10-Q

U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-Q

Mark One

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

For the quarterly period ended August 31, 2015

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

For the transition period from _______ to _______

Commission File No. 333-141060

EPCYLON TECHNOLOGIES, INC.
(Name of small business issuer in its charter)

Nevada	27-0156048
(State or other jurisdiction of incorporation or	(I.R.S. Employer Identification No.)
organization)

34 King Street E, Suite 1010
Toronto, Ontario
Canada M5C 2X8
(Address of principal executive offices)

(416) 479-0880
(Issuer’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:	Name of each exchange on which registered:
None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $0.001
(Title of Class)

Indicate by checkmark whether the issuer: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 [X]      No [   ]

1

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 229.405 of this chapter) 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 filed, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated  filer [   ]	Accelerated filer                   [   ]
Non-accelerated filer    [   ]	Smaller reporting company [X]

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [   ]      No [X]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the most practicable date:

Class	Outstanding as of October 20, 2015
Common Stock, $0.001	168,476,221

2

EPCYLON TECHNOLOGIES INC.

Form 10-Q

Part 1.	FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	4
	Balance Sheets	5
	Statements of Operations	6
	Statements of Cash Flows	7
	Notes to Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	20
Item 4.	Controls and Procedures	20
Part II.	OTHER INFORMATION
Item 1.	Legal Proceedings	22
Item 1A.	Risk Factors	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3.	Defaults Upon Senior Securities	22
Item 4.	Mine Safety Disclosures	22
Item 5.	Other Information	22
Item 6.	Exhibits	23

3

PART I

ITEM 1. FINANCIAL STATEMENTS

Epcylon Technologies, Inc.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains certain forward-looking statements reflecting our current expectations with respect to our operations, performance, financial condition, and other developments. These forward-looking statements may generally be identified by the use of the words “may”, “will”, “believes”, “should”, “expects”, “anticipates”, “estimates”, and similar expressions. These statements are necessarily estimates reflecting management’s best judgment based upon current information and involve a number of risks and uncertainties. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made, and readers are advised that various factors could affect our financial performance and could cause our actual results for future periods to differ materially from those anticipated or projected. While it is impossible to identify all such factors, such factors include, but are not limited to, those risks identified in our periodic reports filed with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.

4

Epcylon Technologies Inc.

Consolidated Balance Sheets

(Unaudited)

		Aug 31, 2015			May 31, 2015
CURRENT ASSETS:
Cash	$	2,520,850		$	2,626,664
Local tax receivable		49,728			44,649
Prepaid expense		4,013			5,722
TOTAL CURRENT ASSETS		2,574,591			2,677,035
Security deposit		8,885			9,421
Property and equipment, net (note 3)		31,868			32,214
TOTAL ASSETS	$	2,615,344		$	2,718,670
LIABILITIES and STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses (note 4)	$	128,453		$	91,442
Securities sold not yet purchased (note 5)		777,004			222,482
Notes payable - related party (note 6 & 8)		139,952			1,033,271
CURRENT LIABILITIES		1,045,409			1,347,195
Deferred rent		5,184			5,107
TOTAL LIABILITIES		1,050,593			1,352,302
STOCKHOLDER'S EQUITY:
Series A Preferred shares, par value $0.0001 10,000,000 shares authorized       8,500,000 and 10,000,000 series A shares issued and outstanding as at August 31,       2015 and May 31, 2015 respectively (note 7)		850			1,000
Series B Preferred shares, par value $0.0001 5,000,000 shares authorized       5,000,000 and 0 series B shares issued and outstanding as at August 31, 2015 and       May 31, 2015 respectively (note 7)		500			-
Common stock, par value $0.0001 300,000,000 shares authorized       168,476,221 issued and outstanding       as of August 31, 2015, 2014 (respectively (note 7)		16,846			16,846
Additional paid-in capital		9,088,109			8,388,459
Accumulated other comprehensive loss		(59,031	)		(57,726	)
Accumulated deficit		(7,482,523	)		(6,982,211	)
TOTAL STOCKHOLDERS' EQUITY		1,564,751			1,366,368
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,615,344		$	2,718,670

5

Epcylon Technologies Inc.
Consolidated statements of comprehensive loss
(unaudited)

		Three months			Three months
		Ended			Ended
		Aug 31, 2015			Aug 31, 2014
REVENUE	$	6,899		$	2,833
EXPENSES
General and administrative expenses		184,833			133,413
OPERATING LOSS		(177,934	)		(130,580	)
OTHER INCOME (EXPENSE)
Interest (expense) income, net		(12,083	)		(6,040	)
Realized gain on marketable securities		101,308			(52,369	)
Unrealized loss on marketable securities		(430,713	)		19,718
Gain of foreign exchange		19,107			0
NET LOSS BEFORE PROVISION FOR INCOME TAX		(500,315	)		(169,271	)
Provision for income tax		-			-
NET LOSS		(500,315	)		(169,271	)
Foreign currency translation adjustment		(1,305	)		(12,877	)
NET COMPREHENSIVE LOSS	$	(501,620	)	$	(182,148	)
Net loss per common share		($0.00	)		($0.00	)
Basic and fully diluted weighted average common shares outstanding		168,476,221			168,476,221

6

Epcylon Technologies Inc.

Consolidated Cash flow statement

(unaudited)

		For the Three Months			For the Three Months
		Ended			Ended
		Aug 31, 2015			Aug 31, 2014
OPERATING ACTIVITIES:
Net loss	$	(500,315	)	$	(169,271	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		2,951			-
Realized trading gains		(101,308	)		52,369
Unrealized loss on marketable securities		430,713			(19,718	)
Imputed Interest		-			6,173
Changes in operating assets and liabilities:
Prepaid expenses		2,244			1,545
Local tax receivable		(5,079	)		(5,490	)
Accounts payable and accrued liabilities		(8,345	)		9,536
Accrued interest on related party loans		12,085
NET CASH USED IN OPERATING ACTIVITIES		(167,054	)		(124,856	)
					-
INVESTING ACTIVITIES:
Acquisition of property & equipment		(2,604	)		-
Purchases of securities		(17,233,775	)		(2,807,319	)
Proceeds from sale of securities		17,458,972			2,449,410
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		222,593			(357,909	)
FINANCING ACTIVITIES:
Redmption of Class A preferred stock		(300,000	)		-
Proceeds from related party loans		139,952			953,879
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES		(160,048	)		953,879
Effect of exchange rates on cash		(1,305	)		(12,877	)
(DECREASE) INCREASE IN CASH		(105,814	)		458,237
CASH - BEGINNING OF PERIOD		2,626,664			2,475,413
CASH - END OF PERIOD	$	2,520,850		$	2,933,650

7

EPCYLON TECHNOLOGIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

AUGUST 31, 2015

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION

The attached consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. As a result, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The Company believes that the disclosures made are adequate to make the information presented not misleading. The consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Form 10-K as filed with the Securities and Exchange Commission on September 14, 2015. The results of operations for the three months ended August 31, 2015 are not indicative of results for the full fiscal year or any other period.

Organization and Business Description

Epcylon Technologies Inc., formerly known as Mobile Integrated Systems Inc. (the “Company” or “Epcylon”), together with its wholly owned subsidiaries Mobilotto Systems Inc., (“MIBI”), Delite Americas Inc., and Omega Smartbuild Americas Inc., are engaged through its Stealth branded products, in the business of researching, developing and commercializing proprietary algorithmic securities trading systems. The Company uses its Stealth trading system to trade securities with some of its existing excess capital. Furthermore, the Company, through its MOBI branded products, develops software and interactive games for use by charitable organization and government regulated lotteries. On July 29, 2013, the Company changed its name from Mobile Integrated Systems Inc., to Epcylon Technologies Inc. The Company trades on the OTCPINK under the symbol PRFC.

Since inception the Company has been engaged in organizational activities, has been developing its business model and software platforms. The Company has not earned any material revenue from operations, other than a onetime payment for a mobile application in a prior year.

8

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION (continued)

Basis of Consolidation

These consolidated financial statements include the accounts of Epcylon Technologies Inc., which was incorporated on April 22, 2009 in the state of Nevada and its wholly-owned subsidiaries, Mobilotto Systems, Inc., which was incorporated in Ontario, Canada on September 16, 2008, Delite Americas Inc. which was incorporated in Ontario, Canada on July 8, 2013 and Omega Smartbuild Americas Inc., which was incorporated in Ontario, Canada on July 8, 2013.

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. All intercompany balances and transactions have been eliminated.

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Company’s May 31, 2015 annual financial statements.

Preferred Stock

We apply the guidance enumerated in ASC 480 “Distinguishing Liabilities from Equity” when determining the classification and measurement of preferred stock. Preferred shares subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. We classify conditionally redeemable preferred shares (if any), which includes preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control, as temporary equity. At all other times, we classified our preferred shares in stockholders’ equity

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company’s accounting and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented.

9

NOTE 3 – PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

				Accumulated		August 31,		May 31,
		Cost		Depreciation		2015 Net		2015
Leasehold improvements	$	16,010	$	2,402	$	13,608	$	14,410
Computer equipment		25,580		7,320		18,260		17,806
Total	$	41,590	$	9,722	$	31,868	$	32,214

NOTE 4 – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

		August 31,		May 31,
		2015		2015
Legal	$	39,077	$	45,891
Audit		11,000		11,000
Consulting		23,412		15,360
General and administrative		9,608		19,192
Total	$	83,097	$	91,443

NOTE 5 – SECURITIES SOLD NOT YET PURCHASED

Marketable securities owned and on margin consisting of equity securities owned by the Company. As at August 31, 2015 securities at market value were as follows:

		Fair value
Options sold short	$	777,004

The securities are reported at fair value using level 1 input based on the quoted market price of the securities at each reporting period.

10

NOTE 6 – NOTES PAYABLE –RELATED PARTY

		August 31, 2015		May 31, 2015
Note payable due to the Chief Executive Officer, 0% interest, unsecured.	$	50,000	$	-
Note payable due to a director of the Company, 0% interest, unsecured.		50,000		-
Note payable due to a shareholder, interest payable at 4% per annum, due January 2, 2017, unsecured.		39,952		-
Note payable due the former Chief Executive Officer with interest payable at 5% per annum, due June 21, 2015, unsecured. On Maturity, the loan, and accrued interest, automatically converted to Series B Preferred shares at a price of $0.20 per share.		-		50,000
Note payable due to the former Chief Executive Officer with interest payable at 5% per annum, due August 24, 2015, unsecured. On Maturity, the loan, and accrued interest, automatically converted to Series B Preferred shares at a price of $0.20 per share.		-		950,000
Accrued interest on notes payable		-		33,271
	$	139,952	$	1,033,271

NOTE 7 – STOCKHOLDERS’ EQUITY

Series A Preferred Stock

During the period June 1, 2015 through August 31, 2015, 1,500,000 of Series A Preferred Stock was redeemed at $0.20 per share for proceeds of 300,000.

Series B Preferred Stock

On September 17, 2014 the Company filed a Certificate of Designation of Series B Convertible Preferred Stock. Each share of Series B Convertible Preferred Stock carries a par value of $0.001 and is convertible into common stock on a 1 preferred share for 1 common share basis. Preferred shares are entitled to a dividend at the discretion of the Board of Directors. The Corporation may, by providing a five day notice, redeem such Series B Preferred Stock at a redemption price of $0.20. Each holder of Series B Preferred Stock shall at their option convert the shares of Series B Preferred Stock into shares of common stock on a one preferred share for one common share basis.

On June 21, 2015, a $50,000 note payable matured, and as per the provisions of the loan, the principal and interest automatically converted to 250,000 Series B Preferred Stock at a price of $0.20 per share.

On August 21, 2015 a $950,000 note payable matured, and as per the provisions of the loan, the principal and partial interest automatically converted to 4,750,000 Series B Preferred Stock at a price of $0.20 per share.

11

NOTE 8 - RELATED PARTY TRANSACTIONS

On May 21, 2014, the Company, authorized and approved the execution of a loan agreement dated May 21, 2014 between the Company and its Chief Executive Officer, Peter George ("George") in the principal amount of $50,000 (the "$50,000 Loan Agreement"). Effective July 24, 2014, the Company authorized and approved the execution of a second loan agreement dated July 24, 2014 with George in the principal amount of $950,000 (the "$950,000 Loan Agreement"), and collectively, the "Loan Agreements").

Borrowings under the Loan Agreements are unsecured and accrue interest at an annual rate of 5% on the unpaid balances. The Company will pay all principal and accrued interest thirteen months from the date of execution of either the $50,000 Loan Agreement or the $950,000 Loan Agreement. Any prior payments shall be applied first to interest and then to principal. The Company may at any time during the term of the Loan Agreements redeem the respective loan by providing a five day notice to George that the Company intends to redeem. Payment of principal and interest will be calculated from the date of execution to date of redemption notice.

In addition, the Loan Agreements provide that George may convert all or part of the loan, including principal and accrued interest, into shares of Series B preferred stock at a per share price of $0.20. In the event that neither the Company has redeemed the Loan Agreements nor George has converted the Loan Agreements, there shall be an automatic conversion of the Loan Agreements into shares of the Series B preferred stock. The conversion price per share shall be the lowest trading price of the Company's shares on the OTCQB by using the lowest share price of the preceding five (5) business days prior to the termination date of the Loan Agreement with a minimum price of $0.20.

See notes 6 and 7 regarding additional related party loans and the conversion of the notes to Series B Preferred Stock.

NOTE 9 – COMMITMENTS

The Company is obligated under a lease agreement through May, 2018 which provides for annual rentals, on a straight-line basis, of approximately $34,000. In addition, the Company will pay, as additional rent, its proportionate share of real estate taxes and certain operating expenses.

Rental expense, including real estate taxes and operating expenses, charged to operations for the year ended August 31, 2015 aggregated approximately $20,000 in 2015 and $nil in 2014.

NOTE 10 – SUBSEQUENT EVENTS

The Company has evaluated subsequent events through the date the financial statements have been issued and has determined that there have been no reportable subsequent events.

12

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

We were incorporated in the state of Nevada on April 22, 2009, our subsidiary Omega Smartbuild Americas Inc. was incorporated in the province of Ontario, and our subsidiary Mobilotto was incorporated in the province of Ontario in September 2008. On May 13, 2009, we acquired all of the issued and outstanding shares of Mobilotto, including all of the intellectual property of the mobile lottery software application (the "MOBI Products"). We have continued to develop our mobile lottery software. We are also marketing our Stealth Trader software as well as completed the development of the Colony Auto-Trader.

Effective July 29, 2013, we changed our name to Epcylon Technologies Inc. as part of an effort to re-brand us based upon the marketing of our various software products.

Please note that throughout this Quarterly Report, and unless otherwise noted, the words "we," "our," "us," the "Company," or "Epcylon Technologies Inc.," refers to Epcylon Technologies Inc.

DESCRIPTION OF BUSINESS

Epcylon is a financial technology company, based in Toronto, Ontario that develops proprietary software platforms for the financial industry, specializing in the capital markets vertical. Epcylon’s vision is to enable profitable trading for everyone. It will achieve this vision through its mission statement of providing financial freedom and a higher standard of living by developing empowering tools that make trading easier.

We are marketing the acquired Stealth Trader software through various distribution channels. The software is an intelligence-based system that predicts future behavior of securities among various asset classes, including equities, options, futures, currencies, and exchange-traded funds (ETFs). We will be licensing our financial software to financial institutions and individuals as a source of revenue. Our financial software is also distributed through online resellers and affiliates.

The Stealth Trader software platform has been commercialized for both institutional traders and retail traders. Stealth Trader is an approved Bloomberg App Portal available on Bloomberg terminals worldwide. We are currently in negotiations to distribute the Stealth Trader platform to various institutions through integration of their internal technologies.

Stealth Trader is a mathematical and cognitive psychology based market visualization instrument that filters complex market information to explicitly depict the sentiment and perception of market participants through the electronic order book.

In addition to Stealth Trader, is the completion of the Colony Auto-Trader (“Colony”). The Colony is a fully automated trading system that does not involve human interaction other than for system risk management.

13

STEALTH TRADER SOFTWARE

Stealth Trader is the first real-time and revolutionary market sentiment and traders' perception cockpit based on a unique algorithm that analyzes the bid ask flow rate and other trading activities for a given security.

Stealth Trader quantitatively measures tick-by-tick changes throughout the trading day in the electronic order book of any security that trades with an electronic order book.

Stealth Trader uniquely presents current market information using the flow rate of buy/sell orders placed in real time by all traders on the Exchange Electronic Trading Book. These orders are weighted by their proximity to Inside Bid/Ask levels, their size, and the time elapsed since the order origination.

Stealth Trader provides information, in a proprietary format, that a trader requires and provides in a way enabling the trader to draw instant and accurate conclusions than he would otherwise derive based on charting and other indicators.

Stealth Trader is well positioned to execute on this objective.

Competitive Advantages of Stealth Trader:

• First real-time market sentiment and perception indicator for financial markets.

• Game-changing tool that empowers traders, giving them a competitive advantage.

• Interface designed to quickly process complex data to enable faster trading decisions.

• Identifies optimum entry and exit points for securities across multiple asset classes.

• Chart-free trading tool that eliminates the noise and indecisions from lagging indicators.

• Applicable for all securities in any financial market.

Our three (3) core packages as part of offering the Stealth Trader platform include - Stealth Trader – Basic , Stealth Trader - Professional, and Stealth Trader - Ultimate. These core products will be augmented with additional products and services that will include but not be limited to the following:

• Monthly subscription to a market newsletter including a daily trade sheet.

• A comprehensive education program for new, intermediate, and experienced traders based on auction logic and our proprietary methodologies.

• A live trade room with real time market analysis and trading ideas.

• An alert service for trades via the mobile application, email, and text.

• Trading workshops.

• Shadow Trading Accounts.

• Creation of an affiliate and reseller channel consisting of ambassadors and champions using our trading methodology and education curriculum.

14

Stealth Trader was recently launched in early March, 2015 with customers previously licensing our software through the monthly subscription model.

THE COLONY AUTO-TRADER

The Colony Auto-Trader (“Colony”) is an intelligence-based proprietary and automated trading algorithm that trades securities intraday by exploiting market inefficiencies through the use of complex mathematics/statistics. The Colony can be used to successfully trade securities across various asset classes including equities, options, futures, currencies, fixed income, and exchange-traded funds. It is a perfectly scalable trading platform that can trade securities on multiple markets globally.

The Colony platform can be used for any capital market around the world provided securities traded satisfy minimum scanning/filtering requirements (i.e., volatility, narrow bid-offer spreads, daily volume thresholds, liquidity). The Colony maximizes profits through speed of execution and automation.

The Colony does not involve human interaction to generate trades; instead, it automatically executes trades based on previously established filters. It has capacity of trading up to two-thousand (2,000) securities, while operational optimization and effectiveness is limited to 40-60 securities for a given capital market, on any given trading day. Although the Colony eliminates the need for human decision-making, it does require a human to manage various risks throughout the day. A risk manager will be overseeing the Colony on a daily basis to ensure its performance is continually optimized.

Epcylon will establish a discretionary trading fund either within Epcylon or as a separate and independent entity. The goal is to use the fund to trade multiple capital markets, across multiple asset classes, in multiple time zones, while exploiting intraday inefficiencies in securities prices.

The Colony is not available to the public and is strictly used for internal purposes to generate revenue for the Company.

MOBILE LOTTERY SOFTWARE

Our MOBI branded products are currently being customized for various charitable organizations to integrate the product suite with in-house technologies. Our MOBI branded products aim to become a leading developer of global mobile engagement services - mobile marketing, mobile commerce and mobile gaming. Through the MOBI branded products, we focus on social good and our contribution towards charity. The product suite utilizes efficient and highly interactive broad-based participation games (such as draw based lotteries) to promote responsible play and support charitable causes. The brand continues to have exploratory discussions with various charities to seek partnerships.

We will provide lottery operators worldwide with a complete solution to enable consumers to play lottery and other games of chance and skill via mobile devices. For the players, the solution makes mobile-play much more exciting and convenient compared to paper ticket play. For the operator, MOBI can deploy in 60 days, without capital costs, and expand revenues by reaching mobile savvy players and analytically-enriched in-game marketing.

15

On September 22, 2015, the Company was granted a patent in Canada and the United States for a method and system for enabling gaming via a mobile device. This patent is related to a proprietary geolocation technology for the lottery and gaming industry enabling next-generation mobile gaming. The Mobilotto solution focuses on location/jurisdictional verification. Operators holding lottery licenses, or in partnership with the license holder can securely verify popular mobile games through Mobilotto's technology. Mobilotto provides a comprehensive solution custom tailored to each operator's regulatory environment, security needs, and player/client capabilities. The Company is currently examining the different alternatives to economically benefit from this patent.

RESULTS OF OPERATIONS

The following discussion should be read in conjunction with our unaudited financial statements and the related notes that appear elsewhere in this Quarterly Report. The following discussion and analysis addresses the results of operations for the three months ended August 31, 2015 as compared to the results of operations for the three months ended August 31, 2014. The discussion and analysis then addresses the liquidity and financial condition of the Company, and other matters. The following discussion further contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to those discussed below and elsewhere in this Quarterly Report. Our reviewed financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.

We have incurred recurring losses since inception. Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.

We may require additional capital to meet our long-term operating requirements. Additional capital could be raised through, among other things, the sale of equity or debt securities.

Three Month Period Ended August 31, 2015 Compared to the Three Month Period Ended August 31, 2014

Our net loss for the three month period ended August 31, 2015 was $500,315 compared to a net loss of $169,271 for the three month period ended August 31, 2014 (an increase of $331,044). We generated revenue from our Stealth trading platform in the amount of $6,899 for the three months ended August 31, 2015, compared to $2,833 for the three months ended August 31, 2014 (an increase of $4,066).

During the three months ended August 31, 2015 we incurred operating expenses of $184,833 compared to $133,413 incurred during the three months ended August 31, 2014 (an increase of $51,420).

16

During the three months ended August 31, 2015, we focused on executing our business plan to bring us from a research and development technology company, to commercializing our products. In order to achieve this goal, operating expenses increased through the three month period ended August 31, 2015 as compared to the three month period ended August 31, 2014. Material increases in operating expenses were primarily due to the increase in consulting fees and rent. In February of 2015, we contracted with a new CEO to help execute our plan. The CEO charged a monthly management fee of $10,000, which was not incurred in the prior period. Rent increased as we leased office space in November 2014.

Our operating loss during the three month period ended August 31, 2015 was ($177,934) compared to an operating loss of ($130,580) during the three month period ended August 31, 2014.

During the three month period ended August 31, 2015, we also had a net interest expense on related party loans of $12,083 (2014 - $6,040), realized trading gains (losses) of $101,308 (2014 – $(52,369), unrealized (loss) gains on securities sold short of $430,713 (2014 – $19,718), and a foreign exchange gain of $19,107 (2014 – $nil).

After deducting other expenses, our net loss during the three month period ended August 31, 2015 was ($500,314) compared to a net loss of ($169,271) during the three month period ended August 31, 2014.

During the three month period ended August 31, 2015, we also had a foreign currency transactional adjustment of ($1,305) (2014: ($12,877).

Therefore, our comprehensive loss during the three month period ended August 31, 2015 was ($501,620) or ($0.00) per share compared to a comprehensive loss of ($182,148) or ($0.00) per share during the three month ended August 31, 2014. The weighted average number of shares outstanding was 168,476,221 for the three months ended August 31, 2015 and 164,366,980 for the nine months ended August 31, 2014.

LIQUIDITY AND CAPITAL RESOURCES

As of August 31, 2015 our current assets were $2,574,591 and our current liabilities were $1,000,053, which resulted in a working capital of $1,574,538. As of August 31, 2015, current assets were comprised of: (i) $2,520,850 in cash; (ii) $49,728 in local tax receivable; and (iii) $4,013 in prepaid expense. As of August 31, 2014, total and current liabilities were comprised of: (i) $83,097 in accounts payable and accrued expenses (ii) $777,004 of marketable securities sold short and (iii) $139,952 of notes payable.

As of August 31, 2015, our long term assets were $40,753 comprised of $31,868 of equipment and leasehold improvements, and a security deposit in the amount of $8,885. The decrease in total assets during was primarily due to the cash used in operations.

As of August 31, 2015, our total liabilities were comprised of current liabilities and deferred rent of $5,184. The decrease in liabilities during the period was primarily due to the conversion of the notes payable to series B preferred stock (offset by the increase in securities sold short).

17

Cash Flows from Operating Activities

We have not generated positive cash flows from operating activities due to a lack of a source of revenues. For the three months ended August 31, 2015, net cash flows used in operating activities was $167,054 compared to $124,856 used during the three months ended August 31, 2014.

Cash Flows from Investing Activities

For the three months ended August 31, 2015, cash used in investing activities comprised the purchase of securities in the amount of $17,233,775 (2014 – 2,807,319) and the cost of equipment and leasehold improvements of $2,604 (2014 - $nil) and, net of proceeds on the sale of securities $17,458,972 (2014 - $ 2,449,410).

Cash Flows from Financing Activities

We have financed our operations primarily from debt or the issuance of equity instruments. For the three months ended August 31, 2015 net cash flows used in financing activities was $160,048 consisting of payments of $300,000 (2014 - $nil) on the redemption of the Class A preferred stock, offset by the proceeds from notes payable of $139,952 (2014 - $953,879).

As of August 31, 2015, we had cash of $2,520,850. This represented a decrease from May 31, 2015, at which time we had cash in the amount of $2,626,664. As at August 31, 2015, $1,700,000 of the cash has restricted use, as per a management agreement with the Series A preferred stock holders.

CURRENT OUTLOOK

We expect that working capital requirements will continue to be funded through a combination of our existing funds, financings and generation of revenues. Our working capital requirements are expected to increase in line with the growth of our business. Our principal demands for liquidity are to increase capacity, sales distribution and marketing, and general corporate purposes. We intend to meet our liquidity requirements, including capital expenditures and the expansion of our business, through cash flow provided by operations.

Existing working capital, financings/advances and anticipated cash flow are expected to be adequate to fund our operations over the next twelve months. We have no lines of credit or other bank financing arrangements. We may have additional financial expenses with further issuances of securities and debt issuances. Any additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all.

We may hire more staff in the areas of product development, customer support, sales, marketing, and risk management. Additional staff is critical as we scale our products and continually add new and innovative features to our product suite to enhance the customer experience.

18

Our path to revenue is based upon completing the following work plan over the next twelve months:

1.	Adherence to our Marketing Plan .
2.	Completion of the systems development and testing to ensure we have robust products.
4.	Develop new products around the Stealth application and find other ways to license its use.
5.	Launch new mobile solutions
6.	As opportunities arise, partner with existing suppliers of games to lottery operators in order to mobilize existing lottery games.
7.	Remain flexible in our business model to operate as a lottery retailer/distributor, license the technology for use, or sell the technology for use in a pre-defined jurisdiction, preferably in that order, as conditions deem appropriate.
8.	Complete appropriate certifications in promising jurisdictions to become a lottery retailer/distributor and/or supplier to specific lottery operators.
9.	Partner with the emerging internet gaming suppliers and new lottery licensees to mobilize their offerings.
10.	Generate revenue from the new geo-locator patent.

Working Capital

We are actively seeking sources of funding.

MATERIAL COMMITMENTS

We are obligated under a lease agreement through May, 2018 which provides for annual rental, on a straight-line basis, of approximately $34,000. In addition, we will pay, as additional rent, our proportionate share of real estate taxes and certain operating expenses.

PURCHASE OF SIGNIFICANT EQUIPMENT

We do not intend to purchase any significant equipment during the next twelve months.

OFF-BALANCE SHEET ARRANGEMENTS

As of the date of this Quarterly Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

19

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk represents the risk of loss that may impact our financial position, results of operations or cash flows due to adverse change in foreign currency and interest rates.

Exchange Rate

Our reporting currency is United States Dollars (“USD”). In the event we acquire any properties outside of the United States, the fluctuation of exchange rates may have positive or negative impacts on our results of operations.

Interest Rate

Interest rates in the United States are generally stable. Any potential future loans will relate mainly to acquisition of properties and will be mainly short-term. However, our debt may be likely to rise in connection with expansion and if interest rates were to rise at the same time, this could have a significant impact on our operating and financing activities. We have not entered into derivative contracts either to hedge existing risks for speculative purposes.

ITEM 4. CONTROLS AND PROCEDURES

DISCLOSURE CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures.

We maintain controls and procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934 is 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 our management including our principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosures. Based upon their evaluation of those controls and procedures performed as of the end of the period covered by this report, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were not effective.

Management's Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is a process, under the supervision of our Chief Executive Officer and Chief Financial Officer, designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our financial statements for external purposes in accordance with United States generally accepted accounting principles. Internal control over financial reporting includes those policies and procedures that:

• Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;

20

• Provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and the Board of Directors; and

• Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements.

Our management conducted an evaluation of the effectiveness of internal control over financial reporting based on the framework in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). That evaluation disclosed that we have material defects in our internal control over financial reporting. Specifically they determined (i) that there was a lack of entity level control; and (ii) that the size of our accounting staff and low number of supervisory personnel prevented an appropriate segregation of accounting functions. Accordingly, based on this evaluation, our management concluded that our internal control over financial reporting was not effective as of August 31, 2015.

Changes in Internal Control Over Financial Reporting

We anticipate that our controls and procedures will be effective in the future for purposes of recording, processing, summarizing, and reporting information required to be disclosed, within the time periods specified in the SEC's rules and forms. We intend to further upgrade the amount of financial and personnel resources we spend on our accounting function as our operations develop and expand.

There were no further changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934) during the quarter ended August 31, 2015 that has materially affected or is reasonably likely to materially affect our internal control over financial reporting.

AUDIT COMMITTEE

Our audit committee consists of Todd Halpern and John Fitzgerald. Our audit committee is responsible for: (1) selection and oversight of our independent accountant; (2) establishing procedures for the receipt, retention and treatment of complaints regarding accounting, internal controls and auditing matters; (3) establishing procedures for the confidential, anonymous submission by our employees of concerns regarding accounting and auditing matters; (4) engaging outside advisors; and (5) funding for the outside auditors and any outside advisors engagement by the audit committee.

Audit Committee Financial Expert

Todd Halpern is the audit committee’s financial expert. Our Board of Directors has determined that Mr. Halpern’s experience qualifies him for such position. The Board of Directors has analyzed the independence of each of our directors and has determined that Mr. Halpern is one of our two independent directors under the rules of the NASDAQ Stock Market LLC, including the definition of “independent director” under Section 5605(a)(2) of the NASDAQ Manual.

21

Disclosure Committee

Disclosure committee functions are performed by our entire board of directors.

Director Nominations

There have been no changes in the quarter ended August 31, 2015 to the procedures by which security holders may recommend nominees to our board of directors.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this Quarterly Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.

ITEM 1A. RISK FACTORS

No report required

ITEM 2. UNREGISTERED SALES OF SECURITIES AND USE OF PROCEEDS

No securities issued during the quarter.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

No report required.

ITEM 4. MINE SATEFY DISCLOSURES

No report required.

ITEM 5. OTHER INFORMATION

Effective on September 22, 2015, the Board of Directors accepted the resignation of Jack J. Bensimon as the Chief Executive Officer and member of the Board of Directors of the Company. We previously reported in our Current Report on Form 8-K filed with the Securities and Exchange Commission on September 29, 2015 that Mr. Bensimon had not expressed any disagreement with us on any matter relating to our operations, policies or practices.

Subsequently, we received a letter dated September 28, 2015 from Jack J. Bensimon (the "Letter) pursuant to which Mr. Bensimon stated that he had certain disagreements with us. Our management adamantly opposes the accuracy and/or truthfulness of Mr. Bensimon's position regarding his concerns and issues. As of the date of this Quarterly Report, our management is working to address and resolve the issues.

22

Therefore, as of the date of this Quarterly Report, the Board of Directors consists of the following members: Todd Halpern, Gary Schwartz, John Fitzgerald and Leon Redensky.

Gary Schwartz, as director of lead strategies on behalf of the Company, will be overseeing our day-to-day operations until a replacement for Chief Executive Officer has been appointed. As of the date of this Quarterly Report, certain prospects for appointment as the Chief Executive Officer are under consideration by the Board of Directors based upon prospective future business operations of the Company.

ITEM 6. EXHIBITS

The following exhibits are filed as part of this Quarterly Report.

Exhibit No.	Description of Exhibits
Exhibit 3.1	Articles of Incorporation of the Company, incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-1, filed with the Securities and Exchange Commission on June 10, 2009.
Exhibit 3.2	Bylaws of the Company, incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-1, filed with the Securities and Exchange Commission on June 10, 2009.
Exhibit 3.3	Amendment to the Articles of Incorporation of the Company, incorporated by reference to Exhibit 3.3 to the Company’s Registration Statement on Form S-1, filed with the Securities and Exchange Commission on June 10, 2009.
Exhibit 3.4	Bylaws of the Company, as amended, incorporated by reference to Exhibit 3.4 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on April 23, 2012.
Exhibit 3.5	Amendment to the Articles of Incorporation of the Company, incorporated by reference to Exhibit 3.5 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on April 23, 2012.
Exhibit 3.9	Amendment to the Articles of Incorporation of the Company, incorporated by reference to Exhibit 3.9 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on April 3, 2014.
Exhibit 10.12	Share Cancellation Agreement, by and between the Company, A Few Brilliant Minds Inc. and Gino Porco, dated as of June 16, 2011, incorporated by reference to Exhibit 10.12 to the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 13, 2011.

23

Exhibit 10.13	Share Cancelation Agreement, by and between the Company and NAC Investment Ltd., dated as of June 20, 2011, incorporated by reference to Exhibit 10.13 to the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 13, 2011.
Exhibit 10.14	Share Cancellation Agreement, by and between the Company and 2208155 Ontario Inc., dated as of June 20, 2011, incorporated by reference to Exhibit 10.14 to the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 13, 2011.
Exhibit 10.15	Employment Agreement, by and between the Company and Fulvio Ciano, dated as of October 21, 2011, incorporated by reference to Exhibit 10.15 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on January 23, 2012.
Exhibit 10.16	Stock Option Agreement, by and between the Company and Randall Barrs, dated as of November 29, 2011, incorporated by reference to Exhibit 10.16 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on January 23, 2012.
Exhibit 10.17	Stock Option Agreement, by and between the Company and Alan Ralph, dated as of November 29, 2011, incorporated by reference to Exhibit 10.17 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on January 23, 2012.
Exhibit 10.18	Stock Option Agreement, by and between the Company and Todd Halpern, dated as of November 29, 2011, incorporated by reference to Exhibit 10.18 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on January 23, 2012.
Exhibit 10.19	Stock Option Agreement, by and between the Company and Todd Halpern, dated as of November 29, 2011, incorporated by reference to Exhibit 10.19 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on January 23, 2012.
Exhibit 10.20	Stock Option Agreement, by and between the Company and Fulvio Ciano, dated as of November 29, 2011, incorporated by reference to Exhibit 10.20 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on January 23, 2012.
Exhibit 10.21	Stock Option Agreement, by and between the Company and Donald Ziraldo, dated as of November 29, 2011, incorporated by reference to Exhibit 10.21 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on January 23, 2012.

24

Exhibit 10.22	Stock Option Agreement, by and between the Company and Donald Ziraldo, dated as of November 29, 2011, incorporated by reference to Exhibit 10.22 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on January 23, 2012.
Exhibit 10.23	Stock Option Agreement, by and between the Company and Randall Barrs, dated as of November 29, 2011, incorporated by reference to Exhibit 10.23 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on January 23, 2012.
Exhibit 10.24	Stock Option Agreement, by and between 2238646 Ontario Inc. and Emlyn David, dated as of April 25, 2012, incorporated by reference to Exhibit 10.24 to the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on October 19, 2012.
Exhibit 10.25	Employment Agreement, by and between the Company and Murray Simser, dated as of May 14, 2012, incorporated by reference to Exhibit 10.25 to the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on October 19, 2012.
Exhibit 10.26	Stock Option Agreement, by and between 2238646 Ontario Inc. and Murray Simser, dated as of May 14, 2012, incorporated by reference to Exhibit 10.26 to the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on October 19, 2012.
Exhibit 10.27	Arrangement Agreement, by and between the Company, Quantitative Alpha Trading Inc. and 2338584 Ontario Inc., dated as of August 20, 2012 incorporated by reference to Exhibit 10.27 to the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on October 19, 2012.
Exhibit 10.28	Corporate Development Agreement, by and between the Company and 2238646 Ontario Inc., dated as of November 1, 2012, incorporated by reference to Exhibit 10.28 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on January 22, 2013.
Exhibit 10.29	Consulting Agreement dated by and between Epcylon Technologies Inc. and CFO Advantage Inc. dated February 1, 2014, incorporated by reference to Exhibit 10.29 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on April 14, 2014.
Exhibit 31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

25

Exhibit 31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 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 of 2002.
Exhibit 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 of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

26

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	EPCYLON TECHNOLOGIES, INC.
Date: October 27, 2015	By:	/s/ Kyle Appleby
		Name:	Kyle Appleby
		Title:	Chief Financial Officer
			(Principal Financial Officer
			and Principal Accounting
			Officer)

27

EX-31.2

Exhibit 31.2

OFFICER'S CERTIFICATION PURSUANT TO SECTION 302

I, Kyle Appleby, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Epcylon Technologies Inc.;

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;

(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:	October 27, 2015
By:	/s/ Kyle Appleby
Name:	Kyle Appleby
Title:	Principal Executive Officer
	and
	Principal Financial Officer

EX-32.2

Exhibit 32.2

CERTIFICATIONS 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 Mobile Integrated Systems, Inc. on Form 10-Q for the quarter ended February 28, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kyle Appleby, Principal Executive Officer and Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to my knowledge that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

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

Date: October 27, 2015

By:	/s/ Kyle Appleby
Name:	Kyle Appleby
Title:	Principal Executive Officer
	and
	Principal Financial Officer

XML

Schedule of Accounts Payable and Accrued Liabilities (Details)	3 Months Ended
	Aug. 31, 2015 USD ($)
Accounts Payable And Accrued Liabilities Schedule Of Accounts Payable And Accrued Liabilities 1	$ 39,077
Accounts Payable And Accrued Liabilities Schedule Of Accounts Payable And Accrued Liabilities 2	45,891
Accounts Payable And Accrued Liabilities Schedule Of Accounts Payable And Accrued Liabilities 3	11,000
Accounts Payable And Accrued Liabilities Schedule Of Accounts Payable And Accrued Liabilities 4	11,000
Accounts Payable And Accrued Liabilities Schedule Of Accounts Payable And Accrued Liabilities 5	23,412
Accounts Payable And Accrued Liabilities Schedule Of Accounts Payable And Accrued Liabilities 6	15,360
Accounts Payable And Accrued Liabilities Schedule Of Accounts Payable And Accrued Liabilities 7	9,608
Accounts Payable And Accrued Liabilities Schedule Of Accounts Payable And Accrued Liabilities 8	19,192
Accounts Payable And Accrued Liabilities Schedule Of Accounts Payable And Accrued Liabilities 9	83,097
Accounts Payable And Accrued Liabilities Schedule Of Accounts Payable And Accrued Liabilities 10	$ 91,443

XML

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

3 Months Ended

Aug. 31, 2015

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES [Text Block]

NOTE 4 – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

		August 31,		May 31,
		2015		2015
Legal	$	39,077	$	45,891
Audit		11,000		11,000
Consulting		23,412		15,360
General and administrative		9,608		19,192
Total	$	83,097	$	91,443

XML

PROPERTY AND EQUIPMENT

3 Months Ended

Aug. 31, 2015

PROPERTY AND EQUIPMENT [Text Block]

NOTE 3 – PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

				Accumulated		August 31,		May 31,
		Cost		Depreciation		2015 Net		2015
Leasehold improvements	$	16,010	$	2,402	$	13,608	$	14,410
Computer equipment		25,580		7,320		18,260		17,806
Total	$	41,590	$	9,722	$	31,868	$	32,214

XML

Consolidated Balance Sheets - USD ($)	Aug. 31, 2015	May. 31, 2015
Series A Preferred Stock [Member]
STOCKHOLDER'S EQUITY:
Preferred shares	$ 850	$ 1,000
Series B Preferred Stock [Member]
STOCKHOLDER'S EQUITY:
Preferred shares	500	0
Cash	2,520,850	2,626,664
Local tax receivable	49,728	44,649
Prepaid expense	4,013	5,722
TOTAL CURRENT ASSETS	2,574,591	2,677,035
Security deposit	8,885	9,421
Property and equipment, net	31,868	32,214
TOTAL ASSETS	2,615,344	2,718,670
Accounts payable and accrued expenses	128,453	91,442
Securities sold not yet purchased	777,004	222,482
Notes payable - related party	139,952	1,033,271
CURRENT LIABILITIES	1,045,409	1,347,195
Deferred rent	5,184	5,107
TOTAL LIABILITIES	1,050,593	1,352,302
Common stock, par value $0.0001 300,000,000 shares authorized 168,476,221 issued and outstanding as of August 31, 2015, 2014 (respectively	16,846	16,846
Additional paid-in capital	9,088,109	8,388,459
Accumulated other comprehensive loss	(59,031)	(57,726)
Accumulated deficit	(7,482,523)	(6,982,211)
TOTAL STOCKHOLDERS' EQUITY	1,564,751	1,366,368
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,615,344	$ 2,718,670

XML

ORGANIZATION AND BASIS OF PRESENTATION

3 Months Ended

Aug. 31, 2015

ORGANIZATION AND BASIS OF PRESENTATION [Text Block]

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION

The attached consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. As a result, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The Company believes that the disclosures made are adequate to make the information presented not misleading. The consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Form 10-K as filed with the Securities and Exchange Commission on September 14, 2015. The results of operations for the three months ended August 31, 2015 are not indicative of results for the full fiscal year or any other period.

Organization and Business Description

Epcylon Technologies Inc., formerly known as Mobile Integrated Systems Inc. (the “Company” or “Epcylon”), together with its wholly owned subsidiaries Mobilotto Systems Inc., (“MIBI”), Delite Americas Inc., and Omega Smartbuild Americas Inc., are engaged through its Stealth branded products, in the business of researching, developing and commercializing proprietary algorithmic securities trading systems. The Company uses its Stealth trading system to trade securities with some of its existing excess capital. Furthermore, the Company, through its MOBI branded products, develops software and interactive games for use by charitable organization and government regulated lotteries. On July 29, 2013, the Company changed its name from Mobile Integrated Systems Inc., to Epcylon Technologies Inc. The Company trades on the OTCPINK under the symbol PRFC.

Since inception the Company has been engaged in organizational activities, has been developing its business model and software platforms. The Company has not earned any material revenue from operations, other than a onetime payment for a mobile application in a prior year.

Basis of Consolidation

These consolidated financial statements include the accounts of Epcylon Technologies Inc., which was incorporated on April 22, 2009 in the state of Nevada and its wholly-owned subsidiaries, Mobilotto Systems, Inc., which was incorporated in Ontario, Canada on September 16, 2008, Delite Americas Inc. which was incorporated in Ontario, Canada on July 8, 2013 and Omega Smartbuild Americas Inc., which was incorporated in Ontario, Canada on July 8, 2013.

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. All intercompany balances and transactions have been eliminated.

XML

RELATED PARTY TRANSACTIONS (Narrative) (Details)	3 Months Ended
	Aug. 31, 2015 USD ($)
Related Party Transactions 1	$ 50,000
Related Party Transactions 2	50,000
Related Party Transactions 3	950,000
Related Party Transactions 4	$ 950,000
Related Party Transactions 5	5.00%
Related Party Transactions 6	$ 50,000
Related Party Transactions 7	950,000
Related Party Transactions 8	0.20
Related Party Transactions 9	$ 0.20

XML

Schedule of Property and Equipment (Details)	3 Months Ended
	Aug. 31, 2015 USD ($)
Property And Equipment Schedule Of Property And Equipment 1	$ 16,010
Property And Equipment Schedule Of Property And Equipment 2	2,402
Property And Equipment Schedule Of Property And Equipment 3	13,608
Property And Equipment Schedule Of Property And Equipment 4	14,410
Property And Equipment Schedule Of Property And Equipment 5	25,580
Property And Equipment Schedule Of Property And Equipment 6	7,320
Property And Equipment Schedule Of Property And Equipment 7	18,260
Property And Equipment Schedule Of Property And Equipment 8	17,806
Property And Equipment Schedule Of Property And Equipment 9	41,590
Property And Equipment Schedule Of Property And Equipment 10	9,722
Property And Equipment Schedule Of Property And Equipment 11	31,868
Property And Equipment Schedule Of Property And Equipment 12	$ 32,214

XML

SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Aug. 31, 2015

SIGNIFICANT ACCOUNTING POLICIES [Text Block]

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Company’s May 31, 2015 annual financial statements.

Preferred Stock

We apply the guidance enumerated in ASC 480 “Distinguishing Liabilities from Equity” when determining the classification and measurement of preferred stock. Preferred shares subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. We classify conditionally redeemable preferred shares (if any), which includes preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control, as temporary equity. At all other times, we classified our preferred shares in stockholders’ equity

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company’s accounting and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented.

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Aug. 31, 2015	May. 31, 2015
Series A Preferred Stock [Member]
Preferred Stock, Par Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	8,500,000	10,000,000
Preferred Stock, Shares Outstanding	8,500,000	10,000,000
Series B Preferred Stock [Member]
Preferred Stock, Par Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	5,000,000	0
Preferred Stock, Shares Outstanding	5,000,000	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	168,476,221	168,476,221
Common stock, shares outstanding	168,476,221	168,476,221

XML

PROPERTY AND EQUIPMENT (Tables)

3 Months Ended

Aug. 31, 2015

Schedule of Property and Equipment [Table Text Block]

				Accumulated		August 31,		May 31,
		Cost		Depreciation		2015 Net		2015
Leasehold improvements	$	16,010	$	2,402	$	13,608	$	14,410
Computer equipment		25,580		7,320		18,260		17,806
Total	$	41,590	$	9,722	$	31,868	$	32,214

XML

Document and Entity Information - shares	3 Months Ended
	Aug. 31, 2015	Oct. 20, 2015
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 31, 2015
Trading Symbol	prfc
Entity Registrant Name	Epcylon Technologies, Inc.
Entity Central Index Key	0001464766
Current Fiscal Year End Date	--05-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		168,476,221
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1

XML

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)

3 Months Ended

Aug. 31, 2015

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

		August 31,		May 31,
		2015		2015
Legal	$	39,077	$	45,891
Audit		11,000		11,000
Consulting		23,412		15,360
General and administrative		9,608		19,192
Total	$	83,097	$	91,443

XML

Consolidated Income statements - USD ($)	3 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
REVENUE	$ 6,899	$ 2,833
EXPENSES
General and administrative expenses	184,833	133,413
OPERATING LOSS	(177,934)	(130,580)
OTHER INCOME (EXPENSE)
Interest (expense) income, net	(12,083)	(6,040)
Realized gain on marketable securities	101,308	(52,369)
Unrealized loss on marketable securities	(430,713)	19,718
Gain of foreign exchange	19,107	0
NET LOSS BEFORE PROVISION FOR INCOME TAX	(500,315)	(169,271)
Provision for income tax	0	0
NET LOSS	(500,315)	(169,271)
Foreign currency translation adjustment	(1,305)	(12,877)
NET COMPREHENSIVE LOSS	$ (501,620)	$ (182,148)
Net loss per common share	$ 0.00	$ 0.00
Basic and fully diluted weighted average common shares outstanding	168,476,221	168,476,221

XML

STOCKHOLDERS EQUITY

3 Months Ended

Aug. 31, 2015

STOCKHOLDERS EQUITY [Text Block]

NOTE 7 – STOCKHOLDERS’ EQUITY

Series A Preferred Stock

During the period June 1, 2015 through August 31, 2015, 1,500,000 of Series A Preferred Stock was redeemed at $0.20 per share for proceeds of 300,000.

Series B Preferred Stock

On September 17, 2014 the Company filed a Certificate of Designation of Series B Convertible Preferred Stock. Each share of Series B Convertible Preferred Stock carries a par value of $0.001 and is convertible into common stock on a 1 preferred share for 1 common share basis. Preferred shares are entitled to a dividend at the discretion of the Board of Directors. The Corporation may, by providing a five day notice, redeem such Series B Preferred Stock at a redemption price of $0.20. Each holder of Series B Preferred Stock shall at their option convert the shares of Series B Preferred Stock into shares of common stock on a one preferred share for one common share basis.

On June 21, 2015, a $50,000 note payable matured, and as per the provisions of the loan, the principal and interest automatically converted to 250,000 Series B Preferred Stock at a price of $0.20 per share.

On August 21, 2015 a $950,000 note payable matured, and as per the provisions of the loan, the principal and partial interest automatically converted to 4,750,000 Series B Preferred Stock at a price of $0.20 per share.

XML

NOTES PAYABLE RELATED PARTY

3 Months Ended

Aug. 31, 2015

NOTES PAYABLE RELATED PARTY [Text Block]

NOTE 6 – NOTES PAYABLE –RELATED PARTY

		August 31, 2015		May 31, 2015
Note payable due to the Chief Executive Officer, 0% interest, unsecured.	$	50,000	$	-
Note payable due to a director of the Company, 0% interest, unsecured.		50,000		-
Note payable due to a shareholder, interest payable at 4% per annum, due January 2, 2017, unsecured.		39,952		-
Note payable due the former Chief Executive Officer with interest payable at 5% per annum, due June 21, 2015, unsecured. On Maturity, the loan, and accrued interest, automatically converted to Series B Preferred shares at a price of $0.20 per share.		-		50,000
Note payable due to the former Chief Executive Officer with interest payable at 5% per annum, due August 24, 2015, unsecured. On Maturity, the loan, and accrued interest, automatically converted to Series B Preferred shares at a price of $0.20 per share.		-		950,000
Accrued interest on notes payable		-		33,271
	$	139,952	$	1,033,271

XML

COMMITMENTS (Narrative) (Details)	3 Months Ended
	Aug. 31, 2015 USD ($)
Commitments 1	$ 34,000
Commitments 2	20,000
Commitments 3	$ 0

XML

SECURITIES SOLD NOT YET PURCHASED (Tables)

3 Months Ended

Aug. 31, 2015

Schedule of Securities Sold Not Yet Purchased [Table Text Block]

		Fair value
Options sold short	$	777,004

XML

SUBSEQUENT EVENTS

3 Months Ended

Aug. 31, 2015

SUBSEQUENT EVENTS [Text Block]

NOTE 10 – SUBSEQUENT EVENTS

The Company has evaluated subsequent events through the date the financial statements have been issued and has determined that there have been no reportable subsequent events.

XML

RELATED PARTY TRANSACTIONS

3 Months Ended

Aug. 31, 2015

RELATED PARTY TRANSACTIONS [Text Block]

NOTE 8 - RELATED PARTY TRANSACTIONS

On May 21, 2014, the Company, authorized and approved the execution of a loan agreement dated May 21, 2014 between the Company and its Chief Executive Officer, Peter George ("George") in the principal amount of $50,000 (the "$50,000 Loan Agreement"). Effective July 24, 2014, the Company authorized and approved the execution of a second loan agreement dated July 24, 2014 with George in the principal amount of $950,000 (the "$950,000 Loan Agreement"), and collectively, the "Loan Agreements").

Borrowings under the Loan Agreements are unsecured and accrue interest at an annual rate of 5% on the unpaid balances. The Company will pay all principal and accrued interest thirteen months from the date of execution of either the $50,000 Loan Agreement or the $950,000 Loan Agreement. Any prior payments shall be applied first to interest and then to principal. The Company may at any time during the term of the Loan Agreements redeem the respective loan by providing a five day notice to George that the Company intends to redeem. Payment of principal and interest will be calculated from the date of execution to date of redemption notice.

In addition, the Loan Agreements provide that George may convert all or part of the loan, including principal and accrued interest, into shares of Series B preferred stock at a per share price of $0.20. In the event that neither the Company has redeemed the Loan Agreements nor George has converted the Loan Agreements, there shall be an automatic conversion of the Loan Agreements into shares of the Series B preferred stock. The conversion price per share shall be the lowest trading price of the Company's shares on the OTCQB by using the lowest share price of the preceding five (5) business days prior to the termination date of the Loan Agreement with a minimum price of $0.20.

See notes 6 and 7 regarding additional related party loans and the conversion of the notes to Series B Preferred Stock.

XML

COMMITMENTS

3 Months Ended

Aug. 31, 2015

COMMITMENTS [Text Block]

NOTE 9 – COMMITMENTS

The Company is obligated under a lease agreement through May, 2018 which provides for annual rentals, on a straight-line basis, of approximately $34,000. In addition, the Company will pay, as additional rent, its proportionate share of real estate taxes and certain operating expenses.

Rental expense, including real estate taxes and operating expenses, charged to operations for the year ended August 31, 2015 aggregated approximately $20,000 in 2015 and $nil in 2014.

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Aug. 31, 2015

Preferred Stock [Policy Text Block]

Preferred Stock

We apply the guidance enumerated in ASC 480 “Distinguishing Liabilities from Equity” when determining the classification and measurement of preferred stock. Preferred shares subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. We classify conditionally redeemable preferred shares (if any), which includes preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control, as temporary equity. At all other times, we classified our preferred shares in stockholders’ equity

Recent Accounting Pronouncements [Policy Text Block]

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company’s accounting and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented.

XML

STOCKHOLDERS EQUITY (Narrative) (Details)	3 Months Ended
	Aug. 31, 2015 USD ($) $ / shares
Stockholders Equity 1	1,500,000
Stockholders Equity 2 | $ / shares	$ 0.20
Stockholders Equity 3	300,000
Stockholders Equity 4	$ 0.001
Stockholders Equity 5	1
Stockholders Equity 6	1
Stockholders Equity 7	$ 0.20
Stockholders Equity 8	$ 50,000
Stockholders Equity 9	250,000
Stockholders Equity 10 | $ / shares	$ 0.20
Stockholders Equity 11	$ 950,000
Stockholders Equity 12	4,750,000
Stockholders Equity 13 | $ / shares	$ 0.20

XML

Schedule of Securities Sold Not Yet Purchased (Details)	3 Months Ended
	Aug. 31, 2015 USD ($)
Securities Sold Not Yet Purchased Schedule Of Securities Sold Not Yet Purchased 1	$ 777,004

XML

Consolidated Cash Flow Statement - USD ($)	3 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
OPERATING ACTIVITIES:
Net loss	$ (500,315)	$ (169,271)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	2,951	0
Realized trading gains	(101,308)	52,369
Unrealized loss on marketable securities	430,713	(19,718)
Imputed Interest	0	6,173
Changes in operating assets and liabilities:
Prepaid expenses	2,244	1,545
Local tax receivable	(5,079)	(5,490)
Accounts payable and accrued liabilities	(8,345)	9,536
Accrued interest on related party loans	12,085	0
NET CASH USED IN OPERATING ACTIVITIES	(167,054)	(124,856)
INVESTING ACTIVITIES:
Acquisition of property & equipment	(2,604)	0
Purchases of securities	(17,233,775)	(2,807,319)
Proceeds from sale of securities	17,458,972	2,449,410
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	222,593	(357,909)
FINANCING ACTIVITIES:
Redmption of Class A preferred stock	(300,000)	0
Proceeds from related party loans	139,952	953,879
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES	(160,048)	953,879
Effect of exchange rates on cash	(1,305)	(12,877)
(DECREASE) INCREASE IN CASH	(105,814)	458,237
CASH - BEGINNING OF PERIOD	2,626,664	2,475,413
CASH - END OF PERIOD	$ 2,520,850	$ 2,933,650

XML

SECURITIES SOLD NOT YET PURCHASED

3 Months Ended

Aug. 31, 2015

SECURITIES SOLD NOT YET PURCHASED [Text Block]

NOTE 5 – SECURITIES SOLD NOT YET PURCHASED

Marketable securities owned and on margin consisting of equity securities owned by the Company. As at August 31, 2015 securities at market value were as follows:

		Fair value
Options sold short	$	777,004

The securities are reported at fair value using level 1 input based on the quoted market price of the securities at each reporting period.

XML

Schedule of Short-term Debt (Details)	3 Months Ended
	Aug. 31, 2015 USD ($) $ / shares
Notes Payable Related Party Schedule Of Short-term Debt 1	0.00%
Notes Payable Related Party Schedule Of Short-term Debt 2	$ 50,000
Notes Payable Related Party Schedule Of Short-term Debt 3	$ 0
Notes Payable Related Party Schedule Of Short-term Debt 4	0.00%
Notes Payable Related Party Schedule Of Short-term Debt 5	$ 50,000
Notes Payable Related Party Schedule Of Short-term Debt 6	$ 0
Notes Payable Related Party Schedule Of Short-term Debt 7	4.00%
Notes Payable Related Party Schedule Of Short-term Debt 8	$ 39,952
Notes Payable Related Party Schedule Of Short-term Debt 9	$ 0
Notes Payable Related Party Schedule Of Short-term Debt 10	5.00%
Notes Payable Related Party Schedule Of Short-term Debt 11 | $ / shares	$ 0.20
Notes Payable Related Party Schedule Of Short-term Debt 12	$ 0
Notes Payable Related Party Schedule Of Short-term Debt 13	$ 50,000
Notes Payable Related Party Schedule Of Short-term Debt 14	5.00%
Notes Payable Related Party Schedule Of Short-term Debt 15 | $ / shares	$ 0.20
Notes Payable Related Party Schedule Of Short-term Debt 16	$ 0
Notes Payable Related Party Schedule Of Short-term Debt 17	950,000
Notes Payable Related Party Schedule Of Short-term Debt 18	0
Notes Payable Related Party Schedule Of Short-term Debt 19	33,271
Notes Payable Related Party Schedule Of Short-term Debt 20	139,952
Notes Payable Related Party Schedule Of Short-term Debt 21	$ 1,033,271

XML

NOTES PAYABLE RELATED PARTY (Tables)

3 Months Ended

Aug. 31, 2015

Schedule of Short-term Debt [Table Text Block]

		August 31, 2015		May 31, 2015
Note payable due to the Chief Executive Officer, 0% interest, unsecured.	$	50,000	$	-
Note payable due to a director of the Company, 0% interest, unsecured.		50,000		-
Note payable due to a shareholder, interest payable at 4% per annum, due January 2, 2017, unsecured.		39,952		-
Note payable due the former Chief Executive Officer with interest payable at 5% per annum, due June 21, 2015, unsecured. On Maturity, the loan, and accrued interest, automatically converted to Series B Preferred shares at a price of $0.20 per share.		-		50,000
Note payable due to the former Chief Executive Officer with interest payable at 5% per annum, due August 24, 2015, unsecured. On Maturity, the loan, and accrued interest, automatically converted to Series B Preferred shares at a price of $0.20 per share.		-		950,000
Accrued interest on notes payable		-		33,271
	$	139,952	$	1,033,271