0001144204-17-064166.txt : 20171218 0001144204-17-064166.hdr.sgml : 20171218 20171218172756 ACCESSION NUMBER: 0001144204-17-064166 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 64 CONFORMED PERIOD OF REPORT: 20170630 FILED AS OF DATE: 20171218 DATE AS OF CHANGE: 20171218 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PLEDGE PETROLEUM CORP CENTRAL INDEX KEY: 0001434110 STANDARD INDUSTRIAL CLASSIFICATION: OIL AND GAS FIELD EXPLORATION SERVICES [1382] IRS NUMBER: 261856569 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-53488 FILM NUMBER: 171262276 BUSINESS ADDRESS: STREET 1: 10655 BAMMEL NORTH HOUSTON ROAD STREET 2: SUITE 100 CITY: HOUSTON STATE: TX ZIP: 77086 BUSINESS PHONE: (713) 227- 0480 MAIL ADDRESS: STREET 1: 10655 BAMMEL NORTH HOUSTON ROAD STREET 2: SUITE 100 CITY: HOUSTON STATE: TX ZIP: 77086 FORMER COMPANY: FORMER CONFORMED NAME: PLEDGE PTEROLEUM CORP. DATE OF NAME CHANGE: 20170221 FORMER COMPANY: FORMER CONFORMED NAME: Propell Technologies Group, Inc. DATE OF NAME CHANGE: 20130118 FORMER COMPANY: FORMER CONFORMED NAME: Propell Corporation. DATE OF NAME CHANGE: 20080501 10-Q 1 tv480985_10q.htm FORM 10-Q

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2017

 

or

 

¨  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                   to                

 

Commission File Number: 000-53488

 

PLEDGE PETROLEUM CORP.

(Exact name of registrant as specified in its charter)

 

Delaware   26-1856569
(State or other jurisdiction of   (I.R.S. employer
incorporation or organization)   Identification No.)

 

11811 North Freeway, 5th Floor,

Suite 513, Houston, TX 77060

(Address of principal executive offices) (Zip Code)

 

(832) 328- 0169

(Registrant’s telephone number, including area code)

 

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ¨ No x

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No x

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ¨   Accelerated filer ¨
Non-accelerated filer ¨ (Do not check if a smaller reporting company) Smaller reporting company x
      Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

 

The Registrant has 268,558,931 shares of common stock outstanding as of December 15, 2017.

 

Documents incorporated by reference: None

 

 

 

  

 

   

PLEDGE PETROLEUM CORP.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In particular, statements contained in this Quarterly Report on Form 10-Q, including but not limited to, statements regarding the sufficiency of our cash, our ability to finance our operations and business initiatives and obtain funding for such activities; our future results of operations and financial position, business strategy and plan prospects, or costs and objectives of management for future acquisitions, are forward looking statements. These forward-looking statements relate to our future plans, objectives, expectations and intentions and may be identified by words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “intends,” ’‘targets,” “projects,” “contemplates,” ’‘believes,” “seeks,” “goals,” “estimates,” ’‘predicts,” ’‘potential” and “continue” or similar words. Readers are cautioned that these forward-looking statements are based on our current beliefs, expectations and assumptions and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those identified below, under Part II, Item 1A. “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q, and those identified under Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on August 7, 2017. Therefore, actual results may differ materially and adversely from those expressed, projected or implied in any forward-looking statements. We undertake no obligation to revise or update any forward-looking statements for any reason.

 

NOTE REGARDING COMPANY REFERENCES

 

Throughout this Quarterly Report on Form 10-Q, “Pledge,” the “Company,” “we,” “us” and “our” refer to Pledge Petroleum Corp.

  

 

 

PLEDGE PETROLEUM CORP.

 

FORM 10-Q

 

FOR THE SIX MONTHS ENDED JUNE 30, 2017

 

TABLE OF CONTENTS

 

    Page
  PART I-FINANCIAL INFORMATION  
Item l. Financial Statements F-1
  Condensed Consolidated Balance Sheets as of June 30, 2017 (Unaudited) and December 31, 2016 F-1
  Unaudited Condensed Consolidated Statements of Operations for the three months and six months  ended June 30, 2017 and 2016 F-2
  Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016 F-3
  Notes to the Unaudited Condensed Consolidated Financial Statements F-4
Item 2. Management’s Discussion and Analysis of Financial Information and Results of Operations 1
Item 3. Quantitative and Qualitative Disclosures About Market Risk 5
Item 4. Controls and Procedures 5
     
  PART II-OTHER INFORMATION  
Item 1. Legal Proceedings 6
Item 1A. Risk Factors 6
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 6
Item 3. Defaults Upon Senior Securities 6
Item 4. Mine Safety Disclosures 6
Item 5. Other Information 6
Item 6. Exhibits 7
SIGNATURES   7

 

 2 

 

 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

PLEDGE PETROLEUM CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   June 30,   December 31, 
   2017   2016 
   (Unaudited)     
Assets          
           
Current Assets          
Cash  $8,891,239   $9,170,286 
Prepaid expenses   34,066    25,940 
Total Current Assets   8,925,305    9,196,226 
           
Non-Current Assets          
Plant and equipment, net   11,460    14,326 
Deposits   530    6,968 
Total Non-Current Assets   11,990    21,294 
Total Assets  $8,937,295   $9,217,520 
           
Liabilities and Stockholders' Equity          
           
Current Liabilities          
Accounts payable  $79,438   $31,027 
Accrued expenses and other payables   14,860    34,467 
Net liabilities of discontinued operations   1,025,716    1,025,716 
Notes payable   3,000    3,000 
Total Current Liabilities   1,123,014    1,094,210 
           
Stockholders' Equity          
Series A-1 Convertible Preferred stock, $0.01 par value; 5,000,000 shares designated, 3,137,500 shares issued and outstanding. (liquidation preference $251,000)   3,138    3,138 
Series B Convertible, Redeemable Preferred Stock, $0.001 par value; 500,000 shares designated; 40,000 issued and outstanding. (liquidation preference $480,000 )   40    40 
Series C Convertible, Preferred Stock, $0.001 par value, 4,500,000 shares designated, 4,500,000 issued and outstanding (liquidation preference $14,750,000)   4,500    4,500 
Common stock, $0.001 par value; 500,000,000 shares authorized, 268,558,931 shares issued and outstanding.   268,559    268,559 
Additional paid-in-capital   26,377,580    26,359,514 
Accumulated deficit   (18,839,536)   (18,512,441)
Total Stockholders' Equity   7,814,281    8,123,310 
Total Liabilities and Stockholders' Equity  $8,937,295   $9,217,520 

 

See notes to the unaudited condensed consolidated financial statements

 

 F-1 

 

 

PLEDGE PETROLEUM CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

   Three months
ended
   Three months
ended
   Six months
ended
   Six months
ended
 
   June 30   June 30   June 30   June 30 
   2017   2016   2017   2016 
                 
Net Revenue  $25,000   $-   $25,000   $- 
                     
Cost of Goods Sold   -    -    -    - 
                     
Gross Profit  $25,000   $-   $25,000   $- 
                     
Sales and Marketing   1,497    1,497    2,994    6,765 
Professional fees   83,606    77,009    148,361    169,557 
Consulting fees   8,305    145,600    27,436    243,100 
General and administrative   46,991    300,260    170,482    654,956 
Depreciation, amortization and impairment charges   1,311    34,519    2,866    68,281 
Total Expense   141,710    558,885    352,139    1,142,659 
Loss from Operations   (116,710)   (558,885)   (327,139)   (1,142,659)
                     
Other income (expense)   -    (763)   -    199,237 
Finance costs   59    -    44    - 
Loss before Provision for Income Taxes   (116,651)   (559,648)   (327,095)   (943,422)
                     
Provision for Income Taxes   -    -    -    - 
                     
Net Loss from continuing operations   (116,651)   (559,648)   (327,095)   (943,422)
                     
Loss for discontinued operations, net of tax   -    (400,863)   -    (1,064,736)
Net loss attributable to non-controlling interest of discontinued operation   -    -    -    249,339 
                     
Loss from discontinued operations, net of non-controlling interest   -    (400,863)   -    (815,397)
                     
Net Loss Attributable to Controlling Interest   (116,651)   (960,511)   (327,095)   (1,758,819)
                     
Undeclared Series B and Series C Preferred stock dividends   (156,071)   (156,071)   (310,427)   (312,142)
                     
Net loss available to common stock holders  $(272,722)  $(1,116,582)  $(637,522)  $(2,070,961)
                     
Net Loss Per Share from continuing operations - Basic and Diluted  $-   $-   $-   $(0.01)
Net Loss Per Share from discontinued operations - Basic and Diluted  $-   $-   $-   $- 
Net Loss Per Share - Basic and Diluted  $-   $-   $-   $(0.01)
Weighted Average Number of Shares Outstanding - Basic and Diluted   268,558,931    268,558,931    268,558,931    268,558,931 

 

See notes to the unaudited condensed consolidated financial statements

 

 F-2 

 

 

PLEDGE PETROLEUM CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

   Six months
ended
   Six months
ended
 
   June 30   June 30 
   2017   2016 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net loss  $(327,095)  $(1,758,819)
Net loss from discontinued operations   -    1,064,736 
Less: loss attributable to non-controlling interest   -    (249,339)
Net loss from continuing operations   (327,095)   (943,422)
Adjustment to reconcile net loss to net cash used in operating activities:          
Depreciation expense   2,866    33,281 
Deposit forfeited   6,968    - 
Amortization expense   -    35,000 
Loss on theft of fixed assets   -    1,248 
Equity based compensation charge   18,066    42,895 
Gain on debt forgiven   -    (200,000)
Changes in Assets and Liabilities          
Accounts receivable   -    (21,787)
Prepaid expenses and other current assets   (8,125)   16,087 
Accounts payable   48,618    (88,850)
Accrued liabilities   (19,815)   (31,109)
Cash Used in Operating Activities - continuing operations   (278,517)   (1,156,657)
Cash used in operating activities - discontinued operations   -    (441,543)
    (278,517)   (1,598,200)
CASH FLOWS FROM INVESTING ACTIVITIES:          
Purchase of property and equipment   -    (168,144)
Investment in deposit   (530)   (6,968)
Cash used in investing activities - continuing operations   (530)   (175,112)
Cash used in investing activities - discontinued operations   -    (3,358)
    (530)   (178,470)
           
NET DECREASE IN CASH   (279,047)   (1,776,670)
CASH AT BEGINNING OF PERIOD  $9,170,286   $11,700,143 
CASH AT END OF PERIOD  $8,891,239   $9,923,473 
           
CASH PAID FOR INTEREST AND TAXES:          
Cash paid for income taxes  $-   $- 
Cash paid for interest  $-   $- 

 

See notes to the unaudited condensed consolidated financial statements

 

 F-3 

 

 

PLEDGE PETROLEUM CORP.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

  

1ACCOUNTING POLICIES AND ESTIMATES

 

a)Basis of Presentation

 

The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments (consisting only of normal recurring adjustments), which we consider necessary, for a fair presentation of those financial statements. The results of operations and cash flows for the three months and six months ended June 30, 2017 may not necessarily be indicative of results that may be expected for any succeeding quarter or for the entire fiscal year. The information contained in this quarterly report on Form 10-Q should be read in conjunction with our audited financial statements included in our annual report on Form 10-K as of and for the year ended December 31, 2016 as filed with the Securities and Exchange Commission (the “SEC”).

 

Significant accounting policies are described in Note 2 to the consolidated financial statements included in Item 8 of our annual report on Form 10-K as of December 31, 2016.

 

The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, which are evaluated on an ongoing basis, that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to: the estimated useful lives for plant and equipment, the fair value of warrants and stock options granted for services or compensation, estimates of the probability and potential magnitude of contingent liabilities, derivative liabilities, the valuation allowance for deferred tax assets due to continuing operating losses, those related to revenue recognition and the allowance for doubtful accounts.

 

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited consolidated financial statements, which management considered in formulating its estimate could change in the near-term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates.

 

All amounts referred to in the notes to the unaudited consolidated financial statements are in United States Dollars ($) unless stated otherwise.

 

  b) Principles of Consolidation

 

The unaudited consolidated financial statements include the financial statements of the Company and its subsidiaries in which it has a majority voting interest. All significant inter-company accounts and transactions have been eliminated in the unaudited consolidated financial statements. The entities included in these unaudited consolidated financial statements are as follows:

 

Pledge Petroleum Corp (formerly Propell Technologies Group, Inc.) – Parent Company

Novas Energy USA Inc. (wholly owned)

Novas Energy North America, LLC (60% owned) – Discontinued operation.

 

 F-4 

 

 

PLEDGE PETROLEUM CORP.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

  

1ACCOUNTING POLICIES AND ESTIMATES (continued)

 

  c) Recent Accounting Pronouncements

 

In May 2017, the FASB issued Accounting Standards Update No. (“ASU’’) 2017-09, Compensation – Stock Compensation, an amendment to Topic 718. The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718.2. An entity should account for the effects of a modification unless all the following are met:

 

1.The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification.

 

2.The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified.

 

3.The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified.

 

The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this Update. The amendments in this Update are effective for all entities for annual periods beginning after December 15, 2017. Early adoption is permitted and should be applied prospectively to an award modified on or after the adoption date. The amendments proposed in this ASU are not expected to have a material impact on our consolidated financial statements.

 

In May 2017, the FASB issued ASU 2017-10, service concession arrangements, an amendment to Topic 853. Topic 853 provides guidance for operating entities when they enter into a service concession arrangement with a public-sector grantor who both:

 

1.Controls or has the ability to modify or approve the services that the operating entity must provide with the infrastructure, to whom it must provide them, and at what price

 

2.Controls, through ownership, beneficial entitlement, or otherwise, any residual interest in the infrastructure at the end of the term of the arrangement.

 

In a service concession arrangement within the scope of Topic 853, the operating entity should not account for the infrastructure as a lease or as property, plant, and equipment. An operating entity should refer to other Topics to account for various aspects of a service concession arrangement. For example, an operating entity should account for revenue relating to construction, upgrade, or operation services in accordance with Topic 605, Revenue Recognition, or Topic 606, Revenue from Contracts with Customers.

 

The amendments in this Update apply to the accounting by operating entities for service concession arrangements within the scope of Topic 853. These updates are effective when the Company adopts the updates to Topic 606. The amendments proposed in this ASU are not expected to have an impact on our consolidated financial statements.

 

Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

 

 F-5 

 

 

PLEDGE PETROLEUM CORP.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

  

1ACCOUNTING POLICIES AND ESTIMATES (continued)

 

  d) Use of Estimates

 

The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, which are evaluated on an ongoing basis, that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to: the estimated useful lives for plant and equipment, the fair value of warrants and stock options granted for services or compensation, estimates of the probability and potential magnitude of contingent liabilities, derivative liabilities, the valuation allowance for deferred tax assets due to continuing operating losses, those related to revenue recognition and the allowance for doubtful accounts.

 

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited consolidated financial statements, which management considered in formulating its estimate could change in the near-term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates.

 

  e) Contingencies

 

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment.

 

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.

  

  f) Cash and Cash Equivalents

 

The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. At June 30, 2017 and December 31, 2016, respectively, the Company had no cash equivalents.

 

The Company assesses credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The balance at times may exceed federally insured limits. At June 30, 2017, the Company had cash balances of $8,891,239, which exceeded the federally insured limits by $8,605,958.

 

 F-6 

 

 

PLEDGE PETROLEUM CORP.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

  

1ACCOUNTING POLICIES AND ESTIMATES (continued)

 

  g) Related parties

 

Parties are considered to be related to the Company if the parties that, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company, or own in aggregate, on a fully diluted basis 5% or more of the Company’s stock. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. All transactions are recorded at fair value of the goods or services exchanged. Property purchased from a related party is recorded at the cost to the related party and any payment to or on behalf of the related party in excess of the cost is reflected as a distribution to related party.

 

  h) Reclassification

 

Certain reclassifications have been made to the prior year financial statement numbers to conform to the current presentation of the financial statements.

 

2GOING CONCERN

 

The Company has cash balances of $8,891,239 as of June 30, 2017, which is sufficient to meet current expenses for at least the next twelve month period, however the Board of Directors are considering various options as to the future direction of the Company, including the possible sale of its technology and PPT assets. The Company formed a special committee to investigate a possible share buyback of the majority stockholder, Ervington Investments Limited, and/or a possible dissolution of the Company.

 

Due to uncertainties surrounding the Company’s ability to realize the full value of its assets, the Company cannot make any assurances regarding the amount available for distribution to its stockholders.

 

The Company has made certain projections relating to the amount of cash it expects to have to distribute to its stockholders upon dissolution of the Company. These projections generally relate to the amount of liabilities which must be satisfied before the Company is dissolved and the amount its preferred stockholders is expected to receive for their equity interest. The above projections are subject to multiple variables, including the timing of a dissolution affecting the amount of dividends payable and the amount of liabilities owed at the time of dissolution. Based upon current estimates, if the Company were to dissolve this quarter, no assurance can be given that common stockholders or subordinate preferred stockholders will receive any such distribution.

 

3DISCONTINUED OPERATIONS

 

On October 4, 2016, Novas Energy USA, Inc. (“Novas USA”), a wholly owned subsidiary of the Company, delivered a notice to Technovita Technologies USA, Inc. (“Technovita”) electing to dissolve its joint venture with Technovita (the “Joint Venture”), effective November 1, 2016, pursuant to Section 11.1(b) of the Operating Agreement of Novas Energy North America, LLC (“NENA”), dated October 22, 2015 (the “Operating Agreement”), by and among Novas USA and Technovita.

 

 F-7 

 

 

PLEDGE PETROLEUM CORP.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

3DISCONTINUED OPERATIONS (continued)

 

The assets and liabilities of discontinued operations as of June 30, 2017 and December 31, 2016, respectively is as follows:

 

    June 30,
2017
    December 31,
2016
 
Current assets                
Cash   $ 19,480     $ 19,480  
Accounts receivable, net     61,661       61,661  
Prepaid expenses and other current assets     29,896       29,896  
Total current assets     111,037       111,037  
Non-current assets                
Plant and equipment, net     6,480       6,480  
Total assets     117,517       117,517  
                 
Current liabilities                
Accounts payable     94,784       94,784  
Related party payables     932,478       932,478  
Accrued liabilities and other payables     115,971       115,971  
Total liabilities     1,143,233       1,143,233  
Discontinued operations   $ 1,025,716     $ 1,025,716  

 

Loss from discontinued operations is as follows:

 

  

Three months
ended

June 30

2017

   Three months
ended
June 30,
2016
  

Six months
ended

June 30,
2017

  

Six months

ended
June 30,
2016

 
                 
Net revenue  $-   $65,531   $-   $147,768 
Cost of goods sold   -    16,888    -    126,935 
Gross profit   -    48,643    -    20,833 
                     
Sales and marketing expenses   -    10,250    -    10,881 
Professional fees   -    21,797    -    36,923 
Business development   -    -    -    145,319 
Consulting fees   -    228,872    -    572,191 
General and administrative expenses   -    189,183    -    320,535 
Depreciation and amortization   -    477    -    803 
Total expense   -    450,579    -    1,086,652 
                     
Loss from operations   -    (401,936)   -    (1,065,819)
                     
Other income   -    1,073    -    1,083 
                     
Loss from discontinued operations  $-   $(400,863)  $-   $(1,064,736)

 

 F-8 

 

 

PLEDGE PETROLEUM CORP.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

4PREPAID EXPENSES

 

Prepaid expenses consisted of the following:

 

   June 30,
2017
   December 31,
2016
 
         
Prepaid insurance  $25,733   $22,607 
Prepaid professional fees   8,333    3,333 
   $34,066   $25,940 

 

5PLANT AND EQUIPMENT

 

Plant and Equipment consisted of the following:

 

   June 30,
2017
   December 31,
2016
 
   Cost   Amortization
and Impairment
   Net book value   Net book value 
                 
Plasma pulse tool  $945,423   $(945,423)  $-   $- 
Furniture and equipment   6,700    (1,787)   4,913    5,583 
Field equipment   19,627    (19,627)   -    341 
Computer equipment   11,130    (4,583)   6,547    8,402 
                     
   $982,880   $(971,420)  $11,460   $14,326 

 

Depreciation expense was $2,866 and $33,281 for the six months ended June 30, 2017 and 2016, respectively.

 

6INTANGIBLES

 

Licenses

 

Novas licenses the “Plasma-Pulse Technology” (“the Technology”) from Novas Energy Group Limited, the Licensor, pursuant to the terms of an exclusive perpetual royalty bearing license it entered into in January 2013, which was amended during March 2014.

 

On July 19, 2016, the Company received a notice from Licensor purporting to effectively terminate the License Agreement for non-payment of required royalties, asserting, among other things, that as of June 30, 2016, Novas owed Licensor a pro rata amount of $1,458,333 for the Licensed Plasma Pulse Technology for the United States and Mexico, of which $1,000,000 was alleged to be in arrears. Novas has recently been contacted by Licensor with a request for settlement discussions; however, there can be no assurance that such discussions will occur or what the outcome of any such discussions will be. The Company and Novas believe that there is no legal basis for Licensor to terminate the License Agreement and intend to vigorously defend against any attempt by Licensor to enforce a termination of the License Agreement. Further, we believe that Licensor has failed to materially perform its obligations under the License Agreement, and that such failures on Licensor’s part may impact what, if any, payments are due under the License Agreement by Novas to Licensor.

 

 F-9 

 

 

PLEDGE PETROLEUM CORP.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

6INTANGIBLES (continued)

 

On October 4, 2016, Novas Energy USA, Inc. (“Novas USA”), a wholly owned subsidiary of the Company, delivered a notice to Technovita Technologies USA, Inc. (“Technovita”) electing to dissolve its joint venture with Technovita (the “Joint Venture”), effective November 1, 2016, pursuant to Section 11.1(b) of the Operating Agreement of Novas Energy North America, LLC (“NENA”), dated October 22, 2015 (the “Operating Agreement”), by and among Novas USA and Technovita.

 

Pursuant to the Operating Agreement, Novas USA had entered into a sublicense agreement (the “Novas Sublicense Agreement”) with NENA and Novas Energy Group Limited for NENA to be the exclusive provider of Plasma Pulse Technology for treatment of vertical wells to third parties in the United States. The Sublicense Agreement was terminated upon termination of the Joint Venture.

 

Intangibles consisted of the following:

 

   June 30,
2017
   December 31,
2016
 
   Cost   Amortization
and Impairment
   Net book value   Net book value 
                 
License agreements  $350,000   $(350,000)  $-   $- 
Website development   8,000    (8,000)   -    - 
                     
   $358,000   $(358,000)  $-   $- 

 

Amortization expense was $0 and $35,000 for the six months ended June 30, 2017 and 2016, respectively.

 

7ACCRUED LIABILITIES AND OTHER PAYABLES

 

Accrued liabilities consisted of the following:

 

   June 30,
2017
   December 31,
2016
 
         
Royalties payable  $14,653   $14,653 
Other   207    - 
Severance accrual   -    19,814 
   $14,860   $34,467 

 

The severance accrual relates to accrued severance costs due to the COO, whose employment with the Company was terminated on December 15, 2016 as part of a cost reduction exercise.

 

8STOCKHOLDERS’ EQUITY

 

a)Preferred stock

 

i)Series B Convertible Preferred Stock

 

The Company has undeclared dividends on the Series B Preferred stock amounting to $145,479 as of June 30, 2017. If the dividends are paid in stock, the beneficial conversion feature of these undeclared dividends will be recorded upon the declaration of these dividends. The computation of loss per common share for the six months ended June 30, 2017 takes into account these undeclared dividends.

 

 F-10 

 

 

PLEDGE PETROLEUM CORP.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

8STOCKHOLDERS’ EQUITY (continued)

 

a)Preferred stock (continued)

 

ii)Series C Convertible Preferred Stock

 

The Company has undeclared dividends on the Series C Preferred stock amounting to $1,253,397 as of June 30, 2017. The computation of loss per common share for the six months ended June 30, 2017 takes into account these undeclared dividends.

 

b)Stock Options

 

i)Plan options

 

At June 30, 2017 and December 31, 2016 there were 380,950 Plan options issued and outstanding, respectively, under the Stock Option Plan.

 

No options were issued during the six months ended June 30, 2017 and the year ended December 31, 2016.

  

ii)Non-Plan Stock Options

 

On January 1, 2016, the Company granted, to its then Chief Executive Officer, non - plan options for 3,000,000 shares of common stock (that are not covered by the Company’s Stock Option Plan), with an exercise price of $0.08 per share and which options will expire thirty days after resignation. These options vested as to 1,000,000 on January 1, 2017, the first anniversary of the grant date; 1,000,000 was due to vest on the second anniversary of the grant date and a further 1,000,000 was due to vest on the third anniversary of the grant date. The 1,000,000 options which vested on January 1, 2017, were not exercised within 30 days of resignation by Mr. Boutte and have been forfeited.

 

On March 31, 2017, the Chief Executive Officer, Mr. Brian Boutte tendered his resignation and the remaining unvested options for 2,000,000 shares of common stock were cancelled.

 

A summary of all of our option activity during the period January 1, 2016 to June 30, 2017 is as follows:

 

   No. of shares   Exercise price
per share
  Weighted
average exercise
price
 
            
Outstanding January 1, 2016   380,950   $0.08 to $13.50  $0.18 
Granted   4,000,000   $0.08 to $0.09   0.09 
Forfeited/cancelled   (1,000,000)  $0.08   0.08 
Exercised   -   -   - 
Outstanding December 31, 2016   3,380,950   $0.09 to $13.50  $0.18 
Granted - non-plan options   -   -   - 
Forfeited/cancelled   (3,000,000)  $0.08   0.08 
Exercised   -   -   - 
Outstanding June 30, 2017   380,950   $0.051 to $13.50  $0.90 

 

Stock options outstanding as of June 30, 2017 and December 31, 2016 as disclosed in the above table, have an intrinsic value of $0 and $0, respectively.

 

 F-11 

 

 

PLEDGE PETROLEUM CORP.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

8STOCKHOLDERS’ EQUITY (continued)

 

b)Stock Options (continued)

 

The options outstanding and exercisable at June 30, 2017 are as follows:

 

      Options outstanding     Options exercisable  
Exercise price     No. of shares     Weighted
average
remaining years
    Weighted
average exercise
price
    No. of shares     Weighted
average exercise
price
 
                                             
$ 13.50       3,480       1.96               3,480          
$ 12.50       2,000       3.28               2,000          
$ 8.50       500       4.00               500          
$ 5.00       14,800       4.29               14,800          
$ 0.65       36,924       5.75               36,924          
$ 0.63       38,096       1.00               38,096          
$ 0.51       285,150       2.79               285,150          
                                             
          380,950       2.95       0.90       380,950       0.90  

 

The Company has recorded an expense of $18,066 and $42,895 for the six months ended June 30, 2017 and 2016, respectively relating to options issued.

 

c)Warrants

 

The warrants outstanding and exercisable at June 30, 2017 are as follows:

 

      Warrants outstanding     Warrants exercisable  
Exercise price     No. of shares     Weighted
average
remaining years
    Weighted
average exercise
price
    No. of shares     Weighted
average
exercise price
 
                                             
$ 0.30       375,000       1.33               375,000          
$ 0.25       1,751,667       1.99               1,751,667          
$ 0.15       525,500       1.99               525,500          
$ 0.25       1,508,333       2.09               1,508,333          
$ 0.15       577,499       2.10               577,499          
$ 0.25       968,166       2.10               968,166          
$ 0.25       633,333       2.15               633,333          
                                             
          6,339,498       2.02       0.24       6,339,498       0.24  

 

The warrants outstanding have an intrinsic value of $0 and $0 as of June 30, 2017 and December 31, 2016, respectively.

 F-12 

 

 

PLEDGE PETROLEUM CORP.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

9OTHER INCOME

 

    Three
months
ended 30
June 2017
    Three
months
ended 30
June 2016
 

Six months

ended
June 30, 
2017

   

Six months

ended
June 30, 
2016

 
                           
License fee forgiven -   $ -   $ -     $ 200,000  

 

Other income includes the forgiveness of the $200,000 license fee due to Novas BVI during the prior period.

 

10 NET LOSS PER SHARE

 

Basic loss per share is based on the weighted-average number of common shares outstanding during each period. Diluted loss per share is based on basic shares as determined above plus common stock equivalents, including convertible preferred shares and convertible notes as well as the incremental shares that would be issued upon the assumed exercise of in-the-money stock options using the treasury stock method. The computation of diluted net loss per share does not assume the issuance of common shares that have an anti-dilutive effect on net loss per share. For the six months ended June 30, 2017 and 2016, all stock options, warrants and convertible preferred stock were excluded from the computation of diluted net loss per share. Dilutive shares which could exist pursuant to the exercise of outstanding stock instruments and which were not included in the calculation because their affect would have been anti-dilutive are as follows:

 

   

Three and Six

months

ended
June 30,
2017

   

Three and Six

months

ended
June 30,
2016

 
             
Stock options     380,950       4,380,950  
Warrants to purchase shares of common stock     6,339,498       6,339,498  
Series A-1 convertible preferred shares     31,375,000       31,375,000  
Series B convertible preferred shares     4,000,000       4,000,000  
Series C convertible preferred shares     120,000,000       120,000,000  
      162,095,448       166,095,448  

 

 F-13 

 

 

PLEDGE PETROLEUM CORP.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

11RELATED PARTY TRANSACTIONS

 

On January 1, 2016, the “Company entered into a three-year Employment Agreement with C. Brian Boutte (the “Boutte Employment Agreement”) to serve as the Company’s Chief Executive Officer. Mr. Boutte was to also serve as the Company’s interim Chief Financial Officer. Under the Boutte Employment Agreement, for his service as the Chief Executive Officer of the Company, Mr. Boutte was to receive an annual base salary of $265,000, a sign on bonus of $60,000 and an annual performance bonus of up to 55% of his base salary, such bonus payable in cash or equity upon attainment of certain performance indicators established by the Company’s Board of Directors and Mr. Boutte. In connection with the entry into the Boutte Employment Agreement, Mr. Boutte was granted an option award exercisable for 3,000,000 shares of the Company’s common stock, which will vest as to 1,000,000 shares on each of the one, two and three-year anniversary of the commencement of his employment with the Company. The Boutte Employment Agreement was amended on December 31, 2016 to provide for a term of six months ending June 30, 2017, a reduced annual base salary of $165,000 and a provision for immediate vesting of the options upon a Change of Control (as defined in the amendment). In the event that Mr. Boutte’s employment was terminated Without Cause (as defined in the Boutte Employment Agreement), by Mr. Boutte for Good Reason (as defined below), Disability (as defined in the Boutte Employment Agreement), upon his death or a change in control, Mr. Boutte would be entitled to receive a severance payment equal to $65,000. Upon a change in control, Mr. Boutte’s options would immediately vest. The Boutte Employment Agreement also included customary confidentiality obligations and inventions assignments by Mr. Boutte as well as a non- compete and non-solicitation provision. If his employment was terminated for Cause (as defined below) or by him Without Good Reason (as defined in the Boutte Employment Agreement), Mr. Boutte was entitled to receive his annual base salary through the date of termination and any bonus earned but unpaid. For purposes of the Boutte Employment Agreement, “Good Reason” is defined as (i) any material and substantial breach of the Boutte Employment Agreement by the Company; (ii) a Change in Control (as defined in the Boutte Employment Agreement) occurs and Mr. Boutte’s employment is terminated; (iii) a reduction in Mr. Boutte’s Annual Base Salary as in effect at the time in question, or any other failure by the Company to comply with the compensation terms of the Boutte Employment Agreement; or (iv) the Boutte Employment Agreement is not assumed by a successor to the Company. For purpose of the Boutte Employment Agreement, “Cause” is defined as (i) acts of embezzlement or misappropriation of funds or fraud; (ii) conviction of a felony or other crime involving moral turpitude, dishonesty or theft; (iii) a material violation by Mr. Boutte of any provision of the Boutte Employment Agreement, including willful failure to perform assigned tasks, willful and unauthorized disclosure of Company material confidential information; (iv) being under the influence of drugs (other than prescription medicine or other medically related drugs to the extent that they are taken in accordance with their directions) during the performance of Mr. Boutte’s duties and that performance of his duties is affected; (v) engaging in behavior that would constitute grounds for liability for harassment (as proscribed by the U.S. Equal Employment Opportunity Commission Guidelines or any other applicable state or local regulatory body) or other egregious conduct that violates laws governing the workplace; or (vi) willful failure to perform his assigned tasks, where such failure is attributable to the fault of Mr. Boutte, gross insubordination or dereliction of fiduciary obligations which, to the extent it is curable by Mr. Boutte, is not cured by Mr. Boutte within thirty (30) days of receiving written notice of such violation by the Company.

 

Mr. Boutte tendered his resignation to the Board of directors on March 31, 2017.

 

12COMMITMENTS AND CONTINGENCIES

 

The Company disposed of its Crystal Magic, Inc. subsidiary effective December 31, 2013. In terms of the sale agreement entered into by the Company, the purchaser has been indemnified against all liabilities whether contingent or otherwise, claimed by third parties, this includes claims by creditors of the Company amounting to $372,090 and claims against long-term liabilities of $848,916. Management does not consider it likely that these claims will materialize and accordingly no provision has been made for these contingent liabilities.

 

 F-14 

 

 

PLEDGE PETROLEUM CORP.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

12COMMITMENTS AND CONTINGENCIES (continued)

 

The Company entered into a lease agreement for approximately 3,733 square feet of office and warehouse space in Houston, the term of the lease was for 39 months commencing on March 1, 2016 and terminating on May 31, 2019. The lease provided for the first month to be rent free, the fourteenth month to be rent free and the twenty-seventh month to be rent free. Monthly rentals, including estimated operating costs, for the first 12 months, excluding the free rental month amounted to approximately $3,410 per month, escalating at a rate of 1.7% per annum, after excluding the free rental months. This lease agreement was amended, and the lease terminated with effect from May 31, 2017 with a final payment of $2,000 and the forfeiture of the security deposit of $6,968.

 

The Company entered into an Office Service Agreement on May 16, 2017 whereby it has the license to use an office in a business center, together with all telecommunication services and access to conference rooms, kitchens and all utilities, the agreement is for a period of six months commencing on June 1, 2017 and terminating on November 30, 2017. The Company pays a monthly amount of $530 in terms of the Office Service Agreement.

 

In terms of the license agreement commitments disclosed in note 6 above, the minimum commitments due under the amended license agreement entered into on January 30, 2013, for the next five years, are summarized as follows:

 

    Amount  
       
2017   $ 500,000  
2018     500,000  
2019     500,000  
2020     500,000  
2021     500,000  
Total   $ 2,500,000  

  

13SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to June 30, 2017 to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements.

 F-15 

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

The following discussion and analysis is intended as a review of significant factors affecting our financial condition and results of operations for the periods indicated.  The discussion should be read in conjunction with our unaudited consolidated financial statements and the notes thereto presented herein and our audited consolidated financial statements and notes thereto for the year ended December 31, 2016 and the other information set forth in our Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on August 8, 2017. In addition to historical information, the following Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. Our actual results could differ significantly from those anticipated in these forward-looking statements as a result of many factors including those discussed herein below, under Part II, Item 1A, “Risk Factors” and elsewhere herein, and those identified under Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2016.

 

Cautionary Note Regarding Forward-Looking Statements

 

This report and other documents that we file with the SEC contain forward-looking statements that are based on current expectations, estimates, forecasts and projections about our future performance, our business, our beliefs and our management’s assumptions. Statements that are not historical facts are forward-looking statements. Words such as “expect,” “outlook,” “forecast,” “would,” “could,” “should,” “project,” “intend,” “plan,” “continue,” “sustain”, “on track”, “believe,” “seek,” “estimate,” “anticipate,” “may,” “assume,” and variations of such words and similar expressions are often used to identify such forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, but not limited to, those described in this Quarterly Report on Form 10-Q and other reports that we file or furnish with the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except to the extent required by law, we undertake no obligation to update publicly any forward-looking statements after the date they are made, whether as a result of new information, future events, changes in assumptions or otherwise.

 

Overview and Financial Condition

 

Our Company

 

Since July 2015, when we closed the final tranche of our private placement of the sale of our Series C Preferred Stock and raised an additional $9,750,000, we shifted our operational focus from being a direct provider of well services based upon plasma pulse technology to actively seeking to acquire producing oil fields to generate revenues and the development of untapped hydrocarbon reserves. As a result, in August 2015, our board of directors and shareholders approved through the formation of a joint venture, the exclusive sublicense to our majority owned subsidiary Novas Energy North America, LLC (“NENA”) of our rights to use certain plasma pulse technology that we had licensed from Novas Energy Group Limited (the “Licensor”) pursuant to the terms of an exclusive license agreement (the “License Agreement”), for treatment of vertical wells in the United States (hereafter, the “Licensed Plasma Pulse Technology”). We retained the right to use the Licensed Plasma Pulse Technology for treatment of our own assets located in the United States as well as treatment of assets outside of the United States. The Licensed Plasma Pulse Technology refers to the process and apparatus of Licensor for its plasma pulse technology as covered by Licensor’s patent rights. Although we were indirectly engaged in the oil recovery business through NENA and directly through our treatment of oil wells in Mexico, it was not our foundational business strategy. In October 2016, we terminated the joint venture due to its failure to meet certain milestones. including its generation of minimal revenue.

 

During the past year, our management, at the direction of the Board of Directors, has evaluated, considered, and brought forward various opportunities to acquire producing oil fields; however, to date, an oil field meeting the criteria acceptable to the Board of Directors (which criteria include among other things, low general and administrative costs, ability to generate cash flow and ability to fully utilize the PPT) has not been found.   At this point, the Board is reevaluating its business plan and strategy and has reduced operating expenses, including staffing, in order to preserve capital, while the Board evaluates its options including the possible sale of our technology and PPT assets. A special committee of the Board of Directors has been formed to review and evaluate a potential sale of the Company’s assets and the potential purchase of the Company’s securities held by Ervington Investments Limited, and/or a possible dissolution of the Company.

 

 1 

 

 

We have financed our operations primarily from sales of our securities, both debt and equity, and to a lesser extent revenue from operations and we expect to continue to obtain required capital in a similar manner. We have incurred an accumulated deficit of $18,839,536 through June 30, 2017 and there can be no assurance that we will be able to achieve profitability.

 

Management Discussion and Analysis of financial condition

 

Our discussion and analysis of our financial condition and results of operations are based upon our unaudited consolidated financial statement as of June 30, 2017 and 2016, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of any contingent liabilities at the financial statement date and reported amounts of revenue and expenses during the reporting period. On an on-going basis we review our estimates and assumptions. Our estimates are based on our historical experience and other assumptions that we believe to be reasonable under the circumstances. Actual results are likely to differ from those estimates under different assumptions or conditions.

 

Results of Operations for the three months ended June 30, 2017 and June 30, 2016

 

Net revenues

Net revenues were $25,000 and $0 for the three months ended June 30, 2017 and 2016, respectively. The revenue during the current period is derived from one well treatment in Mexico. Other than the treatment of one well in Mexico, all of our operations were directed through our 60% held joint venture, Novas Energy North America, LLC. (“NENA”). Effective November 1, 2016 we discontinued our NENA joint venture and the NENA operations are reflected in loss from discontinued operations, net of non-controlling interest.

 

Cost of goods sold

Cost of goods sold was $0 for the three months ended June 30, 2017 and 2016. All cost of goods sold related to our operations are reflected in loss from discontinued operations, net of non-controlling interest.

 

Gross profit

Gross profit was $25,000 and $0 for the three months ended June 30, 2017 and 2016, respectively, due to the revenue earned on the Mexican well treatments.

 

Total expenses

Total expenses were $141,710 and $558,885 for the three months ended June 30, 2017 and 2016, respectively, a decrease of $417,175 or 74.6%. Total expenses consisted primarily of the following:

 

  · Professional fees were $83,606 and $77,009 for the three months ended June 30, 2017 and 2016, respectively, an increase of $6,597 or 8.6%. The increase is primarily due to; (i) an increase in accounting and audit related fees of $42,305 due to the accrual of the 2016 annual audit fee and additional expenses during the current period and the reallocation of management consulting expenses of $15,000 to professional fees; ii) a reduction in legal fees of $19,682 due to a decrease in business activity; and (iii) a reduction in secretarial fees of $11,250 due to management’s efforts to reduce operating expenses.

 

  · Consulting fees were $8,305 and $145,600 for the three months ended June 30, 2017 and 2016, respectively, a decrease of $137,295 or 94.3%. The decrease is primarily due to a decrease in merger and acquisition related consulting expenses of $114,100; and ii) a decrease in finance management consulting expenses of $21,695 due to lower activity during the current period.

 

  · General and administrative expenses were $46,991 and $300,260 for the three months ended June 30, 2017 and 2016, respectively, a decrease of $253,269 or 84.3%. The decrease primarily consists of the following; (i) a reduction in payroll expenses of $153,045 due to the rationalization of staff during the December 2016 quarter; ii) a reduction in investor relations expenditure of $46,532 due to a rationalization exercise undertaken by the board of directors; and iii) a reduction in stock based compensation of $23,138 as all options are either vested or forfeited.

 

  · Depreciation, and amortization and impairment charges was $1,311 and $34,519 for the three months ended June 30, 2017 and 2016, respectively, a decrease of $33,208 or 96.2%. The plasma pulse tool asset and the intangible license fees were impaired during the fourth quarter of 2016 due to the uncertainty facing the business, the remaining assets consist of minor office related items.

  

 2 

 

 

Other expense

Other expense was $0 and $(763) for the three months ended June 30, 2017 and 2016, respectively, a decrease of $763 or 100.0%. The amount is immaterial.

 

Net loss from continuing operations

We incurred a net loss from continuing operations of $116,651 and $559,648, for the three months ended June 30, 2017 and 2016, respectively, a decrease of $442,997 or 79.2%, which consists primarily of the reduction in total expenses of $417,175 and the revenue of $25,000 generated during the current period.

 

Loss from discontinued operations, net of tax

We incurred a loss from discontinued operations of $0 and $400,863 for the three months ended June 30, 2017 and 2016, respectively, a decrease of $400,863 or 100.0%, due to the termination of the joint venture agreement in November 2016 as it was unable to meet its operating milestones.

 

Net loss attributable to controlling interest

The loss attributable to controlling interest was $116,651 and $960,511 for the three months ended June 30, 2017 and 2016, respectively, a decrease of $843,860 or 87.9%. The decreased loss is primarily due to the reduction in total expenses and the losses incurred by the joint venture in the prior period.

 

Undeclared Series B and Series C preferred stock dividends

A deemed preferred stock dividend of $156,071 and $156,071 has been disclosed for the three months ended June 30, 2017 and 2016. This amount represents the dividends that are due, but remain undeclared, to Series B and Series C preferred stock holders.

 

Net loss available to common stockholders

We incurred a net loss available to common stockholders of $272,722 and $1,116,582 for the three months ended June 30, 2017 and 2016, respectively, a decrease of $843,860 or 75.6% which consists of the various items discussed above.

 

Results of Operations for the six months ended June 30, 2017 and June 30, 2016

 

Net revenues

Net revenues were $25,000 and $0 for the six months ended June 30, 2017 and 2016, respectively. The revenue during the current period represents revenue from one well treatment in Mexico. Other than the treatment of one well in Mexico, all of our operations were directed through our 60% held joint venture, Novas Energy North America, LLC. (“NENA”). Effective November 1, 2016 we discontinued our NENA joint venture and the NENA operations are reflected in loss from discontinued operations, net of non-controlling interest.

 

Cost of goods sold

Cost of goods sold was $0 for the six months ended June 30, 2017 and 2016. All cost of goods sold related to our operations are reflected in loss from discontinued operations, net of non-controlling interest.

 

Gross profit

Gross profit was $25,000 for the six months ended June 30, 2017 and $0 for the six months ended June 30, 2016 due to the revenue earned on the Mexican well treatments.

 

Total expenses

Total expenses were $352,139 and $1,142,659 for the six months ended June 30, 2017 and 2016, respectively, a decrease of $790,520 or 69.2%. Total expenses consisted primarily of the following:

 

  · Professional fees were $148,361 and $169,557 for the six months ended June 30, 2017 and 2016, respectively, a decrease of $21,196 or 12.5%. The decrease is primarily due to; i) a reduction in SEC related printing costs of $9,219 due to the delay in filing the 2016 10-K; ii) a reduction in legal fees of $23,504 due to lower corporate activity; and iii) a reduction in corporate secretarial fees of $11,875 due to management's efforts to reduce operating expenses, offset by iv) an increase in accounting and audit fees of $24,055 due to the timing of the 2016 audit which was delayed during the current period and additional fees incurred on completing that audit; and v) the allocation of $15,000 of professional fees to this expense category which was previously included under management consulting expenses.

  

  · Consulting fees were $27,436 and $243,100 for the six months ended June 30, 2017 and 2016, respectively, a decrease of $215,664 or 88.7%. The decrease is primarily due to a decrease in merger and acquisition related consulting expenses of $143,699; and ii) a decrease in finance management consulting expenses of $78,000 due to lower activity during the current period.

 

  · General and administrative expenses were $170,482 and $654,956 for the six months ended June 30, 2017 and 2016, respectively, a decrease of $484,474 or 74.0%. The decrease primarily consists of the following; (i) a reduction in payroll expenses of $259,908 due to the rationalization of staff during the December 2016 quarter; ii) a reduction in investor relations expenditure of $107,383 due to a rationalization exercise undertaken by the board of directors; iii) a reduction in stock based compensation expense of $24,829 due to options forfeited or fully vested during the current period; and iv) a reduction in travel expenses of $21,474 as operations were curtailed and rationalized under the direction of the Board.

 

  · Depreciation, and amortization and impairment charges was $2,866 and $68,281 for the six months ended June 30, 2017 and 2016, respectively, a decrease of $65,415 or 95.8%. The plasma pulse tool asset and the intangible license fees were impaired during the fourth quarter of 2016 due to the uncertainty facing the business, the remaining assets consist of minor office related items.

 

 3 

 

 

Other income

Other income was $0 and $199,237 for the six months ended June 30, 2017 and 2016, respectively, a decrease of $199,237 or 100.0%, due to the forgiveness of the once off license fee for the Mexican market of $200,000 in the prior period, which was due in June 2015.

 

Net loss from continuing operations

We incurred a net loss from continuing operations of $327,095 and $943,422, for the six months ended June 30, 2017 and 2016, respectively, a decrease of $616,327 or 65.3%, which consists primarily of the reduction in total expenses of $790,520, offset by the forgiveness of the license fee income in the prior period as discussed above.

 

Loss from discontinued operations, net of tax

We incurred a loss from discontinued operations of $0 and $1,064,736 for the six months ended June 30, 2017 and 2016, respectively, a decrease of $1,064,736 or 100.0%, due to the termination of the joint venture agreement in November 2016 as it was unable to meet its operating milestones.

 

Net loss attributable to non-controlling interest of discontinued operations

The net loss attributable to non-controlling interest of discontinued operations in the prior period of $249,339 is due to the losses in the Joint Venture being shared as to 40% by the non-controlling party until the full value of their investment of $600,000 was depleted.

 

Net loss attributable to controlling interest

The loss attributable to controlling interest was $327,095 and $1,758,819 for the six months ended June 30, 2017 and 2016, respectively, a decrease of $1,431,724 or 81.4%. The decreased loss is primarily due to the reduction in total expenses and the losses incurred by the joint venture in the prior period offset by the forgiveness of the license fees due in the prior period.

 

Undeclared Series B and Series C preferred stock dividends

A deemed preferred stock dividend of $310,427 and $312,142 has been disclosed for the six months ended June 30, 2017 and 2016. This amount represents the dividends that are due, but remain undeclared, to Series B and Series C preferred stock holders.

 

Net loss available to common stockholders

We incurred a net loss available to common stockholders of $637,522 and $2,070,961 for the six months ended June 30, 2017 and 2016, respectively, a decrease of $1,433,439 or 69.2% which consists of the various items discussed above.

 

Liquidity and Capital Resources.

Although we have cash balances of $8,891,239 as of June 30, 2017, we have a history of annual losses from operations since inception and we have primarily funded our operations through sales of our unregistered equity securities. We have recently suspended our operations and reduced our operating expenses as the Board of Directors are considering various options as to the future direction of the Company, including a possible dissolution. Should the Board of Directors decide to dissolve our company, due to uncertainties about whether we are able to realize the full value of our assets, we cannot make any assurances regarding the amount available for distribution to our shareholders. We have made certain projections relating to the amount of cash we expect to have to distribute to our shareholders upon dissolution. These projections generally relate to the amount of liabilities which must be satisfied before our company is dissolved, the amount we expect preferred stockholders to receive for their equity interest. Each of the above projections is subject to multiple variables, including the timing of a dissolution affecting the amount of dividends payable and the amount of liabilities owed at the time of dissolution. Based upon current estimates, if we were to dissolve this quarter, no assurance can be given that common shareholders or subordinate preferred shareholders will receive any such distribution.

 

To date, our primary sources of cash have been funds raised from the sale of our securities and the issuance of convertible and non-convertible debt. No additional funds were raised during the current financial period.

 

We have incurred an accumulated deficit of $18,839,536 through June 30, 2017 and incurred negative cash flow from continuing operations of $278,517 for the six months ended June 30, 2017.

 

Our primary commitments include the minimum commitments under the license agreements. Based upon our current plans, we believe that our cash will be sufficient to enable us to meet our anticipated operating needs for at least the next twelve months, subject to any business strategy decisions taken by the Board of Directors.

 

 4 

 

 

Our minimum commitments under the License Agreement for the next five years (assuming the License Agreement remains in effect and the $500,000 annual royalty payment with respect to the United States territory is not required to be paid), is summarized as follows:

 

   Amount 
     
2017  $500,000 
2018   500,000 
2019   500,000 
2020   500,000 
2021   500,000 
   $2,500,000 

 

Off Balance Sheet Arrangements

 

There are no off balance sheet arrangements.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risks

 

None.

 

Item 4. Controls and Procedures

 

(a)Evaluation of disclosure controls and procedures

Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”), the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief Executive Officer (“CEO”), who also serves as our principal financial and accounting officer, of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company’s CEO who also serves as our principal financial and accounting officer concluded that due to a lack of segregation of duties and insufficient controls over review and accounting for certain complex transactions, that the Company’s disclosure controls and procedures as of June 30, 2017 were not effective to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, was recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s CEO, as appropriate, to allow timely decisions regarding required disclosure. If the Company continues its operations it intends to retain additional individuals to remedy the ineffective controls. However, we cannot assure you that our internal control over financial reporting, as modified, will enable us to identify or avoid material weaknesses in the future.

 

(b)Changes in Internal Control over Financial Reporting

There has been no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during our fiscal quarter ended June 30, 2017 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

 5 

 

 

Part II. OTHER INFORMATION

 

Item 1. Legal Proceedings

 

None.

 

Item 1A. Risk Factors

 

The following information updates, and should be read in conjunction with, the information disclosed in Part1, Item 1A, “Risk Factors” contained in our Annual Report on Form 10-K filed with the SEC on August 7, 2017. Except as disclosed below, there have been no material changes to the risk factors in our Annual Report on Form 10-K filed with the SEC on August 7, 2017.

 

We may not be profitable.

 

We expect to incur operating losses for the foreseeable future. For the six months ended June 30, 2017 we have net revenues of $25,000 and for the year ended December 31, 2016 and 2015, we had net revenues of $0 and $91,000 from our plasma pulse oil recovery business. For the six months ended June 30, 2017 and the year ended December 31, 2016 we have sustained a net loss of $327,095 and $4,118,967, respectively. To date, we have not acquired any oil wells, we have not generated significant revenue from the Licensed Plasma Pulse Technology and we have generated insufficient revenue from our operations in Mexico. Our ability to become profitable depends on our ability to find acquisition candidates or assets that generate revenue, to have successful operations and generate and sustain sales, while maintaining reasonable expense levels, all of which are uncertain in light of our limited operating history in our current line of business and our recent changes in business strategy.

 

Our consolidated financial statements have been prepared assuming that we will continue as a going concern.

 

We have incurred recurring operating losses and had a net loss for the six months ended June 30, 2017 and the year ended December 31, 2016. We have also suspended our business operations. These conditions raise substantial doubt about our ability to continue as a going concern. The consolidated financial statements for the six months ended June 30, 2017 do not include any adjustments that might result from the outcome of this uncertainty.

 

We had intended to become an exploitation and production stage company but to date have not found any suitable oil wells to acquire, therefore we are reevaluating our business plan and strategy, making it difficult to evaluate our company.

 

We intended to use the proceeds from the sale of our Series C Preferred Stock to acquire oil fields and intend to become an exploitation and production stage company; however, to date we have not found an oil field meeting the criteria acceptable to the Board (which criteria include among other things, low general and administrative costs, ability to generate cash flow and ability to fully utilize the PPT). Our Board is reevaluating its business plan and strategy and has suspended operations and reduced operating expenses, including staffing, in order to preserve capital, while the Board evaluates its options including the possible sale of our technology and PPT assets, forming a special committee to investigate a possible share buyback of the majority shareholder, Ervington Investments, and/or a possible dissolution of the Company. Until such time as the Board determines its strategy, it will be difficult for an investor to evaluate our business.  If the special committee determines to proceed with the sale of the Company’s technology and PPT assets, it may consider acquiring other assets and entering into new businesses for which there can be no assurance of successful operation.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds for the six months ended June 30, 2017

 

None.

 

Item 3. Defaults upon senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

None.

 

Item 5. Other Information

 

None.

 

 6 

 

 

Item 6. Exhibits

 

Regulation
Number
  Exhibit
31.1   Certification of the Chief Executive Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2   Certification of the Chief Financial Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1   Certification of the Chief Executive Officer  Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
32.2   Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
101.INS   XBRL Instance Document
101.SCH   XBRL Taxonomy Extension Schema Document
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document
101.LAB   XBRL Taxonomy Extension Label Linkbase Document
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document

  

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

DATE: December 18, 2017

PLEDGE PETROLEUM CORP.

(Registrant)

 

  By:  /s/Ivan Persiyanov
    Ivan Persiyanov, President and Chief Executive Officer
    (Principal Executive Officer and Principal Financial Officer)

 

 7 

EX-31.1 2 tv480985_ex31-1.htm EXHIBIT 31.1

Exhibit 31.1

 

CERTIFICATION PURSUANT TO RULE 13a-14 OR RULE

 

15d-14 OF THE SECURITIES EXCHANGE ACT OF 1934,

 

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Ivan Persiyanov, certify that:

 

1.I have reviewed this Quarterly Report on Form 10-Q of Pledge Petroleum Corp.;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and

 

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: December 18, 2017  
   
/s/ Ivan Persiyanov  
Ivan Persiyanov   
Chief Executive Officer and President  
(Principal Executive Officer)  

 

   

 

EX-31.2 3 tv480985_ex31-2.htm EXHIBIT 31.2

Exhibit 31.2

 

CERTIFICATION PURSUANT TO RULE 13a-14 OR RULE

 

15d-14 OF THE SECURITIES EXCHANGE ACT OF 1934,

 

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Ivan Persiyanov, certify that:

 

1.I have reviewed this Quarterly Report on Form 10-Q of Pledge Petroleum Corp.;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and

 

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: December 18, 2017  
   
/s/ Ivan Persiyanov  
Ivan Persiyanov  
Interim Chief Financial Officer  
(Principal Financial and Accounting Officer)  

 

   

EX-32.1 4 tv480985_ex32-1.htm EXHIBIT 32.1

Exhibit 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

 

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Pledge Petroleum Corp., a Delaware corporation (the “Company”), on Form 10-Q for the period ended June 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ivan Persiyanov, Chief Executive Officer and President of the Company, certify, pursuant to Section 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

 

(1)The Report fully complies with the requirements of Section 13(a) and 15(d) of the Securities Exchange Act of 1934; and

 

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

/s/ Ivan Persiyanov  
Ivan Persiyanov  
Chief Executive Officer and President  
(Principal Executive Officer)  
December 18, 2017  

 

   

EX-32.2 5 tv480985_ex32-2.htm EXHIBIT 32.2

Exhibit 32.2

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

 

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Pledge Petroleum Corp., a Delaware corporation (the “Company”), on Form 10-Q for the period ended June 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ivan Persiyanov, Interim Chief Financial Officer of the Company, certify, pursuant to Section 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

 

(1)The Report fully complies with the requirements of Section 13(a) and 15(d) of the Securities Exchange Act of 1934; and

 

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

/s/ Ivan Persiyanov  
Ivan Persiyanov  
Interim Chief Financial Officer  
(Principal Financial and Accounting Officer)  
   
December 18, 2017  

 

   

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style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">12</div></div></div></td><td style="text-align: justify;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">COMMITMENTS AND CONTINGENCIES</div></div></div></td></tr></table><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;background-color: transparent; color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;">&#160;</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;"><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;background-color: transparent; color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0in; text-align: justify;">The Company disposed of its Crystal Magic, Inc. subsidiary effective December 31, 2013. In terms of the sale agreement entered into by the Company, the purchaser has been indemnified against all liabilities whether contingent or otherwise, claimed by third parties, this includes claims by creditors of the Company amounting to $372,090 and claims against long-term liabilities of $848,916. Management does not consider it likely that these claims will materialize and accordingly no provision has been made for these contingent liabiliti<div style="display:inline;; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;">es.</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;background-color: transparent; color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0in; text-align: justify;"><div style="display:inline;font-size: 13.3333px; text-indent: 0in; background-color: transparent; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><br/></div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;background-color: transparent; color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0in; text-align: justify;"><div style="display:inline;font-size: 13.3333px; text-indent: 0in; background-color: transparent; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;">The&#160;</div>Company entered into a lease agreement for approximately </div>3,733<div style="display:inline;font-size: 13.3333px; text-indent: 0in; background-color: transparent; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"> square feet of office and warehouse space in Houston, the term of the lease was for </div>39<div style="display:inline;font-size: 13.3333px; text-indent: 0in; background-color: transparent; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"> months commencing on </div>March 1, 2016<div style="display:inline;font-size: 13.3333px; text-indent: 0in; background-color: transparent; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"> and terminating on </div>May 31, 2019<div style="display:inline;font-size: 13.3333px; text-indent: 0in; background-color: transparent; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;">. The lease provided for the first month to be rent free, the fourteenth month to be rent free and the twenty-seventh month to be rent free. Monthly rentals, including estimated operating costs, for the first 12 months, excluding the free rental month amounted to approximately $</div>3,410<div style="display:inline;font-size: 13.3333px; text-indent: 0in; background-color: transparent; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"> per month, escalating at a rate of </div>1.7<div style="display:inline;font-size: 13.3333px; text-indent: 0in; background-color: transparent; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;">% per annum, after excluding the free rental months. This lease agreement was amended, and the lease terminated with effect from May 31, 2017 with a final payment of $</div>2,000<div style="display:inline;font-size: 13.3333px; text-indent: 0in; background-color: transparent; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"> and the forfeiture of the security deposit of $</div>6,968<div style="display:inline;font-size: 13.3333px; text-indent: 0in; background-color: transparent; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;">.</div></div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;background-color: transparent; color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;background-color: transparent; color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;"><div style="display:inline;font-size: 13.3333px; background-color: transparent; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;">The Company entered into an Office Service Agreement on May 16, 2017 whereby it has the license to use an office in a business center, together with all telecommunication services and access to conference rooms, kitchens and all utilities, the agreement is for a period of six months commencing on June 1, 2017 and terminating on </div>November 30, 2017<div style="display:inline;font-size: 13.3333px; background-color: transparent; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;">. The Company pays a monthly amount of $</div>530<div style="display:inline;font-size: 13.3333px; background-color: transparent; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"> in terms of the Office Service Agreement.</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;background-color: transparent; color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 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text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;">In terms of the license agreement commitments disclosed in note 6 above, the minimum commitments due under the amended license agreement entered into on January 30, 2013, for the next five years, are summarized as follows:</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left;position: relative; width: 100%; text-indent: 0in; float: none; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: normal;"><table cellspacing="0" cellpadding="0" style="clear:both;clear:both;width: 92%; border-collapse: collapse; float: inherit; margin: 0in 0in 0in 0.5in; border: 0px solid;" align="left"> <tr style="height:12px;"> <td width="80%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="10%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Amount</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="80%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="80%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">2017</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new 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roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">2019</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">500,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="80%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">2020</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">500,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="80%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">2021</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">500,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="80%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">Total</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">$</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">2,500,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr> </table></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left;background-color: transparent; position: relative; width: 100%; text-indent: 0in; float: none; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: normal;"></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;background-color: transparent; color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px;">&#160;&#160;</div><div style="display:inline;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: normal; font-size: 13.3333px;"></div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> 372090 848916 3733 P39M 0.001 0.001 5000000 5000000 251000 251000 2016-03-01 2019-05-31 3410 0.017 2000 6968 3137500 3137500 3137500 3137500 0.001 0.001 500000 500000 480000 480000 <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><div style="display:inline;margin-right: 0px; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: normal;"><br/><table style="clear:both;clear:both;width: 100%; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: &#34;Times New Roman&#34;, Times, serif; display: table;" cellspacing="0" cellpadding="0" > <tr style="VERTICAL-ALIGN: top"> <td style="width: 36pt; border-color: rgb(0, 0, 0); text-align: left; vertical-align: top;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 10pt; text-align: left;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">10</div></div></div></td> <td style="TEXT-ALIGN: justify;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;FONT-SIZE: 10pt"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">NET LOSS PER SHARE</div></div></div></td></tr></table><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;margin: 0px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; font-stretch: normal; font-size: 13.3333px; line-height: normal; font-family: &#34;Times New Roman&#34;, Times, serif;"><br/></div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0in; text-align: justify;"><div style="display:inline;; margin-right: 0px; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in; margin-bottom:.0001pt;text-align:justify"><div style="display:inline;; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 13.3333px; ; margin-right: 0px; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;">Basic loss per share is based on the weighted-average number of common shares outstanding during each period. Diluted loss per share is based on basic shares as determined above plus common stock equivalents, including convertible preferred shares and convertible notes as well as the incremental shares that would be issued upon the assumed exercise of in-the-money stock options using the treasury stock method. The computation of diluted net loss per share does not assume the issuance of common shares that have an anti-dilutive effect on net loss per share. For the six months ended June 30, 2017 and 2016, all stock options, warrants and convertible preferred stock were excluded from the computation of diluted net loss per share. 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style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left;position: relative; width: 100%; text-indent: 0in; float: none; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: normal;"><table cellspacing="0" cellpadding="0" style="clear:both;clear:both;width: 92%; border-collapse: collapse; float: inherit; margin: 0in 0in 0in 0.5in; display: table;" align="left" > <tr style="height:12px;"> <td width="59%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="15%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Three&#160;and&#160;Six<br/>months<br/>ended<br/>June&#160;30,<br/>2017</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="15%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Three&#160;and&#160;Six<br/>months<br/>ended<br/>June&#160;30,<br/>2016</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="59%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times 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roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">380,950</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">4,380,950</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="59%" 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style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">6,339,498</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="59%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Series A-1 convertible preferred shares</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">31,375,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">31,375,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="59%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">Series B convertible preferred shares</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new 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style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Series C convertible preferred shares</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">120,000,000</td><td width="1%" 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style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">162,095,448</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">166,095,448</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr> </table></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left;position: relative; width: 100%; text-indent: 0in; float: none; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: normal;"></div><br/></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> 40000 40000 40000 40000 0.001 0.001 0.001 0.001 4500000 4500000 14750000 14750000 4500000 4500000 4500000 4500000 25000 0 0 0 25000 0 2994 6765 148361 169557 27436 243100 654956 170482 2866 68281 352139 1142659 -327139 -1142659 0 -763 0 199237 162095448 166095448 -44 0 -327095 -943422 0 0 -1064736 0 -249339 0 -815397 310427 312142 -637522 -2070961 0 -0.01 0 0 0 -0.01 268558931 268558931 268558931 268558931 -530 -178470 -278517 -1598200 0 -1248 6968 0 <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 14.6667px; font-family: Calibri, sans-serif; font-weight: 400;"></div></td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">a)</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">Basis of Presentation</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> </tr> </table> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (&#8220;U.S. GAAP&#8221;) for interim financial information with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments (consisting only of normal recurring adjustments), which we consider necessary, for a fair presentation of those financial statements. The results of operations and cash flows for the three months and six months ended June 30, 2017 may not necessarily be indicative of results that may be expected for any succeeding quarter or for the entire fiscal year. The information contained in this quarterly report on Form 10-Q should be read in conjunction with our audited financial statements included in our annual report on Form 10-K as of and for the year ended December 31, 2016 as filed with the Securities and Exchange Commission (the &#8220;SEC&#8221;).</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; text-indent: 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Significant accounting policies are described in Note 2 to the consolidated financial statements included in Item 8 of our annual report on Form 10-K as of December 31, 2016.</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; text-indent: 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, which are evaluated on an ongoing basis, that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to: the estimated useful lives for plant and equipment, the fair value of warrants and stock options granted for services or compensation, estimates of the probability and potential magnitude of contingent liabilities, derivative liabilities, the valuation allowance for deferred tax assets due to continuing operating losses, those related to revenue recognition and the allowance for doubtful accounts.</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; text-indent: 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited consolidated financial statements, which management considered in formulating its estimate could change in the near-term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates.</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; text-indent: 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">All amounts referred to in the notes to the unaudited consolidated financial statements are in United States Dollars ($) unless stated otherwise.</div></div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">b)</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">Principles of Consolidation</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> </tr> </table> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">The unaudited consolidated financial statements include the financial statements of the Company and its subsidiaries in which it has a majority voting interest. All significant inter-company accounts and transactions have been eliminated in the unaudited consolidated financial statements. The entities included in these unaudited consolidated financial statements are as follows:</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; text-indent: 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Pledge Petroleum Corp (formerly Propell Technologies Group, Inc.) &#150; Parent Company</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Novas Energy USA Inc. (wholly owned)</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Novas Energy North America, LLC (60% owned)&#160;&#150; Discontinued operation.</div></div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">c)</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">Recent Accounting Pronouncements</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> </tr> </table> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">In May 2017, the FASB issued Accounting Standards Update No. (&#8220;ASU&#8217;&#8217;) 2017-09, Compensation &#150; Stock Compensation, an amendment to Topic 718. The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718.2. An entity should account for the effects of a modification unless all the following are met:</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 36.65pt; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0in 0.7in; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">1.</div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification.</div></div> </td> </tr> </table> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0in 0.7in; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; 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font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0in 0.7in; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">3.</div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified.</div></div> </td> </tr> </table> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-indent: -0.25in; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this Update. The amendments in this Update are effective for all entities for annual periods beginning after December 15, 2017. Early adoption is permitted and should be applied prospectively to an award modified on or after the adoption date. The amendments proposed in this ASU are not expected to have a material impact on our consolidated financial statements.</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">In May 2017, the FASB issued ASU 2017-10, service concession arrangements, an amendment to Topic 853. Topic 853 provides guidance for operating entities when they enter into a service concession arrangement with a public-sector grantor who both:</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0in 0.7in; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">1.</div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Controls or has the ability to modify or approve the services that the operating entity must provide with the infrastructure, to whom it must provide them, and at what price</div></div> </td> </tr> </table> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0in 0.7in; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">2.</div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Controls, through ownership, beneficial entitlement, or otherwise, any residual interest in the infrastructure at the end of the term of the arrangement.</div></div> </td> </tr> </table> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-indent: -0.25in; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">In a service concession arrangement within the scope of Topic 853, the operating entity should not account for the infrastructure as a lease or as property, plant, and equipment. An operating entity should refer to other Topics to account for various aspects of a service concession arrangement. For example, an operating entity should account for revenue relating to construction, upgrade, or operation services in accordance with Topic 605, Revenue Recognition, or Topic 606, Revenue from Contracts with Customers.</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">The amendments in this Update apply to the accounting by operating entities for service concession arrangements within the scope of Topic 853. These updates are effective when the Company adopts the updates to Topic 606. The amendments proposed in this ASU are not expected to have an impact on our consolidated financial statements.</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.5in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.</div></div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">d)</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">Use of Estimates</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> </tr> </table> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, which are evaluated on an ongoing basis, that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to: the estimated useful lives for plant and equipment, the fair value of warrants and stock options granted for services or compensation, estimates of the probability and potential magnitude of contingent liabilities, derivative liabilities, the valuation allowance for deferred tax assets due to continuing operating losses, those related to revenue recognition and the allowance for doubtful accounts.</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited consolidated financial statements, which management considered in formulating its estimate could change in the near-term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates.</div></div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">e)</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">Contingencies</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> </tr> </table> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company&#8217;s management assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment.</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company&#8217;s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.</div></div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">f)</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">Cash and Cash Equivalents</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> </tr> </table> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. At June 30, 2017 and December 31, 2016, respectively, the Company had no cash equivalents.</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-family: &#34;Times New Roman&#34;, serif; font-size: 13.3333px; font-style: normal; font-weight: 400;"><br/></div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-family: &#34;Times New Roman&#34;, serif; font-size: 13.3333px; font-style: normal; font-weight: 400;">The Company assesses credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The balance at times may exceed federally insured limits. 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Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. All transactions are recorded at fair value of the goods or services exchanged. Property purchased from a related party is recorded at the cost to the related party and any payment to or on behalf of the related party in excess of the cost is reflected as a distribution to related party.</div></div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; 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The Company formed a special committee to investigate a possible share buyback of the majority stockholder, Ervington Investments Limited, and/or a possible dissolution of the Company.</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif">Due to uncertainties surrounding the Company&#8217;s ability to realize the full value of its assets, the Company cannot make any assurances regarding the amount available for distribution to its stockholders.</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif">The Company has made certain projections relating to the amount of cash it expects to have to distribute to its stockholders upon dissolution of the Company. These projections generally relate to the amount of liabilities which must be satisfied before the Company is dissolved and the amount its preferred stockholders is expected to receive for their equity interest. The above projections are subject to multiple variables, including the timing of a dissolution affecting the amount of dividends payable and the amount of liabilities owed at the time of dissolution. Based upon current estimates, if the Company were to dissolve this quarter, no assurance can be given that common stockholders or subordinate preferred stockholders will receive any such distribution.</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif"></div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><table cellpadding="0" cellspacing="0" style="clear:both;clear:both;font-family: &#34;Times New Roman&#34;, Times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; width: 100%;"><tr style="vertical-align: top; text-align: justify;"><td style="width: 0px;;"><div></div></td><td style="width: 0.5in; text-align: left;;"><div><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">3</div></div></div></td><td style="text-align: justify;;"><div><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">DISCONTINUED OPERATIONS</div></div></div></td></tr></table><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;">&#160;</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;">On October 4, 2016, Novas Energy USA, Inc. (&#8220;Novas USA&#8221;), a wholly owned subsidiary of the Company, delivered a notice to Technovita Technologies USA, Inc. 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New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;">&#160;</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;"></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;">The assets and liabilities of discontinued operations as of June 30, 2017 and December 31, 2016, respectively is as follows:</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 31.5pt; text-align: justify;">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left;position: relative; width: 100%; text-indent: 0in; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: normal;"><table cellspacing="0" cellpadding="0" style="clear:both;clear:both;width:92%;float: inherit;border-collapse:collapse;border-width:92%;float: inherit;MARGIN: 0in 0in 0in 0.5in;" align="left"> <tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">June&#160;30,<br/>2017</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">December&#160;31,<br/>2016</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">Current assets</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">Cash</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">19,480</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">19,480</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Accounts receivable, net</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">61,661</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">61,661</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">Prepaid expenses and other current assets</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">29,896</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">29,896</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:13px;;background-color:#cceeff">Total current 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style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">111,037</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">Non-current assets</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Plant and equipment, net</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">6,480</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">6,480</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:13px;;background-color:#ffffff">Total assets</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">117,517</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">117,517</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" 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roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Accounts payable</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">94,784</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">94,784</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr 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style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">932,478</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Accrued liabilities and other payables</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">115,971</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">115,971</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:13px;;background-color:#ffffff">Total liabilities</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">1,143,233</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new 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roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">1,025,716</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">1,025,716</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr> </table></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: 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style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Net revenue</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new 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style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">48,643</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">20,833</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new 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width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Sales and marketing expenses</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td 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style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">10,881</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">Professional fees</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">21,797</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">36,923</td><td width="1%" 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style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">145,319</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> 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style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">228,872</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">572,191</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">General and administrative expenses</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">189,183</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">320,535</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">Depreciation and amortization</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">477</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">803</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:13px;;background-color:#cceeff">Total expense</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">450,579</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">1,086,652</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">Loss from operations</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">(401,936)</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">(1,065,819)</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Other income</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">1,073</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">1,083</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">Loss from discontinued operations</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">(400,863)</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">(1,064,736)</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td> </tr> </table></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left;position: relative; width: 100%; text-indent: 0in; float: none; 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relative; width: 100%; text-indent: 0in; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: normal;"><table cellspacing="0" cellpadding="0" style="clear:both;clear:both;width:92%;float: inherit;border-collapse:collapse;border-width:92%;float: inherit;MARGIN: 0in 0in 0in 0.5in;" align="left"> <tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">June&#160;30,<br/>2017</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">December&#160;31,<br/>2016</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">Current assets</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">Cash</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">19,480</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">19,480</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" 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style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">61,661</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">Prepaid expenses and other current assets</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">29,896</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">29,896</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:13px;;background-color:#cceeff">Total current assets</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">111,037</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">111,037</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">Non-current assets</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Plant and equipment, net</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">6,480</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">6,480</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:13px;;background-color:#ffffff">Total assets</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">117,517</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">117,517</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">Current liabilities</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new 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style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">932,478</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Accrued liabilities and other payables</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">115,971</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new 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roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">1,143,233</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" 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style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">1,025,716</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">1,025,716</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr> </table></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; 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roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Net revenue</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">65,531</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new 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style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">48,643</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new 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width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Sales and marketing expenses</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">10,250</td><td width="1%" 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style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">10,881</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">Professional fees</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">21,797</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">36,923</td><td width="1%" 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style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">145,319</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> 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style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">228,872</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">572,191</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">General and administrative expenses</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">189,183</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">320,535</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">Depreciation and amortization</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">477</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">803</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:13px;;background-color:#cceeff">Total expense</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">450,579</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">1,086,652</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">Loss from operations</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">(401,936)</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">(1,065,819)</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Other income</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">1,073</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">1,083</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">Loss from discontinued operations</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">(400,863)</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">(1,064,736)</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">&#160;</td> </tr> </table></div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;; margin-right: 0px; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: 700;"><table cellpadding="0" cellspacing="0" style="clear:both;clear:both;font-family: &#34;Times New Roman&#34;, Times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; width: 100%;"><tr style="vertical-align: top; text-align: justify;"><td style="width: 0px;;"><div></div></td><td style="width: 0.5in; text-align: left;;"><div><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;">9</div></div></div></td><td style="text-align: justify;;"><div><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;">OTHER INCOME<br/><br/></div></div></div></td></tr></table></div><div style="display:inline;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: 700;"></div></div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left;position: relative; width: 100%; text-indent: 0in; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: 400;"></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left;position: relative; width: 100%; text-indent: 0in; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: 400;"><table cellspacing="0" cellpadding="0" style="clear:both;clear:both;width: 92%; border-collapse: collapse; float: inherit; margin: 0in 0in 0in 0.5in; display: table;" align="left" > <tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Three<br/>months<br/>ended&#160;30<br/>June&#160;2017</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Three<br/>months<br/>ended&#160;30<br/>June&#160;2016</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Six&#160;months<br/>ended<br/>June&#160;30,<br/>2017</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Six&#160;months<br/>ended<br/>June&#160;30,<br/>2016</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">License fee forgiven</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">200,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr> </table></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in;"><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 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text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0in; list-style-position: inside;"></div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in;"><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0in; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0in; list-style-position: inside;">Other income includes the forgiveness of the $200,000 license fee due to Novas BVI during the prior period<div style="display:inline;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: 400;">.</div></div></div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> 200000 <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both; mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-priority:99;mso-style-parent:;mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-para-margin-top:0in;mso-para-margin-right:0in;mso-para-margin-bottom:8.0pt;mso-para-margin-left:0in;line-height:107%;mso-pagination:widow-orphan;font-size:11.0pt;font-family:Calibri,sans-serif;mso-ascii-font-family:Calibri;mso-ascii-theme-font:minor-latin;mso-hansi-font-family:Calibri;mso-hansi-theme-font:minor-latin;;;width:100.0%;mso-cellspacing:0in;mso-yfti-tbllook:1184;mso-padding-alt: 0in 0in 0in 0in"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="0" valign="top" style="width:.3pt;padding:0in 0in 0in 0in;vertical-align: top;;"><div></div></td> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: normal;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: bold;">4</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: normal;"></div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: normal;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: 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10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.5in; line-height: normal; font-style: normal; font-weight: normal;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: normal;"></div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.5in; line-height: normal; font-style: normal; font-weight: normal;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: normal;">Prepaid expenses consisted of the following:</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 31.5pt; line-height: normal; font-style: normal; font-weight: normal;"><div style="display:inline;font-size: 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roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">June&#160;30,</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">December&#160;31,</td><td width="1%" 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style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Prepaid insurance</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" 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roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">25,940</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr> </table></div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;position: relative; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: normal;"><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left;position: relative; width: 100%; text-indent: 0in; float: none; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: normal;"></div></div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><div align="center" style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: center; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;<div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;">&#160;</div></div></div> <table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="0" valign="top" style="width:.3pt;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 14.6667px; font-family: Calibri, sans-serif; font-weight: 400;"></div></td> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">1</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 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serif; font-style: normal; font-weight: 400;"></div></div> <table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 14.6667px; font-family: Calibri, sans-serif; font-weight: 400;"></div></td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">a)</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">Basis of Presentation</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> </tr> </table> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (&#8220;U.S. GAAP&#8221;) for interim financial information with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments (consisting only of normal recurring adjustments), which we consider necessary, for a fair presentation of those financial statements. The results of operations and cash flows for the three months and six months ended June 30, 2017 may not necessarily be indicative of results that may be expected for any succeeding quarter or for the entire fiscal year. The information contained in this quarterly report on Form 10-Q should be read in conjunction with our audited financial statements included in our annual report on Form 10-K as of and for the year ended December 31, 2016 as filed with the Securities and Exchange Commission (the &#8220;SEC&#8221;).</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; text-indent: 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Significant accounting policies are described in Note 2 to the consolidated financial statements included in Item 8 of our annual report on Form 10-K as of December 31, 2016.</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; text-indent: 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, which are evaluated on an ongoing basis, that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to: the estimated useful lives for plant and equipment, the fair value of warrants and stock options granted for services or compensation, estimates of the probability and potential magnitude of contingent liabilities, derivative liabilities, the valuation allowance for deferred tax assets due to continuing operating losses, those related to revenue recognition and the allowance for doubtful accounts.</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; text-indent: 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited consolidated financial statements, which management considered in formulating its estimate could change in the near-term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates.</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; text-indent: 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">All amounts referred to in the notes to the unaudited consolidated financial statements are in United States Dollars ($) unless stated otherwise.</div></div><div style="CLEAR:both;CLEAR:both; 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All significant inter-company accounts and transactions have been eliminated in the unaudited consolidated financial statements. The entities included in these unaudited consolidated financial statements are as follows:</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; text-indent: 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Pledge Petroleum Corp (formerly Propell Technologies Group, Inc.) &#150; Parent Company</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Novas Energy USA Inc. 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The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718.2. An entity should account for the effects of a modification unless all the following are met:</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 36.65pt; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0in 0.7in; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">1.</div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification.</div></div> </td> </tr> </table> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0in 0.7in; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; 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font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0in 0.7in; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">3.</div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified.</div></div> </td> </tr> </table> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-indent: -0.25in; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this Update. The amendments in this Update are effective for all entities for annual periods beginning after December 15, 2017. Early adoption is permitted and should be applied prospectively to an award modified on or after the adoption date. The amendments proposed in this ASU are not expected to have a material impact on our consolidated financial statements.</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">In May 2017, the FASB issued ASU 2017-10, service concession arrangements, an amendment to Topic 853. Topic 853 provides guidance for operating entities when they enter into a service concession arrangement with a public-sector grantor who both:</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0in 0.7in; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">1.</div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Controls or has the ability to modify or approve the services that the operating entity must provide with the infrastructure, to whom it must provide them, and at what price</div></div> </td> </tr> </table> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0in 0.7in; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">2.</div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Controls, through ownership, beneficial entitlement, or otherwise, any residual interest in the infrastructure at the end of the term of the arrangement.</div></div> </td> </tr> </table> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-indent: -0.25in; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">In a service concession arrangement within the scope of Topic 853, the operating entity should not account for the infrastructure as a lease or as property, plant, and equipment. An operating entity should refer to other Topics to account for various aspects of a service concession arrangement. For example, an operating entity should account for revenue relating to construction, upgrade, or operation services in accordance with Topic 605, Revenue Recognition, or Topic 606, Revenue from Contracts with Customers.</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">The amendments in this Update apply to the accounting by operating entities for service concession arrangements within the scope of Topic 853. These updates are effective when the Company adopts the updates to Topic 606. The amendments proposed in this ASU are not expected to have an impact on our consolidated financial statements.</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.5in; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">&#160;</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.5in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.5in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; 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font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">d)</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; 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font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, which are evaluated on an ongoing basis, that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to: the estimated useful lives for plant and equipment, the fair value of warrants and stock options granted for services or compensation, estimates of the probability and potential magnitude of contingent liabilities, derivative liabilities, the valuation allowance for deferred tax assets due to continuing operating losses, those related to revenue recognition and the allowance for doubtful accounts.</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited consolidated financial statements, which management considered in formulating its estimate could change in the near-term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates.</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <table border="0" cellspacing="0" cellpadding="0" width="100%" style="clear:both;clear:both;line-height: 107%; font-size: 11pt; font-family: Calibri, sans-serif; width: 100%; border: 0px solid;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> </td> <td width="24" valign="top" style="width:.25in;padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">e)</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> <td valign="top" style="padding:0in 0in 0in 0in;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;vertical-align: top;;"> <div style="CLEAR:both;CLEAR:both;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 700;">Contingencies</div></div><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;"></div></div> </td> </tr> </table> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company&#8217;s management assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment.</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;margin: 0in 0in 0.0001pt; font-size: 14.6667px; font-family: Calibri, sans-serif; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">&#160;</div></div> <div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.75in; text-align: justify; line-height: normal; font-style: normal; font-weight: 400;"><div style="display:inline;font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, serif; font-style: normal; font-weight: 400;">If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company&#8217;s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. 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normal; margin: 0px 0px 0px 67.7pt;">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left;position: relative; width: 100%; text-indent: 0in; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: normal;"><table cellspacing="0" cellpadding="0" style="clear:both;clear:both;width:85%;float: inherit;border-collapse:collapse;border-width:85%;float: inherit;MARGIN: 0in 0in 0in 1in;" align="left"><tr style="height:12px;"> <td width="38%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" 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new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="16%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" 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style="overflow:hidden;color:black;text-align:left;vertical-align:top;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="16%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" 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style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="8" rowspan="1">Warrants&#160;outstanding</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="28%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="5" rowspan="1">Warrants&#160;exercisable</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="13%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Exercise&#160;price</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">No.&#160;of&#160;shares</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Weighted<br/>average<br/>remaining&#160;years</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Weighted<br/>average&#160;exercise<br/>price</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">No.&#160;of&#160;shares</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Weighted<br/>average<br/>exercise&#160;price</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">0.30</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">375,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">1.33</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">375,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">$</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">0.25</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">1,751,667</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">1.99</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">1,751,667</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">0.15</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">525,500</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">1.99</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">525,500</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">$</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">0.25</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">1,508,333</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">2.09</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">1,508,333</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">0.15</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new 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style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">968,166</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">0.25</td><td width="1%" 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roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:0px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">633,333</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;border-bottom-width:0px;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;border-bottom-width:0px;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;border-bottom-width:0px;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">6,339,498</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;border-bottom-width:0px;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">2.02</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;border-bottom-width:0px;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">0.24</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:0px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">6,339,498</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;border-bottom-width:0px;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">0.24</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;border-bottom-width:0px;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td></tr> </table></div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-size: 14.6667px; font-family: Calibri, sans-serif; margin: 0in 0in 0.0001pt 0.5in; line-height: normal; font-style: normal; font-weight: 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roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" 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style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">8,333</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" 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style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">34,066</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">25,940</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr> </table></div></div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 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roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="38%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="8" rowspan="1">June&#160;30,<br/>2017</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">December&#160;31,<br/>2016</td><td width="1%" 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width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Plasma pulse tool</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times 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width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">Furniture and equipment</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">6,700</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">(1,787)</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">4,913</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">5,583</td><td 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roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">341</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" 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roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">6,547</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new 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style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">$</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">982,880</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">$</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">(971,420)</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">11,460</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">$</td><td width="11%" 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style="clear:both;clear:both;font-family: &#34;Times New Roman&#34;, Times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; width: 100%; border: 0px solid;"><tr style="vertical-align: top; text-align: justify;"><td style="width: 0px;;"><div></div></td><td style="width: 0.5in; text-align: left;;"><div><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">6</div></div></div></td><td style="text-align: justify;;"><div><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">INTANGIBLES</div></div></div></td></tr></table><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;">&#160;</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;">Licenses</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;">Novas licenses the &#8220;Plasma-Pulse Technology&#8221; (&#8220;the Technology&#8221;) from Novas Energy Group Limited, the Licensor, pursuant to the terms of an exclusive perpetual royalty bearing license it entered into in January 2013, which was amended during March 2014.</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;"><div style="display:inline;font-size: 13.3333px; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><br/></div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;"><div style="display:inline;font-size: 13.3333px; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;">On July 19, 2016, the Company received a notice from Licensor purporting to effectively terminate the License Agreement for non-payment of required royalties, asserting, among other things, that as of June 30, 2016, Novas owed Licensor a pro rata amount of $</div>1,458,333<div style="display:inline;font-size: 13.3333px; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"> for the Licensed Plasma Pulse Technology for the United States and Mexico, of which $</div>1,000,000<div style="display:inline;font-size: 13.3333px; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"> was alleged to be in arrears. Novas has recently been contacted by Licensor with a request for settlement discussions; however, there can be no assurance that such discussions will occur or what the outcome of any such discussions will be. The Company and Novas believe that there is no legal basis for Licensor to terminate the License Agreement and intend to vigorously defend against any attempt by Licensor to enforce a termination of the License Agreement. Further, we believe that Licensor has failed to materially perform its obligations under the License Agreement, and that such failures on Licensor&#8217;s part may impact what, if any, payments are due under the License Agreement by Novas to Licensor.</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;">On October 4, 2016, Novas Energy USA, Inc. (&#8220;Novas USA&#8221;), a wholly owned subsidiary of the Company, delivered a notice to Technovita Technologies USA, Inc. (&#8220;Technovita&#8221;) electing to dissolve its joint venture with Technovita (the &#8220;Joint Venture&#8221;), effective November 1, 2016, pursuant to Section 11.1(b) of the Operating Agreement of Novas Energy North America, LLC (&#8220;NENA&#8221;), dated October 22, 2015 (the &#8220;Operating Agreement&#8221;), by and among Novas USA and Technovita.</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;">Pursuant to the Operating Agreement, Novas USA had entered into a sublicense agreement (the &#8220;Novas Sublicense Agreement&#8221;) with NENA and Novas Energy Group Limited for NENA to be the exclusive provider of Plasma Pulse Technology for treatment of vertical wells to third parties in the United States. 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roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new 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style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="43%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new 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justify;list-style-position: inside;"><br/></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0in; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0in; text-align: justify;list-style-position: inside;">Amortization expense was $0 and $35,000 for the six months ended June 30, 2017 and 2016, respectively.</div></div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" 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Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 37.4pt; text-align: justify;">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left;position: relative; width: 100%; text-indent: 0in; float: none; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: normal;"><table cellspacing="0" cellpadding="0" style="clear:both;clear:both;width: 92%; border-collapse: collapse; float: inherit; margin: 0in 0in 0in 0.5in; border: 0px solid;" align="left"> <tr style="height:12px;"> <td width="43%" 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style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="43%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="43%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">License agreements</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">350,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">(350,000)</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="43%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times 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style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">(8,000)</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="43%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="43%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">$</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">358,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">$</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">(358,000)</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">$</td><td width="9%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">$</td><td width="9%" 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roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Royalties payable</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new 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style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="65%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Severance accrual</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" 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roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">19,814</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new 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roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">14,860</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">34,467</td><td width="1%" 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style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="11%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="39%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">License fee forgiven</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="11%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">200,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr> </table></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; 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0 0 0 <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: normal;"><table cellpadding="0" cellspacing="0" style="clear:both;clear:both;font-family: &#34;Times New Roman&#34;, Times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; width: 100%; display: table;" ><tr style="vertical-align: top; text-align: justify;"><td style="width: 0px;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"></div></td><td style="width: 0.5in; text-align: left;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">8</div></div></div></td><td style="text-align: justify;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">STOCKHOLDERS&#8217; EQUITY</div></div></div></td></tr></table><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;">&#160;</div></div><table cellpadding="0" cellspacing="0" style="clear:both;clear:both;font-family: &#34;Times New Roman&#34;, Times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; width: 100%; display: table;" ><tr style="vertical-align: top; text-align: justify;"><td style="width: 0.5in;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"></div></td><td style="width: 0.25in; text-align: left;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">a)</div></div></div></td><td style="text-align: justify;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">Preferred stock</div></div></div></td></tr></table><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;">&#160;</div></div><table cellpadding="0" cellspacing="0" style="clear:both;clear:both;font-family: &#34;Times New Roman&#34;, Times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; width: 100%; display: table;" ><tr style="vertical-align: top; text-align: justify;"><td style="width: 0.75in;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"></div></td><td style="width: 0.25in; text-align: left;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">i)</div></div></div></td><td style="text-align: justify;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">Series B Convertible Preferred Stock</div></div></div></td></tr></table><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0in; text-align: justify;"><br/></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1in; text-align: justify;"><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0in; text-align: justify;">The Company has undeclared dividends on the Series B Preferred stock amounting to $145,479 as of June 30, 2017. If the dividends are paid in stock, the beneficial conversion feature of these undeclared dividends will be recorded upon the declaration of these dividends. The computation of loss per common share for the six months ended June 30, 2017 takes into account these undeclared dividends.</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1in; text-align: justify;"><br/></div><table cellpadding="0" cellspacing="0" style="clear:both;clear:both;font-family: &#34;Times New Roman&#34;, Times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; width: 100%; display: table;" ><tr style="vertical-align: top; text-align: justify;"><td style="width: 0.75in;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"></div></td><td style="width: 0.25in; text-align: left;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">ii)</div></div></div></td><td style="text-align: justify;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">Series C Convertible Preferred Stock</div></div></div></td></tr></table><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;">&#160;</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1in; text-align: justify;"><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0in; text-align: justify;">The Company has undeclared dividends on the Series C Preferred stock amounting to $1,253,397 as of June 30, 2017. The computation of loss per common share for the six months ended June 30, 2017 takes into account these undeclared dividends.</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px;">&#160;</div><table cellpadding="0" cellspacing="0" style="clear:both;clear:both;font-family: &#34;Times New Roman&#34;, Times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; width: 100%; display: table;" ><tr style="vertical-align: top; text-align: justify;"><td style="width: 0.5in;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"></div></td><td style="width: 0.25in; text-align: left;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">b)</div></div></div></td><td style="text-align: justify;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">Stock Options</div></div></div></td></tr></table><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;">&#160;</div></div><table cellpadding="0" cellspacing="0" style="clear:both;clear:both;font-family: &#34;Times New Roman&#34;, Times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; width: 100%; display: table;" ><tr style="vertical-align: top; text-align: justify;"><td style="width: 0.75in;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"></div></td><td style="width: 0.25in; text-align: left;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">i)</div></div></div></td><td style="text-align: justify;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">Plan options</div></div></div></td></tr></table><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: justify;">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1in; text-align: justify;"><div style="display:inline;font-size: 13.3333px; text-indent: 0in; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;">At June 30, 2017 and December 31, 2016 there were 380,950 Plan options issued and outstanding, respectively, under the Stock Option Plan.</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: justify;">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1in; text-align: justify;">No options were issued during the six months ended June 30, 2017 and the year ended December 31, 2016.</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: justify;">&#160;<div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;">&#160;</div></div><table cellpadding="0" cellspacing="0" style="clear:both;clear:both;font-family: &#34;Times New Roman&#34;, Times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; width: 100%; display: table;" ><tr style="vertical-align: top; text-align: justify;"><td style="width: 0.75in;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"></div></td><td style="width: 0.25in; text-align: left;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">ii)</div></div></div></td><td style="text-align: justify;;"><div style="CLEAR:both;CLEAR:both;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><div style="display:inline;font-size: 10pt;"><div style="CLEAR:both;font-weight:bold;display:inline;width:100%;">Non-Plan Stock Options</div></div></div></td></tr></table><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;">&#160;</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: normal;"><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;"></div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1in; text-align: justify;">On January 1, 2016, the Company granted, to its then Chief Executive Officer, non - plan options for 3,000,000 shares of common stock (that are not covered by the Company&#8217;s Stock Option Plan), with an exercise price of $0.08 per share and which options will expire thirty days after resignation. These options vested as to 1,000,000 on January 1, 2017, the first anniversary of the grant date; 1,000,000 was due to vest on the second anniversary of the grant date and a further 1,000,000 was due to vest on the third anniversary of the grant date. The 1,000,000 options which vested on January 1, 2017, were not exercised within 30 days of resignation by Mr. Boutte and have been forfeited.</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1in; text-align: justify;"><div style="display:inline;font-size: 13.3333px; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"><br/></div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1in; text-align: justify;"><div style="display:inline;font-size: 13.3333px; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;">On March 31, 2017, the Chief Executive Officer, Mr. Brian Boutte tendered his resignation and the remaining unvested options for </div>2,000,000<div style="display:inline;font-size: 13.3333px; font-style: normal; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: normal;"> shares of common stock were cancelled.</div></div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px;">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1in; text-align: justify;"></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1in; text-align: justify;">A summary of all of our option activity during the period January 1, 2016 to June 30, 2017 is as follows:</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 67.7pt;">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left;position: relative; width: 100%; text-indent: 0in; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: normal;"><table cellspacing="0" cellpadding="0" style="clear:both;clear:both;width:85%;float: inherit;border-collapse:collapse;border-width:85%;float: inherit;MARGIN: 0in 0in 0in 1in;" align="left"><tr style="height:12px;"> <td width="38%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">No.&#160;of&#160;shares</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="16%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">Exercise&#160;price<br/>per&#160;share</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Weighted<br/>average&#160;exercise<br/>price</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="38%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="16%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="38%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">Outstanding January 1, 2016</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new 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roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="38%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#cceeff">Outstanding December 31, 2016</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">3,380,950</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new 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roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">0.18</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td></tr><tr style="height:12px;"> <td width="38%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">Granted - non-plan options</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="16%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">-</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new 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transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1in; text-align: justify;">&#160;<div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;">&#160;</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.75in;"></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.75in;"></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; 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style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">3,480</td><td width="1%" 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roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">12.50</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">2,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new 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roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">2,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">8.50</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">500</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">4.00</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">500</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">$</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">5.00</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">14,800</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">4.29</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">14,800</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">0.65</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">36,924</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">5.75</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">36,924</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">$</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">0.63</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">38,096</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">1.00</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">38,096</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new 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style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times 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margin: 0px;"><div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-weight:bold;display:inline;width:100%;">&#160;</div></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.75in;"></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: 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margin: 0px 0px 0px 0.75in;">&#160;</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left;position: relative; width: 100%; text-indent: 0in; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: normal;"><table cellspacing="0" cellpadding="0" style="clear:both;clear:both;width:88%;float: inherit;border-collapse:collapse;border-width:88%;float: inherit;MARGIN: 0in 0in 0in .75in;" align="left"><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="44%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="8" rowspan="1">Warrants&#160;outstanding</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="28%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="5" 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roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Weighted<br/>average<br/>exercise&#160;price</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">0.30</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">375,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">1.33</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">375,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">$</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">0.25</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">1,751,667</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">1.99</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">1,751,667</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">0.15</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">525,500</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">1.99</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">525,500</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">$</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">0.25</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">1,508,333</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">2.09</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">1,508,333</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">0.15</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">577,499</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">2.10</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new 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roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">$</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">0.25</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new 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style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new 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style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;border-bottom-width:0px;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">6,339,498</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;border-bottom-width:0px;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">2.02</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;border-bottom-width:0px;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" 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roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">6,339,498</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;border-bottom-width:0px;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" 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letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0in;">The warrants outstanding have an intrinsic value of $0 and $0 as of June 30, 2017 and December 31, 2016, respectively.</div></div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: 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colspan="2" rowspan="1">No.&#160;of&#160;shares</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="14%" style="overflow:hidden;color:#000000;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Weighted&#160;<br/>average&#160;<br/>remaining&#160;years</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="14%" style="overflow:hidden;color:#000000;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Weighted&#160;<br/>average&#160;exercise&#160;<br/>price</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="14%" style="overflow:hidden;color:#000000;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">No.&#160;of&#160;shares</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Weighted&#160;<br/>average&#160;exercise&#160;<br/>price</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:#000000;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">13.50</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">3,480</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">1.96</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">3,480</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">$</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">12.50</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">2,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">3.28</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">2,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">8.50</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">500</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">4.00</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">500</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">$</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">5.00</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">14,800</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">4.29</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">14,800</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new 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roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">5.75</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new 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roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">38,096</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">$</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">0.51</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">285,150</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">2.79</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">285,150</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td></tr><tr style="height:12px;"> <td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">380,950</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:#000000;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">2.95</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">0.90</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="13%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">380,950</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;text-align:left;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="12%" style="overflow:hidden;color:#000000;text-align:right;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">0.90</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td></tr> </table></div></div></div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> 0 <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><table cellpadding="0" cellspacing="0" style="clear:both;clear:both;font-family: &#34;Times New Roman&#34;, Times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; 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style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;"></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;"></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;">On January 1, 2016, the &#8220;Company entered into a three-year Employment Agreement with C. Brian Boutte (the &#8220;Boutte Employment Agreement&#8221;) to serve as the Company&#8217;s Chief Executive Officer. Mr. Boutte was to also serve as the Company&#8217;s interim Chief Financial Officer. Under the Boutte Employment Agreement, for his service as the Chief Executive Officer of the Company, Mr. Boutte was to receive an annual base salary of $265,000, a sign on bonus of $60,000 and an annual performance bonus of up to 55% of his base salary, such bonus payable in cash or equity upon attainment of certain performance indicators established by the Company&#8217;s Board of Directors and Mr. Boutte. In connection with the entry into the Boutte Employment Agreement, Mr. Boutte was granted an option award exercisable for 3,000,000 shares of the Company&#8217;s common stock, which will vest as to 1,000,000 shares on each of the one, two and three-year anniversary of the commencement of his employment with the Company. The Boutte Employment Agreement was amended on December 31, 2016 to provide for a term of six months ending June 30, 2017, a reduced annual base salary of $165,000 and a provision for immediate vesting of the options upon a Change of Control (as defined in the amendment). In the event that Mr. Boutte&#8217;s employment was terminated Without Cause (as defined in the Boutte Employment Agreement), by Mr. Boutte for Good Reason (as defined below), Disability (as defined in the Boutte Employment Agreement), upon his death or a change in control, Mr. Boutte would be entitled to receive a severance payment equal to $65,000. Upon a change in control, Mr. Boutte&#8217;s options would immediately vest. The Boutte Employment Agreement also included customary confidentiality obligations and inventions assignments by Mr. Boutte as well as a non- compete and non-solicitation provision. If his employment was terminated for Cause (as defined below) or by him Without Good Reason (as defined in the Boutte Employment Agreement), Mr. Boutte was entitled to receive his annual base salary through the date of termination and any bonus earned but unpaid. For purpose<div style="display:inline;; font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;, Times, serif; font-weight: 400;">s</div> of the Boutte Employment Agreement, &#8220;Good Reason&#8221; is defined as (i) any material and substantial breach of the Boutte Employment Agreement by the Company; (ii) a Change in Control (as defined in the Boutte Employment Agreement) occurs and Mr. Boutte&#8217;s employment is terminated; (iii) a reduction in Mr. Boutte&#8217;s Annual Base Salary as in effect at the time in question, or any other failure by the Company to comply with the compensation terms of the Boutte Employment Agreement; or (iv) the Boutte Employment Agreement is not assumed by a successor to the Company. For purpose of the Boutte Employment Agreement, &#8220;Cause&#8221; is defined as (i) acts of embezzlement or misappropriation of funds or fraud; (ii) conviction of a felony or other crime involving moral turpitude, dishonesty or theft; (iii) a material violation by Mr. Boutte of any provision of the Boutte Employment Agreement, including willful failure to perform assigned tasks, willful and unauthorized disclosure of Company material confidential information; (iv) being under the influence of drugs (other than prescription medicine or other medically related drugs to the extent that they are taken in accordance with their directions) during the performance of Mr. Boutte&#8217;s duties and that performance of his duties is affected; (v) engaging in behavior that would constitute grounds for liability for harassment (as proscribed by the U.S. Equal Employment Opportunity Commission Guidelines or any other applicable state or local regulatory body) or other egregious conduct that violates laws governing the workplace; or (vi) willful failure to perform his assigned tasks, where such failure is attributable to the fault of Mr. Boutte, gross insubordination or dereliction of fiduciary obligations which, to the extent it is curable by Mr. Boutte, is not cured by Mr. Boutte within thirty (30) days of receiving written notice of such violation by the Company.</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;font-style: normal; font-size: 13.3333px; font-family: &#34;Times New Roman&#34;; font-weight: 400;"></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; 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font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in; text-align: justify;">Mr. Boutte tendered his resignation to the Board of directors on March 31, 2017.</div></div><table border="0" style="border-collapse:collapse; clear:both;width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td style="background-color: #fff"></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "><table cellpadding="0" cellspacing="0" style="clear:both;clear:both;font-family: 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start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in;"></div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;color: rgb(0, 0, 0); font-family: &#34;Times New Roman&#34;, Times, serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; transparent-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.5in;">Plant and Equipment consisted of the following:</div><div style="CLEAR:both;CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 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width="15%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;border-bottom-width:1px;border-bottom-color:black;border-bottom-style:solid;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff" colspan="2" rowspan="1">Three&#160;and&#160;Six<br/>months<br/>ended<br/>June&#160;30,<br/>2016</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="59%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:center;vertical-align:bottom;font-family:times new roman;font-size:10pt;font-weight:bold;padding:0px;;background-color:#ffffff">&#160;</td><td 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roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">380,950</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">4,380,950</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td> </tr><tr style="height:12px;"> <td width="59%" 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style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#ffffff">6,339,498</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#ffffff">&#160;</td> </tr><tr style="height:12px;"> <td width="59%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">Series A-1 convertible preferred shares</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding-top:0px;padding-right:5px;padding-bottom:0px;padding-left:0px;;background-color:#cceeff">31,375,000</td><td width="1%" style="overflow:hidden;color:black;vertical-align:top;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="1%" style="overflow:hidden;color:black;text-align:left;vertical-align:bottom;font-family:times new roman;font-size:10pt;padding:0px;;background-color:#cceeff">&#160;</td><td width="14%" style="overflow:hidden;color:black;text-align:right;vertical-align:bottom;font-family:times new 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12 R1.htm IDEA: XBRL DOCUMENT v3.8.0.1
Document And Entity Information - shares
6 Months Ended
Jun. 30, 2017
Dec. 15, 2017
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2017  
Document Fiscal Year Focus 2017  
Document Fiscal Period Focus Q2  
Entity Registrant Name PLEDGE PETROLEUM CORP  
Entity Central Index Key 0001434110  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Trading Symbol PROP  
Entity Common Stock, Shares Outstanding   268,558,931
XML 13 R2.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Current Assets    
Cash $ 8,891,239 $ 9,170,286
Prepaid expenses 34,066 25,940
Total Current Assets 8,925,305 9,196,226
Non-Current Assets    
Plant and equipment, net 11,460 14,326
Deposits 530 6,968
Total Non-Current Assets 11,990 21,294
Total Assets 8,937,295 9,217,520
Current Liabilities    
Accounts payable 79,438 31,027
Accrued expenses and other payables 14,860 34,467
Net liabilities of discontinued operations 1,025,716 1,025,716
Notes payable 3,000 3,000
Total Current Liabilities 1,123,014 1,094,210
Stockholders' Equity    
Common stock, $0.001 par value; 500,000,000 shares authorized, 268,558,931 shares issued and outstanding. 268,559 268,559
Additional paid-in-capital 26,377,580 26,359,514
Accumulated deficit (18,839,536) (18,512,441)
Total Stockholders' Equity 7,814,281 8,123,310
Total Liabilities and Stockholders' Equity 8,937,295 9,217,520
Series A-1 Convertible Preferred stock [Member]    
Stockholders' Equity    
Preferred Stock Value 3,138 3,138
Series B Convertible Preferred Stock [Member]    
Stockholders' Equity    
Preferred Stock Value 40 40
Series C Convertible Preferred Stock [Member]    
Stockholders' Equity    
Preferred Stock Value $ 4,500 $ 4,500
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CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Common Stock, Par or Stated Value Per Share $ 0.001 $ 0.001
Common Stock, Shares Authorized 500,000,000 500,000,000
Common Stock, Shares, Issued 268,558,931 268,558,931
Common Stock, Shares, Outstanding 268,558,931 268,558,931
Series A-1 Convertible Preferred stock [Member]    
Preferred Stock, Par or Stated Value Per Share $ 0.001 $ 0.001
Preferred Stock Shares Designated 5,000,000 5,000,000
Preferred Stock, Shares Issued 3,137,500 3,137,500
Preferred Stock, Shares Outstanding 3,137,500 3,137,500
Preferred Stock, Liquidation Preference, Value $ 251,000 $ 251,000
Series B Convertible Preferred Stock [Member]    
Preferred Stock, Par or Stated Value Per Share $ 0.001 $ 0.001
Preferred Stock Shares Designated 500,000 500,000
Preferred Stock, Shares Issued 40,000 40,000
Preferred Stock, Shares Outstanding 40,000 40,000
Preferred Stock, Liquidation Preference, Value $ 480,000 $ 480,000
Series C Convertible Preferred Stock [Member]    
Preferred Stock, Par or Stated Value Per Share $ 0.001 $ 0.001
Preferred Stock Shares Designated 4,500,000 4,500,000
Preferred Stock, Shares Issued 4,500,000 4,500,000
Preferred Stock, Shares Outstanding 4,500,000 4,500,000
Preferred Stock, Liquidation Preference, Value $ 14,750,000 $ 14,750,000
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Net Revenue $ 25,000 $ 0 $ 25,000 $ 0
Cost of Goods Sold 0 0 0 0
Gross Profit 25,000 0 25,000 0
Sales and Marketing 1,497 1,497 2,994 6,765
Professional fees 83,606 77,009 148,361 169,557
Consulting fees 8,305 145,600 27,436 243,100
General and administrative 46,991 300,260 170,482 654,956
Depreciation, amortization and impairment charges 1,311 34,519 2,866 68,281
Total Expense 141,710 558,885 352,139 1,142,659
Loss from Operations (116,710) (558,885) (327,139) (1,142,659)
Other income (expense) 0 (763) 0 199,237
Finance costs 59 0 44 0
Loss before Provision for Income Taxes (116,651) (559,648) (327,095) (943,422)
Provision for Income Taxes 0 0 0 0
Net Loss from continuing operations (116,651) (559,648) (327,095) (943,422)
Loss for discontinued operations, net of tax 0 (400,863) 0 (1,064,736)
Net loss attributable to non-controlling interest of discontinued operation 0 0 0 249,339
Loss from discontinued operations, net of non-controlling interest 0 (400,863) 0 (815,397)
Net Loss Attributable to Controlling Interest (116,651) (960,511) (327,095) (1,758,819)
Undeclared Series B and Series C Preferred stock dividends (156,071) (156,071) (310,427) (312,142)
Net loss available to common stock holders $ (272,722) $ (1,116,582) $ (637,522) $ (2,070,961)
Net Loss Per Share from continuing operations - Basic and Diluted $ 0 $ 0 $ 0 $ (0.01)
Net Loss Per Share from discontinued operations - Basic and Diluted 0 0 0 0
Net Loss Per Share - Basic and Diluted $ 0 $ 0 $ 0 $ (0.01)
Weighted Average Number of Shares Outstanding - Basic and Diluted 268,558,931 268,558,931 268,558,931 268,558,931
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (327,095) $ (1,758,819)
Net loss from discontinued operations 0 1,064,736
Less: loss attributable to non-controlling interest 0 (249,339)
Net Loss from continuing operations (327,095) (943,422)
Adjustment to reconcile net loss to net cash used in operating activities:    
Depreciation expense 2,866 33,281
Deposit forfeited 6,968 0
Amortization expense 0 35,000
Loss on theft of fixed assets 0 1,248
Equity based compensation charge 18,066 42,895
Gain on debt forgiven 0 (200,000)
Changes in Assets and Liabilities    
Accounts receivable 0 (21,787)
Prepaid expenses and other current assets (8,125) 16,087
Accounts payable 48,618 (88,850)
Accrued liabilities (19,815) (31,109)
Cash Used in Operating Activities - continuing operations (278,517) (1,156,657)
Cash used in operating activities - discontinued operations 0 (441,543)
Cash Used in Operating Activities (278,517) (1,598,200)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of property and equipment 0 (168,144)
Investment in deposit (530) (6,968)
Cash used in investing activities - continuing operations (530) (175,112)
Cash used in investing activities - discontinued operations 0 (3,358)
NET CASH USED IN INVESTING ACTIVITIES (530) (178,470)
NET DECREASE IN CASH (279,047) (1,776,670)
CASH AT BEGINNING OF PERIOD 9,170,286 11,700,143
CASH AT END OF PERIOD 8,891,239 9,923,473
CASH PAID FOR INTEREST AND TAXES:    
Cash paid for income taxes 0 0
Cash paid for interest $ 0 $ 0
XML 17 R6.htm IDEA: XBRL DOCUMENT v3.8.0.1
ACCOUNTING POLICIES AND ESTIMATES
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
Significant Accounting Policies [Text Block]
 
 
1
ACCOUNTING POLICIES AND ESTIMATES
 
a)
Basis of Presentation
 
The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments (consisting only of normal recurring adjustments), which we consider necessary, for a fair presentation of those financial statements. The results of operations and cash flows for the three months and six months ended June 30, 2017 may not necessarily be indicative of results that may be expected for any succeeding quarter or for the entire fiscal year. The information contained in this quarterly report on Form 10-Q should be read in conjunction with our audited financial statements included in our annual report on Form 10-K as of and for the year ended December 31, 2016 as filed with the Securities and Exchange Commission (the “SEC”).
 
Significant accounting policies are described in Note 2 to the consolidated financial statements included in Item 8 of our annual report on Form 10-K as of December 31, 2016.
 
The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, which are evaluated on an ongoing basis, that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to: the estimated useful lives for plant and equipment, the fair value of warrants and stock options granted for services or compensation, estimates of the probability and potential magnitude of contingent liabilities, derivative liabilities, the valuation allowance for deferred tax assets due to continuing operating losses, those related to revenue recognition and the allowance for doubtful accounts.
 
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited consolidated financial statements, which management considered in formulating its estimate could change in the near-term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates.
 
All amounts referred to in the notes to the unaudited consolidated financial statements are in United States Dollars ($) unless stated otherwise.
 
 
b)
Principles of Consolidation
 
The unaudited consolidated financial statements include the financial statements of the Company and its subsidiaries in which it has a majority voting interest. All significant inter-company accounts and transactions have been eliminated in the unaudited consolidated financial statements. The entities included in these unaudited consolidated financial statements are as follows:
 
Pledge Petroleum Corp (formerly Propell Technologies Group, Inc.) – Parent Company
Novas Energy USA Inc. (wholly owned)
Novas Energy North America, LLC (60% owned) – Discontinued operation.
 
 
c)
Recent Accounting Pronouncements
 
In May 2017, the FASB issued Accounting Standards Update No. (“ASU’’) 2017-09, Compensation – Stock Compensation, an amendment to Topic 718. The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718.2. An entity should account for the effects of a modification unless all the following are met:
 
 
1.
The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification.
 
 
2.
The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified.
 
 
3.
The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified.
 
The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this Update. The amendments in this Update are effective for all entities for annual periods beginning after December 15, 2017. Early adoption is permitted and should be applied prospectively to an award modified on or after the adoption date. The amendments proposed in this ASU are not expected to have a material impact on our consolidated financial statements.
 
In May 2017, the FASB issued ASU 2017-10, service concession arrangements, an amendment to Topic 853. Topic 853 provides guidance for operating entities when they enter into a service concession arrangement with a public-sector grantor who both:
 
 
1.
Controls or has the ability to modify or approve the services that the operating entity must provide with the infrastructure, to whom it must provide them, and at what price
 
 
2.
Controls, through ownership, beneficial entitlement, or otherwise, any residual interest in the infrastructure at the end of the term of the arrangement.
 
In a service concession arrangement within the scope of Topic 853, the operating entity should not account for the infrastructure as a lease or as property, plant, and equipment. An operating entity should refer to other Topics to account for various aspects of a service concession arrangement. For example, an operating entity should account for revenue relating to construction, upgrade, or operation services in accordance with Topic 605, Revenue Recognition, or Topic 606, Revenue from Contracts with Customers.
 
The amendments in this Update apply to the accounting by operating entities for service concession arrangements within the scope of Topic 853. These updates are effective when the Company adopts the updates to Topic 606. The amendments proposed in this ASU are not expected to have an impact on our consolidated financial statements.
 
Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.
 
 
d)
Use of Estimates
 
The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, which are evaluated on an ongoing basis, that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to: the estimated useful lives for plant and equipment, the fair value of warrants and stock options granted for services or compensation, estimates of the probability and potential magnitude of contingent liabilities, derivative liabilities, the valuation allowance for deferred tax assets due to continuing operating losses, those related to revenue recognition and the allowance for doubtful accounts.
 
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited consolidated financial statements, which management considered in formulating its estimate could change in the near-term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates.
 
 
e)
Contingencies
 
Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment.
 
If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.
  
 
f)
Cash and Cash Equivalents
 
The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. At June 30, 2017 and December 31, 2016, respectively, the Company had no cash equivalents.

The Company assesses credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The balance at times may exceed federally insured limits. At June 30, 2017, the Company had cash balances of $8,891,239, which exceeded the federally insured limits by $8,605,958.
 
 
g)
Related parties
 
Parties are considered to be related to the Company if the parties that, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company, or own in aggregate, on a fully diluted basis 5% or more of the Company’s stock. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. All transactions are recorded at fair value of the goods or services exchanged. Property purchased from a related party is recorded at the cost to the related party and any payment to or on behalf of the related party in excess of the cost is reflected as a distribution to related party.
 
 
h)
Reclassification
 
Certain reclassifications have been made to the prior year financial statement numbers to conform to the current presentation of the financial statements.
XML 18 R7.htm IDEA: XBRL DOCUMENT v3.8.0.1
GOING CONCERN
6 Months Ended
Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Substantial Doubt about Going Concern [Text Block]
2
GOING CONCERN
 
The Company has cash balances of $8,891,239 as of June 30, 2017, which is sufficient to meet current expenses for at least the next twelve month period, however the Board of Directors are considering various options as to the future direction of the Company, including the possible sale of its technology and PPT assets. The Company formed a special committee to investigate a possible share buyback of the majority stockholder, Ervington Investments Limited, and/or a possible dissolution of the Company.
 
Due to uncertainties surrounding the Company’s ability to realize the full value of its assets, the Company cannot make any assurances regarding the amount available for distribution to its stockholders.
 
The Company has made certain projections relating to the amount of cash it expects to have to distribute to its stockholders upon dissolution of the Company. These projections generally relate to the amount of liabilities which must be satisfied before the Company is dissolved and the amount its preferred stockholders is expected to receive for their equity interest. The above projections are subject to multiple variables, including the timing of a dissolution affecting the amount of dividends payable and the amount of liabilities owed at the time of dissolution. Based upon current estimates, if the Company were to dissolve this quarter, no assurance can be given that common stockholders or subordinate preferred stockholders will receive any such distribution.
XML 19 R8.htm IDEA: XBRL DOCUMENT v3.8.0.1
DISCONTINUED OPERATIONS
6 Months Ended
Jun. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
3
DISCONTINUED OPERATIONS
 
On October 4, 2016, Novas Energy USA, Inc. (“Novas USA”), a wholly owned subsidiary of the Company, delivered a notice to Technovita Technologies USA, Inc. (“Technovita”) electing to dissolve its joint venture with Technovita (the “Joint Venture”), effective November 1, 2016, pursuant to Section 11.1(b) of the Operating Agreement of Novas Energy North America, LLC (“NENA”), dated October 22, 2015 (the “Operating Agreement”), by and among Novas USA and Technovita.
 
 
The assets and liabilities of discontinued operations as of June 30, 2017 and December 31, 2016, respectively is as follows:
 
  June 30,
2017
 December 31,
2016
 
Current assets       
Cash $19,480 $19,480 
Accounts receivable, net  61,661  61,661 
Prepaid expenses and other current assets  29,896  29,896 
Total current assets  111,037  111,037 
Non-current assets       
Plant and equipment, net  6,480  6,480 
Total assets  117,517  117,517 
        
Current liabilities       
Accounts payable  94,784  94,784 
Related party payables  932,478  932,478 
Accrued liabilities and other payables  115,971  115,971 
Total liabilities  1,143,233  1,143,233 
Discontinued operations $1,025,716 $1,025,716 
 
Loss from discontinued operations is as follows:
 
  Three months
ended
June 30
2017
 Three months
ended
June 30,
2016
 Six months
ended
June 30,
2017
 Six months
ended
June 30,
2016
 
              
Net revenue $- $65,531 $- $147,768 
Cost of goods sold  -  16,888  -  126,935 
Gross profit  -  48,643  -  20,833 
              
Sales and marketing expenses  -  10,250  -  10,881 
Professional fees  -  21,797  -  36,923 
Business development  -  -  -  145,319 
Consulting fees  -  228,872  -  572,191 
General and administrative expenses  -  189,183  -  320,535 
Depreciation and amortization  -  477  -  803 
Total expense  -  450,579  -  1,086,652 
              
Loss from operations  -  (401,936)  -  (1,065,819) 
              
Other income  -  1,073  -  1,083 
              
Loss from discontinued operations $- $(400,863) $- $(1,064,736) 
XML 20 R9.htm IDEA: XBRL DOCUMENT v3.8.0.1
PREPAID EXPENSES
6 Months Ended
Jun. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets Disclosure [Text Block]
4
PREPAID EXPENSES
 
Prepaid expenses consisted of the following:
 
  June 30, December 31, 
  2017 2016 
        
Prepaid insurance $25,733 $22,607 
Prepaid professional fees  8,333  3,333 
  $34,066 $25,940 
XML 21 R10.htm IDEA: XBRL DOCUMENT v3.8.0.1
PLANT AND EQUIPMENT
6 Months Ended
Jun. 30, 2017
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Disclosure [Text Block]
5
PLANT AND EQUIPMENT
 
Plant and Equipment consisted of the following:
 
  June 30,
2017
 December 31,
2016
 
  Cost Amortization
and Impairment
 Net book value Net book value 
              
Plasma pulse tool $945,423 $(945,423) $- $- 
Furniture and equipment  6,700  (1,787)  4,913  5,583 
Field equipment  19,627  (19,627)  -  341 
Computer equipment  11,130  (4,583)  6,547  8,402 
              
  $982,880 $(971,420) $11,460 $14,326 

Depreciation expense was $
2,866
and $
33,281
for the six months ended June 30, 2017 and 2016, respectively.
XML 22 R11.htm IDEA: XBRL DOCUMENT v3.8.0.1
INTANGIBLES
6 Months Ended
Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Disclosure [Text Block]
6
INTANGIBLES
 
Licenses
 
Novas licenses the “Plasma-Pulse Technology” (“the Technology”) from Novas Energy Group Limited, the Licensor, pursuant to the terms of an exclusive perpetual royalty bearing license it entered into in January 2013, which was amended during March 2014.

On July 19, 2016, the Company received a notice from Licensor purporting to effectively terminate the License Agreement for non-payment of required royalties, asserting, among other things, that as of June 30, 2016, Novas owed Licensor a pro rata amount of $
1,458,333
for the Licensed Plasma Pulse Technology for the United States and Mexico, of which $
1,000,000
was alleged to be in arrears. Novas has recently been contacted by Licensor with a request for settlement discussions; however, there can be no assurance that such discussions will occur or what the outcome of any such discussions will be. The Company and Novas believe that there is no legal basis for Licensor to terminate the License Agreement and intend to vigorously defend against any attempt by Licensor to enforce a termination of the License Agreement. Further, we believe that Licensor has failed to materially perform its obligations under the License Agreement, and that such failures on Licensor’s part may impact what, if any, payments are due under the License Agreement by Novas to Licensor.
 
On October 4, 2016, Novas Energy USA, Inc. (“Novas USA”), a wholly owned subsidiary of the Company, delivered a notice to Technovita Technologies USA, Inc. (“Technovita”) electing to dissolve its joint venture with Technovita (the “Joint Venture”), effective November 1, 2016, pursuant to Section 11.1(b) of the Operating Agreement of Novas Energy North America, LLC (“NENA”), dated October 22, 2015 (the “Operating Agreement”), by and among Novas USA and Technovita.
 
Pursuant to the Operating Agreement, Novas USA had entered into a sublicense agreement (the “Novas Sublicense Agreement”) with NENA and Novas Energy Group Limited for NENA to be the exclusive provider of Plasma Pulse Technology for treatment of vertical wells to third parties in the United States. The Sublicense Agreement was terminated upon termination of the Joint Venture.
 
Intangibles consisted of the following:
 
  June 30,
2017
 December 31,
2016
 
  Cost Amortization
and Impairment
 Net book value Net book value 
              
License agreements $350,000 $(350,000) $- $- 
Website development  8,000  (8,000)  -  - 
              
  $358,000 $(358,000) $- $- 

Amortization expense was $0 and $35,000 for the six months ended June 30, 2017 and 2016, respectively.
XML 23 R12.htm IDEA: XBRL DOCUMENT v3.8.0.1
ACCRUED LIABILITIES AND OTHER PAYABLES
6 Months Ended
Jun. 30, 2017
Accounts Payable and Accrued Liabilities [Abstract]  
Accounts Payable and Accrued Liabilities Disclosure [Text Block]
7
ACCRUED LIABILITIES AND OTHER PAYABLES
 
Accrued liabilities consisted of the following:
 
  June 30,
2017
 December 31,
2016
 
        
Royalties payable $14,653 $14,653 
Other  207  - 
Severance accrual  -  19,814 
  $14,860 $34,467 
 
The severance accrual relates to accrued severance costs due to the COO, whose employment with the Company was terminated on December 15, 2016 as part of a cost reduction exercise.
XML 24 R13.htm IDEA: XBRL DOCUMENT v3.8.0.1
STOCKHOLDERS' EQUITY
6 Months Ended
Jun. 30, 2017
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
8
STOCKHOLDERS’ EQUITY
 
a)
Preferred stock
 
i)
Series B Convertible Preferred Stock

The Company has undeclared dividends on the Series B Preferred stock amounting to $145,479 as of June 30, 2017. If the dividends are paid in stock, the beneficial conversion feature of these undeclared dividends will be recorded upon the declaration of these dividends. The computation of loss per common share for the six months ended June 30, 2017 takes into account these undeclared dividends.

ii)
Series C Convertible Preferred Stock
 
The Company has undeclared dividends on the Series C Preferred stock amounting to $1,253,397 as of June 30, 2017. The computation of loss per common share for the six months ended June 30, 2017 takes into account these undeclared dividends.
 
b)
Stock Options
 
i)
Plan options
 
At June 30, 2017 and December 31, 2016 there were 380,950 Plan options issued and outstanding, respectively, under the Stock Option Plan.
 
No options were issued during the six months ended June 30, 2017 and the year ended December 31, 2016.
 
 
ii)
Non-Plan Stock Options
 
On January 1, 2016, the Company granted, to its then Chief Executive Officer, non - plan options for 3,000,000 shares of common stock (that are not covered by the Company’s Stock Option Plan), with an exercise price of $0.08 per share and which options will expire thirty days after resignation. These options vested as to 1,000,000 on January 1, 2017, the first anniversary of the grant date; 1,000,000 was due to vest on the second anniversary of the grant date and a further 1,000,000 was due to vest on the third anniversary of the grant date. The 1,000,000 options which vested on January 1, 2017, were not exercised within 30 days of resignation by Mr. Boutte and have been forfeited.

On March 31, 2017, the Chief Executive Officer, Mr. Brian Boutte tendered his resignation and the remaining unvested options for
2,000,000
shares of common stock were cancelled.
 
A summary of all of our option activity during the period January 1, 2016 to June 30, 2017 is as follows:
 
  No. of shares  Exercise price
per share
 Weighted
average exercise
price
 
           
Outstanding January 1, 2016  380,950  $0.08 to $13.50 $0.18 
Granted  4,000,000  $0.08 to $0.09  0.09 
Forfeited/cancelled  (1,000,000)  $0.08  0.08 
Exercised  -  -  - 
Outstanding December 31, 2016  3,380,950  $0.09 to $13.50 $0.18 
Granted - non-plan options  -  -  - 
Forfeited/cancelled  (3,000,000)  $0.08  0.08 
Exercised  -  -  - 
Outstanding June 30, 2017  380,950  $0.051 to $13.50 $0.90 
 
Stock options outstanding as of June 30, 2017 and December 31, 2016 as disclosed in the above table, have an intrinsic value of $0 and $0, respectively.
 
 
The options outstanding and exercisable at June 30, 2017 are as follows:

   Options outstanding Options exercisable 
Exercise price No. of shares Weighted 
average 
remaining years
 Weighted 
average exercise 
price
 No. of shares Weighted 
average exercise 
price
 
                  
$13.50  3,480  1.96     3,480    
$12.50  2,000  3.28     2,000    
$8.50  500  4.00     500    
$5.00  14,800  4.29     14,800    
$0.65  36,924  5.75     36,924    
$0.63  38,096  1.00     38,096    
$0.51  285,150  2.79     285,150    
                  
    380,950  2.95  0.90  380,950  0.90 
 
The Company has recorded an expense of $18,066 and $42,895 for the six months ended June 30, 2017 and 2016, respectively relating to options issued.

c)
Warrants
 
The warrants outstanding and exercisable at June 30, 2017 are as follows:
 
   Warrants outstanding Warrants exercisable 
Exercise price No. of shares Weighted
average
remaining years
 Weighted
average exercise
price
 No. of shares Weighted
average
exercise price
 
                  
$0.30  375,000  1.33     375,000    
$0.25  1,751,667  1.99     1,751,667    
$0.15  525,500  1.99     525,500    
$0.25  1,508,333  2.09     1,508,333    
$0.15  577,499  2.10     577,499    
$0.25  968,166  2.10     968,166    
$0.25  633,333  2.15     633,333    
                  
    6,339,498  2.02  0.24  6,339,498  0.24 
 
The warrants outstanding have an intrinsic value of $0 and $0 as of June 30, 2017 and December 31, 2016, respectively.
XML 25 R14.htm IDEA: XBRL DOCUMENT v3.8.0.1
OTHER INCOME
6 Months Ended
Jun. 30, 2017
Other Income and Expenses [Abstract]  
Other Income and Other Expense Disclosure [Text Block]
9
OTHER INCOME

  Three
months
ended 30
June 2017
 Three
months
ended 30
June 2016
 Six months
ended
June 30,
2017
 Six months
ended
June 30,
2016
 
              
License fee forgiven $- $- $- $200,000 

Other income includes the forgiveness of the $200,000 license fee due to Novas BVI during the prior period
.
XML 26 R15.htm IDEA: XBRL DOCUMENT v3.8.0.1
NET LOSS PER SHARE
6 Months Ended
Jun. 30, 2017
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]

10
NET LOSS PER SHARE

Basic loss per share is based on the weighted-average number of common shares outstanding during each period. Diluted loss per share is based on basic shares as determined above plus common stock equivalents, including convertible preferred shares and convertible notes as well as the incremental shares that would be issued upon the assumed exercise of in-the-money stock options using the treasury stock method. The computation of diluted net loss per share does not assume the issuance of common shares that have an anti-dilutive effect on net loss per share. For the six months ended June 30, 2017 and 2016, all stock options, warrants and convertible preferred stock were excluded from the computation of diluted net loss per share. Dilutive shares which could exist pursuant to the exercise of outstanding stock instruments and which were not included in the calculation because their affect would have been anti-dilutive are as follows:
 
  Three and Six
months
ended
June 30,
2017
 Three and Six
months
ended
June 30,
2016
 
        
Stock options  380,950  4,380,950 
Warrants to purchase shares of common stock  6,339,498  6,339,498 
Series A-1 convertible preferred shares  31,375,000  31,375,000 
Series B convertible preferred shares  4,000,000  4,000,000 
Series C convertible preferred shares  120,000,000  120,000,000 
   162,095,448  166,095,448 

XML 27 R16.htm IDEA: XBRL DOCUMENT v3.8.0.1
RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2017
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]
11
RELATED PARTY TRANSACTIONS
 
On January 1, 2016, the “Company entered into a three-year Employment Agreement with C. Brian Boutte (the “Boutte Employment Agreement”) to serve as the Company’s Chief Executive Officer. Mr. Boutte was to also serve as the Company’s interim Chief Financial Officer. Under the Boutte Employment Agreement, for his service as the Chief Executive Officer of the Company, Mr. Boutte was to receive an annual base salary of $265,000, a sign on bonus of $60,000 and an annual performance bonus of up to 55% of his base salary, such bonus payable in cash or equity upon attainment of certain performance indicators established by the Company’s Board of Directors and Mr. Boutte. In connection with the entry into the Boutte Employment Agreement, Mr. Boutte was granted an option award exercisable for 3,000,000 shares of the Company’s common stock, which will vest as to 1,000,000 shares on each of the one, two and three-year anniversary of the commencement of his employment with the Company. The Boutte Employment Agreement was amended on December 31, 2016 to provide for a term of six months ending June 30, 2017, a reduced annual base salary of $165,000 and a provision for immediate vesting of the options upon a Change of Control (as defined in the amendment). In the event that Mr. Boutte’s employment was terminated Without Cause (as defined in the Boutte Employment Agreement), by Mr. Boutte for Good Reason (as defined below), Disability (as defined in the Boutte Employment Agreement), upon his death or a change in control, Mr. Boutte would be entitled to receive a severance payment equal to $65,000. Upon a change in control, Mr. Boutte’s options would immediately vest. The Boutte Employment Agreement also included customary confidentiality obligations and inventions assignments by Mr. Boutte as well as a non- compete and non-solicitation provision. If his employment was terminated for Cause (as defined below) or by him Without Good Reason (as defined in the Boutte Employment Agreement), Mr. Boutte was entitled to receive his annual base salary through the date of termination and any bonus earned but unpaid. For purpose
s
of the Boutte Employment Agreement, “Good Reason” is defined as (i) any material and substantial breach of the Boutte Employment Agreement by the Company; (ii) a Change in Control (as defined in the Boutte Employment Agreement) occurs and Mr. Boutte’s employment is terminated; (iii) a reduction in Mr. Boutte’s Annual Base Salary as in effect at the time in question, or any other failure by the Company to comply with the compensation terms of the Boutte Employment Agreement; or (iv) the Boutte Employment Agreement is not assumed by a successor to the Company. For purpose of the Boutte Employment Agreement, “Cause” is defined as (i) acts of embezzlement or misappropriation of funds or fraud; (ii) conviction of a felony or other crime involving moral turpitude, dishonesty or theft; (iii) a material violation by Mr. Boutte of any provision of the Boutte Employment Agreement, including willful failure to perform assigned tasks, willful and unauthorized disclosure of Company material confidential information; (iv) being under the influence of drugs (other than prescription medicine or other medically related drugs to the extent that they are taken in accordance with their directions) during the performance of Mr. Boutte’s duties and that performance of his duties is affected; (v) engaging in behavior that would constitute grounds for liability for harassment (as proscribed by the U.S. Equal Employment Opportunity Commission Guidelines or any other applicable state or local regulatory body) or other egregious conduct that violates laws governing the workplace; or (vi) willful failure to perform his assigned tasks, where such failure is attributable to the fault of Mr. Boutte, gross insubordination or dereliction of fiduciary obligations which, to the extent it is curable by Mr. Boutte, is not cured by Mr. Boutte within thirty (30) days of receiving written notice of such violation by the Company.
 
Mr. Boutte tendered his resignation to the Board of directors on March 31, 2017.
XML 28 R17.htm IDEA: XBRL DOCUMENT v3.8.0.1
COMMITMENTS AND CONTINGENCIES
6 Months Ended
Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]
12
COMMITMENTS AND CONTINGENCIES
 
The Company disposed of its Crystal Magic, Inc. subsidiary effective December 31, 2013. In terms of the sale agreement entered into by the Company, the purchaser has been indemnified against all liabilities whether contingent or otherwise, claimed by third parties, this includes claims by creditors of the Company amounting to $372,090 and claims against long-term liabilities of $848,916. Management does not consider it likely that these claims will materialize and accordingly no provision has been made for these contingent liabiliti
es.

The 
Company entered into a lease agreement for approximately
3,733
square feet of office and warehouse space in Houston, the term of the lease was for
39
months commencing on
March 1, 2016
and terminating on
May 31, 2019
. The lease provided for the first month to be rent free, the fourteenth month to be rent free and the twenty-seventh month to be rent free. Monthly rentals, including estimated operating costs, for the first 12 months, excluding the free rental month amounted to approximately $
3,410
per month, escalating at a rate of
1.7
% per annum, after excluding the free rental months. This lease agreement was amended, and the lease terminated with effect from May 31, 2017 with a final payment of $
2,000
and the forfeiture of the security deposit of $
6,968
.
 
The Company entered into an Office Service Agreement on May 16, 2017 whereby it has the license to use an office in a business center, together with all telecommunication services and access to conference rooms, kitchens and all utilities, the agreement is for a period of six months commencing on June 1, 2017 and terminating on
November 30, 2017
. The Company pays a monthly amount of $
530
in terms of the Office Service Agreement.
 
In terms of the license agreement commitments disclosed in note 6 above, the minimum commitments due under the amended license agreement entered into on January 30, 2013, for the next five years, are summarized as follows:
 
  Amount 
     
2017 $500,000 
2018  500,000 
2019  500,000 
2020  500,000 
2021  500,000 
Total $2,500,000 
  
XML 29 R18.htm IDEA: XBRL DOCUMENT v3.8.0.1
SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2017
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
13
SUBSEQUENT EVENTS
 
In accordance with ASC 855-10, the Company has analyzed its operations subsequent to June 30, 2017 to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements.
XML 30 R19.htm IDEA: XBRL DOCUMENT v3.8.0.1
ACCOUNTING POLICIES AND ESTIMATES (Policies)
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
a)
Basis of Presentation
 
The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments (consisting only of normal recurring adjustments), which we consider necessary, for a fair presentation of those financial statements. The results of operations and cash flows for the three months and six months ended June 30, 2017 may not necessarily be indicative of results that may be expected for any succeeding quarter or for the entire fiscal year. The information contained in this quarterly report on Form 10-Q should be read in conjunction with our audited financial statements included in our annual report on Form 10-K as of and for the year ended December 31, 2016 as filed with the Securities and Exchange Commission (the “SEC”).
 
Significant accounting policies are described in Note 2 to the consolidated financial statements included in Item 8 of our annual report on Form 10-K as of December 31, 2016.
 
The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, which are evaluated on an ongoing basis, that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to: the estimated useful lives for plant and equipment, the fair value of warrants and stock options granted for services or compensation, estimates of the probability and potential magnitude of contingent liabilities, derivative liabilities, the valuation allowance for deferred tax assets due to continuing operating losses, those related to revenue recognition and the allowance for doubtful accounts.
 
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited consolidated financial statements, which management considered in formulating its estimate could change in the near-term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates.
 
All amounts referred to in the notes to the unaudited consolidated financial statements are in United States Dollars ($) unless stated otherwise.
Consolidation, Policy [Policy Text Block]
 
b)
Principles of Consolidation
 
The unaudited consolidated financial statements include the financial statements of the Company and its subsidiaries in which it has a majority voting interest. All significant inter-company accounts and transactions have been eliminated in the unaudited consolidated financial statements. The entities included in these unaudited consolidated financial statements are as follows:
 
Pledge Petroleum Corp (formerly Propell Technologies Group, Inc.) – Parent Company
Novas Energy USA Inc. (wholly owned)
Novas Energy North America, LLC (60% owned) – Discontinued operation.
New Accounting Pronouncements, Policy [Policy Text Block]
 
c)
Recent Accounting Pronouncements
 
In May 2017, the FASB issued Accounting Standards Update No. (“ASU’’) 2017-09, Compensation – Stock Compensation, an amendment to Topic 718. The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718.2. An entity should account for the effects of a modification unless all the following are met:
 
 
1.
The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification.
 
 
2.
The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified.
 
 
3.
The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified.
 
The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this Update. The amendments in this Update are effective for all entities for annual periods beginning after December 15, 2017. Early adoption is permitted and should be applied prospectively to an award modified on or after the adoption date. The amendments proposed in this ASU are not expected to have a material impact on our consolidated financial statements.
 
In May 2017, the FASB issued ASU 2017-10, service concession arrangements, an amendment to Topic 853. Topic 853 provides guidance for operating entities when they enter into a service concession arrangement with a public-sector grantor who both:
 
 
1.
Controls or has the ability to modify or approve the services that the operating entity must provide with the infrastructure, to whom it must provide them, and at what price
 
 
2.
Controls, through ownership, beneficial entitlement, or otherwise, any residual interest in the infrastructure at the end of the term of the arrangement.
 
In a service concession arrangement within the scope of Topic 853, the operating entity should not account for the infrastructure as a lease or as property, plant, and equipment. An operating entity should refer to other Topics to account for various aspects of a service concession arrangement. For example, an operating entity should account for revenue relating to construction, upgrade, or operation services in accordance with Topic 605, Revenue Recognition, or Topic 606, Revenue from Contracts with Customers.
 
The amendments in this Update apply to the accounting by operating entities for service concession arrangements within the scope of Topic 853. These updates are effective when the Company adopts the updates to Topic 606. The amendments proposed in this ASU are not expected to have an impact on our consolidated financial statements.
 
Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.
Use of Estimates, Policy [Policy Text Block]
 
d)
Use of Estimates
 
The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, which are evaluated on an ongoing basis, that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to: the estimated useful lives for plant and equipment, the fair value of warrants and stock options granted for services or compensation, estimates of the probability and potential magnitude of contingent liabilities, derivative liabilities, the valuation allowance for deferred tax assets due to continuing operating losses, those related to revenue recognition and the allowance for doubtful accounts.
 
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited consolidated financial statements, which management considered in formulating its estimate could change in the near-term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates.
Commitments and Contingencies, Policy [Policy Text Block]
 
e)
Contingencies
 
Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment.
 
If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.
Cash and Cash Equivalents, Policy [Policy Text Block]
 
f)
Cash and Cash Equivalents
 
The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. At June 30, 2017 and December 31, 2016, respectively, the Company had no cash equivalents.

The Company assesses credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The balance at times may exceed federally insured limits. At June 30, 2017, the Company had cash balances of $8,891,239, which exceeded the federally insured limits by $8,605,958.
Related Party Transactions Policy [Policy Text Block]
 
g)
Related parties
 
Parties are considered to be related to the Company if the parties that, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company, or own in aggregate, on a fully diluted basis 5% or more of the Company’s stock. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. All transactions are recorded at fair value of the goods or services exchanged. Property purchased from a related party is recorded at the cost to the related party and any payment to or on behalf of the related party in excess of the cost is reflected as a distribution to related party.
Reclassification, Policy [Policy Text Block]
 
h)
Reclassification
 
Certain reclassifications have been made to the prior year financial statement numbers to conform to the current presentation of the financial statements.
XML 31 R20.htm IDEA: XBRL DOCUMENT v3.8.0.1
DISCONTINUED OPERATIONS (Tables)
6 Months Ended
Jun. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations [Table Text Block]
The assets and liabilities of discontinued operations as of June 30, 2017 and December 31, 2016, respectively is as follows:
 
  June 30,
2017
 December 31,
2016
 
Current assets       
Cash $19,480 $19,480 
Accounts receivable, net  61,661  61,661 
Prepaid expenses and other current assets  29,896  29,896 
Total current assets  111,037  111,037 
Non-current assets       
Plant and equipment, net  6,480  6,480 
Total assets  117,517  117,517 
        
Current liabilities       
Accounts payable  94,784  94,784 
Related party payables  932,478  932,478 
Accrued liabilities and other payables  115,971  115,971 
Total liabilities  1,143,233  1,143,233 
Discontinued operations $1,025,716 $1,025,716 
 
Loss from discontinued operations is as follows:
 
  Three months
ended
June 30
2017
 Three months
ended
June 30,
2016
 Six months
ended
June 30,
2017
 Six months
ended
June 30,
2016
 
              
Net revenue $- $65,531 $- $147,768 
Cost of goods sold  -  16,888  -  126,935 
Gross profit  -  48,643  -  20,833 
              
Sales and marketing expenses  -  10,250  -  10,881 
Professional fees  -  21,797  -  36,923 
Business development  -  -  -  145,319 
Consulting fees  -  228,872  -  572,191 
General and administrative expenses  -  189,183  -  320,535 
Depreciation and amortization  -  477  -  803 
Total expense  -  450,579  -  1,086,652 
              
Loss from operations  -  (401,936)  -  (1,065,819) 
              
Other income  -  1,073  -  1,083 
              
Loss from discontinued operations $- $(400,863) $- $(1,064,736) 
XML 32 R21.htm IDEA: XBRL DOCUMENT v3.8.0.1
PREPAID EXPENSES (Tables)
6 Months Ended
Jun. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Assets [Table Text Block]
Prepaid expenses consisted of the following:
 
  June 30, December 31, 
  2017 2016 
        
Prepaid insurance $25,733 $22,607 
Prepaid professional fees  8,333  3,333 
  $34,066 $25,940 
XML 33 R22.htm IDEA: XBRL DOCUMENT v3.8.0.1
PLANT AND EQUIPMENT (Tables)
6 Months Ended
Jun. 30, 2017
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment [Table Text Block]
Plant and Equipment consisted of the following:
 
  June 30,
2017
 December 31,
2016
 
  Cost Amortization
and Impairment
 Net book value Net book value 
              
Plasma pulse tool $945,423 $(945,423) $- $- 
Furniture and equipment  6,700  (1,787)  4,913  5,583 
Field equipment  19,627  (19,627)  -  341 
Computer equipment  11,130  (4,583)  6,547  8,402 
              
  $982,880 $(971,420) $11,460 $14,326 
XML 34 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
INTANGIBLES (Tables)
6 Months Ended
Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Present Value of Future Insurance Profits [Table Text Block]
Intangibles consisted of the following:
 
  June 30,
2017
 December 31,
2016
 
  Cost Amortization
and Impairment
 Net book value Net book value 
              
License agreements $350,000 $(350,000) $- $- 
Website development  8,000  (8,000)  -  - 
              
  $358,000 $(358,000) $- $- 
XML 35 R24.htm IDEA: XBRL DOCUMENT v3.8.0.1
ACCRUED LIABILITIES AND OTHER PAYABLES (Tables)
6 Months Ended
Jun. 30, 2017
Accounts Payable and Accrued Liabilities [Abstract]  
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]
Accrued liabilities consisted of the following:
 
  June 30,
2017
 December 31,
2016
 
        
Royalties payable $14,653 $14,653 
Other  207  - 
Severance accrual  -  19,814 
  $14,860 $34,467 
XML 36 R25.htm IDEA: XBRL DOCUMENT v3.8.0.1
STOCKHOLDERS' EQUITY (Tables)
6 Months Ended
Jun. 30, 2017
Stockholders' Equity Note [Abstract]  
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]
A summary of all of our option activity during the period January 1, 2016 to June 30, 2017 is as follows:
 
  No. of shares  Exercise price
per share
 Weighted
average exercise
price
 
           
Outstanding January 1, 2016  380,950  $0.08 to $13.50 $0.18 
Granted  4,000,000  $0.08 to $0.09  0.09 
Forfeited/cancelled  (1,000,000)  $0.08  0.08 
Exercised  -  -  - 
Outstanding December 31, 2016  3,380,950  $0.09 to $13.50 $0.18 
Granted - non-plan options  -  -  - 
Forfeited/cancelled  (3,000,000)  $0.08  0.08 
Exercised  -  -  - 
Outstanding June 30, 2017  380,950  $0.051 to $13.50 $0.90 
Restricted Stock Outstanding And Exercisable [Table Text Block]
The options outstanding and exercisable at June 30, 2017 are as follows:

   Options outstanding Options exercisable 
Exercise price No. of shares Weighted 
average 
remaining years
 Weighted 
average exercise 
price
 No. of shares Weighted 
average exercise 
price
 
                  
$13.50  3,480  1.96     3,480    
$12.50  2,000  3.28     2,000    
$8.50  500  4.00     500    
$5.00  14,800  4.29     14,800    
$0.65  36,924  5.75     36,924    
$0.63  38,096  1.00     38,096    
$0.51  285,150  2.79     285,150    
                  
    380,950  2.95  0.90  380,950  0.90 
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]
The warrants outstanding and exercisable at June 30, 2017 are as follows:
 
   Warrants outstanding Warrants exercisable 
Exercise price No. of shares Weighted
average
remaining years
 Weighted
average exercise
price
 No. of shares Weighted
average
exercise price
 
                  
$0.30  375,000  1.33     375,000    
$0.25  1,751,667  1.99     1,751,667    
$0.15  525,500  1.99     525,500    
$0.25  1,508,333  2.09     1,508,333    
$0.15  577,499  2.10     577,499    
$0.25  968,166  2.10     968,166    
$0.25  633,333  2.15     633,333    
                  
    6,339,498  2.02  0.24  6,339,498  0.24 
XML 37 R26.htm IDEA: XBRL DOCUMENT v3.8.0.1
OTHER INCOME (Tables)
6 Months Ended
Jun. 30, 2017
Other Income and Expenses [Abstract]  
Schedule of Other Nonoperating Income (Expense) [Table Text Block]
  Three
months
ended 30
June 2017
 Three
months
ended 30
June 2016
 Six months
ended
June 30,
2017
 Six months
ended
June 30,
2016
 
              
License fee forgiven $- $- $- $200,000 

XML 38 R27.htm IDEA: XBRL DOCUMENT v3.8.0.1
NET LOSS PER SHARE (Tables)
6 Months Ended
Jun. 30, 2017
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
Dilutive shares which could exist pursuant to the exercise of outstanding stock instruments and which were not included in the calculation because their affect would have been anti-dilutive are as follows:
 
  Three and Six
months
ended
June 30,
2017
 Three and Six
months
ended
June 30,
2016
 
        
Stock options  380,950  4,380,950 
Warrants to purchase shares of common stock  6,339,498  6,339,498 
Series A-1 convertible preferred shares  31,375,000  31,375,000 
Series B convertible preferred shares  4,000,000  4,000,000 
Series C convertible preferred shares  120,000,000  120,000,000 
   162,095,448  166,095,448 
XML 39 R28.htm IDEA: XBRL DOCUMENT v3.8.0.1
COMMITMENTS AND CONTINGENCIES (Tables)
6 Months Ended
Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]
In terms of the license agreement commitments disclosed in note 6 above, the minimum commitments due under the amended license agreement entered into on January 30, 2013, for the next five years, are summarized as follows:
 
  Amount 
     
2017 $500,000 
2018  500,000 
2019  500,000 
2020  500,000 
2021  500,000 
Total $2,500,000 
XML 40 R29.htm IDEA: XBRL DOCUMENT v3.8.0.1
ACCOUNTING POLICIES AND ESTIMATES (Details Textual) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Jun. 30, 2016
Dec. 31, 2015
Accounting Policies and Estimates [Line Items]        
Cash and Cash Equivalents, at Carrying Value, Total $ 8,891,239 $ 9,170,286 $ 9,923,473 $ 11,700,143
Cash And Cash Equivalents At Carrying Value, Exceeding Federal Limits $ 8,605,958      
XML 41 R30.htm IDEA: XBRL DOCUMENT v3.8.0.1
GOING CONCERN (Details Textual) - USD ($)
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Going Concern [Line Items]      
Cash $ 8,891,239 $ 8,891,239 $ 9,170,286
XML 42 R31.htm IDEA: XBRL DOCUMENT v3.8.0.1
DISCONTINUED OPERATIONS (Details) - Technovita Technologies USA, Inc [Member] - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Current assets    
Cash $ 19,480 $ 19,480
Accounts receivable, net 61,661 61,661
Prepaid expenses and other current assets 29,896 29,896
Total current assets 111,037 111,037
Non-current assets    
Plant and equipment, net 6,480 6,480
Total assets 117,517 117,517
Current liabilities    
Accounts payable 94,784 94,784
Related party payables 932,478 932,478
Accrued liabilities and other payables 115,971 115,971
Total liabilities 1,143,233 1,143,233
Discontinued operations $ 1,025,716 $ 1,025,716
XML 43 R32.htm IDEA: XBRL DOCUMENT v3.8.0.1
DISCONTINUED OPERATIONS (Details 1) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Loss from discontinued operations $ 0 $ (400,863) $ 0 $ (1,064,736)
Technovita Technologies USA, Inc [Member]        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Net revenue 0 65,531 0 147,768
Cost of goods sold 0 16,888 0 126,935
Gross profit 0 48,643 0 20,833
Sales and marketing expenses 0 10,250 0 10,881
Professional fees 0 21,797 0 36,923
Business development 0 0 0 145,319
Consulting fees 0 228,872 0 572,191
General and administrative expenses 0 189,183 0 320,535
Depreciation and amortization 0 477 0 803
Total expense 0 450,579 0 1,086,652
Loss from operations 0 (401,936) 0 (1,065,819)
Other income 0 1,073 0 1,083
Loss from discontinued operations $ 0 $ (400,863) $ 0 $ (1,064,736)
XML 44 R33.htm IDEA: XBRL DOCUMENT v3.8.0.1
PREPAID EXPENSES (Details) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Prepaid Expense [Line Items]    
Prepaid insurance $ 25,733 $ 22,607
Prepaid professional fees 8,333 3,333
Prepaid Expense, Current, Total $ 34,066 $ 25,940
XML 45 R34.htm IDEA: XBRL DOCUMENT v3.8.0.1
PLANT AND EQUIPMENT (Details) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Property, Plant and Equipment [Line Items]    
Cost $ 982,880  
Amortization and Impairment (971,420)  
Net book value 11,460 $ 14,326
Plasma pulse tool [Member]    
Property, Plant and Equipment [Line Items]    
Cost 945,423  
Amortization and Impairment (945,423)  
Net book value 0 0
Furniture and equipment [Member]    
Property, Plant and Equipment [Line Items]    
Cost 6,700  
Amortization and Impairment (1,787)  
Net book value 4,913 5,583
Field equipment [Member]    
Property, Plant and Equipment [Line Items]    
Cost 19,627  
Amortization and Impairment (19,627)  
Net book value 0 341
Computer equipment [Member]    
Property, Plant and Equipment [Line Items]    
Cost 11,130  
Amortization and Impairment (4,583)  
Net book value $ 6,547 $ 8,402
XML 46 R35.htm IDEA: XBRL DOCUMENT v3.8.0.1
PLANT AND EQUIPMENT (Details Textual) - USD ($)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Property, Plant and Equipment [Line Items]    
Depreciation $ 2,866 $ 33,281
XML 47 R36.htm IDEA: XBRL DOCUMENT v3.8.0.1
INTANGIBLES (Details) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]    
Cost $ 358,000  
Amortization and Impairment (358,000)  
Net book value 0 $ 0
License agreements [Member]    
Finite-Lived Intangible Assets [Line Items]    
Cost 350,000  
Amortization and Impairment (350,000)  
Net book value 0 0
Website development [Member]    
Finite-Lived Intangible Assets [Line Items]    
Cost 8,000  
Amortization and Impairment (8,000)  
Net book value $ 0 $ 0
XML 48 R37.htm IDEA: XBRL DOCUMENT v3.8.0.1
INTANGIBLES (Details Textual) - USD ($)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Finite-Lived Intangible Assets [Line Items]    
Amortization, Total $ 0 $ 35,000
Plasma Pulse Technology [Member]    
Finite-Lived Intangible Assets [Line Items]    
Accrued Royalties   1,458,333
Licensing Agreement, Arrears to be Paid   $ 1,000,000
XML 49 R38.htm IDEA: XBRL DOCUMENT v3.8.0.1
ACCRUED LIABILITIES AND OTHER PAYABLES (Details) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Royalties payable $ 14,653 $ 14,653
Other 207 0
Severance accrual 0 19,814
Accrued Liabilities, Current, Total $ 14,860 $ 34,467
XML 50 R39.htm IDEA: XBRL DOCUMENT v3.8.0.1
STOCKHOLDERS' EQUITY (Details) - Employee Stock Option [Member] - $ / shares
6 Months Ended 12 Months Ended
Jun. 30, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares option activity, Outstanding Balance (in shares) 3,380,950 380,950
Shares option activity, Granted (in shares) 0 4,000,000
Shares option activity, Forfeited/cancelled (in shares) (3,000,000) (1,000,000)
Shares option activity, Exercised (in shares) 0 0
Shares option activity, Outstanding Balance (in shares) 380,950 3,380,950
Exercise price per share, Outstanding Balance (in dollars per share) $ 0.18 $ 0.18
Exercise price per share, Granted (in dollars per share) 0 0.09
Exercise price per share, Forfeited/cancelled (in dollars per share) 0.08 0.08
Exercise price per share, Exercised (in dollars per share) 0 0
Exercise price per share, Outstanding Ending (in dollars per share) 0.90 0.18
Minimum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Exercise price per share, Outstanding Balance (in dollars per share)   0.08
Exercise price per share, Granted (in dollars per share)   0.08
Exercise price per share, Outstanding Ending (in dollars per share) 0.051  
Maximum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Exercise price per share, Outstanding Balance (in dollars per share) 0.09 13.50
Exercise price per share, Granted (in dollars per share)   0.09
Exercise price per share, Outstanding Ending (in dollars per share) $ 13.50 $ 0.09
XML 51 R40.htm IDEA: XBRL DOCUMENT v3.8.0.1
STOCKHOLDERS' EQUITY (Details 1) - Employee Stock Option [Member]
6 Months Ended
Jun. 30, 2017
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options Outstanding, Weighted Average Exercise Price | $ / shares $ 0.90
Options Outstanding, Number Outstanding (in shares) 380,950
Options Outstanding, Weighted Average Remaining Contractual life in years 2 years 11 months 12 days
Options Exercisable, Weighted Average Exercise Price | $ / shares $ 0.90
Options Exercisable, Number Exercisable (in shares) 380,950
Exercise Price Range One [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options Outstanding, Weighted Average Exercise Price | $ / shares $ 13.50
Options Outstanding, Number Outstanding (in shares) 3,480
Options Outstanding, Weighted Average Remaining Contractual life in years 1 year 11 months 16 days
Options Exercisable, Number Exercisable (in shares) 3,480
Exercise Price Range Two [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options Outstanding, Weighted Average Exercise Price | $ / shares $ 12.50
Options Outstanding, Number Outstanding (in shares) 2,000
Options Outstanding, Weighted Average Remaining Contractual life in years 3 years 3 months 11 days
Options Exercisable, Number Exercisable (in shares) 2,000
Exercise Price Range Three [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options Outstanding, Weighted Average Exercise Price | $ / shares $ 8.50
Options Outstanding, Number Outstanding (in shares) 500
Options Outstanding, Weighted Average Remaining Contractual life in years 4 years
Options Exercisable, Number Exercisable (in shares) 500
Exercise Price Range Four [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options Outstanding, Weighted Average Exercise Price | $ / shares $ 5.00
Options Outstanding, Number Outstanding (in shares) 14,800
Options Outstanding, Weighted Average Remaining Contractual life in years 4 years 3 months 14 days
Options Exercisable, Number Exercisable (in shares) 14,800
Exercise Price Range Five [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options Outstanding, Weighted Average Exercise Price | $ / shares $ 0.65
Options Outstanding, Number Outstanding (in shares) 36,924
Options Outstanding, Weighted Average Remaining Contractual life in years 5 years 9 months
Options Exercisable, Number Exercisable (in shares) 36,924
Exercise Price Range Six [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options Outstanding, Weighted Average Exercise Price | $ / shares $ 0.63
Options Outstanding, Number Outstanding (in shares) 38,096
Options Outstanding, Weighted Average Remaining Contractual life in years 1 year
Options Exercisable, Number Exercisable (in shares) 38,096
Exercise Price Range Seven [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options Outstanding, Weighted Average Exercise Price | $ / shares $ 0.51
Options Outstanding, Number Outstanding (in shares) 285,150
Options Outstanding, Weighted Average Remaining Contractual life in years 2 years 9 months 14 days
Options Exercisable, Number Exercisable (in shares) 285,150
XML 52 R41.htm IDEA: XBRL DOCUMENT v3.8.0.1
STOCKHOLDERS' EQUITY (Details 2) - Warrant [Member]
6 Months Ended
Jun. 30, 2017
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Warrants Outstanding, Number Outstanding 6,339,498
Warrants Outstanding, Weighted Average Remaining Contractual life in years 2 years 7 days
Warrants Outstanding, Weighted Average Exercise Price | $ / shares $ 0.24
Warrants Exercisable, Number Exercisable 6,339,498
Warrants Exercisable, Weighted Average Exercise Price | $ / shares $ 0.24
Exercise Price Range One [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Warrants Outstanding, Exercise Price | $ / shares $ 0.30
Warrants Outstanding, Number Outstanding 375,000
Warrants Outstanding, Weighted Average Remaining Contractual life in years 1 year 3 months 29 days
Warrants Exercisable, Number Exercisable 375,000
Exercise Price Range Two [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Warrants Outstanding, Exercise Price | $ / shares $ 0.25
Warrants Outstanding, Number Outstanding 1,751,667
Warrants Outstanding, Weighted Average Remaining Contractual life in years 1 year 11 months 26 days
Warrants Exercisable, Number Exercisable 1,751,667
Exercise Price Range Three [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Warrants Outstanding, Exercise Price | $ / shares $ 0.15
Warrants Outstanding, Number Outstanding 525,500
Warrants Outstanding, Weighted Average Remaining Contractual life in years 1 year 11 months 26 days
Warrants Exercisable, Number Exercisable 525,500
Exercise Price Range Four [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Warrants Outstanding, Exercise Price | $ / shares $ 0.25
Warrants Outstanding, Number Outstanding 1,508,333
Warrants Outstanding, Weighted Average Remaining Contractual life in years 2 years 1 month 2 days
Warrants Exercisable, Number Exercisable 1,508,333
Exercise Price Range Five [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Warrants Outstanding, Exercise Price | $ / shares $ 0.15
Warrants Outstanding, Number Outstanding 577,499
Warrants Outstanding, Weighted Average Remaining Contractual life in years 2 years 1 month 6 days
Warrants Exercisable, Number Exercisable 577,499
Exercise Price Range Six [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Warrants Outstanding, Exercise Price | $ / shares $ 0.25
Warrants Outstanding, Number Outstanding 968,166
Warrants Outstanding, Weighted Average Remaining Contractual life in years 2 years 1 month 6 days
Warrants Exercisable, Number Exercisable 968,166
Exercise Price Range Seven [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Warrants Outstanding, Exercise Price | $ / shares $ 0.25
Warrants Outstanding, Number Outstanding 633,333
Warrants Outstanding, Weighted Average Remaining Contractual life in years 2 years 1 month 24 days
Warrants Exercisable, Number Exercisable 633,333
XML 53 R42.htm IDEA: XBRL DOCUMENT v3.8.0.1
STOCKHOLDERS' EQUITY (Details Textual) - USD ($)
1 Months Ended 6 Months Ended
Mar. 31, 2017
Jan. 31, 2016
Jun. 30, 2017
Jun. 30, 2016
Jan. 02, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation, Total     $ 18,066 $ 42,895    
Chief Executive Officer [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares 2,000,000          
Employee Stock Option [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance     380,950     380,950
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value     $ 0     $ 0
Share-based Compensation, Total     18,066 $ 42,895    
Non-Plan Stock Options [Member] | Chief Executive Officer [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross   3,000,000        
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price   $ 0.08        
Non-Plan Stock Options [Member] | Chief Executive Officer [Member] | First Anniversary [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number         1,000,000  
Non-Plan Stock Options [Member] | Chief Executive Officer [Member] | Second Anniversary [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number   1,000,000        
Non-Plan Stock Options [Member] | Chief Executive Officer [Member] | Third Anniversary [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number   1,000,000        
Warrant [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Warrants Outstanding Intrinsic Value     0     $ 0
Series B Preferred Stock [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Undeclared Dividends     145,479      
Series C Preferred Stock [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Undeclared Dividends     $ 1,253,397      
XML 54 R43.htm IDEA: XBRL DOCUMENT v3.8.0.1
OTHER INCOME (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
License fee forgiven $ 0 $ 0 $ 0 $ 200,000
XML 55 R44.htm IDEA: XBRL DOCUMENT v3.8.0.1
OTHER INCOME (Details Textual) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
License Fee Forgiven $ 0 $ 0 $ 0 $ 200,000
Other Nonoperating Income (Expense) [Member]        
License Fee Forgiven     $ 200,000  
XML 56 R45.htm IDEA: XBRL DOCUMENT v3.8.0.1
NET LOSS PER SHARE (Details) - shares
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 162,095,448 166,095,448
Employee Stock Option [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 380,950 4,380,950
Warrant [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 6,339,498 6,339,498
Series A Preferred Stock [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 31,375,000 31,375,000
Series B Preferred Stock [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 4,000,000 4,000,000
Series C Preferred Stock [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 120,000,000 120,000,000
XML 57 R46.htm IDEA: XBRL DOCUMENT v3.8.0.1
RELATED PARTY TRANSACTIONS (Details Textual) - Chief Executive Officer [Member] - USD ($)
1 Months Ended 12 Months Ended
Jan. 31, 2016
Dec. 31, 2016
Related Party Transaction [Line Items]    
Officers' Compensation $ 265,000 $ 165,000
Severance Costs   $ 65,000
Boutte [Member]    
Related Party Transaction [Line Items]    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number 1,000,000  
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Percentage 55.00%  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross 3,000,000  
Boutte [Member] | Deferred Bonus [Member]    
Related Party Transaction [Line Items]    
Officers' Compensation $ 60,000  
XML 58 R47.htm IDEA: XBRL DOCUMENT v3.8.0.1
COMMITMENTS AND CONTINGENCIES (Details) - Licensing Agreements [Member]
Jun. 30, 2017
USD ($)
Finite-Lived Intangible Assets [Line Items]  
2017 $ 500,000
2018 500,000
2019 500,000
2020 500,000
2021 500,000
Total $ 2,500,000
XML 59 R48.htm IDEA: XBRL DOCUMENT v3.8.0.1
COMMITMENTS AND CONTINGENCIES (Details Textual)
1 Months Ended 6 Months Ended
Jun. 30, 2017
USD ($)
a
May 31, 2017
USD ($)
Jun. 30, 2017
USD ($)
a
Claims By Creditors $ 372,090   $ 372,090
Claims Against Long Term Liabilities $ 848,916   $ 848,916
Lease Expiration Date Nov. 30, 2017   May 31, 2019
Term Of Operating Leases     39 months
Lease Commencement Date     Mar. 01, 2016
Operating Leases, Rent Expense, Minimum Rentals $ 530   $ 3,410
Operating Leases Rent Expense Escalation Rate     1.70%
Area of Real Estate Property | a 3,733   3,733
Security Deposit Forfeited   $ 6,968  
Payments for Rent   $ 2,000  
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