock options

-

0

  Warrants

-

0

  Convertible Notes

0

662,889

Weighted-average common shares

 

 

outstanding-  Diluted

155,866,313

98,056,098

XML 33 R10.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 4 - Due To Related Party
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes    
Note 4 - Due To Related Party

NOTE 4 - DUE TO RELATED PARTY

 

The company is indebted to its officer for advances. Repayment is on demand without interest. The balance was $136,887 at March  31, 2016 and $140,396 at December 31, 2015.

NOTE 4 - DUE TO RELATED PARTY

 

The company is indebted to its officer for advances. Repayment is on demand without interest. The balance was $140,396 at December 31, 2015 and $150,637 at December 31, 2014

XML 34 R11.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 5 - Payments Received in Advance
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes    
Note 5 - Payments Received in Advance

 NOTE 5 - PAYMENTS RECEIVED IN ADVANCE

 

The Company during the periods received payments from potential customers, or deposits, on future orders. The Company's policy is to record these payments as a liability until the product is completed and shipped to the customer at which the Company recognizes revenue. As of March 31, 2016 and December 31, 2015, the balance of payments received in advance was $382,545 and $ 279,229, respectively.

NOTE 5 - PAYMENTS RECEIVED IN ADVANCE

 

The Company during the periods received payments from potential customers, or deposits, on future orders. The Company's policy is to record these payments as a liability until the product is completed and shipped to the customer at which the Company recognizes revenue. As of December 31, 2015 and December 31, 2014, the balance of payments received in advance was $279,229 and $ 306,969, respectively.

 

XML 35 R12.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 6 - Going Concern
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes    
Note 6 - Going Concern

NOTE 6 - GOING CONCERN

 

As reported in the consolidated financial statements, the Company has accumulated deficits of $25,404,609 as of December 31, 2015 and its current liabilities exceeded its current assets. These negative trends have been consistent over the last few years except for asset sales.

 

These factors  create  uncertainty  about  the  Company's  ability  to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable and to create operations that contribute capital from normal operations. If the Company cannot obtain  adequate  capital  it  could  be  forced  to  cease operations.

 

In order to continue as a going concern, develop and generate revenues and achieve a  profitable  level of operations, the Company will need, among other things, additional capital resources. Management's plans to obtain such resources for the  Company  include  (1) raising additional capital through sales of common stock, (2) converting  promissory notes into  common  stock  and (3) entering into acquisition agreements  with profitable  entities  with   significant   operations.   In   addition, management is continually seeking to streamline its operations and expand the business through a variety of industries, including real estate and financial management.

 

However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

 

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations.  The accompanying   consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

NOTE 6 - GOING CONCERN

 

As reported in the consolidated financial statements, the Company has accumulated deficits of $25,404,609 as of December 31, 2015 and its current liabilities exceeded its current assets. These negative trends have been consistent over the last few years except for asset sales.

 

These factors  create  uncertainty  about  the  Company's  ability  to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable and to create operations that contribute capital from normal operations. If the Company cannot obtain  adequate  capital  it  could  be  forced  to  cease operations.

 

In order to continue as a going concern, develop and generate revenues and achieve a  profitable  level of operations, the Company will need, among other things, additional capital resources. Management's plans to obtain such resources for the  Company  include  (1) raising additional capital through sales of common stock, (2) converting  promissory notes into  common  stock  and (3) entering into acquisition agreements  with profitable  entities  with   significant   operations.   In   addition, management is continually seeking to streamline its operations and expand the business through a variety of industries, including real estate and financial management.

 

However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

 

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations.  The accompanying   consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

XML 36 R13.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 7 - Commitments and Contingencies
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes    
Note 7 - Commitments and Contingencies

NOTE 7 - COMMITMENTS AND CONTINGENCIES

 

(a) Lease Commitments

 

The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the period ending March 31, 2016 through December 31, 2018 are listed on the table below.

 

 

For the Year

Amount

 

 

Ending

 

 

 

 

 

 

2016

 

$165,620

 

2017

 

101,249

 

2018

 and beyond

0

 

 

 

 

 

 

Total Commitment 

$266,869

 

 

 

(b) Strategic Investment

 

On November 10, 2012, the Company and PDI C&D/RDC SPRL Inc. ("PDI"), an affiliate of PDI Global LLC, a major architectural design company in the U.S., signed a contract to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo ("DRC"). The Company had a commitment to raise $1,000,000 to fulfill its part of the contract for strategic investment. This investment was impaired in full as of December 31, 2014 as due to unavoidable political/regional instability in the DRC, the contract with PDI was unable to be fulfilled and as of May 2015, the contract was terminated.

.

NOTE 7 - COMMITMENTS AND CONTINGENCIES

 

(a) Lease Commitments

 

The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the years ending December 31, 2015 through December 31, 2018 are listed on the table below.

For the Year

Amount

Ending

 

 

 

 

2016

 

$220,827

2017

 

101,249

2018

and beyond

0

 

 

 

Total Commitment

$322,076

 

(b) Strategic Investment

 

On November 10, 2012, the Company and PDI C&D/RDC SPRL Inc. ("PDI"), an affiliate of PDI Global LLC, a major architectural design company in the U.S., signed a contract to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo ("DRC"). The Company had a commitment to raise $1,000,000 to fulfill its part of the contract for strategic investment. This investment was impaired in full as of December 31, 2014 as due to unavoidable political/regional instability in the DRC, the contract with PDI was unable to be fulfilled and as of May 2015, the contract was terminated.

XML 37 R14.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 8 - Inventories
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes    
Note 8 - Inventories

NOTE 8 - INVENTORIES

 

Inventories consist of the following:

 

 

31-Mar-16

31-Dec-15

 

US$

US$

Raw material

$0

$0

Work in process

838,785

496,971

Finished goods

0

0

 

$838,785

$496,971

 

279283

 

NOTE 8 - INVENTORIES

 

Inventories consist of the following:

 

31-Dec-15

31-Dec-14

 

US$

US$

Raw material

$0

$0

Work in process

496,971

279,783

Finished goods

0

0

 

$496,971

$279,783

XML 38 R15.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 9 - Property and Equipment
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes    
Note 9 - Property and Equipment

NOTE 9 - PROPERTY AND EQUIPMENT

 

 

Property and equipment consisted of the following:

  

 

31-Mar-16

31-Dec-15

 

 

 

Vehicles

$146,268

$146,268

Tools

95,771

95,771

Office

109,447

109,447

Facility equipment

210,502

210,502

 

 

 

 Total property and equipment

561,988

561,988

 

 

 

Accumulated depreciation

(419,851)

(398,987)

Property and equipment, net

$142,137

$163,001

 

Depreciation expense for the three months ended March 31, 2016 and 2015 amounted to $20,864 and $4,500,  respectively.

NOTE 9 - PROPERTY AND EQUIPMENT

 

Property and equipment consisted of the following:

 

31-Dec-15

31-Dec-14

 

 

 

Vehicles

$146,268

$7,581

Tools

95,771

12,906

Office

109,447

79,963

Facility equipment

210,502

157,966

 

 

 

 Total property and equipment

561,988

258,416

 

 

 

Accumulated depreciation

(398,987)

(219,796)

Property and equipment, net

$163,001

$38,620

Depreciation expense for the years ended December 31, 2015 and 2014 amounted to $207,837 and $19,470,  respectively.

XML 39 R16.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 10 - Investments
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes    
Note 10 - Investments

NOTE 10 - INVESTMENTS

 

During 2012, the Company invested in a housing project in the Republic of the Congo which would use our E-Box power storage device. $270,000 had been invested. Their interest has been recorded using the cost investment of accounting for investments. During the year ended December 31, 2014, the completion of this project has come into question. Due to this and other factors the Company has impaired the investments in full with a charge off of $762,000.

NOTE 10 - INVESTMENTS

 

During 2012, the Company invested in a housing project in the Republic of the Congo which would use our E-Box power storage device. $270,000 had been invested. Their interest has been recorded using the cost investment of accounting for investments. During the year ended December 31, 2014, the completion of this project has come into question. Due to this and other factors the Company has impaired the investments in full with a charge off of $762,000 .

XML 40 R17.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 11 - Short Term Borrowings and Notes Payable
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes    
Note 11 - Short Term Borrowings and Notes Payable

NOTE 11 - SHORT TERM BORROWINGS AND NOTES PAYABLE

 

The Company continues to fund itself through borrowing and equity sales until sales return to historical levels.

 

At March 31, 2015, the Company had short term borrowings of $359,757. The notes are short term working capital advances that have been advanced to their Korean Subsidiary from various local parties. These advances are due on demand, interest free and unsecured.

 

As of March 31, 2016 the major components of our notes and borrowings consisted of the following:

 

 

3/31/16

Hana Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 3.65%

 

interest only payable monthly and securred by the company.

$62,883

 

 

Hana Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 6.24%

 

interest only payable monthly.

76,479

 

 

KookMin Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 3.28%

 

interest only payable monthly and securred by the company

84,977

 

 

Industrial Bank of Korea Bank four year note extended with 12 month

 

extension fully amortizing with a variable interest rate currently at 3.83%

 

payable monthly.

127,465

 

 

NH Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 7.25%

 

interest only payable monthly.

7,954

 

 

Total Liabilities

359,757

 

 

Less current portion

264,158

 

 

Long tem debt

$95,599

 

NOTE 11 - SHORT TERM BORROWINGS AND NOTES PAYABLE

 

The Company continues to fund itself through borrowing and equity sales until sales return to historical levels.

 

At December 31, 2014, the Company had short term borrowings of $448,801. The notes are short term working capital advances that have been advanced to their Korean Subsidiary from various local parties. These advances are due on demand, interest free and unsecured.

 

Additionally the company borrowed $819,922 in short term convertible notes at a 4% interest rate. These funds were used to fund expansion of our LGM acquisition in 2014. The derivative components are detailed in footnote 15 and these loans were completely converted in February 2015 into 14,924,263 shares of our common stock.

 

As of December 31, 2015 the major components of our notes and borrowings consisted of the following:

 

 

 

12/31/15

Hana Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 3.65%

 

interest only payable monthly and securred by the company.

$45,505

 

 

Hana Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 6.24%

 

interest only payable monthly.

75,775

 

 

Hana Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 3.64%

 

interest only payable monthly and securred by the company.

46,800

 

 

KookMin Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 3.28%

 

interest only payable monthly and securred by the company

85,245

 

 

Industrial Bank of Korea Bank four year note extended with 12 month

 

extension fully amortizing with a variable interest rate currently at 3.83%

 

payable monthly.

35,718

 

 

NH Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 7.25%

 

interest only payable monthly.

34,000

 

 

Total Liabilities

323,043

 

 

Less current portion

49,397

 

 

Long tem debt

$273,646

XML 41 R18.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 12 - Income Taxes
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes    
Note 12 - Income Taxes

NOTE 12 - INCOME TAXES

 

The Company has experienced losses during most years since its inception. As a result, it has incurred no Federal income tax. The Internal Revenue Code allows net operating losses (NOL's) to be carried forward and applied against future profits for a period of twenty years; an NOL of $25,827,119 had accumulated at March 31, 2016 on U.S. operations and has been carried forward. The potential tax benefit of the NOL's has been recognized on the books of the Company, and is offset by a valuation allowance.

 

Under current accounting guidance, recognition of deferred tax assets is permitted unless it is more likely than not that the assets will not be realized. The Company has recorded deferred tax assets using statutory rates, as presented below. The valuation reserve increased by $155,766 during the quarter ended March 31, 2016.

 

 

 

 

Total

Deferred Tax Assets

8,781,220

Realization Allowance

(8,781,220)

Balance Recognized

$-

 

 

The effective tax rate is as follows:

 

 

 

Statutory Federal Rate

34%

Effect of Valuation Allowance

(34%)

Effective Rate

0%

NOTE 12 - INCOME TAXES

 

The Company has experienced losses during most years since its inception. As a result, it has incurred no Federal income tax. The Internal Revenue Code allows net operating losses (NOL's) to be carried forward and applied against future profits for a period of twenty years; an NOL of $25,404,609 had accumulated at December 31, 2015 on U.S. operations and has been carried forward. The potential tax benefit of the NOL's has been recognized on the books of the Company, and is offset by a valuation allowance.

 

Under current accounting guidance, recognition of deferred tax assets is permitted unless it is more likely than not that the assets will not be realized. The Company has recorded deferred tax assets using statutory rates, as presented below. The valuation reserve increased by $1,376,115 during the year ended December 31, 2015.

 

 

Total

Deferred Tax Assets

8,637,567

Realization Allowance

(8,637,567)

Balance Recognized

$-

 

The effective tax rate is as follows:

 

 

 

 

 

Statutory Federal Rate

34%

Effect of Valuation Allowance

(34%)

Effective Rate

0%

XML 42 R19.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 13 - Intangible Assets
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes    
Note 13 - Intangible Assets

NOTE 13 - INTANGIBLE ASSETS

 

The Company accounts for its long-lived assets in accordance with Accounting Standards Codification ("ASC") Topic 360-10-05, "Accounting for the Impairment or Disposal of Long-Lived Assets."  ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate.  The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition.  If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value.  The Company increased goodwill as a result of its first quarter acquisitions by $612,445 and also determined that none of its long-term assets at March 31, 2016 and December 31, 2015 were impaired.

 

 

31-Mar-16

31-Dec-15

Patents

$86,998

$63,554

Trademarks

277

277

Goodwill

3,057,003

3,057,003

Intangible assets

3,144,278

3,120,834

Less impairments

0

0

Intangible assets, net

$3,144,278

$3,120,834

 

NOTE 13 - INTANGIBLE ASSETS

 

The Company accounts for its long-lived assets in accordance with Accounting Standards Codification ("ASC") Topic 360-10-05, "Accounting for the Impairment or Disposal of Long-Lived Assets."  ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate.  The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition.  If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value.  The Company increased goodwill as a result of its first quarter acquisitions by $612,445 and also determined that none of its long-term assets at December 31, 2015 and December 31, 2014 were impaired.

 

 

 

31-Dec-15

31-Dec-14

Patents

$63,554

$63,554

Trademarks

277

277

Goodwill

3,057,003

2,444,558

Intangible assets

3,120,834

2,508,389

Less impairment

0

0

Intangible assets, net

$3,120,834

$2,508,389

XML 43 R20.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 14 - Segment Information
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes    
Note 14 - Segment Information

NOTE 14 -  SEGMENT INFORMATION

ASC Topic 280 requires use of the "management approach" model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. During the three months ended March 31, 2016 and 2015, the Company operated in one reportable business segment: the sale and manufacture of specialized electric vehicle. The Company's reportable segment is a strategic business unit that offers its product.

NOTE 14 -  SEGMENT INFORMATION

 

ASC Topic 280 requires use of the "management approach" model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. During the years ended December 31, 2015 and 2014, the Company operated in one reportable business segment: the sale and manufacture of specialized electric vehicle. The Company's reportable segment is a strategic business unit that offers its product.

XML 44 R21.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 15 - Acquisitions
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes    
Note 15 - Acquisitions

NOTE 15 - ACQUISITIONS

 

 On March 29, 2015, the Company acquired a 50% interest in each of Leo Motors Factory 1 and 2 which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired a 50% interest in Leo Trade specializing in trading luxury cars.

The consolidation of these acquisitions is presented below.

 

Leo Motors consolidation

LEO Motors

LEO Motors

LGM

LEO Motors

LEO Motors

LEO Trade

ELIM

Consolidated

March 31, 2015

US

Korea

 

Factory 1

Factory 2

(f/k/a/ Erum)

ENTRIES

Statements

All numbers shown in  US Dollars

 

 

 

 

 

 

DR(CR)

3/31/2015

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

$374

67853

211,957

91,187

2914

92173

0

466,458

Accounts receivable

0

0

476,777

8,754

48,425

418,422

0

952,378

Inventories

0

0

295,159

0

0

0

0

295,159

Prepayment to suppliers

0

137,236

160,484

0

0

0

0

297,720

Other current assets

0

7,297

57,403

1,595

125,212

36,685

0

228,192

Total Current Assets

374

212,386

1,201,780

101,536

176,551

547,280

 

2,239,907

 

 

 

 

 

 

 

 

 

Fixed assets, net

6,744

10,530

16,846

63,683

88,181

0

0

185,984

Deposit

0

46,234

22,637

4,804

145,196

9,025

0

227,896

Intangible assets

0

63,831

0

0

0

0

0

63,831

Goodwill

0

0

0

0

0

0

3,057,003

3,057,003

Investment in subsidiaries

8,089,368

0

0

0

0

0

-8,089,368

0

Total Non-Current Assets

8,096,112

120,595

39,483

68,487

233,377

9,025

 

3,534,714

 

 

 

 

 

 

 

 

 

Total Assets

$8,096,486

332,981

1,241,263

170,023

409,928

556,305

-5,032,365

5,774,621

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

$1,139,889

1,060,342

291,900

97,840

307,112

416,183

0

3,313,266

Short term borrowings

0

256,392

183,245

32,052

0

0

0

471,689

Advance from customers

0

30,381

9,141

0

4,513

0

0

44,035

Due to related parties

0

116,617

0

0

0

0

0

116,617

Taxes payable

0

137,780

10,673

13,559

78,783

226

0

241,021

Notes Payable current portion

0

0

0

0

0

353,747

0

353,747

Total Current Liabilities

1,139,889

1,601,512

494,959

143,451

390,408

770,156

 

4,540,375

 

 

 

 

 

 

 

 

 

Long Term Notes

0

36,698

117,075

0

173,928

0

0

327,701

Accrued severance benefits

0

2,075

0

0

0

0

0

2,075

 

 

 

 

 

 

 

 

 

Total Liabilities

1,139,889

1,640,285

612,034

143,451

564,336

770,156

 

4,870,151

Stockholders' Equity:

 

 

 

 

 

 

 

 

Common stock

154,144

2,831,276

284,870

90,253

135,379

180,505

(3,522,283)

154,144

Additional paid-in capital

21,253,084

1,831,184

1,285,902

0

0

0

(4,973,230)

19,396,940

Accumulated other comprehensive income

277,678

225,403

4,893

0

0

0

0

507,974

Accumulated loss

(14,728,309)

(6,195,167)

(946,436)

(63,681)

(289,787)

(394,356)

733,773

(21,883,963)

Total Stockholders' Deficit attributable to LEO MOTORS, INC.

6,956,597

(1,307,304)

629,229

26,572

(154,408)

(213,851)

 

(1,824,905)

Non-controlling interest

0

0

0

0

0

0

2,729,375

2,729,375

Total Stockholders' Deficit

6,956,597

(1,307,304)

629,229

26,572

(154,408)

(213,851)

 

904,470

Total Liabilities and Stockholders' Deficit

$8,096,486

332,981

1,241,263

170,023

409,928

556,305

(5,032,365)

5,774,621

 

NOTE 16 - ACQUISITIONS

 

On March 29, 2015, the Company acquired a 50% interest in each of Leo Motors Factory 1 and 2 which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired a 50% interest in Leo Trade specializing in trading luxury cars. 

The consolidation of these acquisitions is presented below.

 

Leo Motors consolidation

LEO Motors

LEO Motors

LGM

LEO Motors

LEO Motors

LEO Trade

ELIM

Consolidated

March 31, 2015

US

Korea

 

Factory 1

Factory 2

(f/k/a/ Erum)

ENTRIES

Statements

All numbers shown in  US Dollars

 

 

 

 

 

 

DR(CR)

3/31/2015

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

$374

67853

211,957

91,187

2914

92173

0

466,458

Accounts receivable

0

0

476,777

8,754

48,425

418,422

0

952,378

Inventories

0

0

295,159

0

0

0

0

295,159

Prepayment to suppliers

0

137,236

160,484

0

0

0

0

297,720

Other current assets

0

7,297

57,403

1,595

125,212

36,685

0

228,192

Total Current Assets

374

212,386

1,201,780

101,536

176,551

547,280

 

2,239,907

 

 

 

 

 

 

 

 

 

Fixed assets, net

6,744

10,530

16,846

63,683

88,181

0

0

185,984

Deposit

0

46,234

22,637

4,804

145,196

9,025

0

227,896

Intangible assets

0

63,831

0

0

0

0

0

63,831

Goodwill

0

0

0

0

0

0

3,057,003

3,057,003

Investment in subsidiaries

8,089,368

0

0

0

0

0

-8,089,368

0

Total Non-Current Assets

8,096,112

120,595

39,483

68,487

233,377

9,025

 

3,534,714

 

 

 

 

 

 

 

 

 

Total Assets

$8,096,486

332,981

1,241,263

170,023

409,928

556,305

-5,032,365

5,774,621

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

$1,139,889

1,060,342

291,900

97,840

307,112

416,183

0

3,313,266

Short term borrowings

0

256,392

183,245

32,052

0

0

0

471,689

Advance from customers

0

30,381

9,141

0

4,513

0

0

44,035

Due to related parties

0

116,617

0

0

0

0

0

116,617

Taxes payable

0

137,780

10,673

13,559

78,783

226

0

241,021

Notes Payable current portion

0

0

0

0

0

353,747

0

353,747

Total Current Liabilities

1,139,889

1,601,512

494,959

143,451

390,408

770,156

 

4,540,375

 

 

 

 

 

 

 

 

 

Long Term Notes

0

36,698

117,075

0

173,928

0

0

327,701

Accrued severance benefits

0

2,075

0

0

0

0

0

2,075

 

 

 

 

 

 

 

 

 

Total Liabilities

1,139,889

1,640,285

612,034

143,451

564,336

770,156

 

4,870,151

Stockholders' Equity:

 

 

 

 

 

 

 

 

Common stock

154,144

2,831,276

284,870

90,253

135,379

180,505

(3,522,283)

154,144

Additional paid-in capital

21,253,084

1,831,184

1,285,902

0

0

0

(4,973,230)

19,396,940

Accumulated other comprehensive income

277,678

225,403

4,893

0

0

0

0

507,974

Accumulated loss

(14,728,309)

(6,195,167)

(946,436)

(63,681)

(289,787)

(394,356)

733,773

(21,883,963)

Total Stockholders' Deficit attributable to LEO MOTORS, INC.

6,956,597

(1,307,304

629,229

26,572

(154,408)

(213,851)

 

(1,824,905)

Non-controlling interest

0

0

0

0

0

0

2,729,375

2,729,375

Total Stockholders' Deficit

6,956,597

(1,307,304

629,229

26,572

(154,408)

(213,851)

 

904,470

Total Liabilities and Stockholders' Deficit

$8,096,486

332,981

1,241,263

170,023

409,928

556,305

(5,032,365)

5,774,621

XML 45 R22.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 15 - Derivative Liability
12 Months Ended
Dec. 31, 2015
Notes  
Note 15 - Derivative Liability

NOTE 15 – DERIVATIVE LIABILITY

 

The Company accounts for derivative financial instruments in accordance with ASC 815, which requires that all derivative financial instruments be recorded in the balance sheets either as assets or liabilities at fair value.

 

The Company's derivative liability is an embedded derivative associated with one of the Company's convertible promissory notes. The convertible promissory note was issued on July 31, 2014, (the "Note"), is a hybrid instruments which contain an embedded derivative feature which would individually warrant separate accounting as a derivative instrument under Paragraph 815-10-05-4.  The embedded derivative feature includes the conversion feature to the Note. Pursuant to Paragraph 815-10-05-4, the value of the embedded derivative liability have been bifurcated from the debt host contract and recorded as a derivative liability resulting in a reduction of the initial carrying amount (as unamortized discount) of the notes, which are amortized as debt discount to be presented in other (income) expenses in the statements of operations using the effective interest method over the life of the notes.

 

The embedded derivative within the note have been valued using the Black Scholes approach, recorded at fair value at the date of issuance; and marked-to-market at each reporting period end date with changes in fair value recorded in the Company's statements of operations as "change in the fair value of derivative instrument".

 

As of December 31, 2015 and December 31, 2014, the estimated fair value of derivative liability was determined to be $0 and $819,922, respectively. On July 31, 2014, the derivative liability was recognized with a debt discount of $825,529. During the year ended December 31, 2015, the loan was converted to common stock and the remaining unamortized debt discount of $275,176 was recorded against as a charge to interest expense.

 

Summary of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis

 

Financial assets and liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheet:

 

 

 

 

 

 

 

Fair Value Measurement Using

Carrying Value

Level 1

Level 2

Level 3

Total

-0-

-

-

-0-

-0-

$-0-

$-

$-

$-0-

$-0-

 

Summary of the Changes in Fair Value of Level 3 Financial Liabilities

 

The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during year ended December 31, 2015.

 

 

Derivative Liability

Fair value, December 31, 2014 

$819,922

Additions

-0-

Change in fair value

-0-

Transfers in and/or out of Level 3

(819,922)

Fair value, December 31, 2015 

$-0-

XML 46 R23.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 16 - Acquisitions
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes    
Note 16 - Acquisitions

NOTE 15 - ACQUISITIONS

 

 On March 29, 2015, the Company acquired a 50% interest in each of Leo Motors Factory 1 and 2 which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired a 50% interest in Leo Trade specializing in trading luxury cars.

The consolidation of these acquisitions is presented below.

 

Leo Motors consolidation

LEO Motors

LEO Motors

LGM

LEO Motors

LEO Motors

LEO Trade

ELIM

Consolidated

March 31, 2015

US

Korea

 

Factory 1

Factory 2

(f/k/a/ Erum)

ENTRIES

Statements

All numbers shown in  US Dollars

 

 

 

 

 

 

DR(CR)

3/31/2015

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

$374

67853

211,957

91,187

2914

92173

0

466,458

Accounts receivable

0

0

476,777

8,754

48,425

418,422

0

952,378

Inventories

0

0

295,159

0

0

0

0

295,159

Prepayment to suppliers

0

137,236

160,484

0

0

0

0

297,720

Other current assets

0

7,297

57,403

1,595

125,212

36,685

0

228,192

Total Current Assets

374

212,386

1,201,780

101,536

176,551

547,280

 

2,239,907

 

 

 

 

 

 

 

 

 

Fixed assets, net

6,744

10,530

16,846

63,683

88,181

0

0

185,984

Deposit

0

46,234

22,637

4,804

145,196

9,025

0

227,896

Intangible assets

0

63,831

0

0

0

0

0

63,831

Goodwill

0

0

0

0

0

0

3,057,003

3,057,003

Investment in subsidiaries

8,089,368

0

0

0

0

0

-8,089,368

0

Total Non-Current Assets

8,096,112

120,595

39,483

68,487

233,377

9,025

 

3,534,714

 

 

 

 

 

 

 

 

 

Total Assets

$8,096,486

332,981

1,241,263

170,023

409,928

556,305

-5,032,365

5,774,621

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

$1,139,889

1,060,342

291,900

97,840

307,112

416,183

0

3,313,266

Short term borrowings

0

256,392

183,245

32,052

0

0

0

471,689

Advance from customers

0

30,381

9,141

0

4,513

0

0

44,035

Due to related parties

0

116,617

0

0

0

0

0

116,617

Taxes payable

0

137,780

10,673

13,559

78,783

226

0

241,021

Notes Payable current portion

0

0

0

0

0

353,747

0

353,747

Total Current Liabilities

1,139,889

1,601,512

494,959

143,451

390,408

770,156

 

4,540,375

 

 

 

 

 

 

 

 

 

Long Term Notes

0

36,698

117,075

0

173,928

0

0

327,701

Accrued severance benefits

0

2,075

0

0

0

0

0

2,075

 

 

 

 

 

 

 

 

 

Total Liabilities

1,139,889

1,640,285

612,034

143,451

564,336

770,156

 

4,870,151

Stockholders' Equity:

 

 

 

 

 

 

 

 

Common stock

154,144

2,831,276

284,870

90,253

135,379

180,505

(3,522,283)

154,144

Additional paid-in capital

21,253,084

1,831,184

1,285,902

0

0

0

(4,973,230)

19,396,940

Accumulated other comprehensive income

277,678

225,403

4,893

0

0

0

0

507,974

Accumulated loss

(14,728,309)

(6,195,167)

(946,436)

(63,681)

(289,787)

(394,356)

733,773

(21,883,963)

Total Stockholders' Deficit attributable to LEO MOTORS, INC.

6,956,597

(1,307,304)

629,229

26,572

(154,408)

(213,851)

 

(1,824,905)

Non-controlling interest

0

0

0

0

0

0

2,729,375

2,729,375

Total Stockholders' Deficit

6,956,597

(1,307,304)

629,229

26,572

(154,408)

(213,851)

 

904,470

Total Liabilities and Stockholders' Deficit

$8,096,486

332,981

1,241,263

170,023

409,928

556,305

(5,032,365)

5,774,621

 

NOTE 16 - ACQUISITIONS

 

On March 29, 2015, the Company acquired a 50% interest in each of Leo Motors Factory 1 and 2 which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired a 50% interest in Leo Trade specializing in trading luxury cars. 

The consolidation of these acquisitions is presented below.

 

Leo Motors consolidation

LEO Motors

LEO Motors

LGM

LEO Motors

LEO Motors

LEO Trade

ELIM

Consolidated

March 31, 2015

US

Korea

 

Factory 1

Factory 2

(f/k/a/ Erum)

ENTRIES

Statements

All numbers shown in  US Dollars

 

 

 

 

 

 

DR(CR)

3/31/2015

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

$374

67853

211,957

91,187

2914

92173

0

466,458

Accounts receivable

0

0

476,777

8,754

48,425

418,422

0

952,378

Inventories

0

0

295,159

0

0

0

0

295,159

Prepayment to suppliers

0

137,236

160,484

0

0

0

0

297,720

Other current assets

0

7,297

57,403

1,595

125,212

36,685

0

228,192

Total Current Assets

374

212,386

1,201,780

101,536

176,551

547,280

 

2,239,907

 

 

 

 

 

 

 

 

 

Fixed assets, net

6,744

10,530

16,846

63,683

88,181

0

0

185,984

Deposit

0

46,234

22,637

4,804

145,196

9,025

0

227,896

Intangible assets

0

63,831

0

0

0

0

0

63,831

Goodwill

0

0

0

0

0

0

3,057,003

3,057,003

Investment in subsidiaries

8,089,368

0

0

0

0

0

-8,089,368

0

Total Non-Current Assets

8,096,112

120,595

39,483

68,487

233,377

9,025

 

3,534,714

 

 

 

 

 

 

 

 

 

Total Assets

$8,096,486

332,981

1,241,263

170,023

409,928

556,305

-5,032,365

5,774,621

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

$1,139,889

1,060,342

291,900

97,840

307,112

416,183

0

3,313,266

Short term borrowings

0

256,392

183,245

32,052

0

0

0

471,689

Advance from customers

0

30,381

9,141

0

4,513

0

0

44,035

Due to related parties

0

116,617

0

0

0

0

0

116,617

Taxes payable

0

137,780

10,673

13,559

78,783

226

0

241,021

Notes Payable current portion

0

0

0

0

0

353,747

0

353,747

Total Current Liabilities

1,139,889

1,601,512

494,959

143,451

390,408

770,156

 

4,540,375

 

 

 

 

 

 

 

 

 

Long Term Notes

0

36,698

117,075

0

173,928

0

0

327,701

Accrued severance benefits

0

2,075

0

0

0

0

0

2,075

 

 

 

 

 

 

 

 

 

Total Liabilities

1,139,889

1,640,285

612,034

143,451

564,336

770,156

 

4,870,151

Stockholders' Equity:

 

 

 

 

 

 

 

 

Common stock

154,144

2,831,276

284,870

90,253

135,379

180,505

(3,522,283)

154,144

Additional paid-in capital

21,253,084

1,831,184

1,285,902

0

0

0

(4,973,230)

19,396,940

Accumulated other comprehensive income

277,678

225,403

4,893

0

0

0

0

507,974

Accumulated loss

(14,728,309)

(6,195,167)

(946,436)

(63,681)

(289,787)

(394,356)

733,773

(21,883,963)

Total Stockholders' Deficit attributable to LEO MOTORS, INC.

6,956,597

(1,307,304

629,229

26,572

(154,408)

(213,851)

 

(1,824,905)

Non-controlling interest

0

0

0

0

0

0

2,729,375

2,729,375

Total Stockholders' Deficit

6,956,597

(1,307,304

629,229

26,572

(154,408)

(213,851)

 

904,470

Total Liabilities and Stockholders' Deficit

$8,096,486

332,981

1,241,263

170,023

409,928

556,305

(5,032,365)

5,774,621

XML 47 R24.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 2 - Policies (Policies)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Policies    
Basis of Presentation and Consolidation

Basis of Presentation and Consolidation

 

These financial statements and related notes are expressed in US dollars. The Company's fiscal year-end is December 31. The consolidated financial statements include the financial statements of the Leo Motors Co. Ltd. Korea and LGM Co. LTD where the Parent Company has significant control. All inter-company transactions and balances have been eliminated upon consolidation.

Basis of Presentation and Consolidation

 

These financial statements and related notes are expressed in US dollars. The Company's fiscal year-end is December 31. The consolidated financial statements include the financial statements of the Leo Motors Co. Ltd. Korea and LGM Co. LTD where the Parent Company has significant control. All inter-company transactions and balances have been eliminated upon consolidation.

Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable inventory and prepaid expenses, accounts payable and deferred revenues, the carrying amounts approximate fair value due to their short maturities.

Fair Value of Financial Instruments

 

For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable inventory and prepaid expenses, accounts payable and deferred revenues, the carrying amounts approximate fair value due to their short maturities.

Revenue Recognition

Revenue Recognition

 

The Company follows the guidance of the Securities and Exchange Commission's Staff Accounting Bulletin No. 104, "Revenue Recognition in Financial Statements". In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company.

 

The Company generates revenue from the delivery of goods and records revenues when the sales are completed, already collected or collectability is reasonably assured, there is no future obligation and there is remote chance of future claim or refund to the customers.

 

Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the delivery of professional services. Pricing is fixed and determinable according to the Company's published brochures and price lists.

Revenue Recognition

 

The Company follows the guidance of the Securities and Exchange Commission's Staff Accounting Bulletin No. 104, "Revenue Recognition in Financial Statements". In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company.

 

The Company generates revenue from the delivery of goods and records revenues when the sales are completed, already collected or collectability is reasonably assured, there is no future obligation and there is remote chance of future claim or refund to the customers.

 

Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the delivery of professional services. Pricing is fixed and determinable according to the Company's published brochures and price lists.

Accounts Receivables

Accounts Receivables

 

Accounts receivables of the Company are reviewed to determine if their carrying value has become impaired.

The Company considers the assets to be impaired if the balances are greater than one-year old. Management regularly reviews accounts receivable and will establish an allowance for potentially uncollectible amounts when appropriate. When accounts are written off, they will be charged against the allowance.

 

Receivables are not collateralized and do not bear interest.

Accounts Receivables

 

Accounts receivables of the Company are reviewed to determine if their carrying value has become impaired.

The Company considers the assets to be impaired if the balances are greater than one-year old. Management regularly reviews accounts receivable and will establish an allowance for potentially uncollectible amounts when appropriate. When accounts are written off, they will be charged against the allowance.

 

Receivables are not collateralized and do not bear interest.

Cash Equivalents

Cash Equivalents

 

For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalent.

Cash Equivalents

 

For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalent.

Fixed Assets

Fixed Assets

 

Fixed assets are stated at cost, less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which is generally 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).

 

The Company will periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful lives of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability.

Fixed Assets

 

Fixed assets are stated at cost, less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which is generally 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).

 

The Company will periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful lives of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability.

Intangible and Long Lived Assets

Intangible and Long Lived Assets

 

The Company follows ASC 360-10, "Property, Plant, and Equipment," which established a "primary asset" approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through March 31, 2016, the Company had not experienced impairment losses on its long-lived assets.

Intangible and Long Lived Assets

 

The Company follows ASC 360-10, "Property, Plant, and Equipment," which established a "primary asset" approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through December 31, 2015, the Company had not experienced impairment losses on its long-lived assets.

Income Taxes

Income Taxes

 

The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, "Accounting for 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 available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

 

ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is "more likely than not" that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable.

Income Taxes

 

The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, "Accounting for 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 available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

 

ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is "more likely than not" that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable.

Loss Per Share

Loss per Share

 

Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of both common and preferred stock outstanding for the period.

Loss per Share

 

Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of both common and preferred stock outstanding for the period.

Stock-based Compensation

Stock-Based Compensation

 

SFAS No. 123, "Accounting for Stock-Based Compensation," establishes and encourages the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with SFAS No. 123 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model.

Stock-Based Compensation

 

SFAS No. 123, "Accounting for Stock-Based Compensation," establishes and encourages the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with SFAS No. 123 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model.

Foreign Currency Translation and Comprehensive Income

Foreign Currency Translation And Comprehensive Income

 

The reporting currency of the Company is the US$. The functional currency of the parent company is the US$ and the functional currency of the Company's operating subsidiary is Korean Won ("KRW"). The subsidiary's results of operations and cash flows are translated at average exchange rates during the year, assets and liabilities are translated at the unified exchange rate at the end of the year, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into US$ are included in determining comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company does not enter any material transaction in foreign currencies and accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company.

Foreign Currency Translation And Comprehensive Income

 

The reporting currency of the Company is the US$. The functional currency of the parent company is the US$ and the functional currency of the Company's operating subsidiary is Korean Won ("KRW"). The subsidiary's results of operations and cash flows are translated at average exchange rates during the year, assets and liabilities are translated at the unified exchange rate at the end of the year, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into US$ are included in determining comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company does not enter any material transaction in foreign currencies and accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company

Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company's financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable.

Recent Accounting Pronouncements

 

The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company's financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable.

XML 48 R25.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 3 - Earnings Per Share (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Tables/Schedules    
Schedule of Earnings Per Share, Basic and Diluted

The following is a reconciliation of the computation for basic and diluted EPS for the three months ended March 31, 2016 and 2015:

 

 

For the periods ended

 

3/31/2016

3/31/2015

 

 

 

Net Income (Loss)

$(458,166)

$(595,418)

 

 

 

 

 

 

Weighted-average common stock Outstanding -  basic

161,878,686

149,069,490

Equivalents

 

 

  Stock options

-

0

  Warrants

-

0

  Convertible Notes

0

902,520

 

 

Weighted-average common shares outstanding-  Diluted

161,878,686

149,972,010

The following is a reconciliation of the computation for basic and diluted EPS for the years ended December 31, 2015 and 2014:

 

 

For the periods ended

 

12/31/2015

12/31/2014

 

 

 

Net Income (Loss)

$(4,490,972)

$(4,480,544)

 

 

 

 

 

 

Weighted-average common stock Outstanding -  basic

155,866,313

97,393,209

Equivalents

 

 

  Stock options

-

0

  Warrants

-

0

  Convertible Notes

0

662,889

Weighted-average common shares

 

 

outstanding-  Diluted

155,866,313

98,056,098

XML 49 R26.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 7 - Commitments and Contingencies (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Tables/Schedules    
Schedule of Future Minimum Rental Payments for Operating Leases

The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the period ending March 31, 2016 through December 31, 2018 are listed on the table below.

 

 

For the Year

Amount

 

 

Ending

 

 

 

 

 

 

2016

 

$165,620

 

2017

 

101,249

 

2018

 and beyond

0

 

 

 

 

 

 

Total Commitment 

$266,869

 

The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the years ending December 31, 2015 through December 31, 2018 are listed on the table below.

For the Year

Amount

Ending

 

 

 

 

2016

 

$220,827

2017

 

101,249

2018

and beyond

0

 

 

 

Total Commitment

$322,076

XML 50 R27.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 8 - Inventories (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Tables/Schedules    
Schedule of Inventories

Inventories consist of the following:

 

 

31-Mar-16

31-Dec-15

 

US$

US$

Raw material

$0

$0

Work in process

838,785

496,971

Finished goods

0

0

 

$838,785

$496,971

Inventories consist of the following:

 

31-Dec-15

31-Dec-14

 

US$

US$

Raw material

$0

$0

Work in process

496,971

279,783

Finished goods

0

0

 

$496,971

$279,783

XML 51 R28.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 9 - Property and Equipment (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Tables/Schedules    
Property, Plant and Equipment

Property and equipment consisted of the following:

  

 

31-Mar-16

31-Dec-15

 

 

 

Vehicles

$146,268

$146,268

Tools

95,771

95,771

Office

109,447

109,447

Facility equipment

210,502

210,502

 

 

 

 Total property and equipment

561,988

561,988

 

 

 

Accumulated depreciation

(419,851)

(398,987)

Property and equipment, net

$142,137

$163,001

Property and equipment consisted of the following:

 

31-Dec-15

31-Dec-14

 

 

 

Vehicles

$146,268

$7,581

Tools

95,771

12,906

Office

109,447

79,963

Facility equipment

210,502

157,966

 

 

 

 Total property and equipment

561,988

258,416

 

 

 

Accumulated depreciation

(398,987)

(219,796)

Property and equipment, net

$163,001

$38,620

XML 52 R29.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 11 - Short Term Borrowings and Notes Payable (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Tables/Schedules    
Schedule of Short-term Debt

As of March 31, 2016 the major components of our notes and borrowings consisted of the following:

 

 

3/31/16

Hana Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 3.65%

 

interest only payable monthly and securred by the company.

$62,883

 

 

Hana Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 6.24%

 

interest only payable monthly.

76,479

 

 

KookMin Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 3.28%

 

interest only payable monthly and securred by the company

84,977

 

 

Industrial Bank of Korea Bank four year note extended with 12 month

 

extension fully amortizing with a variable interest rate currently at 3.83%

 

payable monthly.

127,465

 

 

NH Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 7.25%

 

interest only payable monthly.

7,954

 

 

Total Liabilities

359,757

 

 

Less current portion

264,158

 

 

Long tem debt

$95,599

 

 

 

12/31/15

Hana Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 3.65%

 

interest only payable monthly and securred by the company.

$45,505

 

 

Hana Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 6.24%

 

interest only payable monthly.

75,775

 

 

Hana Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 3.64%

 

interest only payable monthly and securred by the company.

46,800

 

 

KookMin Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 3.28%

 

interest only payable monthly and securred by the company

85,245

 

 

Industrial Bank of Korea Bank four year note extended with 12 month

 

extension fully amortizing with a variable interest rate currently at 3.83%

 

payable monthly.

35,718

 

 

NH Bank six month note extended with 12 month term

 

renewable periods with a variable interest rate currently at 7.25%

 

interest only payable monthly.

34,000

 

 

Total Liabilities

323,043

 

 

Less current portion

49,397

 

 

Long tem debt

$273,646

XML 53 R30.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 12 - Income Taxes (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Tables/Schedules    
Schedule of Deferred Tax Assets

 

 

Total

Deferred Tax Assets

8,781,220

Realization Allowance

(8,781,220)

Balance Recognized

$-

 

 

Total

Deferred Tax Assets

8,637,567

Realization Allowance

(8,637,567)

Balance Recognized

$-

Schedule of Effective Income Tax Rate Reconciliation

 

The effective tax rate is as follows:

 

 

 

Statutory Federal Rate

34%

Effect of Valuation Allowance

(34%)

Effective Rate

0%

The effective tax rate is as follows:

 

 

 

 

 

Statutory Federal Rate

34%

Effect of Valuation Allowance

(34%)

Effective Rate

0%

XML 54 R31.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 13 - Intangible Assets (Tables)
3 Months Ended
Mar. 31, 2016
Tables/Schedules  
Schedule of Finite-Lived Intangible Assets

 

 

31-Mar-16

31-Dec-15

Patents

$86,998

$63,554

Trademarks

277

277

Goodwill

3,057,003

3,057,003

Intangible assets

3,144,278

3,120,834

Less impairments

0

0

Intangible assets, net

$3,144,278

$3,120,834

XML 55 R32.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 15 - Acquisitions (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Tables/Schedules    
Schedule of Consolidated Assets, Liabilities, and Equity of Acquired Entities

The consolidation of these acquisitions is presented below.

 

Leo Motors consolidation

LEO Motors

LEO Motors

LGM

LEO Motors

LEO Motors

LEO Trade

ELIM

Consolidated

March 31, 2015

US

Korea

 

Factory 1

Factory 2

(f/k/a/ Erum)

ENTRIES

Statements

All numbers shown in  US Dollars

 

 

 

 

 

 

DR(CR)

3/31/2015

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

$374

67853

211,957

91,187

2914

92173

0

466,458

Accounts receivable

0

0

476,777

8,754

48,425

418,422

0

952,378

Inventories

0

0

295,159

0

0

0

0

295,159

Prepayment to suppliers

0

137,236

160,484

0

0

0

0

297,720

Other current assets

0

7,297

57,403

1,595

125,212

36,685

0

228,192

Total Current Assets

374

212,386

1,201,780

101,536

176,551

547,280

 

2,239,907

 

 

 

 

 

 

 

 

 

Fixed assets, net

6,744

10,530

16,846

63,683

88,181

0

0

185,984

Deposit

0

46,234

22,637

4,804

145,196

9,025

0

227,896

Intangible assets

0

63,831

0

0

0

0

0

63,831

Goodwill

0

0

0

0

0

0

3,057,003

3,057,003

Investment in subsidiaries

8,089,368

0

0

0

0

0

-8,089,368

0

Total Non-Current Assets

8,096,112

120,595

39,483

68,487

233,377

9,025

 

3,534,714

 

 

 

 

 

 

 

 

 

Total Assets

$8,096,486

332,981

1,241,263

170,023

409,928

556,305

-5,032,365

5,774,621

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

$1,139,889

1,060,342

291,900

97,840

307,112

416,183

0

3,313,266

Short term borrowings

0

256,392

183,245

32,052

0

0

0

471,689

Advance from customers

0

30,381

9,141

0

4,513

0

0

44,035

Due to related parties

0

116,617

0

0

0

0

0

116,617

Taxes payable

0

137,780

10,673

13,559

78,783

226

0

241,021

Notes Payable current portion

0

0

0

0

0

353,747

0

353,747

Total Current Liabilities

1,139,889

1,601,512

494,959

143,451

390,408

770,156

 

4,540,375

 

 

 

 

 

 

 

 

 

Long Term Notes

0

36,698

117,075

0

173,928

0

0

327,701

Accrued severance benefits

0

2,075

0

0

0

0

0

2,075

 

 

 

 

 

 

 

 

 

Total Liabilities

1,139,889

1,640,285

612,034

143,451

564,336

770,156

 

4,870,151

Stockholders' Equity:

 

 

 

 

 

 

 

 

Common stock

154,144

2,831,276

284,870

90,253

135,379

180,505

(3,522,283)

154,144

Additional paid-in capital

21,253,084

1,831,184

1,285,902

0

0

0

(4,973,230)

19,396,940

Accumulated other comprehensive income

277,678

225,403

4,893

0

0

0

0

507,974

Accumulated loss

(14,728,309)

(6,195,167)

(946,436)

(63,681)

(289,787)

(394,356)

733,773

(21,883,963)

Total Stockholders' Deficit attributable to LEO MOTORS, INC.

6,956,597

(1,307,304)

629,229

26,572

(154,408)

(213,851)

 

(1,824,905)

Non-controlling interest

0

0

0

0

0

0

2,729,375

2,729,375

Total Stockholders' Deficit

6,956,597

(1,307,304)

629,229

26,572

(154,408)

(213,851)

 

904,470

Total Liabilities and Stockholders' Deficit

$8,096,486

332,981

1,241,263

170,023

409,928

556,305

(5,032,365)

5,774,621

The consolidation of these acquisitions is presented below.

 

Leo Motors consolidation

LEO Motors

LEO Motors

LGM

LEO Motors

LEO Motors

LEO Trade

ELIM

Consolidated

March 31, 2015

US

Korea

 

Factory 1

Factory 2

(f/k/a/ Erum)

ENTRIES

Statements

All numbers shown in  US Dollars

 

 

 

 

 

 

DR(CR)

3/31/2015

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

$374

67853

211,957

91,187

2914

92173

0

466,458

Accounts receivable

0

0

476,777

8,754

48,425

418,422

0

952,378

Inventories

0

0

295,159

0

0

0

0

295,159

Prepayment to suppliers

0

137,236

160,484

0

0

0

0

297,720

Other current assets

0

7,297

57,403

1,595

125,212

36,685

0

228,192

Total Current Assets

374

212,386

1,201,780

101,536

176,551

547,280

 

2,239,907

 

 

 

 

 

 

 

 

 

Fixed assets, net

6,744

10,530

16,846

63,683

88,181

0

0

185,984

Deposit

0

46,234

22,637

4,804

145,196

9,025

0

227,896

Intangible assets

0

63,831

0

0

0

0

0

63,831

Goodwill

0

0

0

0

0

0

3,057,003

3,057,003

Investment in subsidiaries

8,089,368

0

0

0

0

0

-8,089,368

0

Total Non-Current Assets

8,096,112

120,595

39,483

68,487

233,377

9,025

 

3,534,714

 

 

 

 

 

 

 

 

 

Total Assets

$8,096,486

332,981

1,241,263

170,023

409,928

556,305

-5,032,365

5,774,621

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

$1,139,889

1,060,342

291,900

97,840

307,112

416,183

0

3,313,266

Short term borrowings

0

256,392

183,245

32,052

0

0

0

471,689

Advance from customers

0

30,381

9,141

0

4,513

0

0

44,035

Due to related parties

0

116,617

0

0

0

0

0

116,617

Taxes payable

0

137,780

10,673

13,559

78,783

226

0

241,021

Notes Payable current portion

0

0

0

0

0

353,747

0

353,747

Total Current Liabilities

1,139,889

1,601,512

494,959

143,451

390,408

770,156

 

4,540,375

 

 

 

 

 

 

 

 

 

Long Term Notes

0

36,698

117,075

0

173,928

0

0

327,701

Accrued severance benefits

0

2,075

0

0

0

0

0

2,075

 

 

 

 

 

 

 

 

 

Total Liabilities

1,139,889

1,640,285

612,034

143,451

564,336

770,156

 

4,870,151

Stockholders' Equity:

 

 

 

 

 

 

 

 

Common stock

154,144

2,831,276

284,870

90,253

135,379

180,505

(3,522,283)

154,144

Additional paid-in capital

21,253,084

1,831,184

1,285,902

0

0

0

(4,973,230)

19,396,940

Accumulated other comprehensive income

277,678

225,403

4,893

0

0

0

0

507,974

Accumulated loss

(14,728,309)

(6,195,167)

(946,436)

(63,681)

(289,787)

(394,356)

733,773

(21,883,963)

Total Stockholders' Deficit attributable to LEO MOTORS, INC.

6,956,597

(1,307,304

629,229

26,572

(154,408)

(213,851)

 

(1,824,905)

Non-controlling interest

0

0

0

0

0

0

2,729,375

2,729,375

Total Stockholders' Deficit

6,956,597

(1,307,304

629,229

26,572

(154,408)

(213,851)

 

904,470

Total Liabilities and Stockholders' Deficit

$8,096,486

332,981

1,241,263

170,023

409,928

556,305

(5,032,365)

5,774,621

XML 56 R33.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 15 - Derivative Liability (Tables)
12 Months Ended
Dec. 31, 2015
Tables/Schedules  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheet:

 

 

 

 

 

 

 

Fair Value Measurement Using

Carrying Value

Level 1

Level 2

Level 3

Total

-0-

-

-

-0-

-0-

$-0-

$-

$-

$-0-

$-0-

Assets and Liabilities, Changes in Fair Value, Recurring Basis

The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during year ended December 31, 2015.

 

 

Derivative Liability

Fair value, December 31, 2014 

$819,922

Additions

-0-

Change in fair value

-0-

Transfers in and/or out of Level 3

(819,922)

Fair value, December 31, 2015 

$-0-

XML 57 R34.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 16 - Acquisitions (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Tables/Schedules    
Schedule of Consolidated Assets, Liabilities, and Equity of Acquired Entities

The consolidation of these acquisitions is presented below.

 

Leo Motors consolidation

LEO Motors

LEO Motors

LGM

LEO Motors

LEO Motors

LEO Trade

ELIM

Consolidated

March 31, 2015

US

Korea

 

Factory 1

Factory 2

(f/k/a/ Erum)

ENTRIES

Statements

All numbers shown in  US Dollars

 

 

 

 

 

 

DR(CR)

3/31/2015

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

$374

67853

211,957

91,187

2914

92173

0

466,458

Accounts receivable

0

0

476,777

8,754

48,425

418,422

0

952,378

Inventories

0

0

295,159

0

0

0

0

295,159

Prepayment to suppliers

0

137,236

160,484

0

0

0

0

297,720

Other current assets

0

7,297

57,403

1,595

125,212

36,685

0

228,192

Total Current Assets

374

212,386

1,201,780

101,536

176,551

547,280

 

2,239,907

 

 

 

 

 

 

 

 

 

Fixed assets, net

6,744

10,530

16,846

63,683

88,181

0

0

185,984

Deposit

0

46,234

22,637

4,804

145,196

9,025

0

227,896

Intangible assets

0

63,831

0

0

0

0

0

63,831

Goodwill

0

0

0

0

0

0

3,057,003

3,057,003

Investment in subsidiaries

8,089,368

0

0

0

0

0

-8,089,368

0

Total Non-Current Assets

8,096,112

120,595

39,483

68,487

233,377

9,025

 

3,534,714

 

 

 

 

 

 

 

 

 

Total Assets

$8,096,486

332,981

1,241,263

170,023

409,928

556,305

-5,032,365

5,774,621

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

$1,139,889

1,060,342

291,900

97,840

307,112

416,183

0

3,313,266

Short term borrowings

0

256,392

183,245

32,052

0

0

0

471,689

Advance from customers

0

30,381

9,141

0

4,513

0

0

44,035

Due to related parties

0

116,617

0

0

0

0

0

116,617

Taxes payable

0

137,780

10,673

13,559

78,783

226

0

241,021

Notes Payable current portion

0

0

0

0

0

353,747

0

353,747

Total Current Liabilities

1,139,889

1,601,512

494,959

143,451

390,408

770,156

 

4,540,375

 

 

 

 

 

 

 

 

 

Long Term Notes

0

36,698

117,075

0

173,928

0

0

327,701

Accrued severance benefits

0

2,075

0

0

0

0

0

2,075

 

 

 

 

 

 

 

 

 

Total Liabilities

1,139,889

1,640,285

612,034

143,451

564,336

770,156

 

4,870,151

Stockholders' Equity:

 

 

 

 

 

 

 

 

Common stock

154,144

2,831,276

284,870

90,253

135,379

180,505

(3,522,283)

154,144

Additional paid-in capital

21,253,084

1,831,184

1,285,902

0

0

0

(4,973,230)

19,396,940

Accumulated other comprehensive income

277,678

225,403

4,893

0

0

0

0

507,974

Accumulated loss

(14,728,309)

(6,195,167)

(946,436)

(63,681)

(289,787)

(394,356)

733,773

(21,883,963)

Total Stockholders' Deficit attributable to LEO MOTORS, INC.

6,956,597

(1,307,304)

629,229

26,572

(154,408)

(213,851)

 

(1,824,905)

Non-controlling interest

0

0

0

0

0

0

2,729,375

2,729,375

Total Stockholders' Deficit

6,956,597

(1,307,304)

629,229

26,572

(154,408)

(213,851)

 

904,470

Total Liabilities and Stockholders' Deficit

$8,096,486

332,981

1,241,263

170,023

409,928

556,305

(5,032,365)

5,774,621

The consolidation of these acquisitions is presented below.

 

Leo Motors consolidation

LEO Motors

LEO Motors

LGM

LEO Motors

LEO Motors

LEO Trade

ELIM

Consolidated

March 31, 2015

US

Korea

 

Factory 1

Factory 2

(f/k/a/ Erum)

ENTRIES

Statements

All numbers shown in  US Dollars

 

 

 

 

 

 

DR(CR)

3/31/2015

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

$374

67853

211,957

91,187

2914

92173

0

466,458

Accounts receivable

0

0

476,777

8,754

48,425

418,422

0

952,378

Inventories

0

0

295,159

0

0

0

0

295,159

Prepayment to suppliers

0

137,236

160,484

0

0

0

0

297,720

Other current assets

0

7,297

57,403

1,595

125,212

36,685

0

228,192

Total Current Assets

374

212,386

1,201,780

101,536

176,551

547,280

 

2,239,907

 

 

 

 

 

 

 

 

 

Fixed assets, net

6,744

10,530

16,846

63,683

88,181

0

0

185,984

Deposit

0

46,234

22,637

4,804

145,196

9,025

0

227,896

Intangible assets

0

63,831

0

0

0

0

0

63,831

Goodwill

0

0

0

0

0

0

3,057,003

3,057,003

Investment in subsidiaries

8,089,368

0

0

0

0

0

-8,089,368

0

Total Non-Current Assets

8,096,112

120,595

39,483

68,487

233,377

9,025

 

3,534,714

 

 

 

 

 

 

 

 

 

Total Assets

$8,096,486

332,981

1,241,263

170,023

409,928

556,305

-5,032,365

5,774,621

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

$1,139,889

1,060,342

291,900

97,840

307,112

416,183

0

3,313,266

Short term borrowings

0

256,392

183,245

32,052

0

0

0

471,689

Advance from customers

0

30,381

9,141

0

4,513

0

0

44,035

Due to related parties

0

116,617

0

0

0

0

0

116,617

Taxes payable

0

137,780

10,673

13,559

78,783

226

0

241,021

Notes Payable current portion

0

0

0

0

0

353,747

0

353,747

Total Current Liabilities

1,139,889

1,601,512

494,959

143,451

390,408

770,156

 

4,540,375

 

 

 

 

 

 

 

 

 

Long Term Notes

0

36,698

117,075

0

173,928

0

0

327,701

Accrued severance benefits

0

2,075

0

0

0

0

0

2,075

 

 

 

 

 

 

 

 

 

Total Liabilities

1,139,889

1,640,285

612,034

143,451

564,336

770,156

 

4,870,151

Stockholders' Equity:

 

 

 

 

 

 

 

 

Common stock

154,144

2,831,276

284,870

90,253

135,379

180,505

(3,522,283)

154,144

Additional paid-in capital

21,253,084

1,831,184

1,285,902

0

0

0

(4,973,230)

19,396,940

Accumulated other comprehensive income

277,678

225,403

4,893

0

0

0

0

507,974

Accumulated loss

(14,728,309)

(6,195,167)

(946,436)

(63,681)

(289,787)

(394,356)

733,773

(21,883,963)

Total Stockholders' Deficit attributable to LEO MOTORS, INC.

6,956,597

(1,307,304

629,229

26,572

(154,408)

(213,851)

 

(1,824,905)

Non-controlling interest

0

0

0

0

0

0

2,729,375

2,729,375

Total Stockholders' Deficit

6,956,597

(1,307,304

629,229

26,572

(154,408)

(213,851)

 

904,470

Total Liabilities and Stockholders' Deficit

$8,096,486

332,981

1,241,263

170,023

409,928

556,305

(5,032,365)

5,774,621

XML 58 R35.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 1 - Company Background (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 12 Months Ended
Jul. 31, 2015
Mar. 31, 2016
Mar. 31, 2010
Dec. 31, 2015
Jun. 03, 2016
Dec. 31, 2011
PDI | Housing Project In The Republic Of The Congo            
Long Term Investment Percentage Of Investment Owned       10.00%    
Common Stock            
Conversion of Stock, Shares Issued   47,352,450   47,352,450    
Leo BT Corp            
Noncash or Part Noncash Acquisition, Interest Acquired     50.00%      
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Shares Issued     7,000,000      
Equity Method Investment, Ownership Percentage           30.00%
LGM Co. Ltd            
Conversion of Stock, Shares Converted   813,747   813,747    
Leo Motors Factory 1            
Noncash or Part Noncash Acquisition, Interest Acquired   50.00%   50.00%    
Leo Trade            
Noncash or Part Noncash Acquisition, Interest Acquired   50.00%   50.00%    
JV Agreement            
Registered capital $ 66.3          
Fushun Jinyuan            
Registered capital $ 32.2          
Noncontrolling Interest, Ownership Percentage by Parent 51.00%          
Leo Motors Korea            
Registered capital $ 32.5          
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners 49.00%          
Lelcon            
Equity Method Investment, Ownership Percentage         50.00%  
Stock Issued During Period, Shares, Acquisitions       1,414,828    
Business Acquisition, Share Price       $ 0.30    
XML 59 R36.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 3 - Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Dec. 31, 2014
Details        
Net Income (Loss) $ (458,166) $ (595,418) $ (4,490,972) $ (4,480,544)
Weighted-average common stock Outstanding - basic 161,878,686 149,069,490 155,866,313 97,393,209
Equivalents        
Stock options 0 0 0 0
Warrants 0 0 0 0
Convertible Notes 0 902,520 0 662,889
Weighted-average common shares outstanding - Diluted 161,878,686 149,972,010 155,866,313 98,056,098
XML 60 R37.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 4 - Due To Related Party (Details) - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Due to related parties $ 136,887 $ 140,396 $ 116,617 $ 150,637
Officer        
Due to related parties $ 136,887 $ 140,396   $ 150,637
XML 61 R38.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 5 - Payments Received in Advance (Details) - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Details        
Prepayment to suppliers $ 382,545 $ 279,229 $ 297,720 $ 306,969
XML 62 R39.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 6 - Going Concern (Details) - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Details        
Accumulated loss $ (25,827,119) $ (25,404,609) $ (21,883,963) $ (21,357,211)
XML 63 R40.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 7 - Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Details) - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Details    
2016 $ 165,620 $ 220,827
2017 101,249 101,249
2018 and beyond 0 0
Total Commitment $ 266,869 $ 322,076
XML 64 R41.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 7 - Commitments and Contingencies (Details)
Nov. 10, 2012
USD ($)
Housing Project In The Republic Of The Congo | PDI  
Contractual Obligation $ 1,000,000
XML 65 R42.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 8 - Inventories: Schedule of Inventories (Details) - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Details        
Raw material $ 0 $ 0   $ 0
Work in process 838,785 496,971   279,783
Finished goods 0 0   0
Inventories $ 838,785 $ 496,971 $ 295,159 $ 279,783
XML 66 R43.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 9 - Property and Equipment: Property, Plant and Equipment (Details) - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Total property and equipment $ 561,988 $ 561,988   $ 258,416
Accumulated depreciation (419,851) (398,987)   (219,796)
Property and equipment, net 142,137 163,001 $ 185,984 38,620
Tools        
Total property and equipment 95,771 95,771   12,906
Office        
Total property and equipment 109,447 109,447   79,963
Facility Equipment        
Total property and equipment 210,502 210,502   157,966
Vehicles        
Total property and equipment $ 146,268 $ 146,268   $ 7,581
XML 67 R44.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 9 - Property and Equipment (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Dec. 31, 2014
Details        
Depreciation $ 20,864 $ 4,500 $ 207,837 $ 19,470
XML 68 R45.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 10 - Investments (Details) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2012
Impairment of investment $ 0 $ 762,000  
Housing Project In The Republic Of The Congo | PDI      
Long-term Investments $ 270,000   $ 270,000
XML 69 R46.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 11 - Short Term Borrowings and Notes Payable (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Dec. 31, 2014
Short term borrowings $ 0 $ 471,689 $ 7,661 $ 448,801
Conversion of derivative liability $ 0 819,922 819,922 $ 569,584
Note 1        
Short term borrowings   $ 359,757 448,801  
Note2Member        
Conversion of derivative liability     $ 819,922  
Note2Member | Common Stock        
Debt Instrument, Interest Rate, Stated Percentage     4.00%  
Debt Conversion, Converted Instrument, Shares Issued     14,924,263  
XML 70 R47.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 11 - Short Term Borrowings and Notes Payable: Schedule of Short-term Debt (Details) - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Notes Payable $ 359,757 $ 323,043    
Notes Payable current portion 264,158 49,397 $ 353,747 $ 526,257
Notes payable long term $ 95,599 $ 273,646 $ 327,701 $ 145,316
Note 3        
Debt Instrument, Interest Rate, Stated Percentage 3.65% 3.65%    
Notes Payable to Bank $ 62,883 $ 45,505    
Note 4        
Debt Instrument, Interest Rate, Stated Percentage 6.24% 6.24%    
Notes Payable to Bank $ 76,479 $ 75,775    
Note 6        
Debt Instrument, Interest Rate, Stated Percentage 3.28% 3.28%    
Notes Payable to Bank $ 84,977 $ 85,245    
Note 7        
Debt Instrument, Interest Rate, Stated Percentage 3.83% 3.83%    
Notes Payable to Bank $ 127,465 $ 35,718    
Note 8        
Debt Instrument, Interest Rate, Stated Percentage 7.25% 7.25%    
Notes Payable to Bank $ 7,954 $ 34,000    
Note5Member        
Debt Instrument, Interest Rate, Stated Percentage   3.64%    
Notes Payable to Bank   $ 46,800    
XML 71 R48.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 12 - Income Taxes (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Details    
Operating Loss Carryforwards $ 25,827,119 $ 25,404,609
Valuation reserve increase $ 155,766 $ 1,376,115
XML 72 R49.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 12 - Income Taxes: Schedule of Deferred Tax Assets (Details) - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Details    
Deferred Tax Assets $ 8,781,220 $ 8,637,567
Realization Allowance (8,781,220) (8,637,567)
Balance Recognized $ 0 $ 0
XML 73 R50.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 12 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Details    
Statutory Federal Rate 34.00% 34.00%
Effect of Valuation Allowance (34.00%) (34.00%)
Effective Rate 0.00% 0.00%
XML 74 R51.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 13 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Details      
Patents $ 86,998 $ 63,554 $ 63,554
Trademarks 277 277 277
Goodwill 3,057,003 3,057,003 2,444,558
Intangible assets 3,144,278 3,120,834 2,508,389
Less: impairments 0 0 0
Intangible assets, net $ 3,144,278 $ 3,120,834 $ 2,508,389
XML 75 R52.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 15 - Acquisitions (Details)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Leo Motors Factory 1    
Noncash or Part Noncash Acquisition, Interest Acquired 50.00% 50.00%
Leo Trade    
Noncash or Part Noncash Acquisition, Interest Acquired 50.00% 50.00%
XML 76 R53.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 15 - Acquisitions: Schedule of Consolidated Assets, Liabilities, and Equity of Acquired Entities (Details) - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Assets          
Cash and cash equivalents $ 130,874 $ 243,809 $ 466,458 $ 217,178 $ 1,774
Accounts receivable 1,015,447 1,565,114 952,378 542,210  
Inventories 838,785 496,971 295,159 279,783  
Prepayment to suppliers 382,545 279,229 297,720 306,969  
Other current assets 199,073 32,107 228,192 49,705  
Total Current Assets 2,566,724 2,617,230 2,239,907 1,395,845  
Fixed assets, net 142,137 163,001 185,984 38,620  
Deposit 346,255 346,659 227,896 51,601  
Intangible assets 87,275 63,831 63,831 63,831  
Goodwill 3,057,003 3,057,003 3,057,003 2,444,558  
Investments in Subsidiaries     0    
Total Non-Current Assets     3,534,714    
Total Assets 6,199,394 6,247,724 5,774,621 3,994,455  
Current Liabilities:          
Accounts payable and accrued expenses 3,748,487 4,082,198 3,313,266 2,152,951  
Short term borrowings 0 7,661 471,689 448,801  
Advance from customers 496,385 795,431 44,035 40,951  
Due to related parties 136,887 140,396 116,617 150,637  
Taxes payable 155,151 99,584 241,021 159,478  
Notes Payable current portion 264,158 49,397 353,747 526,257  
Total Current Liabilities 4,801,068 5,174,667 4,540,375 4,298,997  
Long Term Notes 95,599 273,646 327,701 145,316  
Accrued severance benefits 96,518 92,948 2,075 2,150  
Total Liabilities 5,189,764 5,671,009 4,870,151 4,446,463  
Leo Motors, Inc.("LEOM") Equity(Deficit):          
Common stock 163,199 158,949 154,144 138,624  
Additional paid-in capital 20,990,286 20,367,272 19,396,940 17,723,248  
Accumulated other comprehensive income 1,329,240 1,251,120 507,974 511,229  
Accumulated loss (25,827,119) (25,404,609) (21,883,963) (21,357,211)  
Total Equity(Deficit) Leo Motors, Inc. (3,344,394) (3,627,268) (1,824,905) (2,984,110)  
Non-controlling interest 4,354,024 4,203,983 2,729,375 2,532,102  
Total Equity(Deficit) 1,009,630 576,715 904,470 (452,008) $ (518,320)
Total Liabilities and Equity(Deficit) $ 6,199,394 $ 6,247,724 5,774,621 $ 3,994,455  
Leo Motors US          
Assets          
Cash and cash equivalents     374    
Accounts receivable     0    
Inventories     0    
Prepayment to suppliers     0    
Other current assets     0    
Total Current Assets     374    
Fixed assets, net     6,744    
Deposit     0    
Intangible assets     0    
Goodwill     0    
Investments in Subsidiaries     8,089,368    
Total Non-Current Assets     8,096,112    
Total Assets     8,096,486    
Current Liabilities:          
Accounts payable and accrued expenses     1,139,889    
Short term borrowings     0    
Advance from customers     0    
Due to related parties     0    
Taxes payable     0    
Notes Payable current portion     0    
Total Current Liabilities     1,139,889    
Long Term Notes     0    
Accrued severance benefits     0    
Total Liabilities     1,139,889    
Leo Motors, Inc.("LEOM") Equity(Deficit):          
Common stock     154,144    
Additional paid-in capital     21,253,084    
Accumulated other comprehensive income     277,678    
Accumulated loss     (14,728,309)    
Total Equity(Deficit) Leo Motors, Inc.     6,956,597    
Non-controlling interest     0    
Total Equity(Deficit)     6,956,597    
Total Liabilities and Equity(Deficit)     8,096,486    
Leo Motors Korea          
Assets          
Cash and cash equivalents     67,853    
Accounts receivable     0    
Inventories     0    
Prepayment to suppliers     137,236    
Other current assets     7,297    
Total Current Assets     212,386    
Fixed assets, net     10,530    
Deposit     46,234    
Intangible assets     63,831    
Goodwill     0    
Investments in Subsidiaries     0    
Total Non-Current Assets     120,595    
Total Assets     332,981    
Current Liabilities:          
Accounts payable and accrued expenses     1,060,342    
Short term borrowings     256,392    
Advance from customers     30,381    
Due to related parties     116,617    
Taxes payable     137,780    
Notes Payable current portion     0    
Total Current Liabilities     1,601,512    
Long Term Notes     36,698    
Accrued severance benefits     2,075    
Total Liabilities     1,640,285    
Leo Motors, Inc.("LEOM") Equity(Deficit):          
Common stock     2,831,276    
Additional paid-in capital     1,831,184    
Accumulated other comprehensive income     225,403    
Accumulated loss     (6,195,167)    
Total Equity(Deficit) Leo Motors, Inc.     (1,307,304)    
Non-controlling interest     0    
Total Equity(Deficit)     (1,307,304)    
Total Liabilities and Equity(Deficit)     332,981    
LGM Co. Ltd          
Assets          
Cash and cash equivalents     211,957    
Accounts receivable     476,777    
Inventories     295,159    
Prepayment to suppliers     160,484    
Other current assets     57,403    
Total Current Assets     1,201,780    
Fixed assets, net     16,846    
Deposit     22,637    
Intangible assets     0    
Goodwill     0    
Investments in Subsidiaries     0    
Total Non-Current Assets     39,483    
Total Assets     1,241,263    
Current Liabilities:          
Accounts payable and accrued expenses     291,900    
Short term borrowings     183,245    
Advance from customers     9,141    
Due to related parties     0    
Taxes payable     10,673    
Notes Payable current portion     0    
Total Current Liabilities     494,959    
Long Term Notes     117,075    
Accrued severance benefits     0    
Total Liabilities     612,034    
Leo Motors, Inc.("LEOM") Equity(Deficit):          
Common stock     284,870    
Additional paid-in capital     1,285,902    
Accumulated other comprehensive income     4,893    
Accumulated loss     (946,436)    
Total Equity(Deficit) Leo Motors, Inc.     629,229    
Non-controlling interest     0    
Total Equity(Deficit)     629,229    
Total Liabilities and Equity(Deficit)     1,241,263    
Leo Motors Factory 1          
Assets          
Cash and cash equivalents     91,187    
Accounts receivable     8,754    
Inventories     0    
Prepayment to suppliers     0    
Other current assets     1,595    
Total Current Assets     101,536    
Fixed assets, net     63,683    
Deposit     4,804    
Intangible assets     0    
Goodwill     0    
Investments in Subsidiaries     0    
Total Non-Current Assets     68,487    
Total Assets     170,023    
Current Liabilities:          
Accounts payable and accrued expenses     97,840    
Short term borrowings     32,052    
Advance from customers     0    
Due to related parties     0    
Taxes payable     13,559    
Notes Payable current portion     0    
Total Current Liabilities     143,451    
Long Term Notes     0    
Accrued severance benefits     0    
Total Liabilities     143,451    
Leo Motors, Inc.("LEOM") Equity(Deficit):          
Common stock     90,253    
Additional paid-in capital     0    
Accumulated other comprehensive income     0    
Accumulated loss     (63,681)    
Total Equity(Deficit) Leo Motors, Inc.     26,572    
Non-controlling interest     0    
Total Equity(Deficit)     26,572    
Total Liabilities and Equity(Deficit)     170,023    
Leo Motors Factory 2          
Assets          
Cash and cash equivalents     2,914    
Accounts receivable     48,425    
Inventories     0    
Prepayment to suppliers     0    
Other current assets     125,212    
Total Current Assets     176,551    
Fixed assets, net     88,181    
Deposit     145,196    
Intangible assets     0    
Goodwill     0    
Investments in Subsidiaries     0    
Total Non-Current Assets     233,377    
Total Assets     409,928    
Current Liabilities:          
Accounts payable and accrued expenses     307,112    
Short term borrowings     0    
Advance from customers     4,513    
Due to related parties     0    
Taxes payable     78,783    
Notes Payable current portion     0    
Total Current Liabilities     390,408    
Long Term Notes     173,928    
Accrued severance benefits     0    
Total Liabilities     564,336    
Leo Motors, Inc.("LEOM") Equity(Deficit):          
Common stock     135,379    
Additional paid-in capital     0    
Accumulated other comprehensive income     0    
Accumulated loss     (289,787)    
Total Equity(Deficit) Leo Motors, Inc.     (154,408)    
Non-controlling interest     0    
Total Equity(Deficit)     (154,408)    
Total Liabilities and Equity(Deficit)     409,928    
Leo Trade          
Assets          
Cash and cash equivalents     92,173    
Accounts receivable     418,422    
Inventories     0    
Prepayment to suppliers     0    
Other current assets     36,685    
Total Current Assets     547,280    
Fixed assets, net     0    
Deposit     9,025    
Intangible assets     0    
Goodwill     0    
Investments in Subsidiaries     0    
Total Non-Current Assets     9,025    
Total Assets     556,305    
Current Liabilities:          
Accounts payable and accrued expenses     416,183    
Short term borrowings     0    
Advance from customers     0    
Due to related parties     0    
Taxes payable     226    
Notes Payable current portion     353,747    
Total Current Liabilities     770,156    
Long Term Notes     0    
Accrued severance benefits     0    
Total Liabilities     770,156    
Leo Motors, Inc.("LEOM") Equity(Deficit):          
Common stock     180,505    
Additional paid-in capital     0    
Accumulated other comprehensive income     0    
Accumulated loss     (394,356)    
Total Equity(Deficit) Leo Motors, Inc.     (213,851)    
Non-controlling interest     0    
Total Equity(Deficit)     (213,851)    
Total Liabilities and Equity(Deficit)     556,305    
ELIM Entries          
Assets          
Cash and cash equivalents     0    
Accounts receivable     0    
Inventories     0    
Prepayment to suppliers     0    
Other current assets     0    
Fixed assets, net     0    
Deposit     0    
Intangible assets     0    
Goodwill     3,057,003    
Investments in Subsidiaries     (8,089,368)    
Total Assets     (5,032,365)    
Current Liabilities:          
Accounts payable and accrued expenses     0    
Short term borrowings     0    
Advance from customers     0    
Due to related parties     0    
Taxes payable     0    
Notes Payable current portion     0    
Long Term Notes     0    
Accrued severance benefits     0    
Leo Motors, Inc.("LEOM") Equity(Deficit):          
Common stock     (3,522,283)    
Additional paid-in capital     (4,973,230)    
Accumulated other comprehensive income     0    
Accumulated loss     733,773    
Non-controlling interest     2,729,375    
Total Liabilities and Equity(Deficit)     $ (5,032,365)    
XML 77 R54.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 13 - Intangible Assets (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Details      
Patents $ 86,998 $ 63,554 $ 63,554
Trademarks 277 277 277
Goodwill 3,057,003 3,057,003 2,444,558
Intangible assets 3,144,278 3,120,834 2,508,389
Less: impairments 0 0 0
Intangible assets, net $ 3,144,278 $ 3,120,834 $ 2,508,389
XML 78 R55.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 15 - Derivative Liability (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Dec. 31, 2014
Jul. 31, 2014
Amortization debt discount $ 0 $ 275,176 $ 275,176 $ 340,568  
Derivative Financial Instruments, Liabilities          
Liabilities, Fair Value Disclosure, Recurring     $ 0 $ 819,922  
Debt Discount         $ 825,529
XML 79 R56.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 15 - Derivative Liability: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Derivative Financial Instruments, Liabilities - USD ($)
Dec. 31, 2015
Dec. 31, 2014
Liabilities, Fair Value Disclosure, Recurring $ 0 $ 819,922
Fair Value, Inputs, Level 1    
Liabilities, Fair Value Disclosure, Recurring 0  
Fair Value, Inputs, Level 2    
Liabilities, Fair Value Disclosure, Recurring 0  
Fair Value, Inputs, Level 3    
Liabilities, Fair Value Disclosure, Recurring $ 0  
XML 80 R57.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 15 - Derivative Liability: Assets and Liabilities, Changes in Fair Value, Recurring Basis (Details)
12 Months Ended
Dec. 31, 2015
USD ($)
Details  
Derivative Liability, Fair value, Beginning Balance $ 819,922
Additions 0
Change in fair value 0
Transfers in and/or out of Level 3 (819,922)
Derivative Liability, Fair value, Ending Balance $ 0
XML 81 R58.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 16 - Acquisitions (Details)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Leo Motors Factory 1    
Noncash or Part Noncash Acquisition, Interest Acquired 50.00% 50.00%
Leo Trade    
Noncash or Part Noncash Acquisition, Interest Acquired 50.00% 50.00%
XML 82 R59.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 16 - Acquisitions: Schedule of Consolidated Assets, Liabilities, and Equity of Acquired Entities (Details) - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Assets          
Cash and cash equivalents $ 130,874 $ 243,809 $ 466,458 $ 217,178 $ 1,774
Accounts receivable 1,015,447 1,565,114 952,378 542,210  
Inventories 838,785 496,971 295,159 279,783  
Prepayment to suppliers 382,545 279,229 297,720 306,969  
Other current assets 199,073 32,107 228,192 49,705  
Total Current Assets 2,566,724 2,617,230 2,239,907 1,395,845  
Fixed assets, net 142,137 163,001 185,984 38,620  
Deposit 346,255 346,659 227,896 51,601  
Intangible assets 87,275 63,831 63,831 63,831  
Goodwill 3,057,003 3,057,003 3,057,003 2,444,558  
Investments in Subsidiaries     0    
Total Non-Current Assets     3,534,714    
Total Assets 6,199,394 6,247,724 5,774,621 3,994,455  
Current Liabilities:          
Accounts payable and accrued expenses 3,748,487 4,082,198 3,313,266 2,152,951  
Short term borrowings 0 7,661 471,689 448,801  
Advance from customers 496,385 795,431 44,035 40,951  
Due to related parties 136,887 140,396 116,617 150,637  
Taxes payable 155,151 99,584 241,021 159,478  
Notes Payable current portion 264,158 49,397 353,747 526,257  
Total Current Liabilities 4,801,068 5,174,667 4,540,375 4,298,997  
Long Term Notes 95,599 273,646 327,701 145,316  
Accrued severance benefits 96,518 92,948 2,075 2,150  
Total Liabilities 5,189,764 5,671,009 4,870,151 4,446,463  
Leo Motors, Inc.("LEOM") Equity(Deficit):          
Common stock 163,199 158,949 154,144 138,624  
Additional paid-in capital 20,990,286 20,367,272 19,396,940 17,723,248  
Accumulated other comprehensive income 1,329,240 1,251,120 507,974 511,229  
Accumulated loss (25,827,119) (25,404,609) (21,883,963) (21,357,211)  
Total Equity(Deficit) Leo Motors, Inc. (3,344,394) (3,627,268) (1,824,905) (2,984,110)  
Non-controlling interest 4,354,024 4,203,983 2,729,375 2,532,102  
Total Equity(Deficit) 1,009,630 576,715 904,470 (452,008) $ (518,320)
Total Liabilities and Equity(Deficit) $ 6,199,394 $ 6,247,724 5,774,621 $ 3,994,455  
Leo Motors US          
Assets          
Cash and cash equivalents     374    
Accounts receivable     0    
Inventories     0    
Prepayment to suppliers     0    
Other current assets     0    
Total Current Assets     374    
Fixed assets, net     6,744    
Deposit     0    
Intangible assets     0    
Goodwill     0    
Investments in Subsidiaries     8,089,368    
Total Non-Current Assets     8,096,112    
Total Assets     8,096,486    
Current Liabilities:          
Accounts payable and accrued expenses     1,139,889    
Short term borrowings     0    
Advance from customers     0    
Due to related parties     0    
Taxes payable     0    
Notes Payable current portion     0    
Total Current Liabilities     1,139,889    
Long Term Notes     0    
Accrued severance benefits     0    
Total Liabilities     1,139,889    
Leo Motors, Inc.("LEOM") Equity(Deficit):          
Common stock     154,144    
Additional paid-in capital     21,253,084    
Accumulated other comprehensive income     277,678    
Accumulated loss     (14,728,309)    
Total Equity(Deficit) Leo Motors, Inc.     6,956,597    
Non-controlling interest     0    
Total Equity(Deficit)     6,956,597    
Total Liabilities and Equity(Deficit)     8,096,486    
Leo Motors Korea          
Assets          
Cash and cash equivalents     67,853    
Accounts receivable     0    
Inventories     0    
Prepayment to suppliers     137,236    
Other current assets     7,297    
Total Current Assets     212,386    
Fixed assets, net     10,530    
Deposit     46,234    
Intangible assets     63,831    
Goodwill     0    
Investments in Subsidiaries     0    
Total Non-Current Assets     120,595    
Total Assets     332,981    
Current Liabilities:          
Accounts payable and accrued expenses     1,060,342    
Short term borrowings     256,392    
Advance from customers     30,381    
Due to related parties     116,617    
Taxes payable     137,780    
Notes Payable current portion     0    
Total Current Liabilities     1,601,512    
Long Term Notes     36,698    
Accrued severance benefits     2,075    
Total Liabilities     1,640,285    
Leo Motors, Inc.("LEOM") Equity(Deficit):          
Common stock     2,831,276    
Additional paid-in capital     1,831,184    
Accumulated other comprehensive income     225,403    
Accumulated loss     (6,195,167)    
Total Equity(Deficit) Leo Motors, Inc.     (1,307,304)    
Non-controlling interest     0    
Total Equity(Deficit)     (1,307,304)    
Total Liabilities and Equity(Deficit)     332,981    
LGM Co. Ltd          
Assets          
Cash and cash equivalents     211,957    
Accounts receivable     476,777    
Inventories     295,159    
Prepayment to suppliers     160,484    
Other current assets     57,403    
Total Current Assets     1,201,780    
Fixed assets, net     16,846    
Deposit     22,637    
Intangible assets     0    
Goodwill     0    
Investments in Subsidiaries     0    
Total Non-Current Assets     39,483    
Total Assets     1,241,263    
Current Liabilities:          
Accounts payable and accrued expenses     291,900    
Short term borrowings     183,245    
Advance from customers     9,141    
Due to related parties     0    
Taxes payable     10,673    
Notes Payable current portion     0    
Total Current Liabilities     494,959    
Long Term Notes     117,075    
Accrued severance benefits     0    
Total Liabilities     612,034    
Leo Motors, Inc.("LEOM") Equity(Deficit):          
Common stock     284,870    
Additional paid-in capital     1,285,902    
Accumulated other comprehensive income     4,893    
Accumulated loss     (946,436)    
Total Equity(Deficit) Leo Motors, Inc.     629,229    
Non-controlling interest     0    
Total Equity(Deficit)     629,229    
Total Liabilities and Equity(Deficit)     1,241,263    
Leo Motors Factory 1          
Assets          
Cash and cash equivalents     91,187    
Accounts receivable     8,754    
Inventories     0    
Prepayment to suppliers     0    
Other current assets     1,595    
Total Current Assets     101,536    
Fixed assets, net     63,683    
Deposit     4,804    
Intangible assets     0    
Goodwill     0    
Investments in Subsidiaries     0    
Total Non-Current Assets     68,487    
Total Assets     170,023    
Current Liabilities:          
Accounts payable and accrued expenses     97,840    
Short term borrowings     32,052    
Advance from customers     0    
Due to related parties     0    
Taxes payable     13,559    
Notes Payable current portion     0    
Total Current Liabilities     143,451    
Long Term Notes     0    
Accrued severance benefits     0    
Total Liabilities     143,451    
Leo Motors, Inc.("LEOM") Equity(Deficit):          
Common stock     90,253    
Additional paid-in capital     0    
Accumulated other comprehensive income     0    
Accumulated loss     (63,681)    
Total Equity(Deficit) Leo Motors, Inc.     26,572    
Non-controlling interest     0    
Total Equity(Deficit)     26,572    
Total Liabilities and Equity(Deficit)     170,023    
Leo Motors Factory 2          
Assets          
Cash and cash equivalents     2,914    
Accounts receivable     48,425    
Inventories     0    
Prepayment to suppliers     0    
Other current assets     125,212    
Total Current Assets     176,551    
Fixed assets, net     88,181    
Deposit     145,196    
Intangible assets     0    
Goodwill     0    
Investments in Subsidiaries     0    
Total Non-Current Assets     233,377    
Total Assets     409,928    
Current Liabilities:          
Accounts payable and accrued expenses     307,112    
Short term borrowings     0    
Advance from customers     4,513    
Due to related parties     0    
Taxes payable     78,783    
Notes Payable current portion     0    
Total Current Liabilities     390,408    
Long Term Notes     173,928    
Accrued severance benefits     0    
Total Liabilities     564,336    
Leo Motors, Inc.("LEOM") Equity(Deficit):          
Common stock     135,379    
Additional paid-in capital     0    
Accumulated other comprehensive income     0    
Accumulated loss     (289,787)    
Total Equity(Deficit) Leo Motors, Inc.     (154,408)    
Non-controlling interest     0    
Total Equity(Deficit)     (154,408)    
Total Liabilities and Equity(Deficit)     409,928    
Leo Trade          
Assets          
Cash and cash equivalents     92,173    
Accounts receivable     418,422    
Inventories     0    
Prepayment to suppliers     0    
Other current assets     36,685    
Total Current Assets     547,280    
Fixed assets, net     0    
Deposit     9,025    
Intangible assets     0    
Goodwill     0    
Investments in Subsidiaries     0    
Total Non-Current Assets     9,025    
Total Assets     556,305    
Current Liabilities:          
Accounts payable and accrued expenses     416,183    
Short term borrowings     0    
Advance from customers     0    
Due to related parties     0    
Taxes payable     226    
Notes Payable current portion     353,747    
Total Current Liabilities     770,156    
Long Term Notes     0    
Accrued severance benefits     0    
Total Liabilities     770,156    
Leo Motors, Inc.("LEOM") Equity(Deficit):          
Common stock     180,505    
Additional paid-in capital     0    
Accumulated other comprehensive income     0    
Accumulated loss     (394,356)    
Total Equity(Deficit) Leo Motors, Inc.     (213,851)    
Non-controlling interest     0    
Total Equity(Deficit)     (213,851)    
Total Liabilities and Equity(Deficit)     556,305    
ELIM Entries          
Assets          
Cash and cash equivalents     0    
Accounts receivable     0    
Inventories     0    
Prepayment to suppliers     0    
Other current assets     0    
Fixed assets, net     0    
Deposit     0    
Intangible assets     0    
Goodwill     3,057,003    
Investments in Subsidiaries     (8,089,368)    
Total Assets     (5,032,365)    
Current Liabilities:          
Accounts payable and accrued expenses     0    
Short term borrowings     0    
Advance from customers     0    
Due to related parties     0    
Taxes payable     0    
Notes Payable current portion     0    
Long Term Notes     0    
Accrued severance benefits     0    
Leo Motors, Inc.("LEOM") Equity(Deficit):          
Common stock     (3,522,283)    
Additional paid-in capital     (4,973,230)    
Accumulated other comprehensive income     0    
Accumulated loss     733,773    
Non-controlling interest     2,729,375    
Total Liabilities and Equity(Deficit)     $ (5,032,365)    
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