0001511164-16-001211.txt : 20161213 0001511164-16-001211.hdr.sgml : 20161213 20161213143558 ACCESSION NUMBER: 0001511164-16-001211 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 50 CONFORMED PERIOD OF REPORT: 20161031 FILED AS OF DATE: 20161213 DATE AS OF CHANGE: 20161213 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Force Protection Video Equipment Corp. CENTRAL INDEX KEY: 0001518720 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-RETAIL STORES, NEC [5990] IRS NUMBER: 451443512 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-55519 FILM NUMBER: 162048615 BUSINESS ADDRESS: STREET 1: 130 IOWA LANE STREET 2: SUITE 102 CITY: CARY STATE: NC ZIP: 27511 BUSINESS PHONE: 855-746-0245 MAIL ADDRESS: STREET 1: 130 IOWA LANE STREET 2: SUITE 102 CITY: CARY STATE: NC ZIP: 27511 FORMER COMPANY: FORMER CONFORMED NAME: Enhance-Your-Reputation.com, Inc. DATE OF NAME CHANGE: 20131001 FORMER COMPANY: FORMER CONFORMED NAME: M Street Gallery Inc. DATE OF NAME CHANGE: 20110420 10-Q 1 f10q10312016.htm FORM 10-Q Converted by EDGARwiz




United States

Securities and Exchange Commission

Washington, D.C. 20549


Form 10-Q


QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarter ended: October 31, 2016 Commission file no.: 000-55519


Force Protection Video Equipment Corp.


(Name of Small Business Issuer in its Charter)


Florida

 

45-1443512

(State or other jurisdiction of

 

(I.R.S.Employer

incorporation or organization)

 

Identification No.)

 

 

 

130 Iowa Lane, Suite 102

Cary, NC

 


27511

(Address of principal executive offices)

 

(Zip Code)

Issuer’s telephone number: (919) 780-7897


Securities registered under Section 12(b) of the Act:


Title of each class

 

Name of each exchange on which registered

None

 

None


Securities registered under Section 12(g) of the Act:


Common Stock, $0.0001 par value per share 



(Title of class)


Indicate by Check whether the issuer (1) 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 [   ]


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 S­T (§232.405 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 [X]    No [ ]


Indicate by check mark whether the registrant is 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 check mark whether the registrant is a shell company (as defined in Rule 12b­2 of the Exchange Act). [ ] Yes [X] No


APPLICABLE ONLY TO CORPORATE ISSUERS:

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:


As of December 6, 2016, there were 195,147,321 shares of voting stock of the registrant issued and outstanding.



1






FORCE PROTECTION VIDEO EQUIPMENT CORP.

FORM 10-Q

TABLE OF CONTENTS


PAGE

PART I - FINANCIAL INFORMATION


Item 1.

Financial Statements


Balance Sheets as of October 31, 2016 (Unaudited) and April 30, 2016 (audited)

3


Statements of Operations for the Three and Six Months Ended

October 31, 2016 and 2015 (Unaudited)

4


Statement of Stockholders' Equity for the Six

Months Ended October 31, 2016 (Unaudited) and year ended April 30, 2016

5


Statements of Cash Flows for the Six Months Ended October 31, 2016 and 2015 (Unaudited)

6


Notes to Condensed Financial Statements  

 

7


Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

20


Item 4.

Controls and Procedures

23



PART II - OTHER INFORMATION


Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

24


Item 5.

Other Information

24


Item 6.

Exhibits

24


Signatures

26



2





PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

Force Protection Video Equipment Corp

 

 

 

 

Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

October 31,

 

April 30,

 

 

 

 

2016

 

2016

ASSETS

 

 (Unaudited)

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

$

158,603 

 

$

227,273 

 

Accounts receivable

 

6,721 

 

3,157 

 

Inventory

 

147,930 

 

70,361 

 

Prepaid inventory

 

24,000 

 

59,509 

 

 

Total current assets

 

337,254 

 

360,300 

 

 

 

 

 

 

 

 

Property and equipment, net of accumulated depreciation of $2,700 and $476, respectively

21,367 

 

7,112 

 

Deposits

 

1,945 

 

1,945 

 

 

Total assets

 

$

360,566 

 

$

369,357 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable and accrued expenses

 

$

47,092 

 

$

30,059 

 

Convertible promissory notes net of discount of $181,824 and $204,718, respectively

279,148 

 

91,074 

 

 

Total current liabilities

 

326,240 

 

121,133 

 

 

 

 

 

 

 

Long-term liabilities

 

871 

 

983 

 

 

Total liabilities

 

327,111 

 

122,116 

 

 

 

 

 

 

 

Commitments and contingencies (Note 5)

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

Series A Preferred stock, $0.0001 par value 5,000,000 shares authorized; issued and outstanding 1,000,000 at October 31, 2016 and April 30, 2016.

100 

 

100 

 

Common stock, $0.0001 par value 750,000,000 shares authorized; issued and outstanding 177,117,321 and 40,525,595 at October 31, 2016 and April 30, 2016, respectively.

17,711 

 

4,052 

 

Additional paid-in capital

 

2,329,907 

 

1,718,214 

 

Accumulated deficit

 

(2,314,263)

 

(1,475,125)

 

 

Total stockholders' equity

 

33,455

 

        247,241

 

 

Total liabilities and stockholders' equity

 

 $  360,566

 

 $     369,357

 

 

 

 

 

 

 

(The accompanying notes are an integral part of these financial statements)

 

 

 

 



3






Force Protection Video Equipment Corp

 

 

 

 

 

 

 

Statements of Operations (Unaudited)

 

 

 

 

 

 

 

For the Three and Six Months Ended October 31, 2016 and 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended  

 

Six Months Ended  

 

 

 

October 31,

 

 

 

October 31,

 

 

 

 

 

2016

 

2015

 

2016

 

2015

Income

 

 

 

 

 

 

 

 

Net revenue

$

17,464 

 

$

19,614 

 

$

33,176 

 

$

35,548 

 

Cost of goods sold

12,373 

 

12,416 

 

23,777 

 

22,117 

 

 

Gross profit

5,091 

 

7,198 

 

9,400 

 

13,431 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

General and administrative

154,957 

 

102,925 

 

322,306 

 

147,640 

 

Sales and marketing

30,579 

 

6,345 

 

89,205 

 

20,905 

 

 

Total operating expenses

185,536 

 

109,270 

 

411,511 

 

168,545 

 

 

Loss from operations

(180,445)

 

(102,072)

 

(402,112)

 

(155,114)

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

Interest income

 

1,184 

 

 

1,184 

 

Interest expense

(7,651)

 

(3,392)

 

(14,132)

 

(3,392)

 

Accretion of debt discount

(161,831)

 

(43,328)

 

(422,894)

 

(43,328)

 

Amortization of deferred finance charges

 

(1,739)

 

 

(1,739)

 

 

Total other income (expense)

(169,482)

 

(47,275)

 

(437,026)

 

(47,275)

Loss before taxes

(349,926)

 

(149,347)

 

(839,138)

 

(202,389)

Provision for income taxes

 

 

 

Net loss

$

(349,926)

 

$

(149,347)

 

$

(839,138)

 

$

(202,389)

 

 

 

 

 

 

 

 

 

 

Net (loss) per common share basic and diluted

$

(0.00)

 

$

(0.01)

 

$

(0.01)

 

$

(0.01)

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding basic and diluted

160,873,532 

 

18,746,707 

 

110,129,348 

 

18,633,109 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(The accompanying notes are an integral part of these financial statements)

 

 

 

 

 

 




4






Force Protection Video Equipment Corp

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended October 31, 2016 and Year Ended April 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

Total

 

 

Series A Preferred Stock

 

Common Stock

 

paid-in

 

Accumulated

 

Stockholders'

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Deficit

 

Equity

Balance, April 30, 2015

-

 

$

-

 

18,295,000

 

$

1,829

 

$

254,854

 

$

(213,124)

 

$

43,559 

 

Preferred stock issued for cash

1,000,000

 

100

 

-

 

-

 

900

 

 

1,000 

 

Common stock issued for cash

-

 

-

 

450,000

 

45

 

44,955

 

 

45,000 

 

Common stock issued in exchange for services

-

 

-

 

10,095

 

1

 

14,499

 

 

14,500 

 

Discount on convertible promissory note due to common stock issued

-

 

-

 

31,912

 

3

 

17,997

 

 

18,000 

 

Common stock issued upon conversion of convertible promissory notes

-

 

-

 

21,738,588

 

2,174

 

630,599

 

 

632,773 

 

Discount on convertible promissory note due to beneficial conversion feature

-

 

-

 

-

 

-

 

754,410

 

 

754,410 

 

Net loss

-

 

-

 

-

 

-

 

-

 

(1,262,001)

 

(1,262,001)

Balance, April 30, 2016

1,000,000

 

100

 

40,525,595

 

4,052

 

1,718,214

 

(1,475,125)

 

247,241 

 

Common stock issued upon conversion of convertible promissory notes

-

 

-

 

136,591,726

 

13,659

 

296,693

 

 

310,352 

 

Discount on convertible promissory note due to beneficial conversion feature

-

 

-

 

-

 

-

 

315,000

 

 

315,000 

 

Net loss

-

 

-

 

-

 

-

 

-

 

(839,138)

 

(839,138)

Balance, July 31, 2016 (Unaudited)

1,000,000

 

$

100

 

177,117,321

 

$

17,711

 

$

2,329,907

 

$

(2,314,263)

 

$

33,455 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(The accompanying notes are an integral part of these financial statements)




5






Force Protection Video Equipment Corporation

 

 

 

Statements of Cash Flows (Unaudited)

 

 

 

For the Six Months Ended October 31, 2016 and 2015

 

 

 

 

 

 

 

 

 

 

Six Months Ended October 31,

 

 

 

2016

 

2015

Cash flows from operating activities:

 

 

 

 

Net (Loss)

$

(839,138)

 

$

(202,389)

 

Adjustments to reconcile net loss to net cash provided (used in) operating activities:

 

 

 

 

 

 Depreciation and Amortization

2,224 

 

1,739 

 

 

Accretion of debt discount

422,894 

 

43,328 

 

 

Share based compensation expense

 

14,500 

 

Changes in assets and liabilities:

 

 

 

 

 

(Increase) decrease in accounts receivable

(3,564)

 

(7,163)

 

 

(Increase) decrease in deferred financing costs

 

(7,761)

 

 

(Increase) decrease in inventory

(77,569)

 

(26,347)

 

 

(Increase) decrease in other assets

35,509 

 

(12,739)

 

 

Increase (decrease) in accounts payable and accrued expenses

20,066 

 

(1,049)

 

 

Increase (decrease) in other liabilities

(112)

 

 

 

Net cash (used) by operating activities

(439,690)

 

(197,881)

Cash flows from investing activities:

 

 

 

 

Purchase of equipment and vehicles

(16,480)

 

(671)

 

Net cash (used) by investing activities

(16,480)

 

(671)

Cash flows from financing activities:

 

 

 

 

Proceeds from sale of common stock

 

45,000 

 

Proceeds from convertible promissory notes

387,500 

 

288,004 

 

Net cash provided by financing activities

387,500 

 

333,004 

Increase (decrease) in cash

(68,670)

 

134,452 

Cash and cash equivalents at beginning of period

227,273 

 

35,226 

Cash and cash equivalents at end of period

$

158,603 

 

$

169,678 

Supplemental disclosures of cash flow information:

 

 

 

 

Cash paid for interest

$

 

$

 

Cash paid for income taxes

$

 

$

 Non-cash operating activities:

 

 

 

 

Common stock issued for conversion of notes payable

$

310,352 

 

$

 

 

 

 

 

 

(The accompanying notes are an integral part of these financial statements)




6





FORCE PROTECTION VIDEO EQUIPMENT CORP.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2016 AND 2015



NOTE 1 –ORGANIZATION AND GOING CONCERN


Organization


Force Protection Video Equipment Corp., (the Company), was incorporated on March 11, 2011, under the laws of the State of Florida as M Street Gallery, Inc.  On September 25, 2013, we changed our name to Enhance-Your-Reputation.com, Inc. and changed our business to providing reputation management and enhancement services. On February 2, 2015 the Company changed its name to Force Protection Video Corp. to focus on the sale of mini body video cameras and accessories to consumers and law enforcement.  


Going Concern


The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America and applicable to a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.


During the six months ended October 31, 2016, the Company recognized revenue of $33,176 and a net operating loss of $402,112. As of October 31, 2016, the Company had net working capital of $11,014 and an accumulated deficit of $2,314,263.


In view of these conditions, the ability of the Company to continue as a going concern is in doubt and dependent upon achieving a profitable level of operations and on the ability of the Company to obtain necessary financing to fund ongoing operations. Historically, the Company has relied upon funds from the sale of shares of stock, issuance of promissory notes and loans from its shareholders and private investors to finance its operations and growth. Management is planning to raise necessary additional funds for working capital through loans and/or additional sales of its common stock. However, there is no assurance that the Company will be successful in raising additional capital or that such additional funds will be available on acceptable terms, if at all. Should the Company be unable to raise this amount of capital its operating plans will be limited to the amount of capital that it can access. These financial statements do not give effect to any adjustments which will be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying financial statements.


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  


Basis of Presentation


The unaudited financial statements of Force Protection Video Equipment Corp. (the “Company”) as of October 31, 2016, and for the three and six months ended October 31, 2016 and 2015, have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting. Accordingly, they do not include all of the disclosures required by accounting principles generally accepted in the United States for complete financial statements and should be read in conjunction with the audited financial statements and notes thereto for the year ended April 30, 2016, as filed with the Securities and Exchange Commission as part of the Company’s Form 10-K. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the interim financial information have been included. The Company did not record an income tax provision during the periods presented due to net taxable losses. The results of operations for any interim period are not necessarily indicative of the results of operations for the entire year.



7






Estimates


The preparation of the Company’s financial statements requires management to make estimates and use assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. On an on-going basis, the Company evaluates its estimates. Actual results and outcomes may differ materially from these estimates and assumptions.


Cash and Cash Equivalents


The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents.


Inventory


Our inventory is comprised of finished goods, cameras and recording equipment. The Company’s inventory is stated at the lower of cost or market. The Company also makes prepayments against the future delivery of inventory classified as prepaid inventory.


Accounts Receivable


Accounts receivable are reported at the customers' outstanding balances.  The Company does not have a history of significant bad debt and has not recorded any allowance for doubtful accounts.  Interest is not accrued on overdue accounts receivable.  The Company evaluates receivables on a regular basis for potential reserve.


Property and Equipment


Fixed assets are carried at cost, less accumulated depreciation and amortization. Major improvements are capitalized, while repair and maintenance are expensed when incurred. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period.


For federal income tax purposes, depreciation is computed under the modified accelerated cost recovery system. Depreciation for financial statement purposes is computed on a straight-line basis over estimated useful lives of the related assets. The estimated useful lives of depreciable assets are:


   

  

Estimated

  

  

Useful Lives

 Vehicles

 

     5 years

Office Equipment

  

3 - 5 years

Furniture & equipment

  

5 - 7 years




8






Income Taxes


The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry-forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized. The Company reports a liability for unrecognized tax benefits resulting from uncertain income tax positions, if any, taken or expected to be taken in an income tax return. Estimated interest and penalties are recorded as a component of interest expense or other expense, respectively.


Revenue Recognition


The Company recognizes revenue when (a) pervasive evidence of an arrangement exists (b) products are delivered or services have been rendered (c) the sales price is fixed or determinable, and (d) collection is reasonably assured.


Marketing and Advertising Costs


Marketing and advertising costs are anticipated to be expensed as incurred. The Company recognized $22,513 and $68,874 in marketing and advertising costs during the three and six months ended October 31, 2016, respectively. The Company recognized $3,929 and $18,226 in marketing and advertising costs during the three and six months ended October 31, 2015, respectively.


Stock Based Compensation


The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.


Fair Value Measurements


Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:


Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;


Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and



9






Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.


As of October 31, 2016 and April 30, 2016, the Company did not have any assets or liabilities that were required to be measured at fair value on a recurring basis or on a non-recurring basis.  


Fair Value of Financial Instruments


The Company’s financial instruments consist of cash and cash equivalents and accounts payable and accrued expenses. The carrying amounts of the Company’s financial instruments approximate fair value because of the short term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect those estimates. We do not hold or issue financial instruments for trading purposes, nor do we utilize derivative instruments.


Net Income (Loss) Per Share


The computation of basic earnings per share (“EPS”) is based on the weighted average number of shares that were outstanding during the period, including shares of common stock that are issuable at the end of the reporting period. The computation of diluted EPS is based on the number of basic weighted-average shares outstanding plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares outstanding using the treasury stock method. The computation of diluted net income per share does not assume conversion, exercise or contingent issuance of securities that would have an antidilutive effect on earnings per share. Therefore, when calculating EPS, if the Company experienced a loss, there is no inclusion of dilutive securities as their inclusion in the EPS calculation is antidilutive. Furthermore, options and warrants will have a dilutive effect under the treasury stock method only when the average market price of the common stock during the period exceeds the exercise price of the options or warrants (they are in the money).


Following is the computation of basic and diluted net loss per share for the three and six months ended October 31, 2016 and 2015:


 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

October 31,

 

October 31,

 

 

 

2016

 

2015

 

2016

 

2015

Basic and Diluted EPS Computation

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

Loss available to common stockholders'

 

$

(349,926)

 

$

(149,347)

 

$

(839,138)

 

$

(202,389)

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

160,873,532 

 

18,746,707 

 

110,129,348 

 

18,633,109 

Basic and diluted EPS

 

$

(0.00)

 

$

(0.01)

 

$

(0.01)

 

$

(0.01)

Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares):

 

 

 

 

 

Convertible promissory notes

 

        50,491,376

 

          497,772

 

        50,491,376

 

          497,772




10





Concentrations of risk


During the three months ended October 31, 2016, three customers accounted for 50.2% (19.8%, 17.2% and 13.2%) of sales. During the three months ended October 31, 2015, two customers accounted for 26.1% (16.0% and 10.1%) of sales.


During the six months ended October 31, 2016, one customer accounted for 10.4% of sales. During the six months ended October 31, 2015, no customer accounted for more than 10% of sales.


The Company relies on third parties for the supply and manufacture of its capture devices, some of which are sole-source suppliers.  The Company believes that outsourcing manufacturing enables greater scale and flexibility. As demand and product lines change, the Company periodically evaluates the need and advisability of adding manufacturers to support its operations.  In instances where a supply and manufacture agreement does not exist or suppliers fail to perform their obligations, the Company may be unable to find alternative suppliers or satisfactorily deliver its products to its customers on time, if at all.  During the three months ended October 31, 2016, one supplier accounted for 62.5% of our inventory purchases. During the six months ended October 31, 2016, two suppliers accounted for 88.0% (76.2% and 11.8%) of our inventory purchases. During the three months ended October 31, 2015, one supplier accounted for 96.4% of our inventory purchases. During the six months ended October 31, 2015, one supplier accounted for 95.0% of our inventory purchases.


Recent Accounting Pronouncements


In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02 amending the accounting for leases. The new guidance requires the recognition of lease assets and liabilities for operating leases with terms of more than 12 months, in addition to those currently recorded, on our balance sheets. Presentation of leases within the statements of operations and statements of cash flows will be generally consistent with the current lease accounting guidance. The ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company does not expect this accounting update to have a material effect on its financial statements.


In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). This ASU eliminates the requirement for retrospective application of measurement period adjustments relating to provisional amounts recorded in a business combination as of the acquisition date. The amendments in this update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments will be effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. The Company does not expect this accounting update to have a material effect on its financial statements in future periods, although that could change.


In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). This ASU provides guidance about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the arrangement should be accounted for as a service contract. For public business entities, the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted.



11






In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU requires retrospective adoption and will be effective for fiscal years beginning after December 15, 2015 and for interim periods within those fiscal years. We expect the adoption of this guidance will not have a material impact on our financial statements.


In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. In March 2016, the FASB issued ASU 2016-08 to further clarify the implementation guidance on principal versus agent considerations. The guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The Company does not expect this accounting update to have a material effect on its financial statements.


We review new accounting standards as issued. Although some of these accounting standards issued or effective after the end of our previous fiscal year may be applicable to us, we have not identified any standards that we believe merit further discussion. We believe that none of the new standards will have a significant impact on our financial statements.


NOTE 3 - FIXED ASSETS


Fixed assets consisted of the following:


 

 

 

October 31,

 

April 30,

 

 

 

2016

 

2016

 

 Vehicles

 

$

15,376 

 

$

 

Furniture and fixtures

 

6,212 

 

6,212 

 

Computers and office equipment

 

2,480 

 

1,376 

 

   Total fixed assets

 

24,068 

 

7,588 

 

Accumulated depreciation

 

(2,701)

 

(476)

 

Total fixed assets

 

$

21,367 

 

$

7,112 


During the three months ended October 31, 2016 and 2015, the Company recognized $1,288 and $0, respectively, in depreciation expense. During the six months ended October 31, 2016 and 2015, the Company recognized $2,224 and $0, respectively, in depreciation expense.



12






NOTE 4 – CONVERTIBLE PROMISSORY NOTES


Following is a summary of our outstanding convertible promissory notes as of October 31, 2016:


 

 

 

 

 

 

Current Balances

Lender

 

Issue Date

 

Maturity

 

Principle

 

Interest

 

Total

RDW Capital, LLC Note 2

 

12/31/2015

 

6/30/16

 

$

 

$

13,405

 

$

13,405

RDW Capital, LLC Note 3

 

3/10/2016

 

9/10/16

 

792 

 

-

 

792

RDW Capital, LLC Note 4

 

5/13/2016

 

11/13/16

 

92,680 

 

3,790

 

96,470

RDW Capital, LLC Note 5

 

5/20/2016

 

11/20/16

 

52,500 

 

1,968

 

54,468

RDW Capital, LLC Note 6

 

8/22/2016

 

2/22/17

 

157,500 

 

2,469

 

159,969

RDW Capital, LLC Note 7

 

9/1/2016

 

3/1/17

 

157,500 

 

2,113

 

159,613

   Totals

 

 

 

 

 

$

460,972 

 

$

23,745

 

$

484,717

Debt discount balance

 

 

 

 

 

(181,824)

 

 

 

 

   Balance sheet balances

 

 

 

 

 

$

279,148 

 

 

 

 


Following is a summary of our outstanding convertible promissory notes as of April 30, 2016:


 

 

 

 

 

 

Current Balances

Lender

 

Issue Date

 

Maturity

 

Principle

 

Interest

 

Total

LG Capital Funding, LLC

 

4/20/2016

 

9/11/2016

 

$

13,000 

 

$

34

 

$

13,034

Black Forest Capital, LLC

 

10/8/2015

 

10/8/2016

 

19,500 

 

3,001

 

22,501

RDW Capital, LLC Note 1

 

11/10/2015

 

5/10/16

 

157,500 

 

6,136

 

163,636

RDW Capital, LLC Note 2

 

1/0/1900

 

6/30/16

 

105,000 

 

2,861

 

107,861

RDW Capital, LLC Note 3

 

3/10/2016

 

9/10/16

 

792 

 

614

 

1,406

   Totals

 

 

 

 

 

$

295,792 

 

$

12,646

 

$

308,438

Debt discount balance

 

 

 

 

 

(204,718)

 

 

 

 

   Balance sheet balances

 

 

 

 

 

$

91,074 

 

 

 

 




13






The company determined that each convertible promissory notes conversion feature is indexed to the Company’s stock, which is an input to a fair value measurement of a fixed-for-fixed option on equity shares. Thus, the conversion feature of the notes meets the scope exception under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification ("ASC") 815-40-15-7 and treatment under ASC 470-20 – Debt with Conversion and Other Options is appropriate.


LG Capital Funding, LLC


On September 11, 2015 the Company entered into a Securities Purchase Agreement with LG Capital Funding, LLC ("LG") for the sale of an 8% convertible note in the principal amount of $81,000 and proceeds of $75,000 net of legal expenses (the “LG Note”).


The LG Note was convertible into common stock at a price equal to 60% of the lowest trading price during the 20 trading days immediately preceding the applicable conversion.  


The LG Note principle was discounted for the value of the legal fees of $6,000 and the intrinsic value of the beneficial conversion feature of $68,000. The resulting $74,000 discount was fully accreted through July 31, 2016 due to full repayment of the LG Note on May 2, 2016.


During the six months ended October 31, 2016, the Company recognized no interest expense and debt discount accretion of $7,741. On May 2, 2016, LG converted the remaining $13,034 of principal and interest into 775,844 shares of common stock.


Black Forest Capital, LLC


On October 8, 2015 the Company sold and Black Forest Capital, LLC (“Black Forest”) purchased a 10% convertible note in the principal amount of $53,000 (the “Black Forest Note”) of which the Company received $50,000 after payment of legal fees. The Black Forest Note matured in 12 months on October 8, 2016. The Black Forest Note was convertible into common stock, at Black Forest’s option anytime following the issuance date, at a price for each share of common stock equal to 40% of the lowest trading price during the 20 trading days immediately preceding the applicable conversion.


The Black Forrest Note principle was discounted for the value of legal fees of $3,000 and the intrinsic value of the beneficial conversion feature of $50,000. The calculated intrinsic value was $127,199. As this amount resulted in a total debt discount that exceeded the Black Forest Note principal, the discount recorded for the beneficial conversion feature was limited to the principal amount of the Black Forest Note. The resulting $53,000 discount was accreted through July 31, 2016 due to repayment of the Black Forest Note.


During the six months ended October 31, 2016, the Company recognized no interest expense and debt discount accretion of $9,992. During the six months ended October 31, 2016, Black Forrest converted the remaining $22,499 of principal and interest into 11,076,775 shares of common stock.



14






RDW Capital, LLC


On November 12, 2015, the Company entered into a Securities Purchase Agreement (“RDW SPA 1”) with RDW Capital, LLC (“RDW”), a Florida limited liability company. On November 12, 2015, the Company and RDW entered into the First Amended Securities Purchase Agreement. On November 12, 2015, the Company and RDW entered into the Second Amended Securities Purchase Agreement. On February 17, 2016, the Company and RDW entered into the Third Amended Securities Purchase Agreement. On February 17, 2016, the Company and RDW entered into the Fourth Amended Securities Purchase Agreement. On May 9, 2016, the Company and RDW entered into a Securities Purchase Agreement (“RDW SPA 2”). On August 22, 2016, the Company and RDW entered into a Securities Purchase Agreement (“RDW SPA 3”). On September 1, 2016, the Company and RDW entered into a Securities Purchase Agreement (“RDW SPA 4”). RDW SPA 1, amendments thereto, RDW SPA 2, RDW SPA 3 and RDW SPA 4 may hereinafter be referred to collectively as, the “RDW SPAs”.


RDW Note 1 - In connection with RDW SPA 1 and amendments thereto, on November 12, 2016, the Company issued to RDW a convertible note (“RWD Note 1”) due on April 10, 2016 in the principal amount of $157,500 of which the Company received proceeds of $130,000 after payment of a $7,500 original issue discount (“OID”) and legal and due diligence fees totaling $20,000.


RDW Note 1 principle was discounted for the value of the OID, due diligence fees and the intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $121,406. As this amount resulted in a total debt discount that was less than RDW Note 1 principal, the full $121,406 discount was recognized. The resulting $148,906 discount was accreted over the 5 month term of RDW Note 1 through April 10, 2016.


RDW Note 2 - In connection with RDW SPA 1 and amendments thereto, on December 31, 2015, the Company issued to RDW a convertible note (“RDW Note 2”) due on June 30, 2016 in the principal amount of $105,000 of which the Company received proceeds of $90,000 after payment of a $5,000 OID and due diligence fees totaling $10,000.


RDW Note 2 principle was discounted for the value of the OID, due diligence fees and the intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $98,086. As this amount resulted in a total debt discount that exceeds RDW Note 2 principal, the discount recorded for the beneficial conversion feature was limited to the principal amount of RDW Note 2. The resulting $105,000 discount was accreted over the 5 month term of RDW Note 2 through June 30, 2016.


RDW Note1 and RDW Note 2 - During the three and six months ended October 31, 2016, the Company recognized the following transactions related to RDW Note 1 and RDW Note 2:


·

Recorded $651 and $4,407 of interest expense, respectively,

·

Recorded $35,192 and $35,192 of debt discount accretion, respectively,

·

Issued 80,281,822 shares of common stock upon the conversion of $115,293 of note principle during the three months ended October 31, 2016 and issued 115,939,107 shares of common stock upon the conversion of $262,500 of note principle during the six months ended October 31, 2016.


RDW Note 3 - In connection with RDW SPA 1 and amendments thereto, on March 10, 2016, the Company issued to RDW a convertible note (“RDW Note 3”) due on September 10, 2016 in the principal amount of $210,000 of which the Company received proceeds of $180,000 after payment of a $10,000 OID and due diligence fees totaling $20,000.



15






RDW Note 3 principal was discounted for the OID, due diligence fees, stock issued to an advisor in connection with RDW Note 3 totaling $18,000, and the intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $227,391. As this amount resulted in a total debt discount that exceeded RDW Note 3 principal, the discount recorded for the beneficial conversion feature was limited to the principal amount of RDW Note 3. The resulting $210,000 discount was accreted through April 30, 2016, the date RDW Note 3 was paid down to a principal and interest balance of $1,405.


During the three and six months ended October 31, 2016, the Company recognized -$613 of interest expense and $151,793 of debt discount accretion related to RDW Note 3.


RDW Note 4 - In connection with RDW SPA 2, on May 13, 2016, the Company issued to RDW a convertible note (“RDW Note 4”) due on November 13, 2016 in the principal amount of $105,000 of which the Company received proceeds of $82,500 after payment of a $5,000 OID, $7,500 of legal fees and $10,000 of due diligence fees.


RDW Note 4 principle was discounted for the value of the OID, legal fees due diligence fees and intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $70,000. As this amount resulted in a total debt discount that was less than RDW Note 4 principal, the full $70,000 discount was recognized. The resulting $92,500 discount is being accreted over the 6 month term of RDW Note 4 through November 13, 2016.


During the three and six months ended October 31, 2016, the Company recognized the following transactions related to RDW Note 4:


·

Recorded $1,971 and $3,789 of interest expense, respectively,

·

Recorded $46,250 and $85,965 of debt discount accretion, respectively,

·

Issued 8,800,000 shares of common stock upon the conversion of $12,320 of note principle during the three and six months ended October 31, 2016.


RDW Note 5 - In connection with RDW SPA 2, on May 20, 2016, the Company issued to RDW a convertible note (“RDW Note 5”) due on November 20, 2016 in the principal amount of $52,500 of which the Company received proceeds of $45,000 after payment of a $2,500 OID and $5,000 of due diligence fees.


RDW Note 5 principle was discounted for the value of the OID, due diligence fees and intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $35,000. As this amount resulted in a total debt discount that was less than RDW Note 5 principal, the full $35,000 discount was recognized. The resulting $42,500 discount is being accreted over the 6 month term of RDW Note 5 through November 20, 2016.


During the three and six months ended October 31, 2016, the Company recognized the following transactions related to RDW Note 5:


·

Recorded $1,059 and $1,968 of interest expense, respectively,

·

Recorded $21,250 and $37,880 of debt discount accretion, respectively,


RDW Note 6 - In connection with RDW SPA 3, on August 22, 2016, the Company issued to RDW a convertible note (“RDW Note 6”) due on February 22, 2017 in the principal amount of $157,500 of which the Company received proceeds of $130,000 after payment of a $7,500 OID and legal and due diligence fees totaling $20,000.


RDW Note 6 principle was discounted for the value of the OID, legal and due diligence fees and intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $105,000. As this amount resulted in a total debt discount that was less than RDW Note 6 principal, the full $105,000 discount was recognized. The resulting $132,500 discount is being accreted over the 6 month term of RDW Note 6 through February 22, 2017.



16






During the three months ended October 31, 2016, the Company recognized $2,469 of interest expense and $50,408 of debt discount accretion related to RDW Note 6.


RDW Note 7 – In connection with RDW SPA 4 under which RDW agreed to purchase an aggregate of up to $367,500 in principal amount of notes, on September 1, 2016, the Company issued to RDW a convertible note (“RDW Note 7”) due on March 1, 2017 in the principal amount of $157,500 of which the Company received proceeds of $130,000 after payment of a $7,500 OID and legal and due diligence fees totaling $20,000. The second tranche for $210,000 will occur on the date that is two trading days from the date a registration statement is declared effective by the SEC.


RDW Note 7 principle was discounted for the value of the OID, legal and due diligence fees and intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $105,000. As this amount resulted in a total debt discount that was less than RDW Note 7 principal, the full $105,000 discount was recognized. The resulting $132,500 discount is being accreted over the 6 month term of RDW Note 7 through March 1, 2017.


During the three months ended October 31, 2016, the Company recognized $2,114 of interest expense and $43,923 of debt discount accretion related to RDW Note 7.


RDW Note 1, RDW Note 2, RDW Note 3, RDW Note 4, RDW Note 5, RDW Note 6 and RDW Note 7 may hereinafter be referred to collectively as, the RDW Notes.


The RDW Notes have the following terms and conditions:


· The principal amount outstanding accrues interest at a rate of eight percent (8%) per annum.

· Interest is due and payable on each conversion date and on the Maturity Date.

· At any time, at the option of the holder, the RDW notes are convertible, into shares of our common stock at a conversion price equal to sixty percent (60%) of the lowest traded price of our common stock in the twenty (20) days prior to the conversion date, at any time, at the option of the holder (the Conversion Price).

· The RDW Notes are unsecured obligations.

· We may prepay the RDW Notes in whole or in part at any time with ten (10) days written notice to the holder for the sum of the outstanding principal and interest multiplied by one hundred and thirty percent (130%).  RDW may continue to convert the notes from the date of the notice of prepayment until the date of prepayment.

·  Default interest of twenty-four percent (24%) per annum.

· Interest on overdue accrued and unpaid interest will incur a late fee of the lower of eighteen percent (18%) per annum or the maximum rate permitted by law.

· Upon an event of default, RDW may accelerate the outstanding principal, plus accrued and unpaid interest, and other amounts owing through the date of acceleration (Acceleration).

· Upon Acceleration, the amount due will be one hundred thirty percent (130%) of the outstanding principal amount of the Note and accrued and unpaid interest, together with payment of all other amounts, costs, expenses and liquidated damages.

· In the event of our default, at the request of the holder, we must pay one hundred fifty percent (150%) of the outstanding balance plus accrued interest and default interest.

· We must reserve three (3) times the amount of shares necessary for the issuance of common stock upon conversion. 



17






· Conversions of the RDW Notes shall not be permitted if such conversion will result in the holder owning more than four point ninety-nine percent (4.99%) of our common shares outstanding after giving effect to such conversion.


In total, during the three and six months ended October 31, 2016, the Company recognized $7,651 and $14,134, respectively, of interest expense and $161,831 and $405,161, respectively, of debt discount accretion related to the RDW Notes.


In total, during the three months ended October 31, 2016, RDW converted $127,613 of RDW Note principal into 89,081,822 shares of common stock. In total, during the six months ended October 31, 2016, RDW converted $274,820 of RDW Note principal into 124,739,107 shares of common stock.


NOTE 5 – COMMITMENTS AND CONTINGENCIES


Product Warranties


Our products are sold with a one (1) year manufacturer’s warranty. The Company has no obligation to provide warranty service or replacement. The Company does offer an extended warranty for a fee. The extended warranty expires one year from the day the manufacturer warranty expires. Warranty costs during the second year of an extended warranty are born by the manufacturer. As a result, the Company has no, or limited warranty liability exposure.


Operating Lease


On March 21, 2015, the Company entered into a lease of office space at 130 Iowa Lane, Suite 102, Carry, North Carolina 27511. The lease expires on March 31, 2018. The Company has no other noncancelable operating leases. Future minimum lease payments under this operating lease with an initial term in excess of one year as of October 31, 2016 are as follows:


Fiscal Year

2017

$7,314

2018

$14,920

2019

$10,144

Thereafter

$0


During the three months ended October 31, 2016 and 2015, rent expense for office space totaled $3,882 and $3,000, respectively. During the six months ended October 31, 2016 and 2015, rent expense for office space totaled $7,576 and $5,250, respectively.


Supplier Purchase Commitments


The Company periodically makes contractual, advance inventory purchases in the ordinary course of business. As of October 31, 2016, the Company was obligated to purchase $11,000 of inventory under a non-exclusive distribution agreement.


NOTE 6 – STOCKHOLDER'S EQUITY


As of October 31, 2016 and April 30, 2016, there were 177,117,321 and 40,525,595 shares of common stock outstanding, respectively and there were 1,000,000 and 1,000,000 shares of Series A Preferred Stock outstanding, respectively.



18






On January 19, 2016, we amended our Articles of Incorporation to increase our authorized common stock from 50,000,000 shares to 250,000,000 shares and authorized the creation of 1,000,000 shares of Series A preferred stock with each share being entitled to 200,000 (i.e., 200:1) votes per share and with no right of conversion into shares of common stock.


On August 4, 2016, we approved an amendment to our Articles of Incorporation to increase our authorized common stock from 250,000,000 shares to 750,000,000 shares and authorized Series A preferred stock from 1,000,000 shares to 5,000,000 shares. The amendment became effective September 8, 2016.


During the six months ended October 31, 2016, the company issued 136,591,726 shares of common stock upon the conversion of convertible promissory note principal and interest totaling $310,352.


During the year ended April 30, 2016, the Company issued preferred stock and common stock as follows:


·

10,095 shares of common stock were issued in exchange for services valued at the close price of our stock resulting in stock compensation expense of $14,500.

·

31,912 shares of common stock were issued in connection with RDW Note 3 and valued at $18,000 as stated in the related agreements.

·

450,000 shares of common stock were issued for cash of $0.10 per share resulting in the Company receiving $45,000.  

·

1,000,000 shares of non-convertible Series A Preferred Stock to Paul Feldman, CEO, which entitle him to 200,000 votes per share or an aggregate of 200,000,000 votes on all matters submitted to our common stockholders. We valued the 1,000 Series A shares at $.0001 per share or an aggregate of $1,000.

·

21,738,588 shares of common stock were issued upon the conversion of $618,708 of convertible note principal and interest. 


NOTE 7 – SUBSEQUENT EVENTS


Management has reviewed material events subsequent of the quarterly period ended October 31, 2016 and prior to the filing of financial statements in accordance with FASB ASC 855 “Subsequent Events”.  


RDW converted $54,090 of convertible note principal into 18,030,000 shares of common stock.



19






ITEM 2.    MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


Forward Looking Statements

 

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed  financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our April 30, 2016 Annual Report on Form 10-K.

 

This Quarterly Report on Form 10-Q contains forward-looking statements. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations and financial position, business strategy and plans and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our estimates of our financial results and our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

 

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Quarterly Report on Form 10-Q to conform these statements to actual results or to changes in our expectations.

 

You should read this Quarterly Report on Form 10-Q and the documents that we reference in this Quarterly Report on Form 10-Q and have filed with the Securities and Exchange Commission (the “SEC”) with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect.

 

As used herein, the “Company,” “our,” “we,” or “us” and similar terms refers to Enhance-Your-Reputation.com, Inc. unless the context indicates otherwise.


Overview


The Company is in the business of selling video and audio capture devices initially targeted to law enforcement agencies. The Company has established a web site at www.forceprovideo.com whereby customers can view the Company’s products and place orders. We believe that given recent current events between law enforcement agencies and the public, which has been widely reported by the media, there is a significant market opportunity for the Company’s products.  



20






Products


Our video and audio capture devices are compact, ergonomic, tamperproof and designed to capture HD video and/or audio on demand enabling our customers to capture content while engaged in a wide range of activity. We also sell accessories that enhance the functionality and versatility of our products, including mounts, such as the helmet, handlebar, roll bar and tripod mounts, as well as mounts that enable users to wear the camera on their bodies, such as the wrist housing, chest harness and head strap. Other accessories include spare batteries, charging accessories and memory drives. Our products are marketed primarily to law enforcement due to their unique need to capture important events in the course of their duties.


Our primary hardware products consist of the LE10 Law Enforcement Video Recorder, LE50 HD Body Cam, SC1 Sunglass Camera and Citadel 3G Solar Security Camera


Distribution


Customers purchase products from our website and by telephone order. All products are shipped from our manufacturer to our facility in North Carolina where we process and ship product to our customers using Federal Express or United Parcel Services. Customers pay all shipping charges.


Marketing


Currently, our sales and marketing efforts include print marketing brochures featuring our products to state and local law enforcement agencies. We create and deliver brochures to state and local law enforcement, every four (4) weeks, using U.S. Mail.


Results of Operations


As of October 31, 2016, we had total assets of $360,566 and total liabilities of $327,111.  Since our inception to October 31, 2016, we have accumulated a deficit of $2,314,263. We anticipate that we will continue to incur losses for the foreseeable future. Our financial statements have been prepared assuming that we will continue as a going concern. We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through the sale of equity or debt securities.


Three and six months ended October 31, 2016 compared with the three and six months ended October 31, 2015


Revenue


Revenue is generated from the sale of our video and audio capture devices and related accessories. For the three months ended October 31, 2016, the Company recognized $17,464 of revenue compared to $19,614 during the three ended October 31, 2015. For the six months ended October 31, 2016, the Company recognized $33,176 of revenue compared to $35,548 during the six ended October 31, 2015. Sales were down $2,150 and $2,372 for the three and six months, respectively compared to the prior year. The decrease in sales is due to a slight decrease in product demand. To increase future sales volume, the Company has begun to actively seek out and submit competitive product quotes in response to police department requests for quotes (“RFQ”) domestically and internationally. The Company expects sales subject to RFQ to close between 3 to 12 months from submission.



21





Gross profit


Gross profit was $5,091 and $7,198 during the three months ended October 31, 2016 and 2015, respectively. Gross profit was $9,400 and $13,431 during the six months ended October 31, 2016 and 2015, respectively. Our Gross margin for the three months ended October 31, 2016 and 2015 was 29.2% and 36.7%, respectively. Our Gross margin for the six months ended October 31, 2016 and 2015 was 28.3% and 37.8%, respectively. The year-over-year decrease in gross margin was due to increased volumes of lower margin product. The Company anticipates fluctuations in the mix of product sales and cannot meaningfully determine at this early stage if our gross margin will increase or decrease with any degree of accuracy.


Operating Expenses


General and administrative costs include costs related to personnel, professional fees, travel and entertainment, public company costs, insurance and other office related costs. General and administrative costs increased to $154,957 during the three months ended October 31, 2016 compared to $102,925 during the three months ended October 31, 2015. General and administrative costs increased to $322,306 during the six months ended October 31, 2016 compared to $147,640 during the six months ended October 31, 2015. General and administrative costs increased due to the Company beginning meaningful operations to promote and sell our products and administer the Company.


Sales and marketing costs include costs to promote and sell our products. Sales and marketing costs increased to $30,579 during the three months ended October 31, 2016 compared to $6,345 the three months ended October 31, 2015. Sales and marketing costs increased to $89,205 during the six months ended October 31, 2016 compared to $20,905 the six months ended October 31, 2015. Sales and marketing costs increased due to increased marketing activities to brand and promote our products.


Other Income (Expense)


All the elements of other expense relate to our convertible promissory notes. During the three months ended October 31, 2016 and 2015, other expense totaled $169,482 and $47,275, respectively. During the six months ended October 31, 2016 and 2015, other expense totaled $437,026 and $47,275, respectively.


Liquidity and Working Capital


Our principal source of liquidity is cash in the bank and salable inventory. As of October 31, 2016, our current assets totaled $337,254 and were comprised primarily of $158,603 in cash and $147,930 of inventory. We expect to incur losses as we introduce our products and services. These conditions raise doubt about our ability to continue as a going concern. Management recognizes that in order for us to meet our capital requirements, and continue to operate, additional financing will be necessary. We expect to raise additional funds through private or public equity investment in order to expand the range and scope of business operations. We will try to raise additional funds through private or public equity but there is no assurance that such additional funds will be available for us to finance our operations on acceptable terms, if at all. If we are unable to raise additional capital or generate positive cash flow, it is unlikely that we will be able to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.


For the six months ended October 31, 2016, net cash flows used in operating activities was $439,690, compared to $197,881 for the six months ended October 31, 2015.


For the six months ended October 31, 2016, net cash flows used in investing activities was $16,480, compared to $671 for the six months ended October 31, 2015.


For the six months ended October 31, 2016, we generated cash flows from financing activities of $387,500 from the issuance of convertible promissory notes compared to $45,000 from the sale of common stock and $288,004 of convertible promissory notes for the six months ended October 31, 2015. To date, we have financed our operations primarily through the issuance of debt and equity.



22






Off­Balance Sheet Arrangements


We have no off-balance sheet arrangements.


Recently Issued Accounting Pronouncements


See Note 2 to our Financial Statements for more information regarding recent accounting pronouncements and their impact to our results of operations and financial position.



ITEM 4.        CONTROLS AND PROCEDURES


Disclosure Controls and Procedures


As of October 31, 2016, under the direction of the Chief Executive Officer and Chief Financial Officer, the Company evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a — 15(e) under the Securities Exchange Act of 1934, as amended.  Based on the evaluation of these controls and procedures required by paragraph (b) of Sec. 240.13a-15 or 240.15d-15 the disclosure controls and procedures have been found to be ineffective.


The Company maintains a set of disclosure controls and procedures designed to ensure that information required to be disclosed by us in our reports filed under the securities Exchange Act, is recorded, processed, summarized, and reported within the time periods specified by the SEC’s rules and forms. Disclosure controls are also designed with the objective of ensuring that this information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.


Management’s assessment of ineffectiveness is due to the following:


(1)     Lack of segregation of duties.  Management has found it necessary to limit the Company’s administrative staffing in order to conserve cash, until the Company’s level of business activity increases. As a result, there is limited segregation of duties amongst the employees, and the Company has identified this as a material weakness in the Company’s internal controls. The Company intends to remedy this material weakness by hiring additional employees and reallocating duties, including responsibilities for financial reporting, among the employees as soon as there are sufficient resources available. However, until such time, this material weakness will continue to exist. Despite the limited number of employees and limited segregation of duties, management believes that the Company is capable of following its disclosure controls and procedures effectively.


(2)     Lack of in-house US GAAP Expertise.  Our current accounting personnel perform adequately in the basic accounting and recordkeeping function.  However, our operations and business practices include complex technical accounting issues that are outside the routine basic functions.  These technical accounting issues are complex and require significant expertise to ensure that the accounting and reporting are accurate and in accordance with generally accepted accounting principles. 


Changes in internal controls

 

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.




23






PART II - OTHER INFORMATION



ITEM 2.         UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS


During the three months ended October 31, 2016, the Company issued 89,081,822 shares of common stock to RDW Capital, LLC upon the conversion of debt totaling $127,613.


ITEM 5.           OTHER INFORMATION


None.


ITEM 6.           EXHIBITS


(a)  The exhibits required to be filed herewith by Item 601 of Regulation S-K, as described in the following index of exhibits, are incorporated herein by reference, as follows:

 

Exhibit No.  

 

Description

3.1

 

Articles of Incorporation dated March 11, 2011 (1)

3.2

 

Amendment to Articles of Incorporation dated March 28, 2011 (1)

3.3

 

Amendment to Articles of Incorporation dated September 25, 2013 (1)

3.4

 

Amendment to Articles of Incorporation dated January 30, 2015 (1)

3.5

 

Amendment to Articles of Incorporation dated December 1, 2015 (1)

3.6

 

Amendment to Articles filed on January 19, 2016 to increase the authorized common stock outstanding from 50,000,000 to 250,000,000; par value $0.0001 and to create a series of preferred stock consisting of 1,000,000 shares designated as Series A Preferred stock;  par value $0.0001 (1)

3.7

 

Amendment to Articles of Incorporation effective September 8, 2016 to increase the authorized common stock outstanding to 750,000,000; par value $0.0001 and increase Series A Preferred stock to 5,000,000;  par value $0.0001 (7)

3.7

 

Bylaws (1)

10.1

 

Securities Purchase Agreement dated November 12, 2015 with RDW Capital, LLC (1)

10.2

 

First Amended Securities Purchase Agreement dated November 12, 2015 with RDW Capital LLC (1)

10.3

 

Second Amended Securities Purchase Agreement dated November 12, 2015 with RDW Capital, LLC (1)

10.4

 

Registration Rights Agreement dated November 12, 2015 with RDW Capital, LLC (1)

10.5

 

Convertible Promissory Note dated November 12, 2015 held by RDW Capital, LLC (1)

10.6

 

Convertible Promissory Note dated December 31, 2015 held by RDW Capital, LLC (2)

10.7

 

Convertible Promissory Note dated March 10, 2016 held by RDW Capital, LLC (5)

10.8

 

Third Amended Securities Purchase Agreement dated February 17, 2016 with RDW Capital, LLC (1)

10.9

 

Fourth Amended Securities Purchase Agreement dated February 17, 2016 with RDW Capital, LLC (3)

10.10

 

Securities Purchase Agreement dated May 9, 2016 with RDW Capital, LLC (4)

10.11

 

Convertible Promissory Note dated May 13, 2016  held by RDW Capital, LLC (4)

10.12

 

Convertible Promissory Note dated May 20, 2016  held by RDW Capital, LLC (5)

10.13

 

Registration Rights Agreement dated May 9, 2016 with RDW Capital, LLC (4)

10.14

 

Securities Purchase Agreement dated August 22, 2016 with RDW Capital, LLC (6)

10.15

 

Convertible Promissory Note dated August 22, 2016  held by RDW Capital, LLC (6)

10.16

 

Securities Purchase Agreement dated September 1, 2016 with RDW Capital, LLC (7)

10.17

 

Convertible Promissory Note dated September 1, 2016  held by RDW Capital, LLC (7)

10.18

 

Registration Rights Agreement dated September 1, 2016 with RDW Capital, LLC (7)

10.19

 

Convertible Promissory Note dated October 8, 2015 with Black Forest Capital, LLC (1)



24






10.20

 

Convertible Promissory Note dated September 11, 2015 LG Capital Funding, LLC (1)

10.21

 

Employment Agreement Paul Feldman (1)

10.22

 

Shenzen AE Technology Purchase Order (1)

10.23

 

Agreement with Carter, Terry & Company (1)

 

 

 

31.1 *

 

Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

32.1 *

 

Certification of Principal Executive Officer and Principal 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 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**



* Filed herewith

(1) Incorporated by reference to Form S-1 filed on February 22, 2016.

(2) Incorporated by reference to Form 8-K filed on January 4, 2016.

(3) Incorporated by reference to Form S-1/A filed on March 11, 2016

(4) Incorporated by reference to Form 8-K filed on May 18, 2016.

(5) Incorporated by reference to Form 10-K filed on June 27, 2016.

(6) Incorporated by reference to Form 8-K filed on August 24, 2016.

(7) Incorporated by reference to Form S-1 filed on October 11, 2016.







25







Signatures


Pursuant to the requirements of the Exchange Act of 1934, the registrant had duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.


 

Force Protection Video Equipment Corp.

 

(Registrant)

 

 

 

By: /s/ Paul Feldman

December 13, 2016

Paul Feldman, President, CEO, CFO




26



EX-31.1 2 f311.htm EXHIBIT 31.1 Converted by EDGARwiz

Exhibit 31.1


CERTIFICATION PURSUANT TO RULE 13A-14(A) OF THE SECURITIES EXCHANGE ACT OF 1934

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


I, Paul Feldman, certify that:


1.

I have reviewed this quarterly report on Form 10-Q of Force Protection Video Equipment Corp. (the “Registrant”);


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.

As the registrant’s certifying officer I am 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 my supervision, to ensure that material information relating to the registrant is made known to me 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 my 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 my 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.

As the registrant's certifying officer I have disclosed, based on my 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 13, 2016

 

By: /s/ Paul Feldman

 

 

Paul Feldman

 

 

Chief Executive Officer and Chief Financial Officer

 

 

(Principal Executive Officer and Principal Financial Officer)




EX-32.1 3 f321.htm EXHIBIT 32.1 Converted by EDGARwiz

Exhibit 32.1


CERTIFICATION PURSUANT TO 18 U.S.C. 1350

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


In connection with the Quarterly Report of Force Protection Video Equipment Corp. (the “Company”) on Form 10-Q for the fiscal quarter ended October 31, 2016, I, Paul Feldman, Chief Executive Officer and Chief Financial Officer of Force Protection Video Equipment Corp., hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief, that:


(1)

Such Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2016, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


(2)

The information contained in such Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2016, fairly presents, in all material respects, the financial condition and results of operations of Force Protection Video Equipment Corp.



Date: December 13, 2016

 

By: /s/ Paul Feldman

 

 

Paul Feldman

 

 

Chief Executive Officer and Chief Financial Officer

 

 

(Principal Executive Officer and Principal Financial Officer)




EX-101.INS 4 fpvd-20161031.xml XBRL INSTANCE DOCUMENT 6721 3157 147930 70361 24000 59509 337254 360300 21367 7112 1945 1945 360566 369357 47092 30059 279148 91074 326240 121133 871 983 327111 122116 100 100 17711 4052 2329907 1718214 -1475125 33455 247241 360566 369357 0.0001 5000000 5000000 1000000 1000000 0.0001 0.0001 750000000 750000000 177117321 40525595 2224 1739 422894 43328 14500 -3564 -7163 -7761 -77569 -26347 35509 -12739 20066 -1049 -112 -439690 -197881 -16480 -671 -16480 -671 45000 387500 288004 387500 333004 -68670 134452 227273 35226 158603 169678 310352 17464 19614 35548 12373 12416 23777 22117 5091 7198 9400 13431 154957 102925 322306 147640 30579 6345 89205 20905 185536 109270 411511 168545 -180445 -102072 -402112 -155114 1184 1184 -7651 -3392 -14132 -3392 -161831 -43328 -422894 -43328 -1739 -1739 -169482 -47275 -437026 -47275 -349926 -149347 -839138 -202389 -489212 -0.01 -0.00 10-Q 2016-10-31 false Force Protection Video Equipment Corp. 0001518720 fpvd --04-30 177117321 Smaller Reporting Company Yes No No 2017 Q2 -149347 -839138 -202389 160873532 18746707 110129348 18633109 -0.01 -0.01 <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><u><font style='font-variant:small-caps'>NOTE 1 &#150;ORGANIZATION AND GOING CONCERN</font></u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="X-NONE">Organization</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Force Protection Video Equipment Corp., (the Company), was incorporated on March 11, 2011, under the laws of the State of Florida as M Street Gallery, Inc. &nbsp;On September 25, 2013, we changed our name to Enhance-Your-Reputation.com, Inc. and changed our business to providing reputation management and enhancement services. On February 2, 2015 the Company changed its name to Force Protection Video Corp. to focus on the sale of mini body video cameras and accessories to consumers and law enforcement.&#160; </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><font lang="X-NONE" style='line-height:107%'>Going Concern</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The Company&#146;s financial statements are prepared using accounting principles generally accepted in the United States of America and applicable to a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>During the six months ended October 31, 2016, the Company recognized revenue of $</font><font style='line-height:107%'>33,176 </font><font style='line-height:107%'>and a net operating loss of $</font><font style='line-height:107%'>402,112</font><font style='line-height:107%'>. As of October 31, 2016, the Company had net working capital of $</font><font style='line-height:107%'>11,014 </font><font style='line-height:107%'>and an accumulated deficit of $</font><font style='line-height:107%'>2,314,263</font><font style='line-height:107%'>.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>In view of these conditions, the ability of the Company to continue as a going concern is in doubt and dependent upon achieving a profitable level of operations and on the ability of the Company to obtain necessary financing to fund ongoing operations. Historically, the Company has relied upon funds from the sale of shares of stock, issuance of promissory notes and loans from its shareholders and private investors to finance its operations and growth. Management is planning to raise necessary additional funds for working capital through loans and/or additional sales of its common stock. However, there is no assurance that the Company will be successful in raising additional capital or that such additional funds will be available on acceptable terms, if at all. Should the Company be unable to raise this amount of capital its operating plans will be limited to the amount of capital that it can access. These financial statements do not give effect to any adjustments which will be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying financial statements.</font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'><b><u>NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</u></b>&nbsp;<b>&nbsp;</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.25in;line-height:normal;text-autospace:none'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="X-NONE">Basis of Presentation</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.25in;line-height:normal;text-autospace:none'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal;text-autospace:none'>The unaudited financial statements of Force Protection Video Equipment Corp. (the &#147;Company&#148;) as of October 31, 2016, and for the three and six months ended October 31, 2016 and 2015, have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting. Accordingly, they do not include all of the disclosures required by accounting principles generally accepted in the United States for complete financial statements and should be read in conjunction with the audited financial statements and notes thereto for the year ended April 30, 2016, as filed with the Securities and Exchange Commission as part of the Company&#146;s Form 10-K. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the interim financial information have been included. The Company did not record an income tax provision during the periods presented due to net taxable losses. The results of operations for any interim period are not necessarily indicative of the results of operations for the entire year.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'><b><i>Estimates</i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'><font lang="X-NONE">The preparation of the Company&#146;s financial statements </font><font lang="X-NONE">requires management to make estimates and use assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates and assumptions are affected by management&#146;s application of accounting policies. On an on-going basis, the Company evaluates its estimates. Actual results and outcomes may differ materially from these estimates and assumptions.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Cash and Cash Equivalents</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Inventory</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Our inventory is comprised of finished goods, cameras and recording equipment. The Company&#146;s inventory is stated at the lower of cost or market. The Company also makes prepayments against the future delivery of inventory classified as prepaid inventory.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Accounts Receivable</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Accounts receivable are reported at the customers' outstanding balances.&#160; The Company does not have a history of significant bad debt and has not recorded any allowance for doubtful accounts.&#160; Interest is not accrued on overdue accounts receivable.&#160; The Company evaluates receivables on a regular basis for potential reserve.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Property and Equipment</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Fixed assets are carried at cost, less accumulated depreciation and amortization. Major improvements are capitalized, while repair and maintenance are expensed when incurred. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'><font lang="X-NONE">For federal income tax purposes, depreciation is computed under the modified accelerated cost recovery system. Depreciation for financial statement purposes is computed on a straight-line basis over estimated useful lives of the related assets. The estimated useful lives of depreciable assets are:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="60%" style='width:60.0%'> <tr align="left"> <td width="35%" valign="bottom" style='width:35.44%;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&nbsp;&nbsp; </font></p> </td> <td width="30%" valign="top" style='width:30.38%;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&nbsp; </font></p> </td> <td width="34%" valign="bottom" style='width:34.18%;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Estimated</font></p> </td> </tr> <tr align="left"> <td width="35%" valign="bottom" style='width:35.44%;padding:0in 0in 1.3pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&nbsp; </font></p> </td> <td width="30%" valign="top" style='width:30.38%;padding:0in 0in 1.3pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&nbsp; </font></p> </td> <td width="34%" valign="bottom" style='width:34.18%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Useful Lives</font></p> </td> </tr> <tr align="left"> <td width="35%" valign="top" style='width:35.44%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&nbsp;Vehicles</font></p> </td> <td width="30%" valign="top" style='width:30.38%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&nbsp;</font></p> </td> <td width="34%" valign="bottom" style='width:34.18%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&#160;&#160;&#160;&#160; 5 years</font></p> </td> </tr> <tr align="left"> <td width="35%" valign="top" style='width:35.44%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Office Equipment</font></p> </td> <td width="30%" valign="top" style='width:30.38%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&nbsp; </font></p> </td> <td width="34%" valign="bottom" style='width:34.18%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>3 - 5 years</font></p> </td> </tr> <tr align="left"> <td width="35%" valign="top" style='width:35.44%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Furniture &amp; equipment</font></p> </td> <td width="30%" valign="top" style='width:30.38%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&nbsp; </font></p> </td> <td width="34%" valign="bottom" style='width:34.18%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>5 - 7 years</font></p> </td> </tr> </table> </div> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Income Taxes</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry-forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized. The Company reports a liability for unrecognized tax benefits resulting from uncertain income tax positions, if any, taken or expected to be taken in an income tax return. Estimated interest and penalties are recorded as a component of interest expense or other expense, respectively.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Revenue Recognition</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The Company recognizes revenue when (a) pervasive evidence of an arrangement exists (b) products are delivered or services have been rendered (c) the sales price is fixed or determinable, and (d) collection is reasonably assured. </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Marketing and Advertising Costs</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;background:white'><font style='line-height:107%'>Marketing and advertising costs are anticipated to be expensed as incurred. The Company recognized $22,513 and $68,874 in marketing and advertising costs during the three and six months ended October 31, 2016, respectively. The Company recognized $3,929 and $18,226 in marketing and advertising costs during the three and six months ended October 31, 2015, respectively.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Stock Based Compensation</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Fair Value Measurements</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include: </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>As of </font><font style='line-height:107%'>October</font><font style='line-height:107%'> 31, 2016 and April 30, 2016, the Company did not have any assets or liabilities that were required to be measured at fair value on a recurring basis or on a non-recurring basis.&#160; </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Fair Value of Financial Instruments</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The Company&#146;s financial instruments consist of cash and cash equivalents and accounts payable and accrued expenses. The carrying amounts of the Company&#146;s financial instruments approximate fair value because of the short term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect those estimates. We do not hold or issue financial instruments for trading purposes, nor do we utilize derivative instruments.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Net Income (Loss) Per Share</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The computation of basic earnings per share (&#147;EPS&#148;) is based on the weighted average number of shares that were outstanding during the period, including shares of common stock that are issuable at the end of the reporting period. The computation of diluted EPS is based on the number of basic weighted-average shares outstanding plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares outstanding using the treasury stock method. The computation of diluted net income per share does not assume conversion, exercise or contingent issuance of securities that would have an antidilutive effect on earnings per share. Therefore, when calculating EPS, if the Company experienced a loss, there is no inclusion of dilutive securities as their inclusion in the EPS calculation is antidilutive. Furthermore, options and warrants will have a dilutive effect under the treasury stock method only when the average market price of the common stock during the period exceeds the exercise price of the options or warrants (they are in the money). </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Following is the computation of basic and diluted net loss per share for the three and six months ended October 31, 2016 and 2015:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="687" style='width:515.2pt;margin-left:4.65pt;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="311" valign="bottom" style='width:233.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="178" colspan="3" valign="bottom" style='width:1.85in;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Three Months Ended</b></p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="178" colspan="3" valign="bottom" style='width:1.85in;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Six Months Ended</b></p> </td> </tr> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="311" valign="bottom" style='width:233.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="178" colspan="3" valign="bottom" style='width:1.85in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>October 31,</b></p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="178" colspan="3" valign="bottom" style='width:1.85in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>October 31,</b></p> </td> </tr> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="311" valign="bottom" style='width:233.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>2016</b></p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>2015</b></p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>2016</b></p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>2015</b></p> </td> </tr> <tr style='height:12.75pt'> <td width="323" colspan="2" valign="bottom" style='width:242.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>Basic and Diluted EPS Computation</b></p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="323" colspan="2" valign="bottom" style='width:242.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Numerator: </p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="311" valign="bottom" style='width:233.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Loss available to common stockholders' </p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160; (349,926)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160; (149,347)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160; (839,138)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160; (202,389)</p> </td> </tr> <tr style='height:12.75pt'> <td width="323" colspan="2" valign="bottom" style='width:242.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Denominator: </p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="317" colspan="2" valign="bottom" style='width:238.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Weighted average number of common shares outstanding</p> </td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160; 160,873,532&nbsp;</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160; 18,746,707&nbsp;</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160; 110,129,348&nbsp;</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160; 18,633,109&nbsp;</p> </td> </tr> <tr style='height:13.5pt'> <td width="323" colspan="2" valign="bottom" style='width:242.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Basic and diluted EPS</p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'></td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (0.00)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (0.01)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'></td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (0.01)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (0.01)</p> </td> </tr> <tr style='height:43.5pt'> <td width="507" colspan="6" valign="bottom" style='width:380.2pt;padding:0in 5.4pt 0in 5.4pt;height:43.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares):</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:43.5pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:43.5pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:43.5pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:43.5pt'></td> </tr> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="311" valign="bottom" style='width:233.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Convertible promissory notes</p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 50,491,376 </p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 497,772 </p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 50,491,376 </p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;497,772 </p> </td> </tr> </table> </div> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>Concentrations of risk</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'><font lang="X-NONE">During the </font>three months<font lang="X-NONE"> ended October </font>31<font lang="X-NONE">, 2016, </font>three<font lang="X-NONE"> customer</font>s<font lang="X-NONE"> accounted for </font>50.2% (19.8%, 17.2% and 13.2%)<font lang="X-NONE"> of sales. During the </font>three months<font lang="X-NONE"> ended October </font>31<font lang="X-NONE">, 201</font>5<font lang="X-NONE">, </font>two<font lang="X-NONE"> customer</font>s<font lang="X-NONE"> accounted for </font>26.1% (16.0% and 10.1%)<font lang="X-NONE"> of sales. </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'><font lang="X-NONE">During the </font>six months<font lang="X-NONE"> ended October </font>31<font lang="X-NONE">, 2016, </font>one<font lang="X-NONE"> customer accounted for </font>10.4% <font lang="X-NONE">of sales. During the </font>six months<font lang="X-NONE"> ended October </font>31<font lang="X-NONE">, 201</font>5<font lang="X-NONE">, </font>no<font lang="X-NONE"> customer accounted for </font>more than 10% <font lang="X-NONE">of sales. </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The Company relies on third parties for</font>&nbsp;<font style='line-height:107%'>the supply and manufacture of its capture devices, some of which are sole-source suppliers.&nbsp; The Company believes that outsourcing manufacturing enables greater scale and flexibility. As demand and product lines change, the Company periodically evaluates the need and advisability of adding manufacturers to support its operations.&nbsp; In instances where a supply and manufacture agreement does not exist or suppliers fail to perform their obligations, the Company may be unable to find alternative suppliers or satisfactorily deliver its products to its customers on time, if at all.&nbsp; During the three months ended October 31, 2016, one supplier accounted for 62.5% of our inventory purchases. During the six months ended October 31, 2016, two suppliers accounted for 88.0% (76.2% and 11.8%) of our inventory purchases. During the three months ended October 31, 2015, one supplier accounted for 96.4% of our inventory purchases. During the six months ended October 31, 2015, one supplier accounted for 95.0% of our inventory purchases.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Recent Accounting Pronouncements</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>In February 2016, the Financial Accounting Standards Board (&#147;FASB&#148;) issued Accounting Standards Update (&#147;ASU&#148;) 2016-02 amending the accounting for leases. The new guidance requires the recognition of lease assets and liabilities for operating leases with terms of more than 12 months, in addition to those currently recorded, on our balance sheets. Presentation of leases within the statements of operations and statements of cash flows will be generally consistent with the current lease accounting guidance. The ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company does not expect this accounting update to have a material effect on its financial statements.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). This ASU eliminates the requirement for retrospective application of measurement period adjustments relating to provisional amounts recorded in a business combination as of the acquisition date. The amendments in this update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments will be effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. The Company does not expect this accounting update to have a material effect on its financial statements in future periods, although that could change. </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). This ASU provides guidance about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the arrangement should be accounted for as a service contract. For public business entities, the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU requires retrospective adoption and will be effective for fiscal years beginning after December 15, 2015 and for interim periods within those fiscal years. We expect the adoption of this guidance will not have a material impact on our financial statements.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. In March 2016, the FASB issued ASU 2016-08 to further clarify the implementation guidance on principal versus agent considerations. The guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The Company does not expect this accounting update to have a material effect on its financial statements.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'><font style='line-height:107%'>We review new accounting standards as issued. Although some of these accounting standards issued or effective after the end of our previous fiscal year may be applicable to us, we have not identified any standards that we believe merit further discussion. We believe that none of the new standards will have a significant impact on our financial statements.</font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><u><font style='line-height:107%;text-transform:uppercase'>NOTE 3 - Fixed Assets</font></u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Fixed assets consisted of the following:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="498" style='width:373.25pt;margin-left:4.65pt;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="33" valign="bottom" style='width:25.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="208" valign="bottom" style='width:156.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="120" valign="bottom" style='width:89.95pt;border:none;border-bottom:solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>October 31, 2016</b></p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>&nbsp;</b></p> </td> <td width="101" valign="bottom" style='width:75.7pt;border:none;border-bottom:solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>April 30, 2016</b></p> </td> </tr> <tr style='height:12.75pt'> <td width="33" valign="bottom" style='width:25.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="208" valign="bottom" style='width:156.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;Vehicles </p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="120" valign="bottom" style='width:89.95pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 15,376&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="101" valign="bottom" style='width:75.7pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="33" valign="bottom" style='width:25.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="208" valign="bottom" style='width:156.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Furniture and fixtures</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="120" valign="bottom" style='width:89.95pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 6,212&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="101" valign="bottom" style='width:75.7pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 6,212&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="33" valign="bottom" style='width:25.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="208" valign="bottom" style='width:156.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Computers and office equipment</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="120" valign="bottom" style='width:89.95pt;border:none;border-bottom:solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2,480&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="101" valign="bottom" style='width:75.7pt;border:none;border-bottom:solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 1,376&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="33" valign="bottom" style='width:25.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="208" valign="bottom" style='width:156.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; Total fixed assets</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="120" valign="bottom" style='width:89.95pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 24,068&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="101" valign="bottom" style='width:75.7pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 7,588&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="33" valign="bottom" style='width:25.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="208" valign="bottom" style='width:156.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Accumulated depreciation</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="120" valign="bottom" style='width:89.95pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (2,701)</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="101" valign="bottom" style='width:75.7pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (476)</p> </td> </tr> <tr style='height:13.5pt'> <td width="33" valign="bottom" style='width:25.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="208" valign="bottom" style='width:156.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Total fixed assets</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="120" valign="bottom" style='width:89.95pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;background:white;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 21,367&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'></td> <td width="101" valign="bottom" style='width:75.7pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;background:white;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 7,112&nbsp;</p> </td> </tr> </table> </div> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>During the three months ended October 31, 2016 and 2015, the Company recognized $1,288 and $0, respectively, in depreciation expense. During the six months ended October 31, 2016 and 2015, the Company recognized $2,224 and $0, respectively, in depreciation expense.</font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'><b><u>NOTE 4 &#150; CONVERTIBLE PROMISSORY NOTES</u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Following is a summary of our outstanding convertible promissory notes as of </font><font style='line-height:107%'>October 31, 2016:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="648" style='width:486.15pt;margin-left:4.65pt;border-collapse:collapse'> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="251" colspan="5" valign="bottom" style='width:188.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Current Balances</b></p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Lender</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Issue Date</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Maturity</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Principle</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Interest</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Total</b></p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 2</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>12/31/2015</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>6/30/16</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> $&#160;&#160; 13,405</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> $&#160;&#160;&#160; 13,405</p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 3</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3/10/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>9/10/16</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 792&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 792</p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 4</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>5/13/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>11/13/16</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 92,680&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 3,790</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160; 96,470</p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 5</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>5/20/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>11/20/16</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 52,500&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 1,968</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160; 54,468</p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 6</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>8/22/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2/22/17</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 157,500&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2,469</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160; 159,969</p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 7</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>9/1/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3/1/17</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 157,500&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2,113</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160; 159,613</p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; Totals</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160; 460,972&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> $&#160;&#160; 23,745</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> $&#160; 484,717</p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Debt discount balance</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160; (181,824)</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> </tr> <tr style='height:15.75pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; Balance sheet balances</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160; 279,148&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Following is a summary of our outstanding convertible promissory notes as of April 30, 2016:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="632" style='width:474.35pt;margin-left:4.65pt;border-collapse:collapse'> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="251" colspan="5" valign="bottom" style='width:188.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Current Balances</b></p> </td> </tr> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Lender</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Issue Date</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Maturity</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Principle</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Interest</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Total</b></p> </td> </tr> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>LG Capital Funding, LLC</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>4/20/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>9/11/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160; 13,000&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 34</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> $&#160;&#160;&#160; 13,034</p> </td> </tr> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Black Forest Capital, LLC</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>10/8/2015</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>10/8/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 19,500&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 3,001</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160; 22,501</p> </td> </tr> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 1</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>11/10/2015</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>5/10/16</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 157,500&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 6,136</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160; 163,636</p> </td> </tr> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 2</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>1/0/1900</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>6/30/16</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 105,000&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2,861</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160; 107,861</p> </td> </tr> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 3</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3/10/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>9/10/16</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 792&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 614</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 1,406</p> </td> </tr> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; Totals</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160; 295,792&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> $&#160;&#160; 12,646</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> $&#160; 308,438</p> </td> </tr> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Debt discount balance</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160; (204,718)</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> </tr> <tr style='height:15.75pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; Balance sheet balances</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160; 91,074&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>The company determined that each convertible promissory notes conversion feature is indexed to the Company&#146;s stock, which is an input to a fair value measurement of a fixed-for-fixed option on equity shares. Thus, the conversion feature of the notes meets the scope exception under Financial Accounting Standards Board (&#147;FASB&#148;) Accounting Standards Codification (&quot;ASC&quot;) 815-40-15-7 and treatment under ASC 470-20<i> &#150; Debt with Conversion and Other Options</i> is appropriate. </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>LG Capital Funding, LLC</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>On September 11, 2015 the Company entered into a Securities Purchase Agreement with LG Capital Funding, LLC (&quot;LG&quot;) for the sale of an </font><font style='line-height:107%'>8</font><font style='line-height:107%'>% convertible note in the principal amount of $</font><font style='line-height:107%'>81,000 </font><font style='line-height:107%'>and proceeds of $</font><font style='line-height:107%'>75,000 </font><font style='line-height:107%'>net of legal expenses (the &#147;LG Note&#148;). </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The LG Note was convertible into common stock at a price equal to 60% of the lowest trading price during the 20 trading days immediately preceding the applicable conversion.&#160; </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The LG Note principle was discounted for the value of the legal fees of $6,000 and the intrinsic value of the beneficial conversion feature of $68,000. The resulting $74,000 discount was fully accreted through July 31, 2016 due to full repayment of the LG Note on May 2, 2016.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>During the six months ended October 31, 2016, the Company recognized no interest expense and debt discount accretion of $</font><font style='line-height:107%'>7,741</font><font style='line-height:107%'>. On May 2, 2016, LG converted the remaining $</font><font style='line-height:107%'>13,034 </font><font style='line-height:107%'>of principal and interest into </font><font style='line-height:107%'>775,844</font><font style='line-height:107%'> shares of common stock.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Black Forest Capital, LLC</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>On October 8, 2015 the Company sold and Black Forest Capital, LLC (&#147;Black Forest&#148;) purchased a </font><font style='line-height:107%'>10</font><font style='line-height:107%'>% convertible note in the principal amount of $</font><font style='line-height:107%'>53,000 </font><font style='line-height:107%'>(the &#147;Black Forest Note&#148;) of which the Company received $</font><font style='line-height:107%'>50,000 </font><font style='line-height:107%'>after payment of legal fees. The Black Forest Note matured in 12 months on October 8, 2016.</font><font style='line-height:107%'> </font><font style='line-height:107%'>The Black Forest Note was convertible into common stock, at Black Forest&#146;s option anytime following the issuance date, at a price for each share of common stock equal to 40% of the lowest trading price during the 20 trading days immediately preceding the applicable conversion. </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The Black Forrest Note principle was discounted for the value of legal fees of $3,000 and the intrinsic value of the beneficial conversion feature of $50,000. The calculated intrinsic value was $</font><font style='line-height:107%'>127,199</font><font style='line-height:107%'>. As this amount resulted in a total debt discount that exceeded the Black Forest Note principal, the discount recorded for the beneficial conversion feature was limited to the principal amount of the Black Forest Note. The resulting $53,000 discount was accreted through July 31, 2016 due to repayment of the Black Forest Note.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>During the six months ended October 31, 2016, the Company recognized no interest expense and debt discount accretion of $</font><font style='line-height:107%'>9,992</font><font style='line-height:107%'>. During the six months ended October 31, 2016, Black Forrest converted the remaining $</font><font style='line-height:107%'>22,499 </font><font style='line-height:107%'>of principal and interest into </font><font style='line-height:107%'>11,076,775</font><font style='line-height:107%'> shares of common stock.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'><b><i>RDW Capital, LLC</i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>On November 12, 2015, the Company entered into a Securities Purchase Agreement (&#147;RDW SPA 1&#148;) with RDW Capital, LLC (&#147;RDW&#148;), a Florida limited liability company. On November 12, 2015, the Company and RDW entered into the </font><font style='line-height:107%'>First Amended Securities Purchase Agreement. </font><font style='line-height:107%'>On November 12, 2015, the Company and RDW entered into the </font><font style='line-height:107%'>Second Amended Securities Purchase Agreement. </font><font style='line-height:107%'>On February 17, 2016, the Company and RDW entered into the Third</font><font style='line-height:107%'> Amended Securities Purchase Agreement. </font><font style='line-height:107%'>On February 17, 2016, the Company and RDW entered into the Fourth</font><font style='line-height:107%'> Amended Securities Purchase Agreement. </font><font style='line-height:107%'>On May 9, 2016, the Company and RDW entered into a Securities Purchase Agreement (&#147;RDW SPA 2&#148;). On August 22, 2016, the Company and RDW entered into a Securities Purchase Agreement (&#147;RDW SPA 3&#148;). On September 1, 2016, the Company and RDW entered into a Securities Purchase Agreement (&#147;RDW SPA 4&#148;). RDW SPA 1, amendments thereto, RDW SPA 2, RDW SPA 3 and RDW SPA 4 may hereinafter be referred to collectively as, the &#147;<b>RDW SPAs</b>&#148;</font><font style='line-height:107%'>.</font><font style='line-height:107%'> </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><u><font style='line-height:107%'>RDW Note 1</font></u><font style='line-height:107%'> - In connection with RDW SPA 1 and amendments thereto, on November 12, 2016, the Company issued to RDW a convertible note (&#147;RWD Note 1&#148;) due on April 10, 2016 in the principal amount of $</font><font style='line-height:107%'>157,500 </font><font style='line-height:107%'>of which the Company received proceeds of $130,000 after payment of a $7,500 original issue discount (&#147;<b>OID</b>&#148;) and legal and due diligence fees totaling $20,000</font><font style='line-height:107%'>. </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>RDW Note 1 principle was discounted for the value of the OID, due diligence fees and the intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $121,406. As this amount resulted in a total debt discount that was less than RDW Note 1 principal, the full $121,406 discount was recognized. The resulting $148,906 discount was accreted over the 5 month term of RDW Note 1 through April 10, 2016.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><u><font style='line-height:107%'>RDW Note 2</font></u><font style='line-height:107%'> - In connection with RDW SPA 1 and amendments thereto, on December 31, 2015, the Company </font><font style='line-height:107%'>issued to RDW a convertible note (&#147;RDW Note 2&#148;) </font><font style='line-height:107%'>due on June 30, 2016 </font><font style='line-height:107%'>in the principal amount of $</font><font style='line-height:107%'>105,000 </font><font style='line-height:107%'>of which the Company received proceeds of $90,000 after payment of a $5,000 OID and due diligence fees totaling $10,000</font><font style='line-height:107%'>. </font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>RDW Note 2 principle was discounted for the value of the OID, due diligence fees and the intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $98,086. As this amount resulted in a total debt discount that exceeds RDW Note 2 principal, the discount recorded for the beneficial conversion feature was limited to the principal amount of RDW Note 2. The resulting $105,000 discount was accreted over the 5 month term of RDW Note 2 through June 30, 2016.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><u><font style='line-height:107%'>RDW Note1 and RDW Note 2</font></u><font style='line-height:107%'> - During the three and six months ended October 31, 2016, the Company recognized the following transactions related to RDW Note 1 and RDW Note 2:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <ul type="disc" style='margin-top:0in'> <li style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Recorded $651 and $4,407 of interest expense, respectively,</font></li> <li style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Recorded $35,192 and $35,192 of debt discount accretion, respectively,</font></li> <li style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Issued 80,281,822 shares of common stock upon the conversion of $115,293 of note principle during the three months ended October 31, 2016 and issued 115,939,107 shares of common stock upon the conversion of $262,500 of note principle during the six months ended October 31, 2016.</font></li> </ul> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><u><font style='line-height:107%'>RDW Note 3</font></u><font style='line-height:107%'> - In connection with RDW SPA 1 and amendments thereto, on March 10, 2016, </font><font style='line-height:107%'>the Company issued to RDW a convertible note (&#147;RDW Note 3&#148;) </font><font style='line-height:107%'>due on September 10, 2016 </font><font style='line-height:107%'>in the principal amount of $</font><font style='line-height:107%'>210,000 </font><font style='line-height:107%'>of which the Company received proceeds of $180,000 after payment of a $10,000 OID and due diligence fees totaling $20,000.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>RDW Note 3 principal was discounted for the OID, due diligence fees, stock issued to an advisor in connection with RDW Note 3 totaling $18,000, and the intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $227,391. As this amount resulted in a total debt discount that exceeded RDW Note 3 principal, the discount recorded for the beneficial conversion feature was limited to the principal amount of RDW Note 3. The resulting $210,000 discount was accreted through April 30, 2016, the date RDW Note 3 was paid down to a principal and interest balance of $1,405.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.25in'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>During the three and six months ended October 31, 2016, the Company recognized -$613 of interest expense and $151,793 of debt discount accretion related to RDW Note 3.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u>RDW Note 4</u> - In connection with RDW SPA 2, on May 13, 2016, the Company issued to RDW a convertible note (&#147;RDW Note 4&#148;) due on November 13, 2016 in the principal amount of $105,000 of which the Company received proceeds of $82,500 after payment of a $5,000 OID, $7,500 of legal fees and $10,000 of due diligence fees.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>RDW Note 4 principle was discounted for the value of the OID, legal fees due diligence fees and intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $70,000. As this amount resulted in a total debt discount that was less than RDW Note 4 principal, the full $70,000 discount was recognized. The resulting $92,500 discount is being accreted over the 6 month term of RDW Note 4 through November 13, 2016.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>During the three and six months ended October 31, 2016, the Company recognized the following transactions related to RDW Note 4:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in'><font style='line-height:107%;font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style='line-height:107%'>Recorded $1,971 and $3,789 of interest expense, respectively,</font></p> <ul type="disc" style='margin-top:0in'> <li style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Recorded $46,250 and $85,965 of debt discount accretion, respectively,</font></li> </ul> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in'><font style='line-height:107%;font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style='line-height:107%'>Issued 8,800,000 shares of common stock upon the conversion of $12,320 of note principle during the three and six months ended October 31, 2016.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u>RDW Note 5</u> - In connection with RDW SPA 2, on May 20, 2016, the Company issued to RDW a convertible note (&#147;RDW Note 5&#148;) due on November 20, 2016 in the principal amount of $52,500 of which the Company received proceeds of $45,000 after payment of a $2,500 OID and $5,000 of due diligence fees.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>RDW Note 5 principle was discounted for the value of the OID, due diligence fees and intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $35,000. As this amount resulted in a total debt discount that was less than RDW Note 5 principal, the full $35,000 discount was recognized. The resulting $42,500 discount is being accreted over the 6 month term of RDW Note 5 through November 20, 2016.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>During the three and six months ended October 31, 2016, the Company recognized the following transactions related to RDW Note 5:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in'><font style='line-height:107%;font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style='line-height:107%'>Recorded $1,059 and $1,968 of interest expense, respectively,</font></p> <ul type="disc" style='margin-top:0in'> <li style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Recorded $21,250 and $37,880 of debt discount accretion, respectively,</font></li> </ul> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u>RDW Note 6</u> - In connection with RDW SPA 3, on August 22, 2016, the Company issued to RDW a convertible note (&#147;RDW Note 6&#148;) due on February 22, 2017 in the principal amount of $157,500 of which the Company received proceeds of $130,000 after payment of a $7,500 OID and legal and due diligence fees totaling $20,000.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>RDW Note 6 principle was discounted for the value of the OID, legal and due diligence fees and intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $105,000. As this amount resulted in a total debt discount that was less than RDW Note 6 principal, the full $105,000 discount was recognized. The resulting $132,500 discount is being accreted over the 6 month term of RDW Note 6 through February 22, 2017.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>During the three months ended October 31, 2016, the Company recognized $2,469 of interest expense and $50,408 of debt discount accretion related to RDW Note 6. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u>RDW Note 7</u> &#150; In connection with RDW SPA 4 under which RDW agreed to purchase an aggregate of up to $367,500 in principal amount of notes, on September 1, 2016, the Company issued to RDW a convertible note (&#147;RDW Note 7&#148;) due on March 1, 2017 in the principal amount of $157,500 of which the Company received proceeds of $130,000 after payment of a $7,500 OID and legal and due diligence fees totaling $20,000. The second tranche for $210,000 will occur on the date that is two trading days from the date a registration statement is declared effective by the SEC. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>RDW Note 7 principle was discounted for the value of the OID, legal and due diligence fees and intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $105,000. As this amount resulted in a total debt discount that was less than RDW Note 7 principal, the full $105,000 discount was recognized. The resulting $132,500 discount is being accreted over the 6 month term of RDW Note 7 through March 1, 2017.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>During the three months ended October 31, 2016, the Company recognized $2,114 of interest expense and $43,923 of debt discount accretion related to RDW Note 7. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>RDW Note 1, RDW Note 2, RDW Note 3, RDW Note 4, RDW Note 5, RDW Note 6 and RDW Note 7 may hereinafter be referred to collectively as, the &#147;<b>RDW Notes</b>&#148;.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The RDW Notes have the following terms and conditions:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in'><font lang="X-NONE" style='font-family:Symbol'>&#183; </font><font lang="X-NONE">The principal amount outstanding accrues interest at a rate of eight percent (8%) per annum.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in'><font lang="X-NONE" style='font-family:Symbol'>&#183; </font><font lang="X-NONE">Interest is due and payable on each conversion date and on the Maturity Date.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in'><font lang="X-NONE" style='font-family:Symbol'>&#183; </font><font lang="X-NONE">At any time, at the option of the holder, the RDW notes are convertible, into shares of our common stock at a conversion price equal to sixty percent (60%) of the lowest traded price of our common stock in the twenty (20) days prior to the conversion date, at any time, at the option of the holder (the &#147;Conversion Price&#148;).</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in'><font lang="X-NONE" style='font-family:Symbol'>&#183; T</font><font lang="X-NONE">he</font><font lang="X-NONE" style='font-family:Symbol'> </font><font lang="X-NONE">RDW Notes are unsecured obligations.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in'><font lang="X-NONE" style='font-family:Symbol'>&#183; </font><font lang="X-NONE">We may prepay the RDW Notes in whole or in part at any time with ten (10) days written notice to the holder for the sum of the outstanding principal and interest multiplied by one hundred and thirty percent (130%).&nbsp; RDW may continue to convert the notes from the date of the notice of prepayment until the date of prepayment.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in'><font lang="X-NONE" style='font-family:Symbol'>&#183; </font><font lang="X-NONE">&#160;Default interest of twenty-four percent (24%) per annum.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in'><font lang="X-NONE" style='font-family:Symbol'>&#183; </font><font lang="X-NONE">Interest on overdue accrued and unpaid interest will incur a late fee of the lower of eighteen percent (18%) per annum or the maximum rate permitted by law.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in'><font lang="X-NONE" style='font-family:Symbol'>&#183; </font><font lang="X-NONE">Upon an event of default, RDW may accelerate the outstanding principal, plus accrued and unpaid interest, and other amounts owing through the date of acceleration (&#147;Acceleration&#148;).</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in'><font lang="X-NONE" style='font-family:Symbol'>&#183; </font><font lang="X-NONE">Upon Acceleration, the amount due will be one hundred thirty percent (130%) of the outstanding principal amount of the Note and accrued and unpaid interest, together with payment of all other amounts, costs, expenses and liquidated damages.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in'><font lang="X-NONE" style='font-family:Symbol'>&#183; </font><font lang="X-NONE">In the event of our default, at the request of the holder, we must pay one hundred fifty percent (150%) of the outstanding balance plus accrued interest and default interest.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in'><font lang="X-NONE" style='font-family:Symbol'>&#183; </font><font lang="X-NONE">We must reserve three (3) times the amount of shares necessary for the issuance of common stock upon conversion.&nbsp;</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><font lang="X-NONE" style='font-family:Symbol'>&#183; </font><font lang="X-NONE">Conversions of the RDW Notes shall not be permitted if such conversion will result in the holder owning more than four point ninety-nine percent (4.99%) of our common shares outstanding after giving effect to such conversion.</font></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>In total, during the three and six months ended October 31, 2016, the Company recognized $7,651 and $14,134, respectively, of interest expense and $161,831 and $405,161, respectively, of debt discount accretion related to the RDW Notes. </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>In total, during the three months ended October 31, 2016, RDW converted $127,613 of RDW Note principal into 89,081,822 shares of common stock. In total, during the six months ended October 31, 2016, RDW converted $274,820 of RDW Note principal into 124,739,107 shares of common stock.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><u><font style='line-height:107%'>NOTE 5 &#150; COMMITMENTS AND CONTINGENCIES</font></u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Product Warranties</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Our products are sold with a one (1) year manufacturer&#146;s warranty. The Company has no obligation to provide warranty service or replacement. The Company does offer an extended warranty for a fee. The extended warranty expires one year from the day the manufacturer warranty expires. Warranty costs during the second year of an extended warranty are born by the manufacturer. As a result, the Company has no, or limited warranty liability exposure. </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Operating Lease</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>On March 21, 2015, the Company entered into a lease of office space at 130 Iowa Lane, Suite 102, Carry, North Carolina 27511. The lease expires on March 31, 2018. The Company has no other noncancelable operating leases. Future minimum lease payments under this operating lease with an initial term in excess of one year as of October 31, 2016 are as follows:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><u><font style='line-height:107%'>Fiscal Year</font></u></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>2017&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; $7,314</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>2018&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; $14,920</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>2019&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; $10,144</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Thereafter&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; $0</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>During the three months ended October 31, 2016 and 2015, rent expense for office space totaled&nbsp;$</font><font style='line-height:107%'>3,882 </font><font style='line-height:107%'>and $</font><font style='line-height:107%'>3,000</font><font style='line-height:107%'>, respectively. During the six months ended October 31, 2016 and 2015, rent expense for office space totaled&nbsp;$</font><font style='line-height:107%'>7,576 </font><font style='line-height:107%'>and $</font><font style='line-height:107%'>5,250</font><font style='line-height:107%'>, respectively.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Supplier Purchase Commitments</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The Company periodically makes contractual, advance inventory purchases in the ordinary course of business. As of October 31, 2016, the Company was obligated to purchase $</font><font style='line-height:107%'>11,000 </font><font style='line-height:107%'>of inventory under a non-exclusive distribution agreement. </font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><u><font style='line-height:107%'>NOTE 6 &#150; </font></u></b><b><u><font style='line-height:107%;text-transform:uppercase'>Stockholder's Equity</font></u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%;background:white'>As of October 31, 2016 and April 30, 2016, there were </font><font style='line-height:107%;background:white'>177,117,321</font><font style='line-height:107%;background:white'> and </font><font style='line-height:107%;background:white'>40,525,595</font><font style='line-height:107%;background:white'> shares of common stock outstanding, respectively and there were </font><font style='line-height:107%;background:white'>1,000,000</font><font style='line-height:107%;background:white'> and </font><font style='line-height:107%;background:white'>1,000,000</font><font style='line-height:107%;background:white'> shares of Series A Preferred Stock outstanding, respectively. </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>On January 19, 2016, we amended our Articles of Incorporation to increase our authorized common stock from 50,000,000 shares to 250,000,000 shares and authorized the creation of 1,000,000 shares of Series A preferred stock with each share being entitled to 200,000 (i.e., 200:1) votes per share and with no right of conversion into shares of common stock.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>On August 4, 2016, we approved an amendment to our Articles of Incorporation to </font><font style='line-height:107%'>increase our authorized common stock from 250,000,000 shares to 750,000,000 shares and authorized Series A preferred stock from 1,000,000 shares to 5,000,000 shares. The amendment became effective September 8, 2016. </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>During the six months ended <font style='background:white'>October</font> 31, 2016, the company issued 136,591,726 shares of common stock upon the conversion of convertible promissory note principal and interest totaling $310,352.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>During the year ended <font style='background:white'>April 30, 2016</font>, the Company issued preferred stock and common stock as follows:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:justify;text-indent:.5in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>10,095 shares of common stock were issued in exchange for services valued at the close price of our stock resulting in stock compensation expense of $14,500.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:justify;text-indent:.5in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>31,912 shares of common stock were issued in connection with RDW Note 3 and valued at $18,000 as stated in the related agreements.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:justify;text-indent:.5in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>450,000 shares of common stock were issued for cash of $0.10 per share resulting in the Company receiving $45,000. &#160;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:justify;text-indent:.5in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>1,000,000 shares of non-convertible Series A Preferred Stock to Paul Feldman, CEO, which entitle him to 200,000 votes per share or an aggregate of 200,000,000 votes on all matters submitted to our common stockholders. We valued the 1,000 Series A shares at $0.0001 per share or an aggregate of $1,000.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:justify;text-indent:.5in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>21,738,588 shares of common stock were issued upon the conversion of $618,708 of convertible note principal and interest.&nbsp;</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><u><font style='line-height:107%'>NOTE 7 &#150; SUBSEQUENT EVENTS</font></u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;margin-top:0in;text-align:justify'>Management has reviewed material events subsequent of the quarterly period ended October 31, 2016 and prior to the filing of financial statements in accordance with FASB ASC 855 &#147;Subsequent Events&#148;.&nbsp;&nbsp;</p> <p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;margin-top:0in;text-align:justify'>&nbsp;</p> <p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;margin-top:0in;text-align:justify'>RDW converted $54,090 of convertible note principal into 18,030,000 shares of common stock. </p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="X-NONE">Basis of Presentation</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.25in;line-height:normal;text-autospace:none'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal;text-autospace:none'>The unaudited financial statements of Force Protection Video Equipment Corp. (the &#147;Company&#148;) as of October 31, 2016, and for the three and six months ended October 31, 2016 and 2015, have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting. Accordingly, they do not include all of the disclosures required by accounting principles generally accepted in the United States for complete financial statements and should be read in conjunction with the audited financial statements and notes thereto for the year ended April 30, 2016, as filed with the Securities and Exchange Commission as part of the Company&#146;s Form 10-K. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the interim financial information have been included. The Company did not record an income tax provision during the periods presented due to net taxable losses. The results of operations for any interim period are not necessarily indicative of the results of operations for the entire year.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'><b><i>Estimates</i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'><font lang="X-NONE">The preparation of the Company&#146;s financial statements </font><font lang="X-NONE">requires management to make estimates and use assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates and assumptions are affected by management&#146;s application of accounting policies. On an on-going basis, the Company evaluates its estimates. Actual results and outcomes may differ materially from these estimates and assumptions.</font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Cash and Cash Equivalents</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. </font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Inventory</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Our inventory is comprised of finished goods, cameras and recording equipment. The Company&#146;s inventory is stated at the lower of cost or market. The Company also makes prepayments against the future delivery of inventory classified as prepaid inventory.</font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Accounts Receivable</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Accounts receivable are reported at the customers' outstanding balances.&#160; The Company does not have a history of significant bad debt and has not recorded any allowance for doubtful accounts.&#160; Interest is not accrued on overdue accounts receivable.&#160; The Company evaluates receivables on a regular basis for potential reserve.</font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Property and Equipment</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Fixed assets are carried at cost, less accumulated depreciation and amortization. Major improvements are capitalized, while repair and maintenance are expensed when incurred. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'><font lang="X-NONE">For federal income tax purposes, depreciation is computed under the modified accelerated cost recovery system. Depreciation for financial statement purposes is computed on a straight-line basis over estimated useful lives of the related assets. The estimated useful lives of depreciable assets are:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="60%" style='width:60.0%'> <tr align="left"> <td width="35%" valign="bottom" style='width:35.44%;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&nbsp;&nbsp; </font></p> </td> <td width="30%" valign="top" style='width:30.38%;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&nbsp; </font></p> </td> <td width="34%" valign="bottom" style='width:34.18%;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Estimated</font></p> </td> </tr> <tr align="left"> <td width="35%" valign="bottom" style='width:35.44%;padding:0in 0in 1.3pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&nbsp; </font></p> </td> <td width="30%" valign="top" style='width:30.38%;padding:0in 0in 1.3pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&nbsp; </font></p> </td> <td width="34%" valign="bottom" style='width:34.18%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Useful Lives</font></p> </td> </tr> <tr align="left"> <td width="35%" valign="top" style='width:35.44%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&nbsp;Vehicles</font></p> </td> <td width="30%" valign="top" style='width:30.38%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&nbsp;</font></p> </td> <td width="34%" valign="bottom" style='width:34.18%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&#160;&#160;&#160;&#160; 5 years</font></p> </td> </tr> <tr align="left"> <td width="35%" valign="top" style='width:35.44%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Office Equipment</font></p> </td> <td width="30%" valign="top" style='width:30.38%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&nbsp; </font></p> </td> <td width="34%" valign="bottom" style='width:34.18%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>3 - 5 years</font></p> </td> </tr> <tr align="left"> <td width="35%" valign="top" style='width:35.44%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Furniture &amp; equipment</font></p> </td> <td width="30%" valign="top" style='width:30.38%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>&nbsp; </font></p> </td> <td width="34%" valign="bottom" style='width:34.18%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>5 - 7 years</font></p> </td> </tr> </table> </div> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Income Taxes</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry-forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized. The Company reports a liability for unrecognized tax benefits resulting from uncertain income tax positions, if any, taken or expected to be taken in an income tax return. Estimated interest and penalties are recorded as a component of interest expense or other expense, respectively.</font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Revenue Recognition</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The Company recognizes revenue when (a) pervasive evidence of an arrangement exists (b) products are delivered or services have been rendered (c) the sales price is fixed or determinable, and (d) collection is reasonably assured. </font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Marketing and Advertising Costs</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;background:white'><font style='line-height:107%'>Marketing and advertising costs are anticipated to be expensed as incurred. The Company recognized $22,513 and $68,874 in marketing and advertising costs during the three and six months ended October 31, 2016, respectively. The Company recognized $3,929 and $18,226 in marketing and advertising costs during the three and six months ended October 31, 2015, respectively.</font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Stock Based Compensation</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.</font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Fair Value Measurements</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include: </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>As of </font><font style='line-height:107%'>October</font><font style='line-height:107%'> 31, 2016 and April 30, 2016, the Company did not have any assets or liabilities that were required to be measured at fair value on a recurring basis or on a non-recurring basis.&#160; </font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Fair Value of Financial Instruments</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The Company&#146;s financial instruments consist of cash and cash equivalents and accounts payable and accrued expenses. The carrying amounts of the Company&#146;s financial instruments approximate fair value because of the short term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect those estimates. We do not hold or issue financial instruments for trading purposes, nor do we utilize derivative instruments.</font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Net Income (Loss) Per Share</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The computation of basic earnings per share (&#147;EPS&#148;) is based on the weighted average number of shares that were outstanding during the period, including shares of common stock that are issuable at the end of the reporting period. The computation of diluted EPS is based on the number of basic weighted-average shares outstanding plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares outstanding using the treasury stock method. The computation of diluted net income per share does not assume conversion, exercise or contingent issuance of securities that would have an antidilutive effect on earnings per share. Therefore, when calculating EPS, if the Company experienced a loss, there is no inclusion of dilutive securities as their inclusion in the EPS calculation is antidilutive. Furthermore, options and warrants will have a dilutive effect under the treasury stock method only when the average market price of the common stock during the period exceeds the exercise price of the options or warrants (they are in the money). </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Following is the computation of basic and diluted net loss per share for the three and six months ended October 31, 2016 and 2015:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="687" style='width:515.2pt;margin-left:4.65pt;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="311" valign="bottom" style='width:233.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="178" colspan="3" valign="bottom" style='width:1.85in;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Three Months Ended</b></p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="178" colspan="3" valign="bottom" style='width:1.85in;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Six Months Ended</b></p> </td> </tr> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="311" valign="bottom" style='width:233.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="178" colspan="3" valign="bottom" style='width:1.85in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>October 31,</b></p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="178" colspan="3" valign="bottom" style='width:1.85in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>October 31,</b></p> </td> </tr> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="311" valign="bottom" style='width:233.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>2016</b></p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>2015</b></p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>2016</b></p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>2015</b></p> </td> </tr> <tr style='height:12.75pt'> <td width="323" colspan="2" valign="bottom" style='width:242.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>Basic and Diluted EPS Computation</b></p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="323" colspan="2" valign="bottom" style='width:242.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Numerator: </p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="311" valign="bottom" style='width:233.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Loss available to common stockholders' </p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160; (349,926)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160; (149,347)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160; (839,138)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160; (202,389)</p> </td> </tr> <tr style='height:12.75pt'> <td width="323" colspan="2" valign="bottom" style='width:242.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Denominator: </p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="317" colspan="2" valign="bottom" style='width:238.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Weighted average number of common shares outstanding</p> </td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160; 160,873,532&nbsp;</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160; 18,746,707&nbsp;</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160; 110,129,348&nbsp;</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160; 18,633,109&nbsp;</p> </td> </tr> <tr style='height:13.5pt'> <td width="323" colspan="2" valign="bottom" style='width:242.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Basic and diluted EPS</p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'></td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (0.00)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (0.01)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'></td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (0.01)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (0.01)</p> </td> </tr> <tr style='height:43.5pt'> <td width="507" colspan="6" valign="bottom" style='width:380.2pt;padding:0in 5.4pt 0in 5.4pt;height:43.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares):</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:43.5pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:43.5pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:43.5pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:43.5pt'></td> </tr> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="311" valign="bottom" style='width:233.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Convertible promissory notes</p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 50,491,376 </p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 497,772 </p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 50,491,376 </p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;497,772 </p> </td> </tr> </table> </div> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>Concentrations of risk</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'><font lang="X-NONE">During the </font>three months<font lang="X-NONE"> ended October </font>31<font lang="X-NONE">, 2016, </font>three<font lang="X-NONE"> customer</font>s<font lang="X-NONE"> accounted for </font>50.2% (19.8%, 17.2% and 13.2%)<font lang="X-NONE"> of sales. During the </font>three months<font lang="X-NONE"> ended October </font>31<font lang="X-NONE">, 201</font>5<font lang="X-NONE">, </font>two<font lang="X-NONE"> customer</font>s<font lang="X-NONE"> accounted for </font>26.1% (16.0% and 10.1%)<font lang="X-NONE"> of sales. </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'><font lang="X-NONE">During the </font>six months<font lang="X-NONE"> ended October </font>31<font lang="X-NONE">, 2016, </font>one<font lang="X-NONE"> customer accounted for </font>10.4% <font lang="X-NONE">of sales. During the </font>six months<font lang="X-NONE"> ended October </font>31<font lang="X-NONE">, 201</font>5<font lang="X-NONE">, </font>no<font lang="X-NONE"> customer accounted for </font>more than 10% <font lang="X-NONE">of sales. </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>The Company relies on third parties for</font>&nbsp;<font style='line-height:107%'>the supply and manufacture of its capture devices, some of which are sole-source suppliers.&nbsp; The Company believes that outsourcing manufacturing enables greater scale and flexibility. As demand and product lines change, the Company periodically evaluates the need and advisability of adding manufacturers to support its operations.&nbsp; In instances where a supply and manufacture agreement does not exist or suppliers fail to perform their obligations, the Company may be unable to find alternative suppliers or satisfactorily deliver its products to its customers on time, if at all.&nbsp; During the three months ended October 31, 2016, one supplier accounted for 62.5% of our inventory purchases. During the six months ended October 31, 2016, two suppliers accounted for 88.0% (76.2% and 11.8%) of our inventory purchases. During the three months ended October 31, 2015, one supplier accounted for 96.4% of our inventory purchases. During the six months ended October 31, 2015, one supplier accounted for 95.0% of our inventory purchases.</font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><b><i><font style='line-height:107%'>Recent Accounting Pronouncements</font></i></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>In February 2016, the Financial Accounting Standards Board (&#147;FASB&#148;) issued Accounting Standards Update (&#147;ASU&#148;) 2016-02 amending the accounting for leases. The new guidance requires the recognition of lease assets and liabilities for operating leases with terms of more than 12 months, in addition to those currently recorded, on our balance sheets. Presentation of leases within the statements of operations and statements of cash flows will be generally consistent with the current lease accounting guidance. The ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company does not expect this accounting update to have a material effect on its financial statements.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). This ASU eliminates the requirement for retrospective application of measurement period adjustments relating to provisional amounts recorded in a business combination as of the acquisition date. The amendments in this update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments will be effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. The Company does not expect this accounting update to have a material effect on its financial statements in future periods, although that could change. </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). This ASU provides guidance about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the arrangement should be accounted for as a service contract. For public business entities, the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU requires retrospective adoption and will be effective for fiscal years beginning after December 15, 2015 and for interim periods within those fiscal years. We expect the adoption of this guidance will not have a material impact on our financial statements.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. In March 2016, the FASB issued ASU 2016-08 to further clarify the implementation guidance on principal versus agent considerations. The guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The Company does not expect this accounting update to have a material effect on its financial statements.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'><font style='line-height:107%'>We review new accounting standards as issued. Although some of these accounting standards issued or effective after the end of our previous fiscal year may be applicable to us, we have not identified any standards that we believe merit further discussion. We believe that none of the new standards will have a significant impact on our financial statements.</font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="687" style='width:515.2pt;margin-left:4.65pt;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="311" valign="bottom" style='width:233.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="178" colspan="3" valign="bottom" style='width:1.85in;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Three Months Ended</b></p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="178" colspan="3" valign="bottom" style='width:1.85in;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Six Months Ended</b></p> </td> </tr> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="311" valign="bottom" style='width:233.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="178" colspan="3" valign="bottom" style='width:1.85in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>October 31,</b></p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="178" colspan="3" valign="bottom" style='width:1.85in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>October 31,</b></p> </td> </tr> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="311" valign="bottom" style='width:233.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>2016</b></p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>2015</b></p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>2016</b></p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>2015</b></p> </td> </tr> <tr style='height:12.75pt'> <td width="323" colspan="2" valign="bottom" style='width:242.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>Basic and Diluted EPS Computation</b></p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="323" colspan="2" valign="bottom" style='width:242.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Numerator: </p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="311" valign="bottom" style='width:233.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Loss available to common stockholders' </p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160; (349,926)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160; (149,347)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160; (839,138)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160; (202,389)</p> </td> </tr> <tr style='height:12.75pt'> <td width="323" colspan="2" valign="bottom" style='width:242.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Denominator: </p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="317" colspan="2" valign="bottom" style='width:238.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Weighted average number of common shares outstanding</p> </td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160; 160,873,532&nbsp;</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160; 18,746,707&nbsp;</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160; 110,129,348&nbsp;</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160; 18,633,109&nbsp;</p> </td> </tr> <tr style='height:13.5pt'> <td width="323" colspan="2" valign="bottom" style='width:242.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Basic and diluted EPS</p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'></td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (0.00)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (0.01)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'></td> <td width="91" valign="bottom" style='width:68.2pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (0.01)</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'></td> <td width="84" valign="bottom" style='width:63.2pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (0.01)</p> </td> </tr> <tr style='height:43.5pt'> <td width="507" colspan="6" valign="bottom" style='width:380.2pt;padding:0in 5.4pt 0in 5.4pt;height:43.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares):</p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:43.5pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:43.5pt'></td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:43.5pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:43.5pt'></td> </tr> <tr style='height:12.75pt'> <td width="12" valign="bottom" style='width:9.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="311" valign="bottom" style='width:233.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Convertible promissory notes</p> </td> <td width="7" valign="bottom" style='width:5.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 50,491,376 </p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 497,772 </p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="91" valign="bottom" style='width:68.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 50,491,376 </p> </td> <td width="2" valign="bottom" style='width:1.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="84" valign="bottom" style='width:63.2pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;497,772 </p> </td> </tr> </table> </div> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="498" style='width:373.25pt;margin-left:4.65pt;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="33" valign="bottom" style='width:25.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="208" valign="bottom" style='width:156.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="120" valign="bottom" style='width:89.95pt;border:none;border-bottom:solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>October 31, 2016</b></p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>&nbsp;</b></p> </td> <td width="101" valign="bottom" style='width:75.7pt;border:none;border-bottom:solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>April 30, 2016</b></p> </td> </tr> <tr style='height:12.75pt'> <td width="33" valign="bottom" style='width:25.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="208" valign="bottom" style='width:156.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;Vehicles </p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="120" valign="bottom" style='width:89.95pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 15,376&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="101" valign="bottom" style='width:75.7pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="33" valign="bottom" style='width:25.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="208" valign="bottom" style='width:156.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Furniture and fixtures</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="120" valign="bottom" style='width:89.95pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 6,212&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="101" valign="bottom" style='width:75.7pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 6,212&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="33" valign="bottom" style='width:25.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="208" valign="bottom" style='width:156.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Computers and office equipment</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="120" valign="bottom" style='width:89.95pt;border:none;border-bottom:solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2,480&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="101" valign="bottom" style='width:75.7pt;border:none;border-bottom:solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 1,376&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="33" valign="bottom" style='width:25.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="208" valign="bottom" style='width:156.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; Total fixed assets</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="120" valign="bottom" style='width:89.95pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 24,068&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="101" valign="bottom" style='width:75.7pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 7,588&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="33" valign="bottom" style='width:25.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="208" valign="bottom" style='width:156.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Accumulated depreciation</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="120" valign="bottom" style='width:89.95pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (2,701)</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="101" valign="bottom" style='width:75.7pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (476)</p> </td> </tr> <tr style='height:13.5pt'> <td width="33" valign="bottom" style='width:25.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="208" valign="bottom" style='width:156.0pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Total fixed assets</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="120" valign="bottom" style='width:89.95pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;background:white;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 21,367&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.3pt;background:white;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'></td> <td width="101" valign="bottom" style='width:75.7pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;background:white;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 7,112&nbsp;</p> </td> </tr> </table> </div> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="648" style='width:486.15pt;margin-left:4.65pt;border-collapse:collapse'> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="251" colspan="5" valign="bottom" style='width:188.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Current Balances</b></p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Lender</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Issue Date</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Maturity</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Principle</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Interest</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Total</b></p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 2</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>12/31/2015</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>6/30/16</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> $&#160;&#160; 13,405</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> $&#160;&#160;&#160; 13,405</p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 3</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3/10/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>9/10/16</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 792&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 792</p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 4</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>5/13/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>11/13/16</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 92,680&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 3,790</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160; 96,470</p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 5</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>5/20/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>11/20/16</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 52,500&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 1,968</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160; 54,468</p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 6</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>8/22/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2/22/17</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 157,500&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2,469</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160; 159,969</p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 7</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>9/1/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3/1/17</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 157,500&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2,113</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160; 159,613</p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; Totals</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160; 460,972&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> $&#160;&#160; 23,745</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> $&#160; 484,717</p> </td> </tr> <tr style='height:15.0pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Debt discount balance</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160; (181,824)</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> </tr> <tr style='height:15.75pt'> <td width="211" valign="bottom" style='width:158.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; Balance sheet balances</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="66" valign="bottom" style='width:49.7pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160; 279,148&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><font style='line-height:107%'>Following is a summary of our outstanding convertible promissory notes as of April 30, 2016:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="632" style='width:474.35pt;margin-left:4.65pt;border-collapse:collapse'> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="251" colspan="5" valign="bottom" style='width:188.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Current Balances</b></p> </td> </tr> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Lender</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Issue Date</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Maturity</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Principle</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Interest</b></p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Total</b></p> </td> </tr> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>LG Capital Funding, LLC</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>4/20/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>9/11/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160; 13,000&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 34</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> $&#160;&#160;&#160; 13,034</p> </td> </tr> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Black Forest Capital, LLC</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>10/8/2015</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>10/8/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 19,500&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 3,001</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160; 22,501</p> </td> </tr> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 1</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>11/10/2015</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>5/10/16</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 157,500&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 6,136</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160; 163,636</p> </td> </tr> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 2</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>1/0/1900</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>6/30/16</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 105,000&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2,861</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160; 107,861</p> </td> </tr> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>RDW Capital, LLC Note 3</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3/10/2016</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>9/10/16</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 792&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 614</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 1,406</p> </td> </tr> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; Totals</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160; 295,792&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> $&#160;&#160; 12,646</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> $&#160; 308,438</p> </td> </tr> <tr style='height:15.0pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Debt discount balance</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160;&#160;&#160;&#160; (204,718)</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> </tr> <tr style='height:15.75pt'> <td width="193" valign="bottom" style='width:144.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&#160;&#160; Balance sheet balances</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="75" valign="bottom" style='width:56.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="69" valign="bottom" style='width:51.4pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:8.0pt;margin-left:0in;line-height:107%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>$&#160;&#160;&#160;&#160;&#160;&#160;&#160; 91,074&nbsp;</p> </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="69" valign="bottom" style='width:51.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> <td width="72" valign="bottom" style='width:.75in;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'></td> </tr> </table> 33176 402112 -11014 -2314263 -349926 -149347 -839138 -202389 160873532 18746707 110129348 18633109 -0.00 -0.01 -0.01 -0.01 15376 6212 6212 2480 24068 7588 -2701 -476 21367 7112 0.0800 81000 75000 7741 13034 775844 0.1000 53000 50000 127199 9992 22499 11076775 157500 105000 210000 105000 52500 157500 157500 3882 3000 7576 5250 11000 177117321 40525595 1000000 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2016-09-10 0001518720 fil:RdwCapitalLlcMember 2016-11-13 0001518720 fil:RdwCapitalLlcMember 2016-11-20 0001518720 fil:RdwCapitalLlcMember 2016-08-22 0001518720 fil:RdwCapitalLlcMember 2016-09-01 0001518720 2016-01-19 0001518720 2015-05-01 2016-04-30 0001518720 fil:RdwNote3Member 2016-04-30 0001518720 fil:StockIssued2Member 2015-04-30 iso4217:USD shares iso4217:USD shares pure Net of accumulated depreciation of $2,700 and $476, respectively. net of discount of $181,824 and $204,718, respectively. See Note 5 $0.0001 par value, 5,000,000 shares authorized; issued and outstanding 1,000,000 at October 31, 2016 and April 30, 2016. $0.0001 par value; 750,000,000 shares authorized; issued and outstanding 177,117,321 and 40,525,595 at October 31, 2016 and April 30, 2016, respectively. 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Sale of Stock, Price Per Share Accretion Expense LG Capital Funding, LLC Public Utilities, Property, Plant and Equipment, Vehicles Note 6 - Stockholder's Equity INCREASE (DECREASE) IN CASH INCREASE (DECREASE) IN CASH Proceeds from sale of common stock Amortization of deferred finance charges Represents the monetary amount of Amortization of deferred finance charges, during the indicated time period. Gross profit Gross profit Accumulated Deficit Accumulated Deficit Long-term liabilities Entity Common Stock, Shares Outstanding Stockholders' Equity {1} Stockholders' Equity Black Forest Capital, LLC Details Inventory {1} Inventory Supplemental disclosures of cash flow information: Common Stock, Shares Issued Preferred stock Tables/Schedules Net cash provided by Financing Activities Net cash provided by Financing Activities Interest expense Loss from operations Entity Well-known Seasoned Issuer Entity Central Index Key Due to Affiliate, Current Income Taxes Note 7 - Subsequent Events Note 1 - Organization and Going Concern Accretion of Debt Discount Represents the monetary amount of Accretion of Debt Discount, during the indicated time period. Total other income (expense) OTHER INCOME (EXPENSE) Total Current Liabilities Total Current Liabilities Cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Statement of Financial Position Balance Sheets - Parenthetical Document Type Preferred Stock Shares Issued Preferred Stock Shares Issued. Debt Conversion, Original Debt, Amount Other Assets, Miscellaneous Basic and Diluted EPS Computation Recent Accounting Pronouncements Revenue Recognition (Increase) decrease in accounts receivable Weighted Average Common Shares Outstanding Basic and Diluted Income Statement Common Stock, Shares Outstanding Preferred Stock, Shares Issued TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY Total liabilities Prepaid inventory Represents the monetary amount of Prepaid inventory, as of the indicated date. Accounts receivable Document Fiscal Period Focus Entity Registrant Name RDW Note 3 RDW Capital, LLC Property, Plant and Equipment, Other, Gross Increase (decrease) in other liabilities Increase (decrease) in accounts payable and accrued expenses Depreciation and amortization Cash flows from operating activities: Loss before taxes Represents the monetary amount of Loss before taxes, during the indicated time period. Total operating expenses Common Stock, Par Value Commitments and contingencies Stock Issued Upon Conversion Stock Issued Upon Conversion. Convertible Note- Principal Amount Convertible Note. 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Deposits Current Fiscal Year End Date Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment Schedule of Other Assets Cash and Cash Equivalents Note 2 - Summary of Significant Accounting Policies Cash paid for income taxes Net Cash (used) by Investing Activities Net Cash (used) by Investing Activities Common Stock, Shares Authorized Document Fiscal Year Focus Entity Voluntary Filers Shares Issued for Cash Shares Issued for Cash. Working Capital Deficit Working Capital Deficit Working Capital Deficit. Cash paid for interest General and administrative OPERATING EXPENSES Additional paid-in capital Stockholders' Equity Entity Current Reporting Status Stockholders' Equity [Axis] Convertible Note Convertible Note. 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(Increase) decrease in inventory Changes in operating assets and liabilities: Share based compensation expense Provision for income taxes Common stock Inventory EX-101.PRE 9 fpvd-20161031_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 10 R1.htm IDEA: XBRL DOCUMENT v3.6.0.2
Document and Entity Information - shares
6 Months Ended
Oct. 31, 2016
Jul. 31, 2016
Document and Entity Information:    
Entity Registrant Name Force Protection Video Equipment Corp.  
Document Type 10-Q  
Document Period End Date Oct. 31, 2016  
Amendment Flag false  
Entity Central Index Key 0001518720  
Current Fiscal Year End Date --04-30  
Entity Common Stock, Shares Outstanding   177,117,321
Entity Filer Category Smaller Reporting Company  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Well-known Seasoned Issuer No  
Document Fiscal Year Focus 2017  
Document Fiscal Period Focus Q2  
Trading Symbol fpvd  
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Force Protection Video Equipment Corp.- Balance Sheets - USD ($)
Oct. 31, 2016
Apr. 30, 2016
Current Assets:    
Cash and cash equivalents $ 158,603 $ 227,273
Accounts receivable 6,721 3,157
Inventory 147,930 70,361
Prepaid inventory 24,000 59,509
TOTAL CURRENT ASSETS 337,254 360,300
Property and equipment, net [1] 21,367 7,112
Deposits 1,945 1,945
TOTAL ASSETS 360,566 369,357
Current Liabilities:    
Accounts payable and accrued expenses 47,092 30,059
Convertible promissory notes [2] 279,148 91,074
Total Current Liabilities 326,240 121,133
Long-term liabilities 871 983
Total liabilities 327,111 122,116
Commitments and contingencies [3]
Stockholders' Equity    
Preferred stock [4] 100 100
Common stock [5] 17,711 4,052
Additional paid-in capital 2,329,907 1,718,214
Accumulated Deficit (2,314,263) (1,475,125)
Total Stockholders' Equity 33,455 247,241
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 360,566 $ 369,357
[1] Net of accumulated depreciation of $2,700 and $476, respectively.
[2] net of discount of $181,824 and $204,718, respectively.
[3] See Note 5
[4] $0.0001 par value, 5,000,000 shares authorized; issued and outstanding 1,000,000 at October 31, 2016 and April 30, 2016.
[5] $0.0001 par value; 750,000,000 shares authorized; issued and outstanding 177,117,321 and 40,525,595 at October 31, 2016 and April 30, 2016, respectively.
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Force Protection Video Equipment Corp. - Balance Sheets - Parenthetical - $ / shares
Oct. 31, 2016
Apr. 30, 2016
Statement of Financial Position    
Preferred Stock, Par Value $ 0.0001 $ 0.0001
Preferred Stock, Shares Authorized 5,000,000 5,000,000
Preferred Stock, Shares Issued 1,000,000 1,000,000
Preferred Stock, Shares Outstanding 1,000,000 1,000,000
Common Stock, Par Value $ 0.0001 $ 0.0001
Common Stock, Shares Authorized 750,000,000 750,000,000
Common Stock, Shares Issued 177,117,321 40,525,595
Common Stock, Shares Outstanding 177,117,321 40,525,595
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Force Protection Video Equipment Corp. - Statements of Operations - USD ($)
3 Months Ended 6 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Income        
Net revenue $ 17,464 $ 19,614 $ 33,176 $ 35,548
Cost of goods sold 12,373 12,416 23,777 22,117
Gross profit 5,091 7,198 9,400 13,431
OPERATING EXPENSES        
General and administrative 154,957 102,925 322,306 147,640
Sales and marketing 30,579 6,345 89,205 20,905
Total operating expenses 185,536 109,270 411,511 168,545
Loss from operations (180,445) (102,072) (402,112) (155,114)
OTHER INCOME (EXPENSE)        
Interest income   1,184   1,184
Interest expense (7,651) (3,392) (14,132) (3,392)
Accretion of debt discount (161,831) (43,328) (422,894) (43,328)
Amortization of deferred finance charges   (1,739)   (1,739)
Total other income (expense) (169,482) (47,275) (437,026) (47,275)
Loss before taxes (349,926) (149,347) (839,138) (202,389)
Provision for income taxes
Net loss $ (489,212) $ (149,347) $ (839,138) $ (202,389)
Net (Loss) Per Common Share- Basic and Diluted $ (0.01) $ (0.00) $ (0.01) $ (0.01)
Weighted Average Common Shares Outstanding Basic and Diluted 160,873,532 18,746,707 110,129,348 18,633,109
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Force Protection Video Equipment Corp. - Statements of Cash Flows - USD ($)
6 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Cash flows from operating activities:    
Net loss $ (839,138) $ (202,389)
Adjustments to reconcile net loss to net cash provided (used in) operating activities:    
Depreciation and amortization 2,224 1,739
Accretion of Debt Discount 422,894 43,328
Share based compensation expense   14,500
Changes in operating assets and liabilities:    
(Increase) decrease in accounts receivable (3,564) (7,163)
(Increase) decrease in deferred financing costs   (7,761)
(Increase) decrease in inventory (77,569) (26,347)
(Increase) decrease in other assets 35,509 (12,739)
Increase (decrease) in accounts payable and accrued expenses 20,066 (1,049)
Increase (decrease) in other liabilities (112)  
Net Cash (used) by Operating Activities (439,690) (197,881)
Cash flows from investing activities:    
Purchase of equipment and vehicles (16,480) (671)
Net Cash (used) by Investing Activities (16,480) (671)
Cash flows from financing activities:    
Proceeds from sale of common stock   45,000
Proceeds from convertible promissory notes 387,500 288,004
Net cash provided by Financing Activities 387,500 333,004
INCREASE (DECREASE) IN CASH (68,670) 134,452
Cash and cash equivalents at beginning of period 227,273 35,226
Cash and cash equivalents at end of period 158,603 169,678
Supplemental disclosures of cash flow information:    
Cash paid for interest
Cash paid for income taxes
Non-cash operating activities:    
Common stock issued for conversion of notes payable $ 310,352  
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 1 - Organization and Going Concern
6 Months Ended
Oct. 31, 2016
Notes  
Note 1 - Organization and Going Concern

NOTE 1 –ORGANIZATION AND GOING CONCERN

 

Organization

 

Force Protection Video Equipment Corp., (the Company), was incorporated on March 11, 2011, under the laws of the State of Florida as M Street Gallery, Inc.  On September 25, 2013, we changed our name to Enhance-Your-Reputation.com, Inc. and changed our business to providing reputation management and enhancement services. On February 2, 2015 the Company changed its name to Force Protection Video Corp. to focus on the sale of mini body video cameras and accessories to consumers and law enforcement. 

 

Going Concern

 

The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America and applicable to a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.

 

During the six months ended October 31, 2016, the Company recognized revenue of $33,176 and a net operating loss of $402,112. As of October 31, 2016, the Company had net working capital of $11,014 and an accumulated deficit of $2,314,263.

 

In view of these conditions, the ability of the Company to continue as a going concern is in doubt and dependent upon achieving a profitable level of operations and on the ability of the Company to obtain necessary financing to fund ongoing operations. Historically, the Company has relied upon funds from the sale of shares of stock, issuance of promissory notes and loans from its shareholders and private investors to finance its operations and growth. Management is planning to raise necessary additional funds for working capital through loans and/or additional sales of its common stock. However, there is no assurance that the Company will be successful in raising additional capital or that such additional funds will be available on acceptable terms, if at all. Should the Company be unable to raise this amount of capital its operating plans will be limited to the amount of capital that it can access. These financial statements do not give effect to any adjustments which will be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying financial statements.

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Note 2 - Summary of Significant Accounting Policies
6 Months Ended
Oct. 31, 2016
Notes  
Note 2 - Summary of Significant Accounting Policies

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  

 

Basis of Presentation

 

The unaudited financial statements of Force Protection Video Equipment Corp. (the “Company”) as of October 31, 2016, and for the three and six months ended October 31, 2016 and 2015, have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting. Accordingly, they do not include all of the disclosures required by accounting principles generally accepted in the United States for complete financial statements and should be read in conjunction with the audited financial statements and notes thereto for the year ended April 30, 2016, as filed with the Securities and Exchange Commission as part of the Company’s Form 10-K. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the interim financial information have been included. The Company did not record an income tax provision during the periods presented due to net taxable losses. The results of operations for any interim period are not necessarily indicative of the results of operations for the entire year.

 

Estimates

 

The preparation of the Company’s financial statements requires management to make estimates and use assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. On an on-going basis, the Company evaluates its estimates. Actual results and outcomes may differ materially from these estimates and assumptions.

 

Cash and Cash Equivalents

 

The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents.

 

Inventory

 

Our inventory is comprised of finished goods, cameras and recording equipment. The Company’s inventory is stated at the lower of cost or market. The Company also makes prepayments against the future delivery of inventory classified as prepaid inventory.

 

Accounts Receivable

 

Accounts receivable are reported at the customers' outstanding balances.  The Company does not have a history of significant bad debt and has not recorded any allowance for doubtful accounts.  Interest is not accrued on overdue accounts receivable.  The Company evaluates receivables on a regular basis for potential reserve.

 

Property and Equipment

 

Fixed assets are carried at cost, less accumulated depreciation and amortization. Major improvements are capitalized, while repair and maintenance are expensed when incurred. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period.

 

For federal income tax purposes, depreciation is computed under the modified accelerated cost recovery system. Depreciation for financial statement purposes is computed on a straight-line basis over estimated useful lives of the related assets. The estimated useful lives of depreciable assets are:

 

  

 

Estimated

 

 

Useful Lives

 Vehicles

 

     5 years

Office Equipment

 

3 - 5 years

Furniture & equipment

 

5 - 7 years

 

Income Taxes

 

The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry-forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized. The Company reports a liability for unrecognized tax benefits resulting from uncertain income tax positions, if any, taken or expected to be taken in an income tax return. Estimated interest and penalties are recorded as a component of interest expense or other expense, respectively.

 

Revenue Recognition

 

The Company recognizes revenue when (a) pervasive evidence of an arrangement exists (b) products are delivered or services have been rendered (c) the sales price is fixed or determinable, and (d) collection is reasonably assured.

 

Marketing and Advertising Costs

 

Marketing and advertising costs are anticipated to be expensed as incurred. The Company recognized $22,513 and $68,874 in marketing and advertising costs during the three and six months ended October 31, 2016, respectively. The Company recognized $3,929 and $18,226 in marketing and advertising costs during the three and six months ended October 31, 2015, respectively.

 

Stock Based Compensation

 

The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.

 

Fair Value Measurements

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:

 

Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;

 

Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

 

Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

 

As of October 31, 2016 and April 30, 2016, the Company did not have any assets or liabilities that were required to be measured at fair value on a recurring basis or on a non-recurring basis. 

 

Fair Value of Financial Instruments

 

The Company’s financial instruments consist of cash and cash equivalents and accounts payable and accrued expenses. The carrying amounts of the Company’s financial instruments approximate fair value because of the short term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect those estimates. We do not hold or issue financial instruments for trading purposes, nor do we utilize derivative instruments.

 

Net Income (Loss) Per Share

 

The computation of basic earnings per share (“EPS”) is based on the weighted average number of shares that were outstanding during the period, including shares of common stock that are issuable at the end of the reporting period. The computation of diluted EPS is based on the number of basic weighted-average shares outstanding plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares outstanding using the treasury stock method. The computation of diluted net income per share does not assume conversion, exercise or contingent issuance of securities that would have an antidilutive effect on earnings per share. Therefore, when calculating EPS, if the Company experienced a loss, there is no inclusion of dilutive securities as their inclusion in the EPS calculation is antidilutive. Furthermore, options and warrants will have a dilutive effect under the treasury stock method only when the average market price of the common stock during the period exceeds the exercise price of the options or warrants (they are in the money).

 

Following is the computation of basic and diluted net loss per share for the three and six months ended October 31, 2016 and 2015:

 

Three Months Ended

Six Months Ended

October 31,

October 31,

2016

2015

2016

2015

Basic and Diluted EPS Computation

Numerator:

Loss available to common stockholders'

$       (349,926)

$    (149,347)

$       (839,138)

$    (202,389)

Denominator:

Weighted average number of common shares outstanding

    160,873,532 

    18,746,707 

    110,129,348 

    18,633,109 

Basic and diluted EPS

$             (0.00)

$          (0.01)

$             (0.01)

$          (0.01)

Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares):

Convertible promissory notes

        50,491,376

          497,772

        50,491,376

          497,772

 

Concentrations of risk

 

During the three months ended October 31, 2016, three customers accounted for 50.2% (19.8%, 17.2% and 13.2%) of sales. During the three months ended October 31, 2015, two customers accounted for 26.1% (16.0% and 10.1%) of sales.

 

During the six months ended October 31, 2016, one customer accounted for 10.4% of sales. During the six months ended October 31, 2015, no customer accounted for more than 10% of sales.

 

The Company relies on third parties for the supply and manufacture of its capture devices, some of which are sole-source suppliers.  The Company believes that outsourcing manufacturing enables greater scale and flexibility. As demand and product lines change, the Company periodically evaluates the need and advisability of adding manufacturers to support its operations.  In instances where a supply and manufacture agreement does not exist or suppliers fail to perform their obligations, the Company may be unable to find alternative suppliers or satisfactorily deliver its products to its customers on time, if at all.  During the three months ended October 31, 2016, one supplier accounted for 62.5% of our inventory purchases. During the six months ended October 31, 2016, two suppliers accounted for 88.0% (76.2% and 11.8%) of our inventory purchases. During the three months ended October 31, 2015, one supplier accounted for 96.4% of our inventory purchases. During the six months ended October 31, 2015, one supplier accounted for 95.0% of our inventory purchases.

 

Recent Accounting Pronouncements

 

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02 amending the accounting for leases. The new guidance requires the recognition of lease assets and liabilities for operating leases with terms of more than 12 months, in addition to those currently recorded, on our balance sheets. Presentation of leases within the statements of operations and statements of cash flows will be generally consistent with the current lease accounting guidance. The ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company does not expect this accounting update to have a material effect on its financial statements.

 

In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). This ASU eliminates the requirement for retrospective application of measurement period adjustments relating to provisional amounts recorded in a business combination as of the acquisition date. The amendments in this update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments will be effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. The Company does not expect this accounting update to have a material effect on its financial statements in future periods, although that could change.

 

In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). This ASU provides guidance about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the arrangement should be accounted for as a service contract. For public business entities, the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted.

 

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU requires retrospective adoption and will be effective for fiscal years beginning after December 15, 2015 and for interim periods within those fiscal years. We expect the adoption of this guidance will not have a material impact on our financial statements.

 

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. In March 2016, the FASB issued ASU 2016-08 to further clarify the implementation guidance on principal versus agent considerations. The guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The Company does not expect this accounting update to have a material effect on its financial statements.

 

We review new accounting standards as issued. Although some of these accounting standards issued or effective after the end of our previous fiscal year may be applicable to us, we have not identified any standards that we believe merit further discussion. We believe that none of the new standards will have a significant impact on our financial statements.

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Note 3 - Fixed Assets
6 Months Ended
Oct. 31, 2016
Notes  
Note 3 - Fixed Assets

NOTE 3 - Fixed Assets

 

Fixed assets consisted of the following:

 

 

 

 

October 31, 2016

 

April 30, 2016

 

 Vehicles

 

   $          15,376 

   $                  - 

 

Furniture and fixtures

 

                 6,212 

                6,212 

 

Computers and office equipment

 

                 2,480 

                1,376 

 

   Total fixed assets

 

               24,068 

                7,588 

 

Accumulated depreciation

 

               (2,701)

                 (476)

 

Total fixed assets

 

   $          21,367 

   $           7,112 

 

During the three months ended October 31, 2016 and 2015, the Company recognized $1,288 and $0, respectively, in depreciation expense. During the six months ended October 31, 2016 and 2015, the Company recognized $2,224 and $0, respectively, in depreciation expense.

XML 18 R9.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 4 - Convertible Promissory Notes
6 Months Ended
Oct. 31, 2016
Notes  
Note 4 - Convertible Promissory Notes

NOTE 4 – CONVERTIBLE PROMISSORY NOTES

 

Following is a summary of our outstanding convertible promissory notes as of October 31, 2016:

 

Current Balances

Lender

Issue Date

Maturity

Principle

Interest

Total

RDW Capital, LLC Note 2

12/31/2015

6/30/16

$                  - 

$   13,405

$    13,405

RDW Capital, LLC Note 3

3/10/2016

9/10/16

               792 

                -

            792

RDW Capital, LLC Note 4

5/13/2016

11/13/16

          92,680 

        3,790

       96,470

RDW Capital, LLC Note 5

5/20/2016

11/20/16

          52,500 

        1,968

       54,468

RDW Capital, LLC Note 6

8/22/2016

2/22/17

        157,500 

        2,469

     159,969

RDW Capital, LLC Note 7

9/1/2016

3/1/17

        157,500 

        2,113

     159,613

   Totals

$      460,972 

$   23,745

$  484,717

Debt discount balance

      (181,824)

   Balance sheet balances

$      279,148 

 

Following is a summary of our outstanding convertible promissory notes as of April 30, 2016:

 

Current Balances

Lender

Issue Date

Maturity

Principle

Interest

Total

LG Capital Funding, LLC

4/20/2016

9/11/2016

$        13,000 

$          34

$    13,034

Black Forest Capital, LLC

10/8/2015

10/8/2016

          19,500 

        3,001

       22,501

RDW Capital, LLC Note 1

11/10/2015

5/10/16

        157,500 

        6,136

     163,636

RDW Capital, LLC Note 2

1/0/1900

6/30/16

        105,000 

        2,861

     107,861

RDW Capital, LLC Note 3

3/10/2016

9/10/16

               792 

           614

         1,406

   Totals

$      295,792 

$   12,646

$  308,438

Debt discount balance

      (204,718)

   Balance sheet balances

$        91,074 

 

The company determined that each convertible promissory notes conversion feature is indexed to the Company’s stock, which is an input to a fair value measurement of a fixed-for-fixed option on equity shares. Thus, the conversion feature of the notes meets the scope exception under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification ("ASC") 815-40-15-7 and treatment under ASC 470-20 – Debt with Conversion and Other Options is appropriate.

 

LG Capital Funding, LLC

 

On September 11, 2015 the Company entered into a Securities Purchase Agreement with LG Capital Funding, LLC ("LG") for the sale of an 8% convertible note in the principal amount of $81,000 and proceeds of $75,000 net of legal expenses (the “LG Note”).

 

The LG Note was convertible into common stock at a price equal to 60% of the lowest trading price during the 20 trading days immediately preceding the applicable conversion. 

 

The LG Note principle was discounted for the value of the legal fees of $6,000 and the intrinsic value of the beneficial conversion feature of $68,000. The resulting $74,000 discount was fully accreted through July 31, 2016 due to full repayment of the LG Note on May 2, 2016.

 

During the six months ended October 31, 2016, the Company recognized no interest expense and debt discount accretion of $7,741. On May 2, 2016, LG converted the remaining $13,034 of principal and interest into 775,844 shares of common stock.

 

Black Forest Capital, LLC

 

On October 8, 2015 the Company sold and Black Forest Capital, LLC (“Black Forest”) purchased a 10% convertible note in the principal amount of $53,000 (the “Black Forest Note”) of which the Company received $50,000 after payment of legal fees. The Black Forest Note matured in 12 months on October 8, 2016. The Black Forest Note was convertible into common stock, at Black Forest’s option anytime following the issuance date, at a price for each share of common stock equal to 40% of the lowest trading price during the 20 trading days immediately preceding the applicable conversion.

 

The Black Forrest Note principle was discounted for the value of legal fees of $3,000 and the intrinsic value of the beneficial conversion feature of $50,000. The calculated intrinsic value was $127,199. As this amount resulted in a total debt discount that exceeded the Black Forest Note principal, the discount recorded for the beneficial conversion feature was limited to the principal amount of the Black Forest Note. The resulting $53,000 discount was accreted through July 31, 2016 due to repayment of the Black Forest Note.

 

During the six months ended October 31, 2016, the Company recognized no interest expense and debt discount accretion of $9,992. During the six months ended October 31, 2016, Black Forrest converted the remaining $22,499 of principal and interest into 11,076,775 shares of common stock.

 

RDW Capital, LLC

 

On November 12, 2015, the Company entered into a Securities Purchase Agreement (“RDW SPA 1”) with RDW Capital, LLC (“RDW”), a Florida limited liability company. On November 12, 2015, the Company and RDW entered into the First Amended Securities Purchase Agreement. On November 12, 2015, the Company and RDW entered into the Second Amended Securities Purchase Agreement. On February 17, 2016, the Company and RDW entered into the Third Amended Securities Purchase Agreement. On February 17, 2016, the Company and RDW entered into the Fourth Amended Securities Purchase Agreement. On May 9, 2016, the Company and RDW entered into a Securities Purchase Agreement (“RDW SPA 2”). On August 22, 2016, the Company and RDW entered into a Securities Purchase Agreement (“RDW SPA 3”). On September 1, 2016, the Company and RDW entered into a Securities Purchase Agreement (“RDW SPA 4”). RDW SPA 1, amendments thereto, RDW SPA 2, RDW SPA 3 and RDW SPA 4 may hereinafter be referred to collectively as, the “RDW SPAs.

 

RDW Note 1 - In connection with RDW SPA 1 and amendments thereto, on November 12, 2016, the Company issued to RDW a convertible note (“RWD Note 1”) due on April 10, 2016 in the principal amount of $157,500 of which the Company received proceeds of $130,000 after payment of a $7,500 original issue discount (“OID”) and legal and due diligence fees totaling $20,000.

 

RDW Note 1 principle was discounted for the value of the OID, due diligence fees and the intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $121,406. As this amount resulted in a total debt discount that was less than RDW Note 1 principal, the full $121,406 discount was recognized. The resulting $148,906 discount was accreted over the 5 month term of RDW Note 1 through April 10, 2016.

 

RDW Note 2 - In connection with RDW SPA 1 and amendments thereto, on December 31, 2015, the Company issued to RDW a convertible note (“RDW Note 2”) due on June 30, 2016 in the principal amount of $105,000 of which the Company received proceeds of $90,000 after payment of a $5,000 OID and due diligence fees totaling $10,000.

 

RDW Note 2 principle was discounted for the value of the OID, due diligence fees and the intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $98,086. As this amount resulted in a total debt discount that exceeds RDW Note 2 principal, the discount recorded for the beneficial conversion feature was limited to the principal amount of RDW Note 2. The resulting $105,000 discount was accreted over the 5 month term of RDW Note 2 through June 30, 2016.

 

RDW Note1 and RDW Note 2 - During the three and six months ended October 31, 2016, the Company recognized the following transactions related to RDW Note 1 and RDW Note 2:

 

  • Recorded $651 and $4,407 of interest expense, respectively,
  • Recorded $35,192 and $35,192 of debt discount accretion, respectively,
  • Issued 80,281,822 shares of common stock upon the conversion of $115,293 of note principle during the three months ended October 31, 2016 and issued 115,939,107 shares of common stock upon the conversion of $262,500 of note principle during the six months ended October 31, 2016.

 

RDW Note 3 - In connection with RDW SPA 1 and amendments thereto, on March 10, 2016, the Company issued to RDW a convertible note (“RDW Note 3”) due on September 10, 2016 in the principal amount of $210,000 of which the Company received proceeds of $180,000 after payment of a $10,000 OID and due diligence fees totaling $20,000.

 

RDW Note 3 principal was discounted for the OID, due diligence fees, stock issued to an advisor in connection with RDW Note 3 totaling $18,000, and the intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $227,391. As this amount resulted in a total debt discount that exceeded RDW Note 3 principal, the discount recorded for the beneficial conversion feature was limited to the principal amount of RDW Note 3. The resulting $210,000 discount was accreted through April 30, 2016, the date RDW Note 3 was paid down to a principal and interest balance of $1,405.

 

During the three and six months ended October 31, 2016, the Company recognized -$613 of interest expense and $151,793 of debt discount accretion related to RDW Note 3.

 

RDW Note 4 - In connection with RDW SPA 2, on May 13, 2016, the Company issued to RDW a convertible note (“RDW Note 4”) due on November 13, 2016 in the principal amount of $105,000 of which the Company received proceeds of $82,500 after payment of a $5,000 OID, $7,500 of legal fees and $10,000 of due diligence fees.

 

RDW Note 4 principle was discounted for the value of the OID, legal fees due diligence fees and intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $70,000. As this amount resulted in a total debt discount that was less than RDW Note 4 principal, the full $70,000 discount was recognized. The resulting $92,500 discount is being accreted over the 6 month term of RDW Note 4 through November 13, 2016.

 

During the three and six months ended October 31, 2016, the Company recognized the following transactions related to RDW Note 4:

 

·         Recorded $1,971 and $3,789 of interest expense, respectively,

  • Recorded $46,250 and $85,965 of debt discount accretion, respectively,

·         Issued 8,800,000 shares of common stock upon the conversion of $12,320 of note principle during the three and six months ended October 31, 2016.

 

RDW Note 5 - In connection with RDW SPA 2, on May 20, 2016, the Company issued to RDW a convertible note (“RDW Note 5”) due on November 20, 2016 in the principal amount of $52,500 of which the Company received proceeds of $45,000 after payment of a $2,500 OID and $5,000 of due diligence fees.

 

RDW Note 5 principle was discounted for the value of the OID, due diligence fees and intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $35,000. As this amount resulted in a total debt discount that was less than RDW Note 5 principal, the full $35,000 discount was recognized. The resulting $42,500 discount is being accreted over the 6 month term of RDW Note 5 through November 20, 2016.

 

During the three and six months ended October 31, 2016, the Company recognized the following transactions related to RDW Note 5:

 

·         Recorded $1,059 and $1,968 of interest expense, respectively,

  • Recorded $21,250 and $37,880 of debt discount accretion, respectively,

 

RDW Note 6 - In connection with RDW SPA 3, on August 22, 2016, the Company issued to RDW a convertible note (“RDW Note 6”) due on February 22, 2017 in the principal amount of $157,500 of which the Company received proceeds of $130,000 after payment of a $7,500 OID and legal and due diligence fees totaling $20,000.

 

RDW Note 6 principle was discounted for the value of the OID, legal and due diligence fees and intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $105,000. As this amount resulted in a total debt discount that was less than RDW Note 6 principal, the full $105,000 discount was recognized. The resulting $132,500 discount is being accreted over the 6 month term of RDW Note 6 through February 22, 2017.

 

During the three months ended October 31, 2016, the Company recognized $2,469 of interest expense and $50,408 of debt discount accretion related to RDW Note 6.

 

RDW Note 7 – In connection with RDW SPA 4 under which RDW agreed to purchase an aggregate of up to $367,500 in principal amount of notes, on September 1, 2016, the Company issued to RDW a convertible note (“RDW Note 7”) due on March 1, 2017 in the principal amount of $157,500 of which the Company received proceeds of $130,000 after payment of a $7,500 OID and legal and due diligence fees totaling $20,000. The second tranche for $210,000 will occur on the date that is two trading days from the date a registration statement is declared effective by the SEC.

 

RDW Note 7 principle was discounted for the value of the OID, legal and due diligence fees and intrinsic value of the beneficial conversion feature. The calculated intrinsic value was $105,000. As this amount resulted in a total debt discount that was less than RDW Note 7 principal, the full $105,000 discount was recognized. The resulting $132,500 discount is being accreted over the 6 month term of RDW Note 7 through March 1, 2017.

 

During the three months ended October 31, 2016, the Company recognized $2,114 of interest expense and $43,923 of debt discount accretion related to RDW Note 7.

 

RDW Note 1, RDW Note 2, RDW Note 3, RDW Note 4, RDW Note 5, RDW Note 6 and RDW Note 7 may hereinafter be referred to collectively as, the “RDW Notes”.

 

The RDW Notes have the following terms and conditions:

 

· The principal amount outstanding accrues interest at a rate of eight percent (8%) per annum.

· Interest is due and payable on each conversion date and on the Maturity Date.

· At any time, at the option of the holder, the RDW notes are convertible, into shares of our common stock at a conversion price equal to sixty percent (60%) of the lowest traded price of our common stock in the twenty (20) days prior to the conversion date, at any time, at the option of the holder (the “Conversion Price”).

· The RDW Notes are unsecured obligations.

· We may prepay the RDW Notes in whole or in part at any time with ten (10) days written notice to the holder for the sum of the outstanding principal and interest multiplied by one hundred and thirty percent (130%).  RDW may continue to convert the notes from the date of the notice of prepayment until the date of prepayment.

·  Default interest of twenty-four percent (24%) per annum.

· Interest on overdue accrued and unpaid interest will incur a late fee of the lower of eighteen percent (18%) per annum or the maximum rate permitted by law.

· Upon an event of default, RDW may accelerate the outstanding principal, plus accrued and unpaid interest, and other amounts owing through the date of acceleration (“Acceleration”).

· Upon Acceleration, the amount due will be one hundred thirty percent (130%) of the outstanding principal amount of the Note and accrued and unpaid interest, together with payment of all other amounts, costs, expenses and liquidated damages.

· In the event of our default, at the request of the holder, we must pay one hundred fifty percent (150%) of the outstanding balance plus accrued interest and default interest.

· We must reserve three (3) times the amount of shares necessary for the issuance of common stock upon conversion. 

· Conversions of the RDW Notes shall not be permitted if such conversion will result in the holder owning more than four point ninety-nine percent (4.99%) of our common shares outstanding after giving effect to such conversion.

 

In total, during the three and six months ended October 31, 2016, the Company recognized $7,651 and $14,134, respectively, of interest expense and $161,831 and $405,161, respectively, of debt discount accretion related to the RDW Notes.

 

In total, during the three months ended October 31, 2016, RDW converted $127,613 of RDW Note principal into 89,081,822 shares of common stock. In total, during the six months ended October 31, 2016, RDW converted $274,820 of RDW Note principal into 124,739,107 shares of common stock.

XML 19 R10.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 5 - Commitments and Contingencies
6 Months Ended
Oct. 31, 2016
Notes  
Note 5 - Commitments and Contingencies

NOTE 5 – COMMITMENTS AND CONTINGENCIES

 

Product Warranties

 

Our products are sold with a one (1) year manufacturer’s warranty. The Company has no obligation to provide warranty service or replacement. The Company does offer an extended warranty for a fee. The extended warranty expires one year from the day the manufacturer warranty expires. Warranty costs during the second year of an extended warranty are born by the manufacturer. As a result, the Company has no, or limited warranty liability exposure.

 

Operating Lease

 

On March 21, 2015, the Company entered into a lease of office space at 130 Iowa Lane, Suite 102, Carry, North Carolina 27511. The lease expires on March 31, 2018. The Company has no other noncancelable operating leases. Future minimum lease payments under this operating lease with an initial term in excess of one year as of October 31, 2016 are as follows:

 

Fiscal Year

2017                        $7,314

2018                        $14,920

2019                        $10,144

Thereafter              $0

 

During the three months ended October 31, 2016 and 2015, rent expense for office space totaled $3,882 and $3,000, respectively. During the six months ended October 31, 2016 and 2015, rent expense for office space totaled $7,576 and $5,250, respectively.

 

Supplier Purchase Commitments

 

The Company periodically makes contractual, advance inventory purchases in the ordinary course of business. As of October 31, 2016, the Company was obligated to purchase $11,000 of inventory under a non-exclusive distribution agreement.

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 6 - Stockholder's Equity
6 Months Ended
Oct. 31, 2016
Notes  
Note 6 - Stockholder's Equity

NOTE 6 – Stockholder's Equity

 

As of October 31, 2016 and April 30, 2016, there were 177,117,321 and 40,525,595 shares of common stock outstanding, respectively and there were 1,000,000 and 1,000,000 shares of Series A Preferred Stock outstanding, respectively.

 

On January 19, 2016, we amended our Articles of Incorporation to increase our authorized common stock from 50,000,000 shares to 250,000,000 shares and authorized the creation of 1,000,000 shares of Series A preferred stock with each share being entitled to 200,000 (i.e., 200:1) votes per share and with no right of conversion into shares of common stock.

 

On August 4, 2016, we approved an amendment to our Articles of Incorporation to increase our authorized common stock from 250,000,000 shares to 750,000,000 shares and authorized Series A preferred stock from 1,000,000 shares to 5,000,000 shares. The amendment became effective September 8, 2016.

 

During the six months ended October 31, 2016, the company issued 136,591,726 shares of common stock upon the conversion of convertible promissory note principal and interest totaling $310,352.

 

During the year ended April 30, 2016, the Company issued preferred stock and common stock as follows:

 

·         10,095 shares of common stock were issued in exchange for services valued at the close price of our stock resulting in stock compensation expense of $14,500.

·         31,912 shares of common stock were issued in connection with RDW Note 3 and valued at $18,000 as stated in the related agreements.

·         450,000 shares of common stock were issued for cash of $0.10 per share resulting in the Company receiving $45,000.  

·         1,000,000 shares of non-convertible Series A Preferred Stock to Paul Feldman, CEO, which entitle him to 200,000 votes per share or an aggregate of 200,000,000 votes on all matters submitted to our common stockholders. We valued the 1,000 Series A shares at $0.0001 per share or an aggregate of $1,000.

·         21,738,588 shares of common stock were issued upon the conversion of $618,708 of convertible note principal and interest. 

XML 21 R12.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 7 - Subsequent Events
6 Months Ended
Oct. 31, 2016
Notes  
Note 7 - Subsequent Events

NOTE 7 – SUBSEQUENT EVENTS

 

Management has reviewed material events subsequent of the quarterly period ended October 31, 2016 and prior to the filing of financial statements in accordance with FASB ASC 855 “Subsequent Events”.  

 

RDW converted $54,090 of convertible note principal into 18,030,000 shares of common stock.

XML 22 R13.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Basis of Presentation (Policies)
6 Months Ended
Oct. 31, 2016
Policies  
Basis of Presentation

Basis of Presentation

 

The unaudited financial statements of Force Protection Video Equipment Corp. (the “Company”) as of October 31, 2016, and for the three and six months ended October 31, 2016 and 2015, have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting. Accordingly, they do not include all of the disclosures required by accounting principles generally accepted in the United States for complete financial statements and should be read in conjunction with the audited financial statements and notes thereto for the year ended April 30, 2016, as filed with the Securities and Exchange Commission as part of the Company’s Form 10-K. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the interim financial information have been included. The Company did not record an income tax provision during the periods presented due to net taxable losses. The results of operations for any interim period are not necessarily indicative of the results of operations for the entire year.

XML 23 R14.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Estimates (Policies)
6 Months Ended
Oct. 31, 2016
Policies  
Estimates

Estimates

 

The preparation of the Company’s financial statements requires management to make estimates and use assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. On an on-going basis, the Company evaluates its estimates. Actual results and outcomes may differ materially from these estimates and assumptions.

XML 24 R15.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)
6 Months Ended
Oct. 31, 2016
Policies  
Cash and Cash Equivalents

Cash and Cash Equivalents

 

The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents.

XML 25 R16.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Inventory (Policies)
6 Months Ended
Oct. 31, 2016
Policies  
Inventory

Inventory

 

Our inventory is comprised of finished goods, cameras and recording equipment. The Company’s inventory is stated at the lower of cost or market. The Company also makes prepayments against the future delivery of inventory classified as prepaid inventory.

XML 26 R17.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Accounts Receivable (Policies)
6 Months Ended
Oct. 31, 2016
Policies  
Accounts Receivable

Accounts Receivable

 

Accounts receivable are reported at the customers' outstanding balances.  The Company does not have a history of significant bad debt and has not recorded any allowance for doubtful accounts.  Interest is not accrued on overdue accounts receivable.  The Company evaluates receivables on a regular basis for potential reserve.

XML 27 R18.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Property and Equipment (Policies)
6 Months Ended
Oct. 31, 2016
Policies  
Property and Equipment

Property and Equipment

 

Fixed assets are carried at cost, less accumulated depreciation and amortization. Major improvements are capitalized, while repair and maintenance are expensed when incurred. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period.

 

For federal income tax purposes, depreciation is computed under the modified accelerated cost recovery system. Depreciation for financial statement purposes is computed on a straight-line basis over estimated useful lives of the related assets. The estimated useful lives of depreciable assets are:

 

  

 

Estimated

 

 

Useful Lives

 Vehicles

 

     5 years

Office Equipment

 

3 - 5 years

Furniture & equipment

 

5 - 7 years

XML 28 R19.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Income Taxes (Policies)
6 Months Ended
Oct. 31, 2016
Policies  
Income Taxes

Income Taxes

 

The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry-forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized. The Company reports a liability for unrecognized tax benefits resulting from uncertain income tax positions, if any, taken or expected to be taken in an income tax return. Estimated interest and penalties are recorded as a component of interest expense or other expense, respectively.

XML 29 R20.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Revenue Recognition (Policies)
6 Months Ended
Oct. 31, 2016
Policies  
Revenue Recognition

Revenue Recognition

 

The Company recognizes revenue when (a) pervasive evidence of an arrangement exists (b) products are delivered or services have been rendered (c) the sales price is fixed or determinable, and (d) collection is reasonably assured.

XML 30 R21.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Marketing and Advertising Costs (Policies)
6 Months Ended
Oct. 31, 2016
Policies  
Marketing and Advertising Costs

Marketing and Advertising Costs

 

Marketing and advertising costs are anticipated to be expensed as incurred. The Company recognized $22,513 and $68,874 in marketing and advertising costs during the three and six months ended October 31, 2016, respectively. The Company recognized $3,929 and $18,226 in marketing and advertising costs during the three and six months ended October 31, 2015, respectively.

XML 31 R22.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Stock Based Compensation (Policies)
6 Months Ended
Oct. 31, 2016
Policies  
Stock Based Compensation

Stock Based Compensation

 

The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.

XML 32 R23.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Fair Value Measurements (Policies)
6 Months Ended
Oct. 31, 2016
Policies  
Fair Value Measurements

Fair Value Measurements

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:

 

Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;

 

Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

 

Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

 

As of October 31, 2016 and April 30, 2016, the Company did not have any assets or liabilities that were required to be measured at fair value on a recurring basis or on a non-recurring basis. 

XML 33 R24.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)
6 Months Ended
Oct. 31, 2016
Policies  
Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

The Company’s financial instruments consist of cash and cash equivalents and accounts payable and accrued expenses. The carrying amounts of the Company’s financial instruments approximate fair value because of the short term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect those estimates. We do not hold or issue financial instruments for trading purposes, nor do we utilize derivative instruments.

XML 34 R25.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Net Income (loss) Per Share (Policies)
6 Months Ended
Oct. 31, 2016
Policies  
Net Income (loss) Per Share

Net Income (Loss) Per Share

 

The computation of basic earnings per share (“EPS”) is based on the weighted average number of shares that were outstanding during the period, including shares of common stock that are issuable at the end of the reporting period. The computation of diluted EPS is based on the number of basic weighted-average shares outstanding plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares outstanding using the treasury stock method. The computation of diluted net income per share does not assume conversion, exercise or contingent issuance of securities that would have an antidilutive effect on earnings per share. Therefore, when calculating EPS, if the Company experienced a loss, there is no inclusion of dilutive securities as their inclusion in the EPS calculation is antidilutive. Furthermore, options and warrants will have a dilutive effect under the treasury stock method only when the average market price of the common stock during the period exceeds the exercise price of the options or warrants (they are in the money).

 

Following is the computation of basic and diluted net loss per share for the three and six months ended October 31, 2016 and 2015:

 

Three Months Ended

Six Months Ended

October 31,

October 31,

2016

2015

2016

2015

Basic and Diluted EPS Computation

Numerator:

Loss available to common stockholders'

$       (349,926)

$    (149,347)

$       (839,138)

$    (202,389)

Denominator:

Weighted average number of common shares outstanding

    160,873,532 

    18,746,707 

    110,129,348 

    18,633,109 

Basic and diluted EPS

$             (0.00)

$          (0.01)

$             (0.01)

$          (0.01)

Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares):

Convertible promissory notes

        50,491,376

          497,772

        50,491,376

          497,772

XML 35 R26.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Concentrations of Risk (Policies)
6 Months Ended
Oct. 31, 2016
Policies  
Concentrations of Risk

Concentrations of risk

 

During the three months ended October 31, 2016, three customers accounted for 50.2% (19.8%, 17.2% and 13.2%) of sales. During the three months ended October 31, 2015, two customers accounted for 26.1% (16.0% and 10.1%) of sales.

 

During the six months ended October 31, 2016, one customer accounted for 10.4% of sales. During the six months ended October 31, 2015, no customer accounted for more than 10% of sales.

 

The Company relies on third parties for the supply and manufacture of its capture devices, some of which are sole-source suppliers.  The Company believes that outsourcing manufacturing enables greater scale and flexibility. As demand and product lines change, the Company periodically evaluates the need and advisability of adding manufacturers to support its operations.  In instances where a supply and manufacture agreement does not exist or suppliers fail to perform their obligations, the Company may be unable to find alternative suppliers or satisfactorily deliver its products to its customers on time, if at all.  During the three months ended October 31, 2016, one supplier accounted for 62.5% of our inventory purchases. During the six months ended October 31, 2016, two suppliers accounted for 88.0% (76.2% and 11.8%) of our inventory purchases. During the three months ended October 31, 2015, one supplier accounted for 96.4% of our inventory purchases. During the six months ended October 31, 2015, one supplier accounted for 95.0% of our inventory purchases.

XML 36 R27.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies)
6 Months Ended
Oct. 31, 2016
Policies  
Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02 amending the accounting for leases. The new guidance requires the recognition of lease assets and liabilities for operating leases with terms of more than 12 months, in addition to those currently recorded, on our balance sheets. Presentation of leases within the statements of operations and statements of cash flows will be generally consistent with the current lease accounting guidance. The ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company does not expect this accounting update to have a material effect on its financial statements.

 

In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). This ASU eliminates the requirement for retrospective application of measurement period adjustments relating to provisional amounts recorded in a business combination as of the acquisition date. The amendments in this update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments will be effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. The Company does not expect this accounting update to have a material effect on its financial statements in future periods, although that could change.

 

In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). This ASU provides guidance about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the arrangement should be accounted for as a service contract. For public business entities, the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted.

 

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU requires retrospective adoption and will be effective for fiscal years beginning after December 15, 2015 and for interim periods within those fiscal years. We expect the adoption of this guidance will not have a material impact on our financial statements.

 

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. In March 2016, the FASB issued ASU 2016-08 to further clarify the implementation guidance on principal versus agent considerations. The guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The Company does not expect this accounting update to have a material effect on its financial statements.

 

We review new accounting standards as issued. Although some of these accounting standards issued or effective after the end of our previous fiscal year may be applicable to us, we have not identified any standards that we believe merit further discussion. We believe that none of the new standards will have a significant impact on our financial statements.

XML 37 R28.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Net Income (loss) Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables)
6 Months Ended
Oct. 31, 2016
Tables/Schedules  
Schedule of Earnings Per Share, Basic and Diluted

 

Three Months Ended

Six Months Ended

October 31,

October 31,

2016

2015

2016

2015

Basic and Diluted EPS Computation

Numerator:

Loss available to common stockholders'

$       (349,926)

$    (149,347)

$       (839,138)

$    (202,389)

Denominator:

Weighted average number of common shares outstanding

    160,873,532 

    18,746,707 

    110,129,348 

    18,633,109 

Basic and diluted EPS

$             (0.00)

$          (0.01)

$             (0.01)

$          (0.01)

Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares):

Convertible promissory notes

        50,491,376

          497,772

        50,491,376

          497,772

XML 38 R29.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 3 - Fixed Assets: Schedule of Other Assets (Tables)
6 Months Ended
Oct. 31, 2016
Tables/Schedules  
Schedule of Other Assets

 

 

 

 

October 31, 2016

 

April 30, 2016

 

 Vehicles

 

   $          15,376 

   $                  - 

 

Furniture and fixtures

 

                 6,212 

                6,212 

 

Computers and office equipment

 

                 2,480 

                1,376 

 

   Total fixed assets

 

               24,068 

                7,588 

 

Accumulated depreciation

 

               (2,701)

                 (476)

 

Total fixed assets

 

   $          21,367 

   $           7,112 

XML 39 R30.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 4 - Convertible Promissory Notes: Convertible Debt (Tables)
6 Months Ended
Oct. 31, 2016
Tables/Schedules  
Convertible Debt

 

Current Balances

Lender

Issue Date

Maturity

Principle

Interest

Total

RDW Capital, LLC Note 2

12/31/2015

6/30/16

$                  - 

$   13,405

$    13,405

RDW Capital, LLC Note 3

3/10/2016

9/10/16

               792 

                -

            792

RDW Capital, LLC Note 4

5/13/2016

11/13/16

          92,680 

        3,790

       96,470

RDW Capital, LLC Note 5

5/20/2016

11/20/16

          52,500 

        1,968

       54,468

RDW Capital, LLC Note 6

8/22/2016

2/22/17

        157,500 

        2,469

     159,969

RDW Capital, LLC Note 7

9/1/2016

3/1/17

        157,500 

        2,113

     159,613

   Totals

$      460,972 

$   23,745

$  484,717

Debt discount balance

      (181,824)

   Balance sheet balances

$      279,148 

 

Following is a summary of our outstanding convertible promissory notes as of April 30, 2016:

 

Current Balances

Lender

Issue Date

Maturity

Principle

Interest

Total

LG Capital Funding, LLC

4/20/2016

9/11/2016

$        13,000 

$          34

$    13,034

Black Forest Capital, LLC

10/8/2015

10/8/2016

          19,500 

        3,001

       22,501

RDW Capital, LLC Note 1

11/10/2015

5/10/16

        157,500 

        6,136

     163,636

RDW Capital, LLC Note 2

1/0/1900

6/30/16

        105,000 

        2,861

     107,861

RDW Capital, LLC Note 3

3/10/2016

9/10/16

               792 

           614

         1,406

   Totals

$      295,792 

$   12,646

$  308,438

Debt discount balance

      (204,718)

   Balance sheet balances

$        91,074 

XML 40 R31.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 1 - Organization and Going Concern (Details) - USD ($)
3 Months Ended 6 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Apr. 30, 2016
Details          
Net revenue $ 17,464 $ 19,614 $ 33,176 $ 35,548  
Operating Income (Loss)     402,112    
Working Capital Deficit 11,014   11,014    
Accumulated Deficit $ 2,314,263   $ 2,314,263   $ 1,475,125
XML 41 R32.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 2 - Summary of Significant Accounting Policies: Net Income (loss) Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)
3 Months Ended 6 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Net loss $ (489,212) $ (149,347) $ (839,138) $ (202,389)
Weighted Average Common Shares Outstanding Basic and Diluted 160,873,532 18,746,707 110,129,348 18,633,109
Net (Loss) Per Common Share- Basic and Diluted $ (0.01) $ (0.00) $ (0.01) $ (0.01)
Basic and Diluted EPS Computation        
Net loss $ (349,926) $ (149,347) $ (839,138) $ (202,389)
Weighted Average Common Shares Outstanding Basic and Diluted 160,873,532 18,746,707 110,129,348 18,633,109
Net (Loss) Per Common Share- Basic and Diluted $ (0.00) $ (0.01) $ (0.01) $ (0.01)
XML 42 R33.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 3 - Fixed Assets: Schedule of Other Assets (Details) - USD ($)
Oct. 31, 2016
Apr. 30, 2016
Details    
Public Utilities, Property, Plant and Equipment, Vehicles $ 15,376  
Furniture and Fixtures, Gross 6,212 $ 6,212
Property, Plant and Equipment, Other, Gross 2,480 7,588
Other Assets, Noncurrent 24,068  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment (2,701) (476)
Other Assets, Miscellaneous $ 21,367 $ 7,112
XML 43 R34.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 4 - Convertible Promissory Notes (Details) - USD ($)
6 Months Ended
Oct. 31, 2016
Nov. 20, 2016
Nov. 13, 2016
Nov. 12, 2016
Sep. 10, 2016
Sep. 01, 2016
Aug. 22, 2016
Jun. 30, 2016
Oct. 08, 2015
Sep. 11, 2015
LG Capital Funding, LLC                    
Convertible Note                   8.00%
Convertible Note- Principal Amount                   $ 81,000
Due to Affiliate, Current                   $ 75,000
Accretion Expense $ 7,741                  
Debt Conversion, Original Debt, Amount $ 13,034                  
Debt Conversion, Converted Instrument, Shares Issued 775,844                  
Black Forest Capital, LLC                    
Convertible Note                 10.00%  
Convertible Note- Principal Amount                 $ 53,000  
Due to Affiliate, Current                 50,000  
Accretion Expense $ 9,992                  
Debt Conversion, Original Debt, Amount $ 22,499                  
Debt Conversion, Converted Instrument, Shares Issued 11,076,775                  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value                 $ 127,199  
RDW Capital, LLC                    
Convertible Note- Principal Amount   $ 52,500 $ 105,000 $ 157,500 $ 210,000 $ 157,500 $ 157,500 $ 105,000    
XML 44 R35.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 5 - Commitments and Contingencies (Details) - USD ($)
3 Months Ended 6 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Details        
Operating Leases, Rent Expense $ 3,882 $ 3,000 $ 7,576 $ 5,250
Advances on Inventory Purchases $ 11,000   $ 11,000  
XML 45 R36.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 6 - Stockholder's Equity (Details) - USD ($)
12 Months Ended
Apr. 30, 2016
Oct. 31, 2016
Jan. 19, 2016
Apr. 30, 2015
Common Stock, Shares Outstanding 40,525,595 177,117,321    
Preferred Stock, Shares Outstanding 1,000,000 1,000,000    
Common Stock, Shares Authorized 750,000,000 750,000,000 250,000,000  
Preferred Stock, Shares Issued 1,000,000 1,000,000 1,000,000  
Stock Issued During Period, Shares, Issued for Services 10,095      
Share-based Compensation $ 14,500      
Common Stock, Shares Issued 40,525,595 177,117,321    
Common stock [1] $ 4,052 $ 17,711    
Shares Issued for Cash 450,000      
Sale of Stock, Price Per Share $ 0.10      
Cash $ 45,000      
Preferred Stock Shares Issued 1,000,000      
Preferred Stock, Par Value $ 0.0001 $ 0.0001    
Common Stock Issued Upon Conversion 21,738,588      
Stock Issued Upon Conversion $ 618,708      
RDW Note 3        
Common Stock, Shares Issued 31,912      
Common stock $ 18,000      
Stock Issued2        
Cash       $ 1,000
[1] $0.0001 par value; 750,000,000 shares authorized; issued and outstanding 177,117,321 and 40,525,595 at October 31, 2016 and April 30, 2016, respectively.
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