NOTE 2 – GOING CONCERN

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which assumes continuity of operations and realization of assets and liabilities in the ordinary course of business. Since its formation, the Company has generated losses from operations. At September 30, 2016, the Company had an accumulated deficit of $215,203. These losses were associated with start-up activities and brand infrastructure development. Recently, losses are primarily attributable to lower than planned sales resulting from low fill rates on demand due to working capital limitations, delayed product introductions and postponed marketing activities as well as restructuring costs and interest. Losses have been funded primarily through issuance of common stock, borrowings from our stockholders and third-party debt.

Because of this history of operating losses, significant interest expense on the Company’s debt, and the recording of significant derivative liabilities, the Company has a working capital deficiency of $1,719 at September 30, 2016. The Company also has $8,874 of debt, net of discount, due within the next 12 months. These continuing conditions raise substantial doubt about the Company's ability to continue as a going concern.

Management has addressed operating issues through the following actions: focusing on growing the core business and brands; continuing emphasis on major customers and key products; reducing manufacturing and operating costs and continuing to negotiate lower prices from major suppliers. During the nine months ended September 30, 2016, the Company obtained debt funding totaling $24,678 to fund current operations. Additionally, in connection with the July 2016 promissory note agreements with two of the Company’s related party lenders, the Company may make draw requests and the lenders may loan the Company up to an additional principal amount of $4,362. However, the Company believes that it may need additional capital to execute its business plan. If additional funding is required, there can be no assurance that sources of funding will be available when needed on acceptable terms or at all.