<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 12pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">As filed with the Commission on October 19,
2018</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt">UNITED
STATES</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt">SECURITIES
AND EXCHANGE COMMISSION</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">Washington, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center">FORM S-1</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>Profile Solutions, Inc.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact name of registrant as specified in its
charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 34%; border: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">Delaware</FONT></TD>
<TD STYLE="width: 33%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">8742</FONT></TD>
<TD STYLE="width: 33%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">20-5156305</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">(State or other jurisdiction of incorporation or organization)</FONT></TD>
<TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">(Primary Standard Industrial Classification Code Number)</FONT></TD>
<TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">(I.R.S. Employer Identification Number)</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Suite 201</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">8411 West Oakland Park Boulevard</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Sunrise, FL 33351</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>Telephone: (844) 856-8838</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Address, including zip code, and telephone
number, including area code, of registrant&rsquo;s principal executive offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Dan Oran</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Profile Solutions, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Suite 201</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">8411 West Oakland Park Boulevard</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Telephone: (844) 856-8838</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>Email: dan@profilesolutionsinc.com</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Name, address, including zip code, and telephone
number, including area code, and email address of agent for service)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Copy to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Jackson L. Morris, Esq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">3116 W. North A Street</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Tampa, FL 33609-1544</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Telephone: 813) 892-5969</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Email: jackson.morris@rule144solution.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; text-align: center"><FONT STYLE="font-size: 10pt"><U>As soon as practicable after the effective date
    of this registration statement.</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">(Approximate date of commencement of proposed sale to the public)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">If any of the securities being registered on this Form are to be
offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box:&nbsp;&nbsp;&#9746;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering.&nbsp;&nbsp;&#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">If this Form is a post-effective amendment filed pursuant to Rule
462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering.&nbsp;&nbsp;&#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">If this Form is a post-effective amendment filed pursuant to Rule
462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering.&nbsp;&nbsp;&#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 1; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of &ldquo;large accelerated
filer,&rdquo; &ldquo;accelerated filer,&rdquo; and &ldquo;smaller reporting company&rdquo; in Rule 12b-2 of the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 35%"><FONT STYLE="font-size: 10pt">Large accelerated filer</FONT></TD>
    <TD STYLE="width: 15%"><FONT STYLE="font-size: 10pt">&#9744;</FONT></TD>
    <TD STYLE="width: 35%"><FONT STYLE="font-size: 10pt">Accelerated filer</FONT></TD>
    <TD STYLE="width: 15%"><FONT STYLE="font-size: 10pt">&#9744;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Non-accelerated filer</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&#9744;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Smaller reporting company</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&#9746;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="text-align: center">Calculation of Registration Fee</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">Title of Each Class of Securities to be Registered</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Amount to be Registered</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Proposed Maximum Offering Price Per Unit</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Proposed Maximum Aggregate Offering Price</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Amount of Registration Fee</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; padding-bottom: 1pt; padding-left: 5.4pt">Common Stock, &nbsp; $0.001 par value</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">$</TD>
    <TD STYLE="width: 12%; text-align: right; padding-bottom: 1pt; padding-left: 5.4pt">167,583,443</TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt">(1)</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 12%; border-bottom: Black 1pt solid; text-align: right">0.16</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">(2)</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 11%; border-bottom: Black 1pt solid; text-align: right">26,813,350.88</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 11%; border-bottom: Black 1pt solid; text-align: right">3,249.78</TD><TD STYLE="width: 2%; padding-bottom: 1pt; text-align: left"></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(1) Registered on behalf of selling stockholders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(2) Estimated solely for the purpose of calculating the amount
of the registration fee in accordance with Rule 457(c) under the Securities Act of 1933, based on the average high and
low sale price for the registrant&rsquo;s common stock on October 12, 2018, as reported by the OTC Markets Group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The registrant hereby amends this registration statement on such
date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically
states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act
of 1933 or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting
pursuant to said Section 8(a), may determine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 2; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">PRELIMINARY PROSPECTUS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The information in this preliminary prospectus is not complete and
may be changed. The selling stockholders may not sell the shares until the registration statement filed with the Securities and
Exchange Commission of which this prospectus is a part is effective. This prospectus is not an offer to sell these securities and
it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Subject to Completion: Dated October ___, 2018</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Profile Solutions, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Common Stock, $0.001 par value per share</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">167,583,443 shares</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">This prospectus covers the sale by selling stockholders of 167,583,443
shares of our common stock, par value $0.001 per share. The selling stockholders may sell all or a portion of the shares being
offered pursuant to this prospectus at fixed prices, at prevailing market prices at the time of sale, at varying prices or at negotiated
prices. We expect our selling stockholders to pay ordinary and customary brokerage fees and commissions upon the sale of their
shares. The total number of shares of common stock which may be sold pursuant to this prospectus, in the aggregate, represents
21.7% of our total issued and outstanding common stock as of August 31, 2018. We will not receive any proceeds from the sale of
the shares by the selling stockholders. The selling stockholders may be deemed to be statutory underwriters of the shares they
sell. See, &ldquo;How We Expect The Selling Stockholders To Distribute Their Shares.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our common stock is quoted in the over-the-counter market under
the symbol &ldquo;PSIQ&rdquo;. On October 17, 2018, the closing price of our common stock was $0.2000 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Investing in our common stock involves a
high degree of risk. See &ldquo;Risk Factors&rdquo; beginning on page 6 of this prospectus.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Our auditors have raised substantial doubt
as to our ability to continue as a &ldquo;going concern.&rdquo;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>We are an &ldquo;emerging growth company&rdquo;,
as defined in the <I>Jump Start Our Business Startups Act of 2012</I> (&ldquo;JOBS act&rdquo;) and will therefore be subject to
reduced public company reporting requirements.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Neither the U.S. Securities and Exchange
Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
is truthful or complete. Any representation to the contrary is a criminal offense.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">The date of this prospectus is _______, 2018</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 3; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>REPORTS TO SECURITY HOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We intend to furnish to our stockholders&rsquo;
annual reports containing audited financial statements and quarterly reports containing unaudited financial statements for each
of the first three quarters of each fiscal year, whether or not we are required to file such reports pursuant to Section 15 of
the Securities Exchange Act of 1934. In addition, we may from time to time furnish to stockholders&rsquo; additional information
about us and our business as our management deems appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
<TD COLSPAN="2" STYLE="padding: 0; text-align: center; text-indent: 0"><FONT STYLE="font-size: 10pt">Table of Contents</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 95%; padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="width: 5%; padding: 0; text-align: center"><FONT STYLE="font-size: 10pt">Page</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_001">Prospectus Summary</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right"><FONT STYLE="font-size: 10pt">6</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_002">Our Corporate History and Organization</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right"><FONT STYLE="font-size: 10pt">6</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_003">Risk Factors</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right"><FONT STYLE="font-size: 10pt">6</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_004">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right"><FONT STYLE="font-size: 10pt">13</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_005">Our Business</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_006">Our Management</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_007">Board Committees</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_008">How We Compensate Our Management</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_009">Employment Agreements</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_010">Who Owns Our Common Stock</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_011">Related Party Transactions and Relationships</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_012">Market Information and Related Stockholder Matters</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_013">Description of Our Securities</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_014">Selling Stockholders</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_015">How We Expect The Selling Stockholders To Distribute Their Shares</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right">22</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_016">Legal Matters</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right">23</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_017">Experts</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right">24</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_018">Where You Can Find More Information About Us</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right">24</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="#a_019">Index to Financial Statements</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right">24</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>USE OF PRONOUNS AND OTHER WORDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The pronouns &ldquo;we&rdquo;, &ldquo;us&rdquo;,
&ldquo;our&rdquo; and the equivalent used in this prospectus mean Profile Solutions, Inc. and its consolidated subsidiary, Elite
Products International, Inc. In the notes to our consolidated financial statements, the &ldquo;Company&rdquo; means Profile Solutions,
Inc. and its consolidated subsidiary. The pronoun &ldquo;you&rdquo; means the reader of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SUMMARIES OF REFERENCED DOCUMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">This prospectus contains references to, summaries
of and selected information from agreements and other documents. These agreements and other documents are not incorporated by reference;
but, are filed as exhibits to our registration statement of which this prospectus is a part and which we have filed with the U.S.
Securities and Exchange Commission. We believe the summaries and selected information provide all material terms from these agreements
and other documents. Whenever we make reference in this prospectus to any of our agreements and other documents, you should refer
to the exhibits filed with our registration statement of which this prospectus is a part for copies of the actual agreement or
other document. See &ldquo;Where You Can Find Additional Information About Us&rdquo; for instructions as to how to access and obtain
these agreements and other documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORWARD-LOOKING STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">This prospectus contains forward&ndash;looking
statements that involve risks and uncertainties. We use words such as &ldquo;project&rdquo;, &ldquo;believe&rdquo;, &ldquo;anticipate&rdquo;,
&ldquo;plan&rdquo;, &ldquo;expect&rdquo;, &ldquo;estimate&rdquo;, &ldquo;intend&rdquo;, &ldquo;should&rdquo;, &ldquo;would&rdquo;,
&ldquo;could&rdquo;, or &ldquo;may&rdquo;, or other such words, verbs in the future tense and words and phrases that convey similar
meaning and uncertainty of future events or outcomes to identify these forward&ndash;looking statements. There are a number of
important factors beyond our control that could cause actual results to differ materially from the results anticipated by these
forward&ndash;looking statements. While we make these forward&ndash;looking statements based on various factors and using numerous
assumptions, you have no assurance the factors and assumptions will prove to be materially accurate when the events they anticipate
actually occur in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 4; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The forward&ndash;looking statements are based
upon our beliefs and assumptions using information available at the time we make these statements. We caution you not to place
undue reliance on our forward&ndash;looking statements as (i) these statements are neither predictions nor guaranties of future
events or circumstances, and (ii) the assumptions, beliefs, expectations, forecasts and projections about future events may differ
materially from actual results. We undertake no obligation to publicly update any forward&ndash;looking statement to reflect developments
occurring after the date of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>YOU SHOULD RELY ONLY ON THE INFORMATION IN
THIS PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">You should rely only on the information contained in this prospectus.
We have not authorized anyone to provide information different from that contained in this prospectus. Selling stockholders may
sell our shares only in jurisdictions where such sale and distribution is permitted. The information contained in this prospectus
is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or the distribution
of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 5; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_001"></A>PROSPECTUS SUMMARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>This summary does not contain all of the
information that you should consider before investing in our common stock. You should read the entire prospectus carefully, including
the more detailed information regarding our business, the risks of purchasing our securities discussed in this prospectus under
&ldquo;Risk Factors&rdquo; beginning on page 6 of this prospectus.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">At the date of this prospectus, we have 772,808,793
shares of common stock issued and outstanding. Our selling stockholders are offering 167,583,443 shares of our common stock, par
value $0.001 per share which, in the aggregate, represents 21.7% of our total issued and outstanding common stock. Our selling
stockholders may sell all or a portion of the shares being offered pursuant to this prospectus at fixed prices, at prevailing market
prices at the time of sale, at varying prices or at negotiated prices. We expect our selling stockholders to pay ordinary and customary
brokerage fees and commissions upon the sale of their shares into the public securities market. We will not receive any proceeds
from the stockholders&rsquo; sale of the shares. The selling stockholders may be deemed to be statutory underwriters of the shares
they sell. See, &ldquo;How We Expect The Selling Stockholders To Distribute Their Shares.&rdquo; Our common stock is publicly traded
in the over-the-counter market under the symbol &ldquo;PSIQ&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We manufacture, market, distribute and sell
products containing cannabidiol (CBD) extracts from cannabis/industrial hemp plants containing not more than 0.3% of THC (tetrahydrocannabinol
- the psychotropic compound of cannabis) on a dry weight basis. We sell cookies, candies, creams, oils, salves and other products.
We conduct our business only in states and countries where it is legal to do so under federal, state and applicable country laws
and regulations. Marihuana or marijuana which contains THC and THC extracts are Schedule I drugs (illegal drugs) under federal
Controlled Substances Act (21 US Code &sect;802(16)).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Investment in our common stock involves a high
degree of risk and should not be purchased by investors who cannot afford the loss of their entire investment. Our auditors have
raised substantial doubt as to our ability to continue as a &ldquo;going concern.&rdquo; See &ldquo;Risk Factors&rdquo; beginning
on page 6.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_002"></A>OUR CORPORATE HISTORY AND ORGANIZATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are a Delaware corporation founded in 2006.
Our original name was YaFarm Technologies, Inc. We changed our name to Integrative Stem Cell Holdings, Inc. in 2014. We effected
a 5 or 1 stock split on January 22, 2013. On May 29, 2014, we entered into a Share Exchange Agreement under which we acquired
the assets and business of Profile Solutions, Inc., a Florida corporation, for 42,500,000 shares of our common stock and we changed
our name to its current form. We effected a 1 for 10 reverse stock split on July 31, 2014. On December 14, 2017, we entered
into another Share Exchange Agreement with Elite Products International, Inc., a Florida corporation (&ldquo;Elite&rdquo;), and
Elite&rsquo;s stockholders, issuing an aggregate total of 600,000,000 shares, representing approximately 85% of our issued and
outstanding common stock to acquire all of the issued and outstanding equity securities of Elite. As part of the transaction,
we increased our authorized common stock to 1,000,000,000 shares. Accordingly, Elite is deemed to be the acquirer for accounting
purposes. Our consolidated financial statements are a recapitalization of Elite&rsquo;s financial statements since inception,
February 15, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The address of our headquarters office is Suite
201, 8411 West Oakland Park Boulevard, Sunrise, Florida 33351. Our toll-free telephone number at that address is (844) 856-8838.
The address of our web site is www.profilesolutionsinc.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_003"></A>RISK FACTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>An investment in our common stock involves
a high degree of risk. You should carefully consider the following risks and uncertainties in addition to other information in
this prospectus in evaluating our company and its business before purchasing our common stock. These risk factors are not necessarily
exclusive and other unanticipated risk may arise. Our business, operating results and financial condition could be seriously harmed
as a result of the occurrence of any of the following and of unanticipated risks. You could lose all or part of your investment
due to any of these risks. You should invest in our common stock only if you can afford to lose your entire investment.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B></B></P>

<!-- Field: Page; Sequence: 6; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">RISKS RELATED TO FEDERAL AND STATE REGULATION OF OUR PRODUCTS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Possible yet unanticipated changes in federal and state law
could cause our products which include cannabis/industrial hemp CBD extracts to be illegal, or could otherwise prohibit, limit
or restrict our business and products, forcing us to abandon our business activities or reduce our financial prospects.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Until 2014 when 7 US Code &sect;5940 became
federal law as part of the 2014 Farm Act, products containing CBD extracts, such as ours, derived from cannabis/industrial hemp,
notwithstanding a THC content of not more than 0.3% on a dry weight basis, were classified as Schedule I illegal drugs. THC is
the psychoactive component of plants in the cannabis family generally identified as marihuana or marijuana. You have no assurance
that 7 US Code &sect;5940 will not be repealed or amended such that our products would once again be illegal under federal law.
For our purposes, 7 US Code &sect;5940 is actuated by state law permitting &ldquo;agricultural pilot programs to study the growth,
cultivation or marketing of industrial hemp&rdquo;. Although a majority of states have adopted laws and regulations that license
such pilot programs to private enterprise and regulate such programs and the produce thereof, you have no assurance that such state
laws may not be repealed or amended such that our products would once again be illegal under the laws of one or more states now
permitting our products, which in turn would render our products illegal in those states under federal law even if the federal
law is unchanged. In the event of either repeal of federal or of state laws and regulations, or of amendments thereto which are
adverse to our business and products, we may be required to cease operations or restrict or limit our products or the distribution
thereof, which could be expected to have adverse consequences to our business, operations, revenues and profitability, in which
event you may lose your entire investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Sources of our key ingredient, CBD extracts from cannabis/industrial
hemp plants depend upon legality of cultivation, processing, marketing and sales of products derived from those plants under state
law.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our key ingredient is CBD extracts derived from
cannabis/industrial hemp plants, which can be legally produced only in states which have laws and regulations that qualify under
7 US Code &sect;5940 for implementation of &ldquo;agricultural pilot programs to study the growth, cultivation or marketing of
industrial hemp&rdquo;, apart from state laws legalizing and regulating medical and recreational cannabis or marijuana which remains
illegal under federal law and regulations. At the present time we purchase all of our CBD extracts from licensed growers and processors
in Colorado and South Carolina. As described in the preceding risk factor, in the event of repeal or amendment of laws and regulations
which are now favorable to the cannabis/industrial hemp industry in Colorado and South Carolina, we would be required to locate
new suppliers in states with laws and regulations that qualify under 7 US Code &sect;5940. If we were to be unsuccessful in arranging
new sources of supply of our raw ingredients, or if our raw ingredients were to become legally unavailable, our business and operations
could be limited, restricted or entirely prohibited, which could be expected to have adverse consequences to our business, operations,
revenues and profitability, in which event you may lose your entire investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>We can produce our cannabis/industrial hemp derived CBD extract
containing products only in states which have laws and regulations which qualify under 7 US Code &sect;5940 as pilot programs for
&ldquo;agricultural pilot programs to study the growth, cultivation or marketing of industrial hemp&rdquo;.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 31.5pt">Apart from the legality of cultivation, processing,
distribution and use of cannabis/industrial hemp derived CBD extracts in any particular state, the interstate shipment cannabis/industrial
hemp derived CBD extracts is legal only between states that have adopted laws and regulations that qualify under 7 US Code &sect;5940.
Although Florida has adopted such laws and regulations such that we can receive interstate shipments of cannabis/industrial hemp
derived CBD extracts and manufacture our products in Florida, Florida does not at the date of this prospectus have a cannabis/industrial
hemp industry that can supply our needs. We produce our CBD containing products in Florida under contract with manufacturers who
are licensed to produce such products as commercial bakers, formularies of cosmetic products and confectioners. Accordingly, we
are dependent on suppliers in other states where cultivation and processing of cannabis/industrial hemp is legal. We believe it
is legal under federal law and regulations for us to receive shipments in Florida from out-of-state suppliers in states that also
have laws and regulations that qualify under 7 US Code &sect;5940. In the event Florida were to change its laws and regulations
in a way adverse to our receipt of cannabis/industrial hemp derived CBD extracts and production of our finished products containing
those extracts, we would be required to relocate our production operations to another state with laws and regulations favorable
to our business. The costs of relocating our business and operations and of engaging contract manufacturers in another state could
be substantial and adversely impact our profitability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 31.5pt"></P>

<!-- Field: Page; Sequence: 7; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Because we can sell and ship our products containing cannabis/industrial
hemp derived CBD extracts only in states that have adopted laws and regulations qualifying under 7 US Code &sect;5940, a reduction
in the number of states having such qualifying laws and regulations could limit, restrict or otherwise preclude our sales.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As noted in the preceding risk factors, the
interstate shipment of cannabis/industrial hemp derived CBD extracts is legal only between states with laws and regulations qualifying
under 7 US Code &sect;5940. In the same way acquisition of our primary raw ingredient is restricted by this factor, likewise the
marketing sale of our finished products is limited by such factor and is restricted to such states. Although we believe we may
lawfully sell our finished products in a majority of states, a repeal or adverse amendment of laws and regulations that are now
favorable to the distribution, marketing and sale of our finished products could significantly limit, restrict or prevent us from
generating revenues. Any such repeal or adverse amendment of now favorable laws and regulations could be expected to have an adverse
impact on our revenues and commercial viability of our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Existing contractors and existing and prospective customers,
including wholesale and retail customers, may be deterred from doing business with us because of fears of adverse changes in federal
or state laws.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Any perception by our contractors, customers
and potential customers that federal and state laws and regulations may be repealed or adversely amended with a consequence that
we, in the event we were to continue our business despite and in violation of law, or they may become the subject of a criminal
investigation and enforcement as a result of doing business with us, should they continue to do business with us in violation of
law, should we be become the subject of a criminal investigation and enforcement in the event of such repeal or amendment could
be expected to discourage them from doing business with us, prevent us from obtaining our products and depress our sales and prevent
us from achieving or maintaining profitability, should we achieve it. A prolonged inability to achieve profitability and to maintain
it thereafter, could be expected to close our business which could result in a complete loss of your investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>In the event we offer our products for sale from a website
available in all states, we may be found to violate the laws of states in which all or certain uses of any cannabis containing
products are illegal, which could have an adverse impact on our reputation and ability to continue and expand sales of our products.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We currently offer our products for sale from
our website. The mere visibility of such a website in states where the sale of our CBD containing products is illegal could result
in a finding that we have violated the criminal laws of one or more of such states. Any criminal investigation, prosecution and
conviction would be expected to adversely impact our sales and our ability to remain in business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>In the event of repeal or adverse amendment of 7 US Code &sect;5940
which reclassified cannabis/industrial hemp and its extracts as a Schedule I or Schedule II illegal drug, we would not be able
to deduct some of our business expenses for federal income tax purposes notwithstanding the legality of our products under state
law.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Section 280E of the Internal Revenue Code prohibits
businesses &ldquo;trafficking&rdquo; in Schedule I and Schedule II substances, as defined under the Controlled Substances Act,
21 U.S.C. &sect; 802(16), forcing us to pay higher effective federal tax rates than similar companies in other industries. The
effective tax rate on such a &ldquo;trafficking&rdquo; business depends on how large its ratio of nondeductible expenses is to
its total revenues. Therefore, should we be deemed to be &ldquo;trafficking&rdquo; in Schedule I and Schedule II substances, which
we are not at the date of this prospectus, the tax burden on our business may cause us to be less profitable than we could be otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>We may not be able to attract or retain a majority of independent
directors.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our board of directors is not currently comprised
of a majority of independent directors. We may in the future desire to list our common stock on The New York Stock Exchange (&ldquo;NYSE&rdquo;)
or The NASDAQ Stock Market (&ldquo;NASDAQ&rdquo;), both of which require that a majority of our board be comprised of independent
directors. We may have difficulty attracting and retaining independent directors because, among other things, we operate in the
broadly defined cannabis industry, and as a result we may be delayed or prevented from listing our common stock on the NYSE or
NASDAQ.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 8; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>If we or our senior management would be subject to criminal
prosecution, we would expect to terminate our business and you would lose our entire investment.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If any of the laws and regulations described
in the preceding risk factors were to be repealed or amended such that our business would be deemed illegal and we and our senior
management subject to possible criminal prosecution, we would expect to terminate our business, in which event you could expect
to lose your entire investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>We may be subject to licensing under possible future federal
and state laws and regulations, which could restrict or prevent us from engaging in business or could increase our costs of doing
business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We cannot determine if future potential federal
and state laws and regulations may require us to obtain and maintain licenses, permits, authorizations, or accreditations for production,
distribution and sale of our products. We could be subject to licensure requirements in multiple state and local jurisdictions,
involving compliance with complex laws and regulations which may impose differing requirements from jurisdiction to jurisdiction.
You have no assurance that we will be able to comply with and obtain future licensure, if required, or that we could do so at reasonable
cost. Failure to comply with or to obtain the necessary licenses, permits, authorizations, or accreditations could result in prohibitions
or restrictions on our ability to conduct our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>The acceptance of our products may depend on the general acceptance
and levels of use of medical and recreational marijuana and economic conditions in the medical and recreational marijuana industry,
over which we have no control.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our revenues and profitability may be adversely
affected by social attitudes toward medical and recreational marijuana and by economic conditions and changes in the market for
medical and recreational marijuana. Loss of favor among users of medical and recreational marijuana or among society at large or
loss of financial viability for the medical and recreational marijuana industry could adversely affect our business and profitability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>We may have difficulty accessing the service of banks which
may make it difficult for us to operate.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Many banks will not accept deposits from and
credit card processors will not clear transactions for businesses involved with the broadly defined cannabis industry, notwithstanding
the legality of cannabis/industrial hemp derived products. Consequently, we may have difficulty finding a bank and credit card
processor willing to accept our business. The inability to open or maintain bank accounts or accept credit card payments from customers
could be expected to cause us difficulty processing transactions in the ordinary course of business, including paying suppliers,
employees and landlords, which could have a significant negative effect on our operations and your investment in our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>We may be unable to obtain insurance against certain risks.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We do not maintain and believe we cannot obtain
product liability insurance. In the event we experience claims based on illness or adverse reaction to ingestion or topical use
of our products, we will pay legal fees, settlements and judgments out of our revenues and cash flow, which would reduce our profitability
or increase our losses, as may be the case.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">RISKS RELATED TO OUR UNCERTAINTY OF PROFITABILITY</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Our limited product line may hinder our business and contribute
to variable and unsteady revenues and profits. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have and plan to further develop a limited
number of products at a time. A limited number of products may cause variability and unsteady profits and losses depending on the
products offered. Our business strategy may result in increased volatility of revenues and earnings. Because of the anticipated
nature of the products that we will attempt to develop, it is difficult to accurately forecast revenues and operating results and
these items could fluctuate in the future due to a number of factors. These factors may include, among other things, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 9; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="width: 0.25in; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our ability to raise sufficient capital to take
advantage of opportunities and generate sufficient revenues to cover expenses.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our ability to source opportunities with sufficient
risk adjusted returns.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our ability to manage our capital and liquidity
requirements based on changing market conditions generally and changes in the developing legal medical marijuana and recreational
marijuana industries. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The amount and timing of operating and other costs
and expenses.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The nature and extent of competition from other
companies that may reduce market share and create pressure on pricing and investment return expectations.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adverse changes in the national and regional economies
in which we will participate, including, but not limited to, changes in our performance, capital availability, and market demand.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adverse developments in the efforts to legalize
marijuana or increased federal enforcement of existing law.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Changes in laws, regulations, accounting, taxation,
and other requirements affecting our operations and business.</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our operating results may fluctuate from year to year due to the
factors listed above and others not listed. At times, these fluctuations may be significant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Management of growth will be necessary for us to be competitive.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Successful expansion of our business will depend
on our ability to effectively attract and manage staff, strategic business relationships, and shareholders. Specifically, we will
need to hire skilled management and technical personnel as well as manage partnerships to navigate shifts in the general economic
environment. Expansion has the potential to place significant strains on financial, management and operational resources, yet failure
to expand will inhibit our profitability goals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>We are entering a potentially highly competitive market.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We face strong competition from larger companies
that may offer or plan to offer products similar to ours. Many of our current and potential competitors have longer operating histories,
significantly greater financial, marketing and other resources and larger client bases than we have (or may be expected to have).
If and as CBD infused bakery, cosmetic and confectionary products become more widely accepted, industry dominant cookie and candy
manufacturers may decide to enter our business sector and quickly gain significant market share. In such event, our growth, which
depends at present on a highly fragmented market for the types of products we offer, could suffer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Given the rapid changes affecting the global, national, and
regional economies generally and the law and regulations governing medical marijuana and recreational marijuana industries, in
particular, we may not be able to create and maintain a competitive advantage in the marketplace. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our success will depend on our ability to keep
pace with any changes in its markets, especially with legal and regulatory changes. Our success will depend on our ability to respond
to, among other things, changes in the economy, market conditions, competitive pressures and laws and regulations. Any failure
by us to anticipate or respond adequately to such changes could have a material adverse effect on our financial condition, operating
results, liquidity, cash flow and our operational performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 10; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>There could be unidentified risks involved with an investment
in our common stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The foregoing risk factors are not a complete
list or explanation of the risks involved with an investment in our common stock. Additional risks will likely be experienced that
we are not presently able to foresee. Prospective investors must not construe this information provided herein as constituting
investment, legal, tax or other professional advice. Before making any decision to invest in our securities, you should read this
entire prospectus and consult with your own investment, legal, tax and other professional advisors. An investment in our securities
is suitable only for investors who can assume the financial risks of an investment for an indefinite period of time and who can
afford to lose their entire investment. We make no representations or warranties of any kind with respect to the likelihood of
the success of our business, the value of our securities, any financial returns that may be generated or any tax benefits or consequences
that may result from an investment in us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Our failure to continue to attract, train, or retain highly
qualified personnel could harm our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our success also depends on our ability to attract,
train, and retain qualified personnel, specifically those with management and product development skills. In particular, we must
hire additional skilled personnel to further our research and development efforts. Competition for such personnel is intense. If
we do not succeed in attracting new personnel or retaining and motivating our current personnel, our business could be harmed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>We may be unable to respond to the rapid technological change
in our industry and such change may increase costs and competition that may adversely affect our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Frequent new product introductions and evolving
industry standards characterize our market. The continued growth of the Internet and intense competition in our industry exacerbate
these market characteristics. Our future success will depend on our ability to adapt to rapidly changing technologies by continually
improving the performance features and reliability of our products and services. We may experience difficulties that could delay
or prevent the successful development, introduction or marketing of our products and services. In addition, any new enhancements
must meet the requirements of our current and prospective users and must achieve significant market acceptance. We could also incur
substantial costs if we need to modify our products and services or infrastructures to adapt to these changes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>We cannot guarantee we will succeed in achieving our goals,
and our failure to do so would have a material adverse effect on our business, prospects, financial condition and operating results.
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our products are new and are only in the early
stages of commercialization. We are not certain these products will be well received as anticipated. Some of our products may have
taste, texture and other features that may limit their appeal to consumers and put us at a competitive disadvantage. If our current
or future products fail to appeal to consumer tastes or we do not achieve or sustain market acceptance, we could lose customers
which could have a material adverse effect on our business, financial condition and operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As is typical in a new and rapidly evolving
industry, demand and market acceptance for recently introduced products are subject to a high level of uncertainty and risk. Because
our markets are new and evolving, it is difficult to predict with any certainty the size of this market and its growth rate, if
any. You have no assurance that a market for our products will develop, grow or be sustainable. If the market fails to develop,
develops more slowly than expected or becomes saturated with competitors, our business, financial condition and operating results
would be materially adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>If we fail to establish and maintain an effective system of
internal control, we may not be able to report our financial results accurately or to prevent fraud. Any ability to report and
file our financial results accurately and timely could harm our reputation and adversely impact the future trading price of our
common stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Effective internal control is necessary for
us to provide reliable financial reports and prevent fraud. If we cannot provide reliable financial reports or prevent fraud, we
may not be able to manage our business as effectively as we would if an effective control environment existed, and our business
and reputation with investors may be harmed. As a result, our small size and any current internal control deficiencies may adversely
affect our financial condition, results of operation and access to capital. We currently have insufficient written policies and
procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure
requirements. Additionally, there is a lack of formal process and timeline for closing the books and records at the end of each
reporting period and such weaknesses restrict our ability to timely gather, analyze and report information relative to the financial
statements. Because of our limited resources, there are limited controls over information processing. There is inadequate segregation
of duties consistent with control objectives. Our management is composed of a small number of individuals resulting in a situation
where limitations on segregation of duties exist. In order to remedy this situation, we would need to hire additional staff. Currently,
we are unable to hire additional staff to facilitate greater segregation of duties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 11; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">RISKS RELATED TO OUR COMMON STOCK</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Trading in our common stock on OTC Markets has been subject
to wide price and volume fluctuations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our common stock is currently quoted for public
trading on OTCMarkets.com. The trading price and volume of our common stock has been subject to wide fluctuations. Trading prices
of our common stock may fluctuate in response to a number of factors, many of which will be beyond our control. The stock market
has generally experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating
performance of companies with limited business operation. You have no assurance that trading prices and price earnings ratios previously
experienced by our common stock will be matched or maintained. These broad market and industry factors may adversely affect the
market price of our common stock, regardless of our operating performance. In the past, following periods of volatility in the
market price of a company&rsquo;s securities, securities class-action litigation has often been instituted. Such litigation, if
instituted, could result in substantial costs for us and a diversion of management&rsquo;s attention and resources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Because our securities are subject to penny stock rules, you
may have difficulty reselling your shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our common stock is in the category of penny
stocks because our shares are not traded on a national stock exchange, trade at less than $5.00 per share, we do not meet certain
other financial requirements specified by the Securities and Exchange Commission. Penny stocks are covered by Section 15(g) of
the Securities Exchange Act of 1934 which imposes additional sales practice requirements on broker/dealers who sell our common
stock, including the delivery of a standardized disclosure document; disclosure and confirmation of quotation prices; disclosure
of compensation the broker/dealer receives; and, furnishing monthly account statements. The rule requires brokers who sell &ldquo;penny
stocks&rdquo; to persons other than established customers and &ldquo;accredited investors&rdquo; to complete certain documentation,
make suitability inquiries of investors, and provide investors with certain information concerning the risks of trading in such
penny stocks. The rule may discourage or restrict the ability of brokers to sell our shares of common stock and may affect the
secondary market for our shares of common stock. These rules could also hamper our ability to raise funds in the primary market
for our shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>FINRA sales practice requirements may also limit a stockholder&rsquo;s
ability to buy and sell our stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In addition to the &ldquo;penny stock&rdquo;
rules described above, the Financial Industry Regulatory Authority (known as &ldquo;FINRA&rdquo;) has adopted rules that require
that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment
is suitable for that customer. Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers
must make reasonable efforts to obtain information about the customer&rsquo;s financial status, tax status, investment objectives
and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative
low-priced securities will not be suitable for at least some customers. FINRA requirements make it more difficult for broker-dealers
to recommend that their customers buy our common shares, which may limit your ability to buy and sell our stock and have an adverse
effect on the market for our shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 12; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_004"></A>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>AND</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>RESULTS OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The following discussion and analysis of financial condition and
results of operations should be read in conjunction with the Consolidated Financial Statements and Notes thereto included elsewhere
in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">RESULTS OF OPERATIONS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">REVENUES:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="7" STYLE="text-align: left">For the Year Ended December 31,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Increase (Decrease)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Percent of Change</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 20%; text-align: right">208,236</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 19%; text-align: right">247,436</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 19%; text-align: right">(39,200</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 19%; text-align: right">(15.84</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Significant Customers</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">For the year ended December 31, 2017 and December 31, 2016, in the
aggregate, 2 customers and 4 customers, respectively, accounted for 58% and 72% of our total revenues for each respective period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On a geographical basis, for the year ended December 31, 2017, approximately
99% and 1% of our total revenues were generated from the United States and Canada, respectively. For the year ended December 31,
2016, approximately 81% and19% of our total revenues for the period were generated from the United States and Canada, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">COST OF REVENUES:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="7" STYLE="text-align: left">For the Year Ended December 31,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Increase (Decrease)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Percent of Change</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 20%; text-align: right">94,773</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 19%; text-align: right">203,643</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 19%; text-align: right">(108,870</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 19%; text-align: right">(53.46</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Almost all of the decrease in cost of goods
for the year ended December 31, 2017 as compared to year ended December 31, 2016 is that in 2016 the Company purchased the complete
product and re- sold it. For the year ended December 31, 2017, the Company produced the product that was sold, therefore, reducing
the cost of the goods sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">GENERAL AND ADMINISTRATIVE EXPENSES:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="7" STYLE="text-align: left">For the Year Ended December 31,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Increase (Decrease)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Percent of Change</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 20%; text-align: right">134,241</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 19%; text-align: right">85,219</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 19%; text-align: right">49,022</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 19%; text-align: right">57.52</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The increase in general and administrative
expenses for year ended December 31, 2017 as compared to the year ended December 31 of 2016 is primarily due to the following factors:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">o</FONT></TD>
<TD STYLE="text-align: justify; width: 85%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Approximately
$12,805 is the result of an increase in administrative and support staff. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">o</FONT></TD>
<TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Approximately $11,150
is the result of an increase in a trade show expense.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">o</FONT></TD>
<TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The remaining increase
is due to the normal business operations of the company such as automobile expense, dues, rent expense and other miscellaneous
expenses. </FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify"></P>

<!-- Field: Page; Sequence: 13; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">PROFESSIONAL FEES:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="7" STYLE="text-align: left">For the Year Ended December 31,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Increase (Decrease)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Percent of Change</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 20%; text-align: right">21,717</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 19%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 19%; text-align: right">21,717</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 19%; text-align: right">100</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This increase is due normal business operations
of the Company</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We believe gross profit is our key indicator
of operating progress. Our operations generated the following gross profit, during the years ended December 31 of 2017 and 2016:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 62%; text-align: left">Revenue</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">208,236</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">247,436</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Direct costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">94,773</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">203,643</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">113,463</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">43,793</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Gross Profit Percent</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">54</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Although our gross profit percentage during
the year ended December 31 of 2017 and 2016 was adequate, the volume of sales was not sufficient to cover the remaining expenses
after the direct costs were deducted. In order to reach our goal of ongoing profitability, our main priority is to increase revenues
while maintaining the current gross profit percentage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2018 AND
2017</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">REVENUES:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">For the Six Months Ended June 30,&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Increase (Decrease)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Percent of Change</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 20%; text-align: right">432,877</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 19%; text-align: right">33,183</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 19%; text-align: right">399,694</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 19%; text-align: right">1,205</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Significant Customers</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the six months ended June 30, 2018 and 2017, Elite had one
customer that approximated 35% of sales and one customer that approximated 26% of sales, respectively. One customer in 2018 is
also a minority shareholder of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On a geographical basis, for six month ended June 30, 2018, approximately
100% and 0% of our total revenues were generated from the United States and Canada, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">For the year ended December 31, 2017, approximately 99% and 1% of
our total revenues for the period were generated from the United States and Canada, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">COST OF REVENUES:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">For the Six Months Ended June 30,</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1pt solid">Increase (Decrease)</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1pt solid">Percent Inc (Dec)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 20%; color: black; text-align: right">180,587</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 19%; color: black; text-align: right">51,683</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 19%; color: black; text-align: right">128,904</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 19%; color: black; text-align: right">249</TD><TD STYLE="width: 1%; color: black; text-align: left">%</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Almost all of the increased in cost of goods
for the six months ended June 30, 2018 as compared to six months ended June 30, 2017 is that in 2018 the Company purchased the
complete product and re- sold it. For the six months ended June 30, 2017, the Company produced the product that was sold, therefore,
reducing the cost of the goods sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 14; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">GENERAL AND ADMINISTRATIVE EXPENSES:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">For the Six Months Ended June 30,</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1pt solid">Increase (Decrease)</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1pt solid">Percent Inc (Dec)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 20%; color: black; text-align: right">383,803</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 19%; color: black; text-align: right">60,312</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 19%; color: black; text-align: right">323,491</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 19%; color: black; text-align: right">536</TD><TD STYLE="width: 1%; color: black; text-align: left">%</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The increase in general and administrative
expenses for the six months ended June 30, 2018 as compared to the six months ended June 30, 2017 is primarily due to the following
factors:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 10%"></TD><TD STYLE="width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">o</FONT></TD><TD STYLE="text-align: justify; width: 85%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Approximately
                                         $54,000 is the result of an increase in a trade show expense.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Approximately
                                         $53,000 in the result of an increase in advertising expense. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Approximately
                                         $160,000 is the result of an increase in consulting expense.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                         remaining increase is due to the normal business operations of the company such as automobile
                                         expense, dues, rent expense and other miscellaneous expenses. </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">PROFESSIONAL FEES:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">For the Six Months Ended June 30,</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1pt solid">Increase (Decrease)</TD><TD STYLE="color: black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; text-align: center; border-bottom: Black 1pt solid">Percent Inc (Dec)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 20%; color: black; text-align: right">118,209</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 19%; color: black; text-align: right">&mdash;</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 19%; color: black; text-align: right">118,209</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 19%; color: black; text-align: right">100</TD><TD STYLE="width: 1%; color: black; text-align: left">%</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This increase is due normal business operations
of the Company of which $ 90,000 related to consulting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We believe gross profit is our key indicator
of operating progress. Our operations generated the following gross profit, during the six months ended June 30, 2018 and 2017:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="color: black; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="color: black; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="color: black; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 62%; color: black; text-align: left">Revenue</TD><TD STYLE="width: 5%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 12%; color: black; text-align: right">432,877</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; color: black">&nbsp;</TD>
    <TD STYLE="width: 1%; color: black; text-align: left">$</TD><TD STYLE="width: 12%; color: black; text-align: right">33,183</TD><TD STYLE="width: 1%; color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="color: black; text-align: left">Direct costs</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">180,587</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">51,683</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="color: black; text-align: left">Gross profit</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">$</TD><TD STYLE="color: black; text-align: right">252,290</TD><TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">$</TD><TD STYLE="color: black; text-align: right">(18,500</TD><TD STYLE="color: black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="color: black; text-align: left">Gross Profit Percent</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">58</TD><TD STYLE="color: black; text-align: left">%</TD><TD STYLE="color: black">&nbsp;</TD>
    <TD STYLE="color: black; text-align: left">&nbsp;</TD><TD STYLE="color: black; text-align: right">(56</TD><TD STYLE="color: black; text-align: left">)%</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Although our gross profit percentage during
the six months ended June 30, 2018, was adequate, the volume of sales was not sufficient to cover the remaining expenses after
the direct costs were deducted. In order to reach our goal of ongoing profitability, our main priority is to increase revenues
while maintaining the current gross profit percentage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">LIQUIDITY AND CAPITAL RESOURCES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&ldquo;Liquidity&rdquo; refers to our ability to generate adequate
amounts of cash to meet our needs for cash. We believe we will have adequate liquidity to maintain current operations during 2018,
but we may choose to locate additional sources of cash to facilitate growth and expansion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We do not currently have material commitments for capital expenditures
and do not anticipate entering into any such commitments during the next twelve months. Our current commitments consist primarily
of lease obligations for office space, computer equipment and office equipment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 15; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">At December 31, 2017, we had a working capital surplus of $104,329
as opposed to a working capital deficit of $42,676 at the December 31, 2016, an increase of $147,005. This increase is due to a
combination of factors. The primary factors are increase in cash balance due to the stock sale proceeds, increase in prepaid expenses,
inventory and accounts receivable balances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">At June 30, 2018, we had a working capital surplus of $520,784,
an increase of $416,455 during the six-month period. This increase is due to a combination of factors. The primary factors are
increase in cash balance due to the stock sale proceeds, increase in prepaid expenses, inventory, accounts receivable balances
and loan receivable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We anticipate that our primary uses of cash in the next year will
continue to be for general operating purposes and to facilitate growth and expansion by establishing a sales and marketing program.
We anticipate our operating cash requirements for the next twelve months to be in the range of $250,000 to $500,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">For a statement of our critical accounting policies and use of estimates,
see the notes to our financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_005"></A>OUR BUSINESS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Overview</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We manufacture, market, distribute and sell
products containing cannabidiol (CBD) extracts, including oils and powders, from cannabis/industrial hemp plants containing not
more than 0.3% of THC (tetrahydrocannabinol - the psychotropic compound of cannabis) on a dry weight basis. We sell cookies, candies,
creams, oils, salves and other products. We also have a line of products for house pets. We use cannabis/industrial hemp derived
CBD extracts that contain no or very little THC. We buy our raw materials from licensed producers. We conduct our business only
in states and countries where it is legal to do so under federal, state and applicable country laws and regulations. Cannabis/marihuana
or marijuana which contains THC, products that contain THC extracts and CBD extracts derived from cannabis/marijuana plants, as
distinguished from cannabis/industrial hemp, are Schedule I drugs (illegal drugs) under federal Controlled Substances Act (21 US
Code &sect;802(16)).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our Products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We offer a diverse array of commonly utilized
product, including but not limited to edibles, such as candies, gummies, cookies, crystal pop, honey and multi-vitamins, oils,
tinctures, vapes, creams, and salves. Our products include a line of creams, and salves for house pets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our Market</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We sell our products at wholesale and retail
throughout the United States, but only in states that have laws and regulations that qualify programs under 7 US Code &sect;5940
and in Canada. At the date of this prospectus, thirty-nine states have adopted qualifying programs and represent a market for our
products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our Sales and Marketing</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In addition to selling our products directly
to consumers from our website, we depend upon our network of distributors and resellers to represent our product in various markets.
We have approximately thirty distributors which distribute to retail distribution in the sixteen states where we presently have
retail sellers of our products at the date of this prospectus. No single distributor represents more than ten percent of our aggregate
sales volume. We are continuously evaluating the pricing as a primary factor in our distributors and sales channels and periodically
restructures or updates our agreements and methods of distribution. We recently established a distributor in Israel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Where We Buy Our CBC Ingredients</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We buy our cannabis/industrial hemp derived
CBD ingredients from one supplier in each of Colorado and South Carolina who are licensed in their respective states to cultivate
and process industrial hemp. We believe we are not dependent on these two suppliers, because there are many licensed sources of
cannabis/industrial hemp derived CBD ingredients in those and other states.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 16; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">How We Produce Our Products</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We provide our CBD raw ingredient and product
specifications to licensed manufacturers of food, cosmetic and candies who fill our orders and drop ship the particular products.
At the present we use several contractors for each product line. Our contractors are currently located in Florida and Colorado.
We believe we are not dependent on our current contractors, because there are many licensed bakers, formularies of cosmetic products,
confectioners and other contractors in thirty-nine states at the date of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Intellectual Property</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We do not have a federal trademark for Elite
Products International, Inc. There is no assurance we will file for or receive trademark protection. We do not believe our business
is dependent on registration of our trademark, in which we claim common law trademark protections absent registration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Competition</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our competitors include firms dedicated to the
regulated cannabis industry as well as suppliers of supplies utilized in the retail sale of CBD infused products. We compete in
markets where CBD infused products have been legalized and regulated, which includes thirty-nine states within the United States,
its territories and Canada, at the date of this prospectus. We expect that the composition of our competitive environment will
continue to evolve as the industry matures. Additionally, increased competition is possible to the extent that new states and geographies
enter the marketplace as a result of continued enactment of regulatory and legislative changes that de-criminalize and regulate
cannabis products. We believe that by being well established in the industry, our experience and success to date, and continued
expansion of product offerings in new and existing locations are factors that mitigate the risk associated with operating in a
developing competitive environment. Additionally, the contemporaneous growth of the industry as a whole will result in new customers
entering the marketplace, thereby further mitigating the impact of competition on our operations and results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Government Regulation of Cannabis/Industrial Hemp and its derivatives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The federal 2014 Farm Act contains a provision
codified as 7 US Code &sect;5940 - Legitimacy of industrial hemp research &ndash; provides:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 40.5pt 0 0.5in">(a) In general notwithstanding the Controlled Substances
<FONT STYLE="color: windowtext"><U>Act</U></FONT> (<FONT STYLE="color: windowtext"><U>21 U.S.C. 801</U></FONT> et seq.), <FONT STYLE="color: windowtext"><U>chapter
81 of title 41,</U></FONT> or any other Federal law, an institution of higher education (as defined in <FONT STYLE="color: windowtext"><U>section
1001 of title 20</U></FONT>) or a State department of agriculture may grow or cultivate industrial hemp if&mdash;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 40.5pt 0 0.5in">(1)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 40.5pt 0 0.5in">the <FONT STYLE="color: windowtext"><U>industrial
hemp</U></FONT> is grown or cultivated for purposes of research conducted under an <FONT STYLE="color: windowtext"><U>agricultural
pilot</U> <FONT STYLE="text-underline-style: none">program</FONT></FONT> or other agricultural or academic research; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 40.5pt 0 0.5in">(2)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 40.5pt 0 0.5in">the growing or cultivating of <FONT STYLE="color: windowtext"><U>industrial
hemp</U></FONT> is allowed under the laws of the State in which such institution of higher education or <FONT STYLE="color: windowtext"><U>State
department of agriculture</U></FONT> is located and such research occurs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 40.5pt 0 0.5in"><FONT STYLE="font-weight: normal">(b)(1) [ defines
&ldquo;<FONT STYLE="color: windowtext"><U>agricultural pilot program</U></FONT>&rdquo;]</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 40.5pt 0 0.5in">(b)(2) The term &ldquo;<FONT STYLE="color: windowtext"><U>industrial
hemp</U></FONT>&rdquo; means the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol
concentration of not more than 0.3 percent on a dry weight basis</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 40.5pt 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">At the date of this prospectus, thirty-nine
states have implemented laws and regulations in reliance on and in compliance with 7 US Code &sect;5940. While these laws and regulations
vary widely from state to state, we are able to buy our cannabis/industrial hemp CBD raw materials and sell our products containing
those raw materials in and ship the raw materials and our products between all thirty-four states.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 17; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Notwithstanding the legality of cannabis/industrial
hemp derived CBD extracts containing less than 0.3% THC by dry weight, CBD extracts derived from the marihuana/marijuana plant,
also of the cannabis family but which typically contains higher levels of THC remains illegal even when the THC level is below
0.3%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Employees</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have five full-time employees, including
our executive officers for sales, marketing, bookkeeping and production. None of our employees are represented by a labor union.
We believe we have a good relationship with our employees and are not aware of any employee disputes. We may expect disputes with
employees from time to time in the ordinary course of business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Description of Our Property</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We co-occupy 2,700 square feet of general office
space which we use for our headquarters and operations, under a three-year lease commencing February 28, 2018. The beginning annual
rent is $55,996, with annual increase of three percent. See, &ldquo;Related Party Transactions and Relationships&rdquo;. We believe
that our existing office facilities are adequate for our needs. Should we require additional space at that time, or prior thereto,
we believe that such space can be secured on commercially reasonable terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Legal Proceedings</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are not engaged in any legal proceeding nor
are we aware of any threats or claims of legal action at the date of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_006"></A>OUR MANAGEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">At the date of this prospectus, we have only
one director and one officer. Mr. Oran is our director, chief executive officer, chief operating officer and chief financial officer,
beginning May 2017. Mr. Oran is 53 years of age.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our stockholders elect our directors. Our directors
serve terms of one year and are generally elected at each annual stockholder meeting; provided, that there is no assurance we will
hold a stockholders&rsquo; meeting annually. Each director will remain in office until his successor is elected. We do not have
an independent director using the definition of independence contained in the NASDAQ listing rules. Despite his lack of independence,
Mr. Oran would not qualify as an &ldquo;audit committee financial expert&rdquo;. Our board of directors elects our executive and
their terms of office are at the discretion of the board of directors, subject to terms and conditions of employment agreements,
if any. We have the authority under Delaware law and our bylaws to indemnify our directors and officers against certain liabilities.
We have been informed by the U.S. Securities and Exchange Commission that indemnification against violations of federal securities
law is against public policy and therefore unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Mr. Oran immigrated to the United States
from Israel in 1991. We expect Mr. Oran to devote thirty percent or approximately 60 hours per month of his working time to
our business. Mr. Oran is currently majority shareholder, director and chief executive officer of Blackpoll Fleet
International, Inc., a publicly traded company (&ldquo;BPOL&rdquo;) which has been engaged in aviation parts sales. The
following table sets forth the additional business activities of Mr. Oran during the last five years and other pertinent
information about his employment and employer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">EMPLOYER</TD><TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">POSITION</TD><TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">NATURE</TD><TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">REVENUES</TD><TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">EMPLOYEES</TD><TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">DATES OF EMPLOYMENT</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 26%; text-align: left">CS America OP LLC</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">CEO</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 12%">Consulting</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 13%; text-align: right">419,960.00</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD><TD STYLE="width: 10%; text-align: center">5</TD><TD STYLE="width: 1%; text-align: center">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 18%; text-align: center">3-15-13 to present</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Cybertec Group LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">MGR</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Cell Phones</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">123,347.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">0</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">8-20-14 to present</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">GFS World</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">CEO</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Travel Sales</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,564,407.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">10</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">5-31-13 to present</TD></TR>
</TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_007"></A>BOARD COMMITTEES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">With a single director, our board of directors
does not have compensation, nominating, audit committees or any other committees. Our board of directors has not adopted a code
of ethics.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 18; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_008"></A>HOW WE COMPENSATE OUR MANAGEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Dore S. Perler was our sold director, chief
executive office and chief financial officer in fiscal years 2016 and 2017, resigning December 14, 2017. We did not pay Mr. Perler
any compensation for his services in 2016 and 2017, including salary, bonus, stock awards, option awards, non-equity incentive
plan compensation or any other compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We paid Mr. Oran a salary of $14,100 for his
service as our sole director, chief executive office and chief financial officer in 2017. We did not pay Mr. Oran bonus, stock
awards, option awards, non-equity incentive plan compensation or any other compensation. We do not currently and have an agreement
to provide Mr. Oran, and to not presently intend to provide any additional executive officers, with supplemental or other retirement
benefits, equity awards or stock-based compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We do not have any pension or nonqualified deferred
compensation plans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_009"></A>EMPLOYMENT AGREEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We do not have employment agreement
with Mr. Oran. Mr. Oran has a Consulting Agreement with our subsidiary through October 31, 2020, to provide general advice
on current standard practices and trends at an annual base salary of $90,000. Mr. Oran participates in all benefit
programs made available to our executive and/or salaried employees, paid vacation and reimbursement for business related expenses.
The Consulting Agreement automatically extends for one additional term of three years, if neither party gives notice during
the last thirty days of the initial term that the agreement will not be extended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We do not pay compensation to Mr. Oran for his
service as a director in addition to his compensation as an executive officer. We may compensate future directors who are not also
executive officers. We have not determined the amount of we may pay to future directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>KEY EMPLOYEE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Shimon Fhima has been the chief executive
officer of our subsidiary since February 2016. Our subsidiary has an employment agreement with Mr. Fhima beginning November 1,
2017 and ending October 30, 2020 at an annual base salary of $90,000. Mr. Fhima participates in all benefit programs made available
to our executive and/or salaried employees, paid vacation and reimbursement for business related expenses. From May 2013 through
November 2015, Mr. Fhima was Operations Manager at Super Outlet Store of Miami, LLC. From December 2013 through January 2015,
Mr. Fhima was Operations Manager at GFS Worldwide, LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_010"></A>WHO OWNS OUR COMMON STOCK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The following table sets forth certain information
about the common stock ownership, including common stock a named person has a right to acquire within six months, by (i) each
director and executive officer; (ii) directors and executive officers as a group, and (iii) by persons who own five percent or
more of our common stock. The address of our directors and officers is our address.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid; padding: 0 0 0 10; text-indent: -10">Name and Address of Beneficial Owner</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Number of Shares</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Percentage<BR>
of Class</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; text-align: left; padding: 0 0 0 10; text-indent: -10">Dan Oran, Executive Officer (1)</TD><TD STYLE="width: 8%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; border-bottom: Black 1pt solid; text-align: right">314,208,334</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; border-bottom: Black 1pt solid; text-align: right">40.7</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">All directors and officers, as a group (one person)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">314,208,334</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">40.7</TD><TD STYLE="padding-bottom: 1pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">Leonard Tucker</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">113,000,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">14.6</TD><TD STYLE="padding-bottom: 1pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="9" STYLE="padding-left: 10pt">F6-123, 20423 State Road 7, Boca Raton, FL 33498</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">Shimon Fhima</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">60,000,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">7.8</TD><TD STYLE="padding-bottom: 1pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="9" STYLE="padding-left: 10pt">427 Coconut Circle, Weston, FL 33326</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">S &amp; H Land Development, LLC</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">38,874,023</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5.0</TD><TD STYLE="padding-bottom: 1pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="9" STYLE="padding-left: 10pt">2860 Center Port Circle, Pompano Beach, FL 33064</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">Lael Investments, LLC</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">38,874,023</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5.0</TD><TD STYLE="padding-bottom: 1pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="9" STYLE="padding-left: 10pt">Apartment # 2805, 3201 NE 183rd Street, Aventura, FL 33160</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">Shimi Beg</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">60,000,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">7.8</TD><TD STYLE="padding-bottom: 1pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="9" STYLE="padding-left: 10pt">Apartment # 10, 123 Rothschild Street, Rishon Letsiyon Israel 75236</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">(1)</FONT></TD><TD><FONT STYLE="font-size: 10pt">Includes 8,000,000 shares beneficially owned by Nataliya Kirk, Mr. Oran&rsquo;s wife. </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Beneficial ownership is determined in accordance
with Securities and Exchange Commission rules and generally includes voting or investment power with respect to shares of common
stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 19; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_011"></A>RELATED PARTY TRANSACTIONS AND RELATIONSHIPS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have not engaged in any related party transactions
in our last fiscal year and current year to date of this prospectus, except as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our landlord, CSA8411, LLC., is owned by Mr. Oran&rsquo;s wife,
Nataliya Kirk. Our rental rate is $20.90 per square foot. We believe this rate is competitive in the market for general office
space of the class of office space we lease from our landlord.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_012"></A>MARKET INFORMATION AND RELATED STOCKHOLDER
MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Market information</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our common stock trades on in the over-the-counter
markets on alternative trading platforms, including OTCMarkets.com. Our ticker symbol is &ldquo;PSIQ&rdquo;. The following table
sets forth the quarterly high and low sale prices for our common shares for the last two completed fiscal years and the subsequent
interim periods. The prices set forth below represent interdealer quotations, without retail markup, markdown or commission and
may not be reflective of actual transactions. The following table sets forth, for the periods indicated, the high and low sales
prices of our common stock as reported on OTCMarkets.com:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">High</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Low</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="text-align: left">2018 - Quarter Ended</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 61%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">March 31</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">0.272</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">0.018</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">June 30</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.188</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.043</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">September 30</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.282</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.025</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">High</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Low</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">High</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Low</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="text-align: left">2017 - Quarter Ended</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left">2016 - Quarter Ended</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 22%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">March 31</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">0.024</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">0.010</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 22%; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">March 31</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">none</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">none</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">June 30</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.010</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.024</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">June 30</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.028</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.014</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">September 30</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.016</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.010</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">September 30</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.028</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.014</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">December 31</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.024</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.010</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">December 31</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.021</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.012</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On October 17, 2018, the closing
sales price of our common stock as reported by the OTC Markets Group was $0.200 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As of October, 17, 2018, we had seventy-six
holders of record of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Dividends</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have not paid any cash dividends to our shareholders.
The declaration of any future cash dividends is at the discretion of our Board and depends upon our earnings, if any, our capital
requirements and financial position, our general economic conditions, and other pertinent conditions. It is our present intention
not to pay any cash dividends in the foreseeable future, but rather to reinvest earnings, if any, in our business operations. Dividend
rights of both our common and preferred shareholders will entitle them to the same dividend that other shareholders of the same
class receive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our Transfer Agent</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our transfer agent is Action Stock Transfer
Corporation, whose address is Suite 214, 2469 E. Fort Union Boulevard, Salt Lake City, UT 84121, whose telephone number is 801-274-1088
and whose website is www.actionstocktransfer.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 20; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_013"></A>DESCRIPTION OF OUR SECURITIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The following description of our common stock
is qualified in our entirety by reference to our Articles of Incorporation, as amended, our bylaws and Delaware corporation law.
We are authorized to issue 1,000,000,000 shares of common stock, $0.001 par value per share. At the date of this prospectus, we
have 772,808,793 shares issued and outstanding. Holders of our common stock:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">&nbsp;</TD>
<TD STYLE="width: 5%; text-indent: 0; padding: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD STYLE="width: 90%; padding: 0; font-size: 12pt; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Have
one vote per share on election of each director and other matters submitted to a vote of stockholders;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
<TD STYLE="text-indent: 0; padding: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD STYLE="padding: 0; font-size: 12pt; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Have
equal rights with all holders of issued and outstanding common stock to receive dividends from funds legally available therefore,
if any, when, as and if declared from time to time by the board of directors;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
<TD STYLE="text-indent: 0; padding: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD STYLE="padding: 0; font-size: 10pt; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Are
entitled to share equally with all holders of issued and outstanding common stock in all of our assets remaining after payment
of liabilities, upon liquidation, dissolution or winding up of our affairs;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
<TD STYLE="text-indent: 0; padding: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD STYLE="padding: 0; font-size: 12pt; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Do
not have preemptive, subscription or conversion rights; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
<TD STYLE="text-indent: 0; padding: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD STYLE="padding: 0; font-size: 12pt; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Do
not have cumulative voting rights.</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our board of directors, without further stockholder
approval, may issue up to ten million shares of preferred stock in one or more series from time to time and fix or alter the designations,
relative rights, priorities, preferences, qualifications, limitations and restrictions of the shares of each series. The rights
granted to the holders of any series of preferred stock could adversely affect the voting power of the holders of common stock
and issuance of preferred stock may delay, defer or prevent a change in our control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_014"></A>SELLING STOCKHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">This prospectus relates to the resale of 167,583,443
shares of our common stock, par value $0.001 per share. The following table sets forth certain information regarding the beneficial
ownership of shares of common stock by the selling stockholders as of October 17, 2018 and the number of shares of our
common stock being offered pursuant to this prospectus. None of the selling stockholders are our directors, officers or otherwise
our affiliates legally or beneficially owning ten percent or more of our common stock within the past three years. We do not expect
the selling stockholders to sell all of the shares they own and to own none of our shares in the event they are successful in
completing the offering of their shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">Name</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Number of Shares Owned and Offered</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%; text-align: left">Capri International Ventures, LLC.</TD><TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 18%; text-align: right">1,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Alon Elezra</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Alina Burlaka</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Azran Enterprises</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">400,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Yakov Blives</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Vladimir Kudyakov</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,714,286</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Viki Menahem</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Avi Menahem</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Kfir Nahum</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Kevin Hagen</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Yoram Shaaltiel</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">LAEL Investments, LLC.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,874,023</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">S &amp; H Land Development, LLC.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,874,023</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Henry Rengifo</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Galit Sagiv</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Robbie G. Hicks</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Tomas Felipe Luengas Sanchez</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Liana Yangirova</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,285,714</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Eyal Mehaber</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,153,400</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Shayna Tucker</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,815,757</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Vladimir Kudyakov</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,714,286</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 21; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_015"></A>HOW WE EXPECT THE SELLING STOCKHOLDERS TO
DISTRIBUTE THEIR SHARES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">This prospectus relates to the resale by the
selling stockholders of 167,583,443 shares of our common stock, par value $0.001 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The selling stockholders may, from time to time,
sell any or all of shares of common stock covered hereby on OTC Markets, or any other stock exchange, market or trading facility
on which the shares are traded or in private transactions. A selling stockholder may sell all or a portion of the shares being
offered pursuant to this prospectus at fixed prices, at prevailing market prices at the time of sale, at varying prices or at negotiated
prices. A selling stockholder may use any one or more of the following methods when selling securities:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD STYLE="width: 90%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ordinary brokerage transactions and transactions
in which the broker-dealer solicits purchasers</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">block trades in which the broker-dealer will attempt
to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">purchases by a broker-dealer as principal and resale
by the broker-dealer for its account;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an exchange distribution in accordance with the
rules of the applicable exchange;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">privately negotiated transactions;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in transactions through broker-dealers that agree
with the selling stockholder to sell a specified number of such securities at a stipulated price per security;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">through the writing or settlement of options or
other hedging transactions, whether through an options exchange or otherwise;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a combination of any such methods of sale; or</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any other method permitted pursuant to applicable
law.</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"></P>

<!-- Field: Page; Sequence: 22; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The selling stockholders may also sell securities
under Rule 144 under the Securities Act of 1933, if available, rather than under this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Broker-dealers engaged by the selling stockholder
may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling
stockholder (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to be negotiated,
but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in excess of a customary
brokerage commission in compliance with FINRA Rule 2440; and in the case of a principal transaction a markup or markdown in compliance
with FINRA IM-2440. To our knowledge, no selling stockholder is not broker-dealers or a registered representative or affiliates
of a broker-dealer. We may require the selling stockholders to suspend the sales of the shares of common stock being offered pursuant
to this prospectus upon the occurrence of any event that makes any statement in this prospectus or the related registration statement
untrue in any material respect or that requires the changing of statements in those documents in order to make statements in those
documents not misleading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In connection with the sale of the securities
or interests therein, the selling stockholder may enter into hedging transactions with broker-dealers or other financial institutions,
which may in turn engage in short sales of the securities in the course of hedging the positions they assume. The selling stockholder
may also sell securities short and deliver these securities to close out its short positions, or loan or pledge the securities
to broker-dealers that in turn may sell these securities. The selling stockholder may also enter into an option or other transactions
with broker-dealers or other financial institutions or create one or more derivative securities which require the delivery to such
broker-dealer or other financial institution of securities offered by this prospectus, which securities such broker- dealer or
other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The selling stockholders will be subject to
the prospectus delivery requirements of the Securities Act of 1933 including Rule 172 thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The resale securities will be sold only through
registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the
resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable state
or an exemption from the registration or qualification requirement is available and is complied with.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Under applicable rules and regulations under
the Securities Exchange Act of 1934, any person engaged in the distribution of the resale securities may not simultaneously engage
in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M,
prior to the commencement of the distribution. In addition, the selling stockholder will be subject to applicable provisions of
the Securities Exchange Act of 1934 and the rules and regulations thereunder, including Regulation M, which may limit the timing
of purchases and sales of securities of the common stock by the selling stockholder or any other person. We will make copies of
this prospectus available to the selling stockholder and will inform it of the need to deliver a copy of this prospectus to each
purchaser at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act of 1933).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">To our knowledge, the selling stockholders are
not broker-dealers or affiliates of broker-dealers. We may require the selling stockholders to suspend the sales of the shares
of common stock being offered pursuant to this prospectus upon the occurrence of any event that makes any statement in this prospectus
or the related registration statement untrue in any material respect or that requires the changing of statements in those documents
in order to make statements in those documents not misleading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_016"></A>LEGAL MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Certain legal matters with respect to the validity
of the shares of common stock offered hereby will be passed upon for us by Jackson L. Morris, Attorney at Law, Tampa, Florida.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 23; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_017"></A>EXPERTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our financial statements at and for the years
ended and at December 31, 2017 and 2016 have been included in this prospectus in reliance on the report of Daszkal Bolton, LLP,
Sunrise, Florida, an independent registered certified public accounting firm, given on the authority of such firm as experts in
auditing and accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_018"></A>WHERE YOU CAN FIND MORE INFORMATION ABOUT
US</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have filed a registration statement on Form
S-1 under the Securities Act with the U.S. Securities and Exchange Commission for the common stock offered by this prospectus.
This prospectus does not include all of the information contained in the registration statement. You should refer to the registration
statement and our exhibits for additional information. Whenever we make reference in this prospectus to any of our contracts, agreements
or other documents, the references are not necessarily complete and you should refer to the exhibits attached to the registration
statement for copies of the actual contract, agreement or other document. When we complete this offering, we will also be required
to file annual, quarterly and special reports and other information with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">You can read our SEC filings, including the
registration statement of which this prospectus is a part, and exhibits thereto and reports subsequently filed, over the Internet
at the SEC&rsquo;s website at www.sec.gov. You may also read and copy any document we file with the SEC at our Public Reference
Room located at 100 F Street, N.E., Washington, D.C. 20549. You may also obtain copies of the documents at prescribed rates by
writing to the Public Reference Room of the SEC at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330
for further information on the operation of the Public Reference Room.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
<TD COLSPAN="2" STYLE="padding: 0; text-align: center; text-indent: 0"><A NAME="a_019"></A><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>INDEX
TO FINANCIAL STATEMENTS</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 86%; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="width: 14%; padding: 0; text-align: right; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Page</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD COLSPAN="2" STYLE="padding: 0; text-align: center; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>At
and for the Years Ended December 31, 2017 and 2016</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_020">Report
of Independent Registered Public Accountant</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">25</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_021">Consolidated
Balance Sheets</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">26</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_022">Consolidated
Statements of Operations</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">27</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_023">Consolidated
Statements of Stockholders&rsquo; Equity (Deficit)</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">28</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_024">Consolidated
Statements of Cash Flows</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">29</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_025">Notes
to Consolidated Financial Statements</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">30</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="padding: 0; text-align: right; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD COLSPAN="2" STYLE="padding: 0; text-align: center; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>At
and for the Six Months Ended June 30, 2018 and 2017 (unaudited)</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_026">Consolidated
Balance Sheets</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">39</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_027">Consolidated
Statements of Operations</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_028">Consolidated
Statements of Cash Flows</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">41</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_029">Notes
to Condensed Consolidated Financial Statements</A></FONT></TD>
<TD STYLE="padding: 0; text-align: right; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">42</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 24; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U><A NAME="a_020"></A>Report of Independent Registered Public
Accounting Firm</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To the Board of Directors and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Stockholders of Profile Solutions, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Sunrise, Florida</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Opinion on the Financial Statements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have audited the accompanying consolidated
balance sheets of Profile Solutions, Inc. (the &ldquo;Company&rdquo;) at December 31, 2017 and 2016, and the related consolidated
statements of operations, changes in stockholders&rsquo; equity, and cash flows for each of the years in the two-year period ended
December 31, 2017, and the related notes (collectively referred to as the financial statements). In our opinion, the financial
statements present fairly, in all material respects, the financial position of the Company at December 31, 2017 and 2016, and the
results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2017, in conformity
with accounting principles generally accepted in the United States of America.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying consolidated financial statements
have been prepared assuming that the Company will continue as a going concern. As described in Note 3 to the consolidated financial
statements, the Company has sustained recurring losses from operations and net cash used in operations and accumulated deficits
that raise substantial doubt about its ability to continue as a going concern. Management&rsquo;s plans in regard to these matters
are described in Note 3. The consolidated financial statements do not include any adjustments that might result from the outcome
of this uncertainty. Our opinion is not modified with respect to this matter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Basis for Opinion</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">These financial statements are the responsibility
of the Company&rsquo;s management. Our responsibility is to express an opinion on the Company&rsquo;s financial statements based
on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We conducted our audits in accordance with
the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have,
nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required
to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the
effectiveness of the Company&rsquo;s internal control over financial reporting. Accordingly, we express no such opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our audits included performing procedures to
assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a
reasonable basis for our opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ Daszkal Bolton LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have served as the Company&rsquo;s auditor
since 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Fort Lauderdale, Florida</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">August 30, 2018</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 25; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROFILE SOLUTIONS, INC.</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_021"></A>CONSOLIDATED
BALANCE SHEETS</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" STYLE="font-weight: bold; text-align: center"><U>ASSETS</U></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding: 0 0 1pt 10; text-indent: -10">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31 2017</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31 2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Current Assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 62%; padding: 0 0 0 20pt; text-indent: -10">Cash</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">47,857</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">70</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Accounts receivable, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">59,917</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,539</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 1pt 20pt; text-indent: -10">Inventory</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">16,650</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">4,526</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 30pt; text-indent: -10">Total current assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">136,963</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">4,596</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Other Assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 1pt 20pt; text-indent: -10">Deposits</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">1,250</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">1,250</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 30pt; text-indent: -10">Total other assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">1,250</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">1,250</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 2.5pt 10; text-indent: -10">Total Assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">138,213</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">5,846</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD COLSPAN="9" STYLE="font-weight: bold; text-align: center"><U>LIABILITIES AND STOCKHOLDERS' EQUITY</U></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Current Liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Accounts payable and accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">32,634</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">6,912</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 1pt 20pt; text-indent: -10">Due to related parties</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">40,360</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 20pt; text-indent: -10">Acquisition payable</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 1pt 30pt; text-indent: -10">Total current liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">32,634</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">47,272</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 30pt; text-indent: -10">Total liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">32,634</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">47,272</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Stockholders' Equity:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 20pt; text-indent: -10">Preferred shares, par value $0.001 per share, 10,000,000 shares authorized; 0 shares issued and outstanding as of December 31, 2017 and December 31, 2016 respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 20pt; text-indent: -10">Common stock, par value $0.001 per share, 1,000,000,000 shares authorized; 757,233,793 and 600,000,000 shares issued and outstanding as of December 31, 2017 and December 31, 2016 respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">757,234</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">600,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(567,734</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(600,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 20pt; text-indent: -10">Accumulated deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(83,921</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(41,426</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 1pt 30pt; text-indent: -10">Total stockholders' equity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">105,579</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(41,426</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 2.5pt 10; text-indent: -10">Total Liabilities and Stockholders' Equity</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">138,213</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">5,846</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">The notes are an integral part of these
financial statements.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 26; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROFILE SOLUTIONS, INC.</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_022"></A>CONSOLIDATED STATEMENTS OF OPERATIONS</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">For the Year Ended<BR>
December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">2017</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 62%; padding: 0 0 0 10; text-indent: -10">Revenue</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">208,236</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">247,436</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 1pt 10; text-indent: -10">Cost of revenues</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">94,773</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">203,643</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 1pt 10; text-indent: -10">Gross Profit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">113,463</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">43,793</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Operating Expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 30pt; text-indent: -10">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">134,241</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">85,219</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 30pt; text-indent: -10">Professional fees</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">21,717</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 1pt 40pt; text-indent: -10">Total operating expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">155,958</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">85,219</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(42,495</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(41,426</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">Net loss before provision for income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(42,495</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(41,426</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 10; text-indent: -10">Provision for income taxes</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 2.5pt 10; text-indent: -10">Net loss</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(42,495</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(41,426</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding: 0 0 0 10; text-indent: -10">Loss per common share:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 2.5pt 20pt; text-indent: -10">Loss per common share - Basic and Diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(0.00</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding: 0 0 0 10; text-indent: -10">Weighted Average Common Shares Outstanding:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 2.5pt 20pt; text-indent: -10">Basic and Diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">604,738,553</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">600,000,000</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">The notes are an integral part of these
financial statements.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 27; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROFILE SOLUTIONS, INC.</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_023"></A>CONSOLIDATED STATEMENT OF STOCKHOLDERS'
DEFICIT</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FOR THE YEARS ENDED DECEMBER 31, 2017
AND 2016</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Additional</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="text-align: left; padding: 0 0 1pt 10; text-indent: -10">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Common Stock</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Preferred Stock</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Paid-in</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Stock</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Accumulated</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Shares</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Amount</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Shares</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Amount</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Capital</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Payable</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Deficit</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Total</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 15%; font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Balance - December 31, 2015</B></FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">600,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">600,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">(600,000</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net loss for the twelve months ended December 31, 2016</FONT></TD><TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(41,426</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(41,426</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 10; text-indent: -10">&nbsp;</TD><TD STYLE="text-align: left; padding: 0 0 1pt 10; text-indent: -10">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 1pt 10; text-indent: -10"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Balance - December 31, 2016</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left; padding: 0 0 1pt 10; text-indent: -10">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">600,000,000</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">600,000</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(600,000</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(41,426</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(41,426</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recapitalization</FONT></TD><TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">157,233,793</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">157,234</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,266</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">189,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net loss for the twelve months ended December 31, 2017</FONT></TD><TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(42,495</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(42,495</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 10; text-indent: -10">&nbsp;</TD><TD STYLE="text-align: left; padding: 0 0 1pt 10; text-indent: -10">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 2.5pt 10; text-indent: -10"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Balance - December 31, 2017</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left; padding: 0 0 2.5pt 10; text-indent: -10">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">757,233,793</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">757,234</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(567,734</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(83,921</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">105,579</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">The notes are an integral part of these
financial statements.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 28; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROFILE SOLUTIONS, INC.</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_024"></A>CONSOLIDATED STATEMENTS OF CASH FLOWS</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center">Year Ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding: 0 0 1pt 10; text-indent: -10">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Cash Flow From Operating Activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 62%; text-align: left; padding: 0 0 0 20pt; text-indent: -10">Net loss</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">(42,495</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">(41,426</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Adjustments to reconcile net loss to net cash from operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Increase in deposits</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,250</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Increase in prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,539</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,526</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Increase in inventory</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,124</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Increase in accounts receivable, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(59,917</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 20pt; text-indent: -10">Increase in accounts payable</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">25,722</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">6,913</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 1pt 10; text-indent: -10">Net Cash Used in Operating Activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(101,353</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(40,289</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 1pt 10; text-indent: -10">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 1pt 10; text-indent: -10">Net Cash Used in Investing Activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Financing Activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Proceeds from advances from related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">80,366</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">65,567</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Repayment of advances from related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(29,541</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(25,208</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 20pt; text-indent: -10">Contributions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 20pt; text-indent: -10">Distributions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(38,270</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 20pt; text-indent: -10">Net cash received from recapitalization</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">101,585</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 1pt 10; text-indent: -10">Net Cash Provided by Financing Activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">149,140</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">40,359</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Net Increase</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,787</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding: 0 0 1pt 10; text-indent: -10">Cash - Beginning of Period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">70</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">0</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding: 0 0 2.5pt 10; text-indent: -10">Cash - End of Period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">47,857</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">70</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Supplemental cash flow information:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Conversion of debt to equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">91,185</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 20pt; text-indent: -10">Recapitalization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">189,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">The notes are an integral part of these
financial statements.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 29; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROFILE SOLUTIONS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_025"></A>Notes to Consolidated Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>At and for the Years Ended December 31, 2017
and 2016</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>NOTE 1 - ORGANIZATION OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Profile Solutions, Inc. (&ldquo;Profile&rdquo;) is a Delaware corporation
originally incorporated as YaFarm Technologies, Inc. on July 31, 2006.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, Profile entered into a Share Exchange Agreement
with Elite Products International, Inc., a Florida corporation (&ldquo;Elite&rdquo;) incorporated on February 15<SUP>th</SUP>,
2016 issuing an aggregate total of 600,000,000 shares in exchange for 100% ownership of Elite. As part of the transaction, the
Company filed a certificate of amendment with the State of Delaware increasing the authorized shares of common stock to 1,000,000,000
(one billion) shares of common stock. The transaction was accounted for as a corporate reorganization between entities under common
control. These consolidated financial statements reflect the reorganized capital structure retrospectively for all periods presented
for Profile and Elite, collectively (&ldquo;the Company), the Company has presented earnings per share based on the Company shares
issued to the former shareholders of Elite.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.3in 0 0">Profile through its subsidiary Elite is a distributor
and manufacturer in the cannabinoid (CBD) industry. The Company&rsquo;s products contain CBD Hemp extracts in the
form of edibles, creams, oils, and salves.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.3in 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2pt 0 1pt">The Company&rsquo;s fiscal year end is December 31. Essentially
all the operations of the Company are conducted through the Company&rsquo;s wholly owned subsidiary in Sunrise, Florida.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2pt 0 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 1pt"><I>Change in officers</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 1pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 1pt">On December 14, 2017, Officer and Director Dore S.
Perler resigned and appointed Dan Oran as Officer and Director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>NOTE 2 &ndash; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Basis of presentation and consolidation</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The comparative amounts presented in these
consolidated financial statements are the historical results Elite for 2016 and for Elite and Profile for 2017 from the date of
the reorganization, all intercompany balances and transactions have been eliminated in consolidation. The Company&rsquo;s accounting
policies used in the presentation of the accompanying consolidated financial statements conform to accounting principles generally
accepted in the United States of America (&ldquo;US GAAP&rdquo;) as promulgated by the Financial Accounting Standards Board (&ldquo;FASB&rdquo;)
Accounting Standards Codification (&ldquo;ASC&rdquo;) and with the rules and regulations of the U.S. Securities and Exchange Commission
(&ldquo;SEC&rdquo;) and have been consistently applied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Use of estimates and assumptions</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The preparation of consolidated financial
statements in conformity with a US GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company&rsquo;s significant estimates
and assumptions include the fair value of financial instruments; income tax rate, income tax provision and valuation allowance
of deferred tax assets; stock-based compensation, valuation of inventory and&nbsp;the assumption that the Company will continue
as a going concern. Those significant accounting estimates or assumptions bear the risk of change due to the fact that there are
uncertainties attached to those estimates or assumptions, and certain estimates or assumptions are difficult to measure or value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"></P>

<!-- Field: Page; Sequence: 30; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">Management bases its estimates on historical
experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the
basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">Management regularly reviews its estimates
utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions.
After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those
estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Fair value of financial instruments</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company follows paragraph 825-10-50-10
of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37
of the FASB Accounting Standards Codification (&ldquo;Paragraph 820-10-35-37&rdquo;) to measure the fair value of its financial
instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted
in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency to
quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.&nbsp;The
three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 8%; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Level 1</FONT></TD>
<TD STYLE="width: 92%; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Level 2</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
<TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Level 3</FONT></TD>
<TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Pricing inputs that are generally observable inputs and not corroborated by market data.</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">Financial assets are considered Level 3
when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least
one significant model assumption or input is unobservable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The fair value hierarchy gives the highest
priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable
inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the
categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The carrying amount of the Company&rsquo;s
financial assets and liabilities, such as cash, prepaid expenses, deposits, accounts payable and accrued expenses approximate their
fair value because of the short maturity of those instruments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">Transactions involving related parties
cannot be presumed to be carried out on an arm&rsquo;s-length basis, as the requisite conditions of competitive, free-market dealings
may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions
were consummated on terms equivalent to those that prevail in arm&rsquo;s-length transactions unless such representations can be
substantiated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">It is not however practical to determine
the fair value of advances from stockholders due to their related party nature.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Cash and cash equivalents</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company considers all highly liquid
investments with a maturity of three months or less to be cash and cash equivalents. There were no cash and cash equivalents at
December 31, 2017 and 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Related parties</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company follows subtopic 850-10 of
the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"></P>

<!-- Field: Page; Sequence: 31; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->31<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">Pursuant to Section 850-10-20&nbsp;the
related parties include (i)&nbsp;affiliates of the Company; (ii)&nbsp;Entities for which investments in their equity securities
would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825&ndash;10&ndash;15,
to be accounted for by the equity method by the investing entity; (iii)&nbsp;trusts for the benefit of employees, such as pension
and profit-sharing trusts that are managed by or under the trusteeship of management; (iv) principal owners of the Company; (v)
management of the Company; (vi)&nbsp;other parties with which the Company may deal if one party controls or can significantly influence
the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully
pursuing its own separate interests; and (vii) Other parties that can significantly influence the management or operating policies
of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence
the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Commitments and contingencies</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company follows subtopic 450-20 of&nbsp;the
FASB Accounting Standards Codification to report accounting for contingencies.&nbsp;Certain conditions may exist as of the date
the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when
one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently
involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against
the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal
proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">If the assessment of a contingency indicates
that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated
liability would be accrued in the Company&rsquo;s consolidated financial statements. If the assessment indicates that a potential
material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of
the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">Loss contingencies considered remote are
generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe,
based upon information available at this time, that these matters will have a material adverse effect on the Company&rsquo;s consolidated
financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and
adversely affect the Company&rsquo;s business, financial position, and results of operations or cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Revenue recognition</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company applies paragraph 605-10-S99-1
of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable
and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive
evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii)
the sales price is fixed or determinable, and (iv) collectability is reasonably assured.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company derives its revenues from sales
contracts with its customer with revenues being generated upon rendering of products. Persuasive evidence of an arrangement is
demonstrated via invoice; products are considered provided when the product is delivered to the customers; and the sales price
to the customer is fixed upon acceptance of the purchase order and there is no separate sales rebate, discount, or volume incentive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Accounts Receivable, net </U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company recognizes an allowance for losses on accounts receivable
in an amount equal to the estimated probable losses net of recoveries. The allowance is based on an analysis of historical bad
debt experience, current receivables aging, and expected future write-offs, as well as an assessment of specific identifiable customer
accounts considered at risk or uncollectible. The Company recorded an allowance of doubtful accounts of $2,920 and $0, for the
years ended December 31, 2017 and 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 32; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->32<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Inventories</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Inventories are stated at the lower of cost or market using the
first in, first out (FIFO) method. Provisions have been made to reduce excess or obsolete inventories to their net realizable value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Costs of Revenue</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Components of costs of revenue include product costs, shipping costs
to customers and any inventory adjustments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Shipping and Handling Costs</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company includes shipping and handling fees billed to customers
as revenues and shipping and handling costs for shipments to customers as cost of revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Income taxes</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company is governed by the income tax laws of the United States
of America. The Company accounts for income tax using the liability method prescribed by ASC 740, &ldquo;<I>Income Taxes</I>&rdquo;.
Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and
tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected
to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence,
it is more-likely- than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred
taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company applies the provisions of ASC 740-10-50,&nbsp;&ldquo;Accounting
for Uncertainty in Income Taxes&rdquo;, which provides clarification related to the process associated with accounting for uncertain
tax positions recognized in our financial statements. Audit periods remain open for review until the statute of limitations has
passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment
to the Company&rsquo;s liability for income taxes. Any such adjustment could be material to the Company&rsquo;s results of operations
for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of December 31,
2017, and, 2016, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future.
The Company is subject to U.S. Federal income tax examinations for the tax years ended December 31, 2014&nbsp;through 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the Tax Act)
was enacted into law and the new legislation contains several key tax provisions that affected us, including a one-time mandatory
transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21% effective January 1, 2018,
among others. We are required to recognize the effect of the tax law changes in the period of enactment, such as determining the
transition tax, re-measuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred
tax assets and liabilities. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118,&nbsp;Income Tax Accounting
Implications of the Tax Cuts and Jobs Act&nbsp;(SAB 118), which allows us to record provisional amounts during a measurement period
not to extend beyond one year of the enactment date. Since the Tax Act was passed late in the fourth quarter of 2017, and ongoing
guidance and accounting interpretation are expected over the next 12 months, we consider the accounting of the transition tax,
deferred tax re-measurements, and other items to be incomplete due to the forthcoming guidance and our ongoing analysis of final
year-end data and tax positions. We expect to complete our analysis within the measurement period in accordance with SAB 118.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company&rsquo;s ability to utilize its net operating loss (NOL)
carryforwards may be substantially limited due to ownership changes that may have occurred on December 14, 2017, as required by
Section&nbsp;382 of the Internal Revenue Code of 1986, as amended (the Code), as well as similar state provisions. These ownership
changes may limit the amount of NOL carryforwards that can be utilized annually to offset future taxable income and tax, respectively.
In general, an &ldquo;ownership change,&rdquo; as defined by Section&nbsp;382 of the Code, results from a transaction or series
of transactions over a three-year period resulting in an ownership change of more than 50&nbsp;percent of the outstanding stock
of a company by certain stockholders or public groups.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">If the Company has experienced an ownership change, utilization
of the NOL carryforwards would be subject to an annual limitation, which is determined by first multiplying the value of the Company&rsquo;s
stock at the time of the ownership change by the applicable long-term, tax-exempt rate, and then could be subject to additional
adjustments, as required. Any such limitation may result in the expiration of a portion of the NOL carryforwards before utilization.
Until a study is completed, and any limitation known, no amounts are being considered as an uncertain tax position or disclosed
as an unrecognized tax benefit under ASC-740. Any carryforwards that expire prior to utilization as a result of such limitations
will be removed from deferred tax assets with a corresponding reduction of the valuation allowance. Due to the existence of the
valuation allowance, it is not expected that any possible limitation will have an impact on the results of operations of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 33; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->33<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Tax returns for Profile Solutions, Inc. have not been prepared and
filed for the years ended December 31, 2016 and 2017 through 2018 and may be subject to penalties for delinquent and non-compliance
requirements, in addition, to the NOL carryover changes from prior years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Net loss per common share</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company follows ASC Topic 260 to account
for earnings per share. Basic earnings per common share (&ldquo;EPS&rdquo;) calculations are determined by dividing net income
by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations
are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding.
During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">There were no potentially dilutive shares
outstanding&nbsp;as of December 31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Cash flows reporting</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company adopted paragraph 230-10-45-24
of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether
they stem from operating, investing, or financing activities and provides definitions of each category, and uses the&nbsp;indirect
or reconciliation method (&ldquo;Indirect method&rdquo;) as defined by&nbsp;paragraph 230-10-45-25 of the FASB Accounting Standards
Codification&nbsp;to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from
operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals
of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating
cash receipts and payments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Subsequent events</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company follows the guidance in Section
855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company evaluates subsequent
events through&nbsp;the date when the&nbsp;financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards
Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users,
such as through filing them on EDGAR.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Recently issued accounting pronouncements</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">We have reviewed all new accounting
pronouncements and, except as set forth below, do not expect any new pronouncements or guidance to have an impact on our
results of operations or financial position:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">All other newly issued accounting pronouncements,
but not yet effective, have been deemed either immaterial or not applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B>NOTE 3 &ndash; LIQUIDTY AND GOING CONCERN</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The accompanying consolidated financial
statements have been prepared&nbsp;assuming that the Company will continue as a going concern.&nbsp;As reflected in the accompanying
consolidated financial statements, the Company had Revenues of $ 208,236 and $ 247,436, Loss from Operations of $ 42,495 and $
41,426 and net cash used in operations of $101,353 and $40,289 and for the years ended December 31,&nbsp;2017 and December 31,
2016 respectively</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"></P>

<!-- Field: Page; Sequence: 34; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->34<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">While the Company is attempting to generate
sufficient revenues, the Company&rsquo;s cash position may not be sufficient enough to support the Company&rsquo;s daily operations.
Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently
being taken to further implement its business plan and generate sufficient revenues provide the opportunity for the Company to
continue as a going concern. While the Company believes in the viability of its strategy to generate sufficient revenues and in
its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going
concern is dependent upon the Company&rsquo;s ability to further implement its business plan and generate sufficient revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The consolidated financial statements do
not include any adjustments that might be necessary if the Company is unable to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The independent auditors&rsquo; report
on our consolidated financial statements for the years ended December 31, 2017 and 2016 contain explanatory paragraphs expressing
substantial doubt as to our ability to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.7pt"><B>NOTE 4 &ndash; RELATED PARTY TRANSACTIONS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.7pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In March 2016, Elite entered into a three-year lease agreement with
a related party for an aggregate rent of $46,091. This lease was amended in February 2018 for a monthly rent of approximately $4,000
with an annual escalation of 3% per year expiring on December 31, 2021 with the option to renew for two additional years. The Company
owed this related party approximately $5,000 as of December 31, 2017 and 2016, respectively. The amounts owed to this related party
were 45% and 75% of accounts payable as of December 31, 2017 and 2016, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Elite owed two related parties an aggregate of approximately $40,000
as of December 31, 2016. These amounts were repaid and converted to equity during 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In November 2017, Elite entered into consulting agreements with
three related parties for a monthly fee of $7,500 for three years. Two of the three agreements call for a percentage of future
generations of sales and equity funding or acquisition of or by the Companies. Elite paid approximately $40,000 to these related
parties in 2017. In February 2018, Elite entered into an additional consulting agreement with a related party for a monthly fee
of $7,500 and 10% future generation of sales on a month to month basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>Note 5 &ndash; CONCENTRATION ON CREDIT RISK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Major Customers</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In 2017 and 2016, Elite had two customers that approximated 58%
of sales and four customers that approximated 72% of sales. One customer in 2017 is also a minority shareholder of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">At December 31, 2017, the Company had a concentration of accounts
receivable from one customer, totaling 90%. This customer is also a minority shareholder of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Major Vendors</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt">In 2017 and 2016, Elite had four vendors that approximated
57% of purchases and two vendors that approximated 70% of purchases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>NOTE 6 &ndash; EQUITY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 1pt">As noted in Note one on December 14, 2017, the Company
acquired all of the issued and outstanding shares of Elite. The acquisition was accounted for as a recapitalization of the Company.
The former shareholders of Elite received 600,000,000 shares in the new parent entity Profile&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt">Preferred Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.4pt 0 1pt">The Company has 10,000,000 preferred shares authorized
with a par value of $0.001 per share with no issued and outstanding at December 31, 2017 and 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt">Common Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 15.9pt 0 1pt">The Company has 1,000,000,000 common shares authorized
with a par value of $0.001 per share with 757,233,793 and 600,000,000 shares issued and outstanding at December 31, 2017 and 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 15.9pt 0 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 15.9pt 0 1pt"></P>

<!-- Field: Page; Sequence: 35; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->35<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 15.9pt 0 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 15.9pt 0 1pt">During the year ended December 31, 2017, the
company issued 600,000,000 shares of common stock to former shareholders of Elite for 100% of the issued and outstanding
shares of Elite</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 15.9pt 0 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>NOTE 7 &ndash; PREPAID EXPENSES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Prepaid Expense represents the payment tendered to a manufacturer
to produce product. For the year ended December 31, 2017 and December 31<SUP>st</SUP> 2016, the company had $ 12,539 and $ 0 respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>NOTE 8 - COMMITMENTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><U>Royalty agreements</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">On December 14, 2017, the Company entered
into a Royalty Agreement with former shareholders. The purpose of this Agreement is to develop produce, market, promote, distribute
and enhance the CannaSafe prototype. Royalty payments of 8 % will be tendered on a quarterly basis on February 1, May1, August
1 and November 1 of each year during the term of this agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Lease agreements</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On March 1, 2016 the Company&rsquo;s wholly owned subsidiary, Elite
entered into a three year lease agreement in Sunrise, Florida through February 28, 2019 for aggregate rent of $46,091. The amount
is to be paid monthly over the term of the lease term along with 3 percent increases per annum. A deposit of $1,250 was tendered
to secure the lease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Future minimum lease payments for this office space are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 40%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">Year</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Amount</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 69%; text-align: center">2018</TD><TD STYLE="width: 1%; text-align: center">&nbsp;</TD><TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 18%; text-align: right">15,669</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center">2019</TD><TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">2,662</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 11pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: center; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">18,331</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Employment agreement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the year ended December 31, 2017, the Company entered into
an employment agreement dated November 1, 2017 with the Company&rsquo;s CEO. As part of this agreement, the Company agreed to annual
compensation of $ 90,000 with a 3-year term. Refer to Note 4 for additional future commitments related to this agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Consulting agreements</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the year ended December 31, 2017, the Company entered into
two separate consulting agreements dated November 1, 2017. As part of these agreements, the Company agreed to annual compensation
of $ 90,000 each with 3-year terms. The Consultants will provide strategic business development ideas as well as public company
expertise and management. Refer to Note 4 for additional future commitments related to these agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B>NOTE 9 &ndash; INCOME TAXES </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company maintains deferred tax assets and liabilities that
reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. The deferred tax assets at December 31, 2017 and 2016 consist of net operating
loss carryforwards. The net deferred tax asset has been fully offset by a valuation allowance because of the uncertainty of the
attainment of future taxable income. The items accounting for the difference between income taxes at the effective statutory rate
and the provision for income taxes for the years ended December 31, 2017 and 2016 were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 36; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->36<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">December 31, 2017</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">December 31, 2016</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 62%; text-align: left; padding: 0 0 0 10; text-indent: -10">Expected tax (benefit) - Federal</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">(8,433</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">(14,085</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">Expected tax (benefit) - State</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,337</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,278</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">Tax effect of expenses that are not deductible for income tax purposes (net of other amounts deductible for tax purposes)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,019</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">Change in valuation allowance</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9,751</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">16,363</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">Total provision for income tax</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">The net deferred taxes in the accompanying balance sheets includes the following amounts of deferred tax assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">Gross deferred tax assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">Temporary Difference</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">Net operating loss carryforwards</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(20,253</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(10,501</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">Total deferred tax assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,253</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,501</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">Less: valuation allowance</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(20,253</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(10,501</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">Net deferred tax asset recorded</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The estimated net operating loss carryforward was approximately
$79,900 at December 31, 2017. The Company&rsquo;s net operating loss carryforward may be limited on the usage of such net operating
loss carryforwards due to a change in ownership in accordance with Section 382 of the Internal Revenue Code. The Company provided
a valuation allowance equal to the net deferred income tax asset for the year ended December 31, 2017 and 2016 because it was not
known whether future taxable income will be sufficient to utilize the loss carryforward. The increase in the valuation allowance
was $20,253 from the year ended December 31, 2016. The potential tax benefit arising from tax loss carryforwards will expire in
2037.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B>NOTE 10 &ndash; SUBSEQUENT EVENTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On February 1, 2018 the Company&rsquo;s wholly owned subsidiary,
Elite entered into a three year lease agreement in Sunrise, Florida commencing February 28, 2018 through December 31, 2021 for
an annual rent totaling $51,996 with annual increase of 3 percent. The amount is to be paid monthly over the term of the lease
term. A deposit of $4,333 was tendered to secure the lease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Between January 1, and February 23, 2018, the Company raised gross
proceeds of $520,000 from subscription agreements between $0.035 to $0.05 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On March 2, 2018, the Company issued 714,286 shares with a fair
value of $25,000 ($0.035/share) to a consultant as consideration for consulting services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company&rsquo;s total issued and outstanding shares of common
stock as August 31, 2018 is 772,633,793</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 37; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->37<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On June 15, 2018, the Company entered into Royalty Participation
Agreement with Stemtech Corporation. The Company loaned $100,000 to Stemtech Corporation to be used as working capital. The loan
is interest free and due twelve months from the effective date. In consideration for the $100,000 loan from the Company Stemtech
will pay a percentage from the sales, licensing or disposition of its products or other revenue. The royalty payments equal the
greater of $10,000 or one percent of all &ldquo;gross revenue&rdquo; received by the company during the month based on (i) the
sale, license, development, commercialization or monetization of the products and (ii) all gains on disposition of any products
or assets or other income until the earlier of (A) the closing of the Reorganization and purchase and Sale Agreement between the
Stemtech Corporation and the Company or (B) 12 months from execution of this agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On June 22, 2018, the Company entered into Royalty Participation
Agreement with Stemtech Corporation. The Company loaned $50,000 to Stemtech Corporation to be used as working capital. The loan
is interest free and due twelve months from the effective date. In consideration for the $50,000 loan from the Company, Stemtech
will pay a percentage from the sales, licensing or disposition of its products or other revenue. The royalty payments equal the
greater of $5,000 or one half percent of all &ldquo;gross revenue&rdquo; received by the company during the month based on (i)
the sale, license, development, commercialization or monetization of the products and (ii) all gains on disposition of any products
or assets or other income until the earlier of (A) the closing of the Reorganization and purchase and Sale Agreement between the
Stemtech Corporation and the Company or (B) 12 months from execution of this agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">[Remainder of page left blank.]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 38; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->38<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROFILE SOLUTIONS, INC.</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_026"></A>CONDENSED CONSOLIDATED BALANCE SHEETS</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>At June 30, 2018 (unaudited) and December 31, 2017</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" STYLE="font-weight: bold; text-align: center"><U>ASSETS</U></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding: 0 0 1pt 10; text-indent: -10">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">June 30,<BR>
2018</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,<BR>
2017</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Current Assets:</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">(unaudited)</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 62%; padding: 0 0 0 20pt; text-indent: -10">Cash</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">194,425</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">47,857</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Accounts receivable, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">71,555</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">59,917</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Loan receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">59,653</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,539</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 1pt 20pt; text-indent: -10">Inventory</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">101,045</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">16,650</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 30pt; text-indent: -10">Total current assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">576,678</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">136,963</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Other Assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 1pt 20pt; text-indent: -10">Deposits</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">10,378</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">1,250</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 30pt; text-indent: -10">Total other assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">10,378</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">1,250</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 2.5pt 10; text-indent: -10">Total Assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">587,056</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">138,213</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD COLSPAN="9" STYLE="font-weight: bold; text-align: center"><U>LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</U></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Current Liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 20pt; text-indent: -10">Accounts payable and accrued liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">55,894</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">32,634</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 1pt 30pt; text-indent: -10">Total current liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">55,894</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">32,634</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 30pt; text-indent: -10">Total liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">55,894</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">32,634</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Stockholders&rsquo; Equity:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 20pt; text-indent: -10">Preferred shares, par value $0.001 per share, 10,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2018 and December 31, 2017 respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 20pt; text-indent: -10">Common stock, par value $0.001 per share, 1,000,000,000 shares authorized; 772,808,793 and 757,233,793 shares issued and outstanding as of June 30, 2018 and December 31, 2017 respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">772,809</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">757,234</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">117,341</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(567,734</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 1pt 20pt; text-indent: -10">Accumulated deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(358,988</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(83,921</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 30pt; text-indent: -10">Total stockholders&rsquo; equity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">531,162</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">105,579</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 2.5pt 10; text-indent: -10">Total Liabilities and Stockholder&rsquo;s Equity</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">587,056</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">138,213</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">The notes are an integral part of these
condensed consolidated financial statements.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 39; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->39<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROFILE SOLUTIONS, INC. AND SUBSIDIARIES</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_027"></A>CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center">For the Three Months Ended</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center">For the Six Months Ended</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding: 0 0 1pt 10; text-indent: -10">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">June 30,</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">June 30,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">2018</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">2017</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">2018</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">2017</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding: 0 0 1pt 10; text-indent: -10">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Consolidated</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Consolidated</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Consolidated</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Consolidated</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; padding: 0 0 0 10; text-indent: -10">Revenue</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">170,600</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">12,860</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">432,877</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">33,183</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 1pt 10; text-indent: -10">Cost of revenues</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">79,668</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">50,538</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">180,587</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">51,683</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 1pt 10; text-indent: -10">Gross Profit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">90,932</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(37,678</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">252,290</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(18,500</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Operating Expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 30pt; text-indent: -10">Compensation - officers</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,346</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,346</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 30pt; text-indent: -10">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">126,848</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,934</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">383,803</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">60,312</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 1pt 30pt; text-indent: -10">Professional fees</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">111,780</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">118,209</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 40pt; text-indent: -10">Total operating expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">263,974</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">5,934</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">527,358</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">60,312</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(173,042</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(43,612</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(275,068</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(78,812</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 10; text-indent: -10">Net loss before provision for income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(173,042</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(43,612</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(275,068</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(78,812</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 10; text-indent: -10">Provision for income taxes</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 2.5pt 10; text-indent: -10">Net loss</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(173,042</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(43,612</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(275,068</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(78,812</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding: 0 0 0 10; text-indent: -10">Loss per common share:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 2.5pt 20pt; text-indent: -10">Loss per common share - Basic and Diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(0.00</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(0.00</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(0.00</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(0.00</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding: 0 0 0 10; text-indent: -10">Weighted Average Common Shares Outstanding:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 2.5pt 20pt; text-indent: -10">Basic and Diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">772,656,870</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">107,585,747</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">770,599,776</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">107,585,747</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">The notes are
an integral part of these financial statements.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 40; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->40<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROFILE SOLUTIONS, INC.</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_028"></A>CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the Six Months Ended June 30, 2018 (unaudited) and December 31, 2017</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Six Months Ended</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Year Ended</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">June 30, 2018</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">December 31, 2017</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">(unaudited)</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Cash Flow From Operating Activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 56%; text-align: left; padding: 0 0 0 20pt; text-indent: -10">Net loss</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">(275,067</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">(42,495</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Adjustments to reconcile net loss to net cash from operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Increase in prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(56,242</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,539</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Increase in inventory</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(84,395</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,124</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Increase in accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11,638</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(59,917</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 1pt 20pt; text-indent: -10">Increase in accounts payable</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">23,260</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">25,722</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 1pt 10; text-indent: -10">Net Cash Used in Operating Activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(379,082</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(101,353</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Investing Activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 1pt 20pt; text-indent: -10">Issuance of note receivable</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(150,000</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 1pt 10; text-indent: -10">Net Cash Used in Investing Activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(150,000</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Financing Activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Proceeds from advances from related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">80,366</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Repayment of advances from related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(29,541</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 20pt; text-indent: -10">Contributions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 20pt; text-indent: -10">Distributions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(38,270</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding: 0 0 0 20pt; text-indent: -10">Net cash received from stock sold</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">527,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding: 0 0 1pt 20pt; text-indent: -10">Net cash received as part of deposit in transit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">148,650</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">101,585</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 1pt 10; text-indent: -10">Net Cash Provided by Financing Activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">675,650</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">149,140</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10">Net Increase (Decrease in Cash)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">146,568</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,787</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 10; text-indent: -10">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding: 0 0 1pt 10; text-indent: -10">Cash - Beginning of Period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">47,857</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">70</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding: 0 0 2.5pt 10; text-indent: -10">Cash - End of Period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">194,425</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">47,857</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">The notes are an integral part of these
financial statements.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Page; Sequence: 41; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->41<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">PROFILE SOLUTIONS, INC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_029"></A>Condensed Notes to Consolidated Financial Statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">June 30, 2018</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(unaudited)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>NOTE 1 - ORGANIZATION OF OPERATIONS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Profile Solutions, Inc. (&ldquo;Profile&rdquo;) is a Delaware corporation
originally incorporated as YaFarm Technologies, Inc. on July 31, 2006.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, Profile entered into a Share Exchange Agreement
with Elite Products International, Inc., a Florida corporation (&ldquo;Elite&rdquo;) incorporated on February 15<SUP>th</SUP>,
2016 issuing an aggregate total of 600,000,000 shares in exchange for 100% ownership of Elite. As part of the transaction, the
Company filed a certificate of amendment with the State of Delaware increasing the authorized shares of common stock to 1,000,000,000
(one billion) shares of common stock. The transaction was accounted for as a corporate reorganization between entities under common
control. These consolidated financial statements reflect the reorganized capital structure retrospectively for all periods presented
for Profile and Elite, collectively (&ldquo;the Company), the Company has presented earnings per share based on the Company shares
issued to the former shareholders of Elite.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.3in 0 0">Profile through its subsidiary Elite is a  distributor
and manufacturer in the cannabinoid (CBD) industry. The Company&rsquo;s products contain CBD Hemp extracts in the
form of edibles, creams, oils, and salves.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.3in 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2pt 0 1pt">The Company&rsquo;s fiscal year end is December 31. Essentially
all the operations of the Company are conducted through the Company&rsquo;s wholly owned subsidiary in Sunrise, Florida.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2pt 0 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 1pt"><I>Change in officers</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 1pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 1pt">On December 14, 2017, Officer and Director Dore S.
Perler resigned and appointed Dan Oran as Officer and Director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2pt 0 1pt; text-align: justify">The Company&rsquo;s fiscal year end
is December 31. Essentially all the operations of the Company are conducted through the Company&rsquo;s subsidiary Elite.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2pt 0 1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 1pt"><I>Change in officers</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 1pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 1pt">On December 14, 2017, former Officer and Director Dore
S. Perler resigned and appointed Dan Oran as Officer and Director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>NOTE 2 &ndash; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Basis of presentation and consolidation</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company&rsquo;s condensed consolidated financial statements
have been prepared in accordance with U.S. generally accepted accounting principles (&ldquo;GAAP&rdquo;).&nbsp;Accordingly, they
do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements.
In our opinion the unaudited condensed consolidated financial statements include all adjustments (consisting of normal recurring
accruals) necessary to make the unaudited condensed consolidated financial statements not misleading. Operating results for the
three and six months ended June&nbsp;30, 2018 are not necessarily indicative of the final results that may be expected for the
year ending December 31, 2018. For more complete financial information, these unaudited condensed financial statements should be
read in conjunction with the audited financial statements for the year ended December 31, 2017.&nbsp;A summary of our significant
accounting policies consistently applied in the preparation of the accompanying condensed consolidated financial statements follows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 42; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->42<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><U>Principle of consolidation</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">All intercompany balances and transactions
have been eliminated on consolidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Use of estimates and assumptions</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The preparation of consolidated financial
statements in conformity with accounting principles generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company&rsquo;s significant estimates
and assumptions include the fair value of financial instruments; the carrying value, recoverability and impairment, if any, of
long-lived assets, including the values assigned to and the estimated useful lives of fixed assets; income tax rate, income tax
provision and valuation allowance of deferred tax</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">assets; stock-based compensation, valuation
of inventory and&nbsp;the assumption that the Company will continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">Those significant accounting estimates
or assumptions bear the risk of change due to the fact that there are uncertainties attached to those estimates or assumptions,
and certain estimates or assumptions are difficult to measure or value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">Management bases its estimates on historical
experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the
basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">Management regularly reviews its estimates
utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions.
After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those
estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Fair value of financial instruments</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company follows paragraph 825-10-50-10
of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37
of the FASB Accounting Standards Codification (&ldquo;Paragraph 820-10-35-37&rdquo;) to measure the fair value of its financial
instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted
in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency &rsquo; to
quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.
The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 8%"><FONT STYLE="font-size: 10pt">Level 1</FONT></TD>
<TD STYLE="width: 92%"><FONT STYLE="font-size: 10pt">Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-size: 10pt">Level 2</FONT></TD>
<TD><FONT STYLE="font-size: 10pt">Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-size: 10pt">Level 3</FONT></TD>
<TD><FONT STYLE="font-size: 10pt">Pricing inputs that are generally observable inputs and not corroborated by market data.</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">Financial assets are considered Level 3
when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least
one significant model assumption or input is unobservable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The fair value hierarchy gives the highest
priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable
inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the
categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"></P>

<!-- Field: Page; Sequence: 43; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->43<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The carrying amount of the Company&rsquo;s
financial assets and liabilities, such as cash, prepaid expenses, deposits, accounts payable and accrued expenses approximate their
fair value because of the short maturity of those instruments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">Transactions involving related parties
cannot be presumed to be carried out on an arm&rsquo;s-length basis, as the requisite conditions of competitive, free-market dealings
may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions
were consummated on terms equivalent to those that prevail in arm&rsquo;s-length transactions unless such representations can be
substantiated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">It is not however practical to determine
the fair value of advances from stockholders due to their related party nature.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Cash and cash equivalents</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company considers all highly liquid
investments with a maturity of three months or less to be cash and cash equivalents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Related parties</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company follows subtopic 850-10 of
the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">Pursuant to Section 850-10-20&nbsp;the
related parties include a.&nbsp;affiliates of the Company; b. Entities for which investments in their equity securities would be
required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825&ndash;10&ndash;15,
to be accounted for by the equity method by the investing entity; c.&nbsp;trusts for the benefit of employees, such as pension
and profit-sharing trusts that are managed by or under the trusteeship of management; d.&nbsp;principal owners of the Company;
e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence
the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully
pursuing its own separate interests; and g. Other parties that can significantly influence the management or operating policies
of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence
the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Commitments and contingencies</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company follows subtopic 450-20 of&nbsp;the
FASB Accounting Standards Codification to report accounting for contingencies.&nbsp;Certain conditions may exist as of the date
the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when
one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently
involves an exercise of Judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company
or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or
unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">If the assessment of a contingency indicates
that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated
liability would be accrued in the Company&rsquo;s consolidated financial statements. If the assessment indicates that a potential
material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of
the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">Loss contingencies considered remote are
generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe,
based upon information available at this time, that these matters will have a material adverse effect on the Company&rsquo;s consolidated
financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and
adversely affect the Company&rsquo;s business, financial position, and results of operations or cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"></P>

<!-- Field: Page; Sequence: 44; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->44<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Revenue recognition</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company applies paragraph 605-10-S99-1
of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable
and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive
evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii)
the sales price is fixed or determinable, and (iv) collectability is reasonably assured.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company derives its revenues from sales
contracts with its customer with revenues being generated upon rendering of products. Persuasive evidence of an arrangement is
demonstrated via invoice; products are considered provided when the product is delivered to the customers; and the sales price
to the customer is fixed upon acceptance of the purchase order and there is no separate sales rebate, discount, or volume incentive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="color: black"><I><U>Accounts
Receivable, net</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; color: red"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes an allowance for losses
on accounts receivable in an amount equal to the estimated probable losses net of recoveries. The allowance is based on an analysis
of historical bad debt experience, current receivables aging, and expected future write-offs, as well as an assessment of specific
identifiable customer accounts considered at risk or uncollectible. The Company recorded an allowance of doubtful accounts of $2,920
and $0, for the six months ended June 30, 2018 and 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I><U>Inventories</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Inventories are stated at the lower of cost or market using the
first in, first out (FIFO) method. Provisions have been made to reduce excess or obsolete inventories to their net realizable value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><I><U>Costs of Revenue</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Components of costs of sales include product costs, shipping costs
to customers and any inventory adjustments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I><U>Shipping and Handling Costs</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company includes shipping and handling fees billed to customers
as revenues and shipping and handling costs for shipments to customers as cost of revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Income taxes</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is governed by the income tax laws
of the United States of America. The Company accounts for income tax using the liability method prescribed by ASC 740, &ldquo;<I>Income
Taxes</I>&rdquo;. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial
reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences
are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available
evidence, it is more-likely- than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on
deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company applies the provisions of ASC 740-10-50,&nbsp;&ldquo;Accounting
for Uncertainty in Income Taxes&rdquo;, which provides clarification related to the process associated with accounting for uncertain
tax positions recognized in our financial statements. Audit periods remain open for review until the statute of limitations has
passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment
to the Company&rsquo;s liability for income taxes. Any such adjustment could be material to the Company&rsquo;s results of operations
for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of June 30, 2018,
and December 31, 2017, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the
future. The Company is subject to U.S. Federal income tax examinations for the tax years ended December 31, 2014&nbsp;through 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 45; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->45<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 22, 2017, the 2017 Tax Cuts and
Jobs Act (the Tax Act) was enacted into law and the new legislation contains several key tax provisions that affected us, including
a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21% effective
January 1, 2018, among others. We are required to recognize the effect of the tax law changes in the period of enactment, such
as determining the transition tax, re-measuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability
of our deferred tax assets and liabilities. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118,&nbsp;Income
Tax Accounting Implications of the Tax Cuts and Jobs Act&nbsp;(SAB 118), which allows us to record provisional amounts during a
measurement period not to extend beyond one year of the enactment date. Since the Tax Act was passed late in the fourth quarter
of 2017, and ongoing guidance and accounting interpretation are expected over the next 12 months, we consider the accounting of
the transition tax, deferred tax re-measurements, and other items to be incomplete due to the forthcoming guidance and our ongoing
analysis of final year-end data and tax positions. We expect to complete our analysis within the measurement period in accordance
with SAB 118.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&rsquo;s ability to utilize its
net operating loss (NOL) carryforwards may be substantially limited due to ownership changes that may have occurred on December
14, 2017, as required by Section&nbsp;382 of the Internal Revenue Code of 1986, as amended (the Code), as well as similar state
provisions. These ownership changes may limit the amount of NOL carryforwards that can be utilized annually to offset future taxable
income and tax, respectively. In general, an &ldquo;ownership change,&rdquo; as defined by Section&nbsp;382 of the Code, results
from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50&nbsp;percent
of the outstanding stock of a company by certain stockholders or public groups.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">If the Company has
experienced an ownership change, utilization of the NOL carryforwards would be subject to an annual limitation, which is determined
by first multiplying the value of the Company&rsquo;s stock at the time of the ownership change by the applicable long-term, tax-exempt
rate, and then could be subject to additional adjustments, as required. Any such limitation may result in the expiration of a portion
of the NOL carryforwards before utilization. Until a study is completed, and any limitation known, no amounts are being considered
as an uncertain tax position or disclosed as an unrecognized tax benefit under ASC-740. Any carryforwards that expire prior to
utilization as a result of such limitations will be removed from deferred tax assets with a corresponding reduction of the valuation
allowance. Due to the existence of the valuation allowance, it is not expected that any possible limitation will have an impact
on the results of operations of the Company</FONT><FONT STYLE="color: #333333">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #333333">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Tax returns for Profile Solutions, Inc. have
not been prepared and filed for the years ended December 31, 2016 and 2017 through 2018 and may be subject to penalties for delinquent
and non-compliance requirements, in addition, to the NOL carryover changes from prior years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Net loss per common share</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company follows ASC Topic 260 to account
for earnings per share. Basic earnings per common share (&ldquo;EPS&rdquo;) calculations are determined by dividing net income
by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations
are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding.
During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">There were no potentially dilutive shares
outstanding&nbsp;as of June 30, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Cash flows reporting</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The Company adopted paragraph 230-10-45-24
of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether
they stem from operating, investing, or financing activities and provides definitions of each category, and uses the&nbsp;indirect
or reconciliation method (&ldquo;Indirect method&rdquo;) as defined by&nbsp;paragraph 230-10-45-25 of the FASB Accounting Standards
Codification&nbsp;to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from
operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals
of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating
cash receipts and payments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"></P>

<!-- Field: Page; Sequence: 46; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->46<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I><U>Recently issued accounting pronouncements</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">We have reviewed all new accounting pronouncements
and, except as set forth below, do not expect any new pronouncements or guidance to have an impact on our results of operations
or financial position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">All other newly issued accounting pronouncements,
but not yet effective, have been deemed either immaterial or not applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B>Note 3 &ndash;Liquidity and Going Concern</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The accompanying consolidated financial
statements have been prepared&nbsp;assuming that the Company will continue as a going concern.&nbsp;As reflected in the accompanying
consolidated financial statements, the Company had an accumulated deficit of $358,988 at June 30, 2018, a net loss of $275,068
and net cash used in operating activities of $379,082 for the six months ended June 30, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">While the Company is attempting to generate
sufficient revenues, the Company&rsquo;s cash position may not be sufficient enough to support the Company&rsquo;s daily operations.
Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently
being taken to further implement its business plan and generate sufficient revenues provide the opportunity for the Company to
continue as a going concern. While the Company believes in the viability of its strategy to generate sufficient revenues and in
its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going
concern is dependent upon the Company&rsquo;s ability to further implement its business plan and generate sufficient revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">The consolidated financial statements do
not include any adjustments that might be necessary if the Company is unable to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>NOTE 4 &ndash; RELATED PARTY TRANSACTIONS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">In March 2016, Elite
entered into a three-year lease agreement with a related party for an aggregate rent of $46,091. This lease was amended in February
2018 for a monthly rent of approximately $4,000 with an annual escalation of 3% per year expiring on December 31, 2021 with the
option to renew for two additional years. The Company owed this related party approximately $5,000 as of June 30, 2018 and December
31, 2017, respectively. The amounts owed to this related party were 15% and 45% of accounts payable as of June 30, 2018 and December
31, 2017, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">Elite owed two related
parties an aggregate of approximately $40,000 as of December 31, 2016. These amounts were repaid and converted to equity during
2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">In November 2017,
Elite entered into consulting agreements with three related parties for a monthly fee of $7,500 for three years. Two of the three
agreements call for a percentage of future generations of sales and equity funding or acquisition of or by the Companies. Elite
paid approximately $40,000 to these related parties in 2017. In February 2018, Elite entered into an additional consulting agreement
with a related party for a monthly fee of $7,500 and 10%</FONT> future generation of sales on a month to month basis</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 31, 2018, $80,000 was paid as a good
faith refundable deposit for a potential acquisition by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 14, 2018, the $ 80,000 deposit was paid
back to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt; text-align: justify"><B>NOTE 5 - CONCENTRATION ON CREDIT
RISK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Major Customers</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the six months ended June 30, 2018 and
2017, Elite had one customer that approximated 35% of sales and one customers that approximated 26% of sales, respectively. One
customer in 2018 is also a minority shareholder of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 47; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->47<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At June 30, 2018 the Company had a concentration
of accounts receivable from two customers, totaling 79%. One customer is also a minority shareholder of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2017, the Company had a concentration
of accounts receivable from one customer, totaling 90%. This customer is also a minority shareholder of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Major Vendors</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><FONT STYLE="color: black">During the six months ended June
30, 2018 and 2017, Elite had four vendors that approximated</FONT> <FONT STYLE="color: black">59% of purchases and four vendors
that approximated 73% of purchase, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>NOTE 6 &ndash; EQUITY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 1pt; text-align: justify">As noted in Note one on December
14, 2017, the Company acquired all of the issued and outstanding shares of Elite. The acquisition was accounted for as a recapitalization
of the Company. The former shareholders of Elite received 600,000,000 shares in the new parent entity Profile</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt; text-align: justify">Preferred Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.4pt 0 1pt; text-align: justify">The Company has 10,000,000 preferred
shares authorized with a par value of $0.001 per share with no issued and outstanding at June 30, 2018 and December 31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.4pt 0 1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt; text-align: justify">Common Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 15.9pt 0 1pt; text-align: justify">The Company has 1,000,000,000
common shares authorized with a par value of $0.001 per share with 772,808,793 and 757,233,793 shares issued and outstanding at
June 30, 2018 and December 31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 15.9pt 0 1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the six months ended June 30, 2018, the
Company issued 14,860,714 shares of common stock in consideration of $527,000 pursuant to certain subscription agreements. In addition,
714,286 shares of the Company&rsquo;s common stock were issued for services rendered with a fair value of $25,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 15.9pt 0 1pt; text-align: justify">During the year ended December
31, 2017, the company issued 600,000,000 shares of common stock to former shareholders of Elite for 100% of the issued and outstanding
shares of Elite</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 15.9pt 0 1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>NOTE 7 &ndash; PREPAID EXPENSES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prepaid Expense represents the payment tendered
to a manufacturer to produce product. For the six months ended June 30, 2018 and year ended December 31, 2017, the company had
$59,653 and $12,539 respectively</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>NOTE 8 &ndash; LOAN RECEIVABLE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On June 15, 2018, the Company entered into Royalty Participation
Agreement with Stemtech Corporation. The Company loaned $100,000 to Stemtech Corporation to be used as working capital. The loan
is interest free and due twelve months from the effective date. In consideration for the $50,000 loan from the Company Stemtech
will pay a percentage from the sales, licensing or disposition of its products or other revenue. The royalty payments equal to
the great of $10,000 or one percent of all &ldquo;gross revenue&rdquo; received by the company during the month based on (i) the
sale, license, development, commercialization or monetization of the products and (ii) all gains on disposition of any products
or assets or other income until the earlier of (A) the closing of the Reorganization and purchase and Sale Agreement between the
Stemtech Corporation and the Company or (B) 12 months from execution of this agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 48; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->48<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On June 22, 2018, the Company entered into Royalty Participation
Agreement with Stemtech Corporation. The Company loaned $50,000 to Stemtech Corporation to be used as working capital. The loan
is interest free and due twelve months from the effective date. In consideration for the $50,000 loan from the Company Stemtech
will pay a percentage from the sales, licensing or disposition of its products or other revenue. The royalty payments equal to
the great of $5,000 or one half percent of all &ldquo;gross revenue&rdquo; received by the company during the month based on (i)
the sale, license, development, commercialization or monetization of the products and (ii) all gains on disposition of any products
or assets or other income until the earlier of (A) the closing of the Reorganization and purchase and Sale Agreement between the
Stemtech Corporation and the Company or (B) 12 months from execution of this agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">For the six months ended June 30, 2018, the Company recorded loan
receivable of $150,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>NOTE 9 - COMMITMENTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><U>Royalty agreements</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">On December 14, 2017, Profile Solutions,
Inc. entered into a Royalty Agreement with a group of unrelated investors. The purpose of this Agreement is for Profile Solutions
to utilize this license to develop produce, market, promote, distribute and enhance the existing prototype for its use within
the United States of America. Royalty payments will be tendered on a quarterly basis beginning February 1, May1, August 1, and
November 1 of each year during the term of this agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Lease agreements</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On February 1, 2018 the Company&rsquo;s entered into a three year
lease agreement with a related party in Sunrise, Florida commencing February 1, 2018 through January 31, 2021 for aggregate rent
of $155,988 The amount is to be paid monthly over the term of the lease term along with 3 percent increases per annum. A deposit
of $1,250 was tendered to secure the lease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Future minimum lease payments for this office
space are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Year</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Amount</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 69%; text-align: center">2018</TD><TD STYLE="width: 1%; text-align: center">&nbsp;</TD><TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 18%; text-align: right">47,663</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center">2019</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">51,996</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center">2020</TD><TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">51,996</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center">2021</TD><TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">4,333</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">155,988</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Employment agreement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2017, the
Company entered into an employment agreement dated November 1, 2017 with the Company&rsquo;s wholly owned subsidiary CEO. As
part of this agreement, the Company agreed to annual compensation of $ 90,000 with a 3-year term. On May 1, 2018, the Agreement
has been modified to annual compensation of $48,000 plus 5% of sales over $50,000 per month. Refer to Note 4 for additional future
commitments related to this agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Consulting agreements</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2017, the
Company entered into two separate consulting agreements dated November 1, 2017. As part of these agreements, the Company agreed
to annual compensation of $ 90,000 each with 3-year terms. The Consultants will provide strategic business development ideas as
well as public company expertise and management. Refer to Note 4 for additional future commitments related to these agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="color: black">In
February 2018, Elite entered into an additional consulting agreement with a related party for a monthly fee of $7,500 and 10%</FONT>
future generation of sales on a month to month basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">On March 2, 2018, the Company entered into
an Advisory Board Agreement with an individual that has expertise in the Hemp business and also has expertise in public companies.
This agreement is for four months and consideration is for $25,000 worth of the Company&rsquo;s common stock payable at $0.035
a share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"></P>

<!-- Field: Page; Sequence: 49; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->49<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">[Outside back cover of prospectus]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-weight: normal">Dealer Prospectus
Delivery Obligation</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Until (<I>insert date</I>), all dealers that effect transactions
in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition
to the dealers&rsquo; obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments
or subscriptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Profile Solutions, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">167,583,443 Shares of Common Stock Prospectus</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">___________, 2018</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 50; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->50<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Part II</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Information Not Required in Prospectus</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 13. Other Expenses of Issuance and Distribution</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The following table sets forth the costs and
expenses payable by us in connection with the issuance and distribution of the securities being registered hereunder. The selling
stockholder will bear no expenses associated with this offering except for any broker discounts and commissions or equivalent expenses
and expenses of the selling stockholder&rsquo;s legal counsel applicable to the sale of its shares. All of the amounts shown are
estimates, except for the Securities and Exchange Commission registration fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%; font-weight: bold; text-align: left">Securities and Exchange Commission registration fees</TD><TD STYLE="width: 10%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 18%; font-weight: bold; text-align: right">*</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounting fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Legal fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Miscellaneous fees and expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">*</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Total</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">*To be filed by amendment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 14. Indemnification of Directors and Officers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Section 102(b)(7) of the Delaware General Corporation
Law, or DGCL, allows a corporation to provide in its certificate of incorporation that a director of the corporation will not be
personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except
where the director breached the duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated
a law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law or obtained an
improper personal benefit. Our amended and restated certificate of incorporation will provide for this limitation of liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Section 145 of the DGCL, or Section 145, provides,
among other things, that a Delaware corporation may indemnify any person who was, is or is threatened to be made, party to any
threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than
an action by or in the right of such corporation), by reason of the fact that such person is or was an officer, director, employee
or agent of such corporation or is or was serving at the request of such corporation as a director, officer, employee or agent
of another corporation or enterprise. The indemnity may include expenses (including attorneys&rsquo; fees), judgments, fines and
amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding,
provided such person acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the corporation&rsquo;s
best interests and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his or her conduct
was illegal. A Delaware corporation may indemnify any persons who were or are a party to any threatened, pending or completed action
or suit by or in the right of the corporation by reason of the fact that such person is or was a director, officer, employee or
agent of another corporation or enterprise. The indemnity may include expenses (including attorneys&rsquo; fees) actually and reasonably
incurred by such person in connection with the defense or settlement of such action or suit, provided such person acted in good
faith and in a manner he or she reasonably believed to be in or not opposed to the corporation&rsquo;s best interests, provided
further that no indemnification is permitted without judicial approval if the officer, director, employee or agent is adjudged
to be liable to the corporation. Where an officer or director is successful on the merits or otherwise in the defense of any action
referred to above, the corporation must indemnify him against the expenses which such officer or director has actually and reasonably
incurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Section 145 further authorizes a corporation
to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation
or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or enterprise,
against any liability asserted against him and incurred by him in any such capacity, or arising out of his or her status as such,
whether or not the corporation would otherwise have the power to indemnify him or her under Section 145.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 51; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->51<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our bylaws provide that we must indemnify our
directors and officers to the fullest extent authorized by the DGCL and must also pay expenses incurred in defending any such proceeding
in advance of its final disposition upon delivery of an undertaking, by or on behalf of an indemnified person, to repay all amounts
so advanced if it should be determined ultimately that such person is not entitled to be indemnified under this section or otherwise.
Notwithstanding the foregoing, we shall not be obligated to indemnify a director or officer in respect of a proceeding (or part
thereof) instituted by such director or officer, unless such proceeding (or part thereof) has been authorized by the Board of Directors
pursuant to the applicable procedure outlined in the bylaws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Section 174 of the DGCL provides, among other
things, that a director, who willfully or negligently approves of an unlawful payment of dividends or an unlawful stock purchase
or redemption, may be held jointly and severally liable for such actions. A director who was either absent when the unlawful actions
were approved or dissented at the time may avoid liability by causing his or her dissent to such actions to be entered in the books
containing the minutes of the meetings of the board of directors at the time such action occurred or immediately after such absent
director receives notice of the unlawful acts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The indemnification rights set forth above shall
not be exclusive of any other right which an indemnified person may have or hereafter acquire under any statute, provision of our
amended and restated certificate of incorporation, our bylaws, agreement, vote of stockholders or disinterested directors or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We maintain standard policies of insurance that
provide coverage (1) to our directors and officers against losses arising from claims made by reason of breach of duty or other
wrongful act and (2) to us with respect to indemnification payments that we may make to such directors and officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 15. Recent Sales of Unregistered Securities. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On October 3, 2016, we issued 5,500,000 shares of common stock to
a consultant for services rendered. These common shares were valued on the measurement date at $27,500 based on estimated fair
value of services rendered and we recorded compensation expense of $27,500.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 360,000,000 shares of common stock
pursuant to a Reorganization and Stock Purchase Agreement in exchange for $ 105,935.12</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 120,000,000 shares of common stock
to a consultant for services rendered. These common shares were valued on the measurement date at $10,000 based on estimated fair
value of services rendered and we recorded compensation expense of $10,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 60,000,000 shares of common stock
to a consultant for services rendered. These common shares were valued on the measurement date at $5,000 based on estimated fair
value of services rendered and we recorded compensation expense of $5,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 60,000,000 shares of common stock
pursuant to a Reorganization and Stock Purchase Agreement in exchange for $ 25,000</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 1,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $5,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 1,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $5,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 20,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $100,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 400,000 shares of common stock to
pursuant to a Stock Subscription Agreement for $2,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 4,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $20,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 52; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->52<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 4,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $20,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 4,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $20,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 4,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $20,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 4,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $20,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 4,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $20,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 1,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $5,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 38,874,023 shares of common stock
to pursuant to a Stock Subscription Agreement for $35,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 38,874,023 shares of common stock
to pursuant to a Stock Subscription Agreement for $35,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 100,000 shares of common stock to
a consultant for services rendered. These common shares were valued on the measurement date at $500 based on estimated fair value
of services rendered and we recorded compensation expense of $500.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 100,000 shares of common stock to
a consultant for services rendered. These common shares were valued on the measurement date at $500 based on estimated fair value
of services rendered and we recorded compensation expense of $500.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 100,000 shares of common stock to
a consultant for services rendered. These common shares were valued on the measurement date at $500 based on estimated fair value
of services rendered and we recorded compensation expense of $500.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 100,000 shares of common stock to
a consultant for services rendered. These common shares were valued on the measurement date at $500 based on estimated fair value
of services rendered and we recorded compensation expense of $500.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017, we issued 100,000 shares of common stock to
a consultant for services rendered. These common shares were valued on the measurement date at $500 based on estimated fair value
of services rendered and we recorded compensation expense of $500.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017 we cancelled 9,250,000 shares of common stock
pursuant to a Common Stock Re-Purchase Agreement for $9,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017 we cancelled 10,000,000 shares of common stock
pursuant to a Common Stock Re-Purchase Agreement for $9,138.58.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On December 14, 2017,&nbsp;we cancelled&nbsp;56,750,000 shares of
common stock pursuant to a Common Stock Re-Purchase Agreement for $51,861.42.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On March 2, 2018, we issued 714,286 shares of common stock pursuant
to a consulting agreement for services rendered valued at $ 25,000</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Page; Sequence: 53; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->53<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Each of the above issuances were offered in reliance on an exemption
from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;) and none of
the issuances were registered or qualified in any jurisdictions and were offered pursuant to applicable exemptions from registration.
The shares, when issued, were restricted securities and contained a restrictive legend stating that the shares were not registered
under the Securities Act. We did not pay anyone any compensation, commission, fee or other consideration in connection with the
sale of our shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 16. Exhibits and Financial Schedules.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 20%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt"><B><U>Exhibit Number</U></B></FONT></TD>
<TD STYLE="width: 80%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt"><B><U>Title or Description</U></B></FONT></TD>
</TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">3(i)</FONT></TD>
<TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt"><A HREF="ex3_i.htm">Articles of Incorporation</A></FONT></TD>
</TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">3(ii)</FONT></TD>
<TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt"><A HREF="ex3_ii.htm">Bylaws</A></FONT></TD>
</TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">5</FONT></TD>
<TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt"><A HREF="ex5.htm">Opinion re: legality</A></FONT></TD>
</TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">10(i)</FONT></TD>
<TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt"><A HREF="ex10_i.htm">Consulting Agreement between subsidiary and Dan Oran</A></FONT></TD>
</TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">10(ii)</TD>
<TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><A HREF="ex10_ii.htm">Employment Agreement between subsidiary and Chief Executive Officer</A></TD>
</TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">21</FONT></TD>
<TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt"><A HREF="ex21.htm">Subsidiaries of the registrant</A></FONT></TD>
</TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">23(i)</FONT></TD>
<TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt"><A HREF="ex23i.htm">Consent of Independent Public Accountant</A></FONT></TD>
</TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">23(ii)</FONT></TD>
<TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt"><A HREF="ex5.htm">Consent of Counsel (included in Exhibit 5)</A></FONT></TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 17. Undertakings.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The undersigned Registrant hereby undertakes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">To file, during any period in which offers,
or sales are being made, a post-effective amendment to this registration statement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">To include any prospectus required by section
10(a)(3) of the Securities Act of 1933;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">To reflect in the prospectus any facts or events
arising after the effective date of the registration statement (or the most recent post- effective amendment thereof) which, individually
or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding
the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would
not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be
reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than 20% change in the maximum aggregate offering price set forth in the &ldquo;Calculation of Registration
Fee&rdquo; table in the effective registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">To include any material information with respect
to the plan of distribution not previously disclosed in the registration statement or any material change to such information in
the registration statement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">That, for the purpose of determining any liability
under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide
offering thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the termination of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to
the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim
for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 54; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt; text-align: right">&nbsp;pg.<!-- Field: Sequence; Type: Arabic; Name: PageNo -->54<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Each prospectus filed pursuant to Rule 424(b)
as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than
prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the
date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus
that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior
to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of
the registration statement or made in any such document immediately prior to such date of first use.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The undersigned registrant undertakes that in
a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting
method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of
the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell
such securities to such purchaser:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Any preliminary prospectus or prospectus of
the undersigned registrant relating to the offering required to be filed pursuant to Rule 424 (&sect; 230.424 of this chapter);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Any free writing prospectus relating to the
offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The portion of any other free writing prospectus
relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf
of the undersigned registrant; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Any other communication that is an offer in
the offering made by the undersigned registrant to the purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Signatures</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized in the City of Sunrise, State of Florida, on October 19, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PROFILE SOLUTIONS, INC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 45%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 50%; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="line-height: 115%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/Dan Oran</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dan Oran</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Executive Officer</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Financial Officer</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Date: </FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">October 19,
    2018</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;In accordance with the requirements of
the Securities Act of 1933, this registration statement was signed by the following persons in the capacities and on the dates
stated:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Signature and Name</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
<TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Capacity in which signed</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
<TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Date</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dan Oran</FONT></TD>
    <TD>&nbsp;</TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director, Chief Executive Officer and Chief
Financial Officer</FONT></TD>
    <TD>&nbsp;</TD>
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">October 19, 2018</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 2%">&nbsp;</TD>
<TD STYLE="width: 24%">Dan Oran</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
<TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
<TD STYLE="width: 20%">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">pg. 55</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

</BODY>
</HTML>
[{"type": "S-1", "sequence": "1", "filename": "psiq_s1.htm", "description": "FORM S-1", "secsgml_size_bytes": 514203}]
{"company-data": {"conformed-name": "Profile Solutions, Inc.", "cik": "0001390329", "assigned-sic": "7370", "irs-number": "205156305", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-227917", "film-number": "181131581"}, "business-address": {"street1": "8411 WEST OAKLAND PARK BLVD.", "street2": "SUITE 201", "city": "SUNRISE", "state": "FL", "zip": "33351", "phone": "844-856-8838"}, "mail-address": {"street1": "8411 WEST OAKLAND PARK BLVD.", "street2": "SUITE 201", "city": "SUNRISE", "state": "FL", "zip": "33351"}, "former-company": {"former-conformed-name": "YAFARM TECHNOLOGIES, INC.", "date-changed": "20070216"}}
As filed with the Commission on October 19,
2018
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933
Profile Solutions, Inc.
(Exact name of registrant as specified in its
charter)
Delaware
8742
20-5156305
(State or other jurisdiction of incorporation or organization)
(Primary Standard Industrial Classification Code Number)
(I.R.S. Employer Identification Number)
Suite 201
8411 West Oakland Park Boulevard
Sunrise, FL 33351
Telephone: (844) 856-8838
(Address, including zip code, and telephone
number, including area code, of registrant's principal executive offices)
Dan Oran
Profile Solutions, Inc.
Suite 201
8411 West Oakland Park Boulevard
Telephone: (844) 856-8838
Email: dan@profilesolutionsinc.com
(Name, address, including zip code, and telephone
number, including area code, and email address of agent for service)
Copy to:
Jackson L. Morris, Esq.
3116 W. North A Street
Tampa, FL 33609-1544
Telephone: 813) 892-5969
Email: jackson.morris@rule144solution.com
As soon as practicable after the effective date
    of this registration statement.
(Approximate date of commencement of proposed sale to the public)
If any of the securities being registered on this Form are to be
offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box:  ☒
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering.  ☐
If this Form is a post-effective amendment filed pursuant to Rule
462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering.  ☐
If this Form is a post-effective amendment filed pursuant to Rule
462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering.  ☐
pg.
1
Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated
filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☒
Calculation of Registration Fee
Title of Each Class of Securities to be Registered
Amount to be Registered
Proposed Maximum Offering Price Per Unit
Proposed Maximum Aggregate Offering Price
Amount of Registration Fee
Common Stock,   $0.001 par value
$
167,583,443
(1)
$
0.16
(2)
$
26,813,350.88
$
3,249.78
(1) Registered on behalf of selling stockholders
(2) Estimated solely for the purpose of calculating the amount
of the registration fee in accordance with Rule 457(c) under the Securities Act of 1933, based on the average high and
low sale price for the registrant's common stock on October 12, 2018, as reported by the OTC Markets Group.
The registrant hereby amends this registration statement on such
date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically
states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act
of 1933 or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting
pursuant to said Section 8(a), may determine.
pg.
2
PRELIMINARY PROSPECTUS
The information in this preliminary prospectus is not complete and
may be changed. The selling stockholders may not sell the shares until the registration statement filed with the Securities and
Exchange Commission of which this prospectus is a part is effective. This prospectus is not an offer to sell these securities and
it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
Subject to Completion: Dated October ___, 2018
Profile Solutions, Inc.
Common Stock, $0.001 par value per share
167,583,443 shares
This prospectus covers the sale by selling stockholders of 167,583,443
shares of our common stock, par value $0.001 per share. The selling stockholders may sell all or a portion of the shares being
offered pursuant to this prospectus at fixed prices, at prevailing market prices at the time of sale, at varying prices or at negotiated
prices. We expect our selling stockholders to pay ordinary and customary brokerage fees and commissions upon the sale of their
shares. The total number of shares of common stock which may be sold pursuant to this prospectus, in the aggregate, represents
21.7% of our total issued and outstanding common stock as of August 31, 2018. We will not receive any proceeds from the sale of
the shares by the selling stockholders. The selling stockholders may be deemed to be statutory underwriters of the shares they
sell. See, "How We Expect The Selling Stockholders To Distribute Their Shares."
Our common stock is quoted in the over-the-counter market under
the symbol "PSIQ". On October 17, 2018, the closing price of our common stock was $0.2000 per share.
Investing in our common stock involves a
high degree of risk. See "Risk Factors" beginning on page 6 of this prospectus.
Our auditors have raised substantial doubt
as to our ability to continue as a "going concern."
We are an "emerging growth company",
as defined in the
Jump Start Our Business Startups Act of 2012
("JOBS act") and will therefore be subject to
reduced public company reporting requirements.
Neither the U.S. Securities and Exchange
Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus is _______, 2018
pg.
3
REPORTS TO SECURITY HOLDERS
We intend to furnish to our stockholders'
annual reports containing audited financial statements and quarterly reports containing unaudited financial statements for each
of the first three quarters of each fiscal year, whether or not we are required to file such reports pursuant to Section 15 of
the Securities Exchange Act of 1934. In addition, we may from time to time furnish to stockholders' additional information
about us and our business as our management deems appropriate.
Table of Contents
Page
Prospectus Summary
6
Our Corporate History and Organization
6
Risk Factors
6
Management's Discussion and Analysis of Financial Condition and Results of Operations
13
Our Business
16
Our Management
18
Board Committees
18
How We Compensate Our Management
19
Employment Agreements
19
Who Owns Our Common Stock
19
Related Party Transactions and Relationships
20
Market Information and Related Stockholder Matters
20
Description of Our Securities
21
Selling Stockholders
21
How We Expect The Selling Stockholders To Distribute Their Shares
22
Legal Matters
23
Experts
24
Where You Can Find More Information About Us
24
Index to Financial Statements
24
USE OF PRONOUNS AND OTHER WORDS
The pronouns "we", "us",
"our" and the equivalent used in this prospectus mean Profile Solutions, Inc. and its consolidated subsidiary, Elite
Products International, Inc. In the notes to our consolidated financial statements, the "Company" means Profile Solutions,
Inc. and its consolidated subsidiary. The pronoun "you" means the reader of this prospectus.
SUMMARIES OF REFERENCED DOCUMENTS
This prospectus contains references to, summaries
of and selected information from agreements and other documents. These agreements and other documents are not incorporated by reference;
but, are filed as exhibits to our registration statement of which this prospectus is a part and which we have filed with the U.S.
Securities and Exchange Commission. We believe the summaries and selected information provide all material terms from these agreements
and other documents. Whenever we make reference in this prospectus to any of our agreements and other documents, you should refer
to the exhibits filed with our registration statement of which this prospectus is a part for copies of the actual agreement or
other document. See "Where You Can Find Additional Information About Us" for instructions as to how to access and obtain
these agreements and other documents.
FORWARD-LOOKING STATEMENTS
This prospectus contains forward–looking
statements that involve risks and uncertainties. We use words such as "project", "believe", "anticipate",
"plan", "expect", "estimate", "intend", "should", "would",
"could", or "may", or other such words, verbs in the future tense and words and phrases that convey similar
meaning and uncertainty of future events or outcomes to identify these forward–looking statements. There are a number of
important factors beyond our control that could cause actual results to differ materially from the results anticipated by these
forward–looking statements. While we make these forward–looking statements based on various factors and using numerous
assumptions, you have no assurance the factors and assumptions will prove to be materially accurate when the events they anticipate
actually occur in the future.
pg.
4
The forward–looking statements are based
upon our beliefs and assumptions using information available at the time we make these statements. We caution you not to place
undue reliance on our forward–looking statements as (i) these statements are neither predictions nor guaranties of future
events or circumstances, and (ii) the assumptions, beliefs, expectations, forecasts and projections about future events may differ
materially from actual results. We undertake no obligation to publicly update any forward–looking statement to reflect developments
occurring after the date of this prospectus.
YOU SHOULD RELY ONLY ON THE INFORMATION IN
THIS PROSPECTUS
You should rely only on the information contained in this prospectus.
We have not authorized anyone to provide information different from that contained in this prospectus. Selling stockholders may
sell our shares only in jurisdictions where such sale and distribution is permitted. The information contained in this prospectus
is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or the distribution
of our common stock.
pg.
5
PROSPECTUS SUMMARY
This summary does not contain all of the
information that you should consider before investing in our common stock. You should read the entire prospectus carefully, including
the more detailed information regarding our business, the risks of purchasing our securities discussed in this prospectus under
"Risk Factors" beginning on page 6 of this prospectus.
At the date of this prospectus, we have 772,808,793
shares of common stock issued and outstanding. Our selling stockholders are offering 167,583,443 shares of our common stock, par
value $0.001 per share which, in the aggregate, represents 21.7% of our total issued and outstanding common stock. Our selling
stockholders may sell all or a portion of the shares being offered pursuant to this prospectus at fixed prices, at prevailing market
prices at the time of sale, at varying prices or at negotiated prices. We expect our selling stockholders to pay ordinary and customary
brokerage fees and commissions upon the sale of their shares into the public securities market. We will not receive any proceeds
from the stockholders' sale of the shares. The selling stockholders may be deemed to be statutory underwriters of the shares
they sell. See, "How We Expect The Selling Stockholders To Distribute Their Shares." Our common stock is publicly traded
in the over-the-counter market under the symbol "PSIQ".
We manufacture, market, distribute and sell
products containing cannabidiol (CBD) extracts from cannabis/industrial hemp plants containing not more than 0.3% of THC (tetrahydrocannabinol
- the psychotropic compound of cannabis) on a dry weight basis. We sell cookies, candies, creams, oils, salves and other products.
We conduct our business only in states and countries where it is legal to do so under federal, state and applicable country laws
and regulations. Marihuana or marijuana which contains THC and THC extracts are Schedule I drugs (illegal drugs) under federal
Controlled Substances Act (21 US Code §802(16)).
Investment in our common stock involves a high
degree of risk and should not be purchased by investors who cannot afford the loss of their entire investment. Our auditors have
raised substantial doubt as to our ability to continue as a "going concern." See "Risk Factors" beginning
on page 6.
OUR CORPORATE HISTORY AND ORGANIZATION
We are a Delaware corporation founded in 2006.
Our original name was YaFarm Technologies, Inc. We changed our name to Integrative Stem Cell Holdings, Inc. in 2014. We effected
a 5 or 1 stock split on January 22, 2013. On May 29, 2014, we entered into a Share Exchange Agreement under which we acquired
the assets and business of Profile Solutions, Inc., a Florida corporation, for 42,500,000 shares of our common stock and we changed
our name to its current form. We effected a 1 for 10 reverse stock split on July 31, 2014. On December 14, 2017, we entered
into another Share Exchange Agreement with Elite Products International, Inc., a Florida corporation ("Elite"), and
Elite's stockholders, issuing an aggregate total of 600,000,000 shares, representing approximately 85% of our issued and
outstanding common stock to acquire all of the issued and outstanding equity securities of Elite. As part of the transaction,
we increased our authorized common stock to 1,000,000,000 shares. Accordingly, Elite is deemed to be the acquirer for accounting
purposes. Our consolidated financial statements are a recapitalization of Elite's financial statements since inception,
February 15, 2017.
The address of our headquarters office is Suite
201, 8411 West Oakland Park Boulevard, Sunrise, Florida 33351. Our toll-free telephone number at that address is (844) 856-8838.
The address of our web site is www.profilesolutionsinc.com.
RISK FACTORS
An investment in our common stock involves
a high degree of risk. You should carefully consider the following risks and uncertainties in addition to other information in
this prospectus in evaluating our company and its business before purchasing our common stock. These risk factors are not necessarily
exclusive and other unanticipated risk may arise. Our business, operating results and financial condition could be seriously harmed
as a result of the occurrence of any of the following and of unanticipated risks. You could lose all or part of your investment
due to any of these risks. You should invest in our common stock only if you can afford to lose your entire investment.
pg.
6
RISKS RELATED TO FEDERAL AND STATE REGULATION OF OUR PRODUCTS.
Possible yet unanticipated changes in federal and state law
could cause our products which include cannabis/industrial hemp CBD extracts to be illegal, or could otherwise prohibit, limit
or restrict our business and products, forcing us to abandon our business activities or reduce our financial prospects.
Until 2014 when 7 US Code §5940 became
federal law as part of the 2014 Farm Act, products containing CBD extracts, such as ours, derived from cannabis/industrial hemp,
notwithstanding a THC content of not more than 0.3% on a dry weight basis, were classified as Schedule I illegal drugs. THC is
the psychoactive component of plants in the cannabis family generally identified as marihuana or marijuana. You have no assurance
that 7 US Code §5940 will not be repealed or amended such that our products would once again be illegal under federal law.
For our purposes, 7 US Code §5940 is actuated by state law permitting "agricultural pilot programs to study the growth,
cultivation or marketing of industrial hemp". Although a majority of states have adopted laws and regulations that license
such pilot programs to private enterprise and regulate such programs and the produce thereof, you have no assurance that such state
laws may not be repealed or amended such that our products would once again be illegal under the laws of one or more states now
permitting our products, which in turn would render our products illegal in those states under federal law even if the federal
law is unchanged. In the event of either repeal of federal or of state laws and regulations, or of amendments thereto which are
adverse to our business and products, we may be required to cease operations or restrict or limit our products or the distribution
thereof, which could be expected to have adverse consequences to our business, operations, revenues and profitability, in which
event you may lose your entire investment.
Sources of our key ingredient, CBD extracts from cannabis/industrial
hemp plants depend upon legality of cultivation, processing, marketing and sales of products derived from those plants under state
law.
Our key ingredient is CBD extracts derived from
cannabis/industrial hemp plants, which can be legally produced only in states which have laws and regulations that qualify under
7 US Code §5940 for implementation of "agricultural pilot programs to study the growth, cultivation or marketing of
industrial hemp", apart from state laws legalizing and regulating medical and recreational cannabis or marijuana which remains
illegal under federal law and regulations. At the present time we purchase all of our CBD extracts from licensed growers and processors
in Colorado and South Carolina. As described in the preceding risk factor, in the event of repeal or amendment of laws and regulations
which are now favorable to the cannabis/industrial hemp industry in Colorado and South Carolina, we would be required to locate
new suppliers in states with laws and regulations that qualify under 7 US Code §5940. If we were to be unsuccessful in arranging
new sources of supply of our raw ingredients, or if our raw ingredients were to become legally unavailable, our business and operations
could be limited, restricted or entirely prohibited, which could be expected to have adverse consequences to our business, operations,
revenues and profitability, in which event you may lose your entire investment.
We can produce our cannabis/industrial hemp derived CBD extract
containing products only in states which have laws and regulations which qualify under 7 US Code §5940 as pilot programs for
"agricultural pilot programs to study the growth, cultivation or marketing of industrial hemp".
Apart from the legality of cultivation, processing,
distribution and use of cannabis/industrial hemp derived CBD extracts in any particular state, the interstate shipment cannabis/industrial
hemp derived CBD extracts is legal only between states that have adopted laws and regulations that qualify under 7 US Code §5940.
Although Florida has adopted such laws and regulations such that we can receive interstate shipments of cannabis/industrial hemp
derived CBD extracts and manufacture our products in Florida, Florida does not at the date of this prospectus have a cannabis/industrial
hemp industry that can supply our needs. We produce our CBD containing products in Florida under contract with manufacturers who
are licensed to produce such products as commercial bakers, formularies of cosmetic products and confectioners. Accordingly, we
are dependent on suppliers in other states where cultivation and processing of cannabis/industrial hemp is legal. We believe it
is legal under federal law and regulations for us to receive shipments in Florida from out-of-state suppliers in states that also
have laws and regulations that qualify under 7 US Code §5940. In the event Florida were to change its laws and regulations
in a way adverse to our receipt of cannabis/industrial hemp derived CBD extracts and production of our finished products containing
those extracts, we would be required to relocate our production operations to another state with laws and regulations favorable
to our business. The costs of relocating our business and operations and of engaging contract manufacturers in another state could
be substantial and adversely impact our profitability.
pg.
7
Because we can sell and ship our products containing cannabis/industrial
hemp derived CBD extracts only in states that have adopted laws and regulations qualifying under 7 US Code §5940, a reduction
in the number of states having such qualifying laws and regulations could limit, restrict or otherwise preclude our sales.
As noted in the preceding risk factors, the
interstate shipment of cannabis/industrial hemp derived CBD extracts is legal only between states with laws and regulations qualifying
under 7 US Code §5940. In the same way acquisition of our primary raw ingredient is restricted by this factor, likewise the
marketing sale of our finished products is limited by such factor and is restricted to such states. Although we believe we may
lawfully sell our finished products in a majority of states, a repeal or adverse amendment of laws and regulations that are now
favorable to the distribution, marketing and sale of our finished products could significantly limit, restrict or prevent us from
generating revenues. Any such repeal or adverse amendment of now favorable laws and regulations could be expected to have an adverse
impact on our revenues and commercial viability of our business.
Existing contractors and existing and prospective customers,
including wholesale and retail customers, may be deterred from doing business with us because of fears of adverse changes in federal
or state laws.
Any perception by our contractors, customers
and potential customers that federal and state laws and regulations may be repealed or adversely amended with a consequence that
we, in the event we were to continue our business despite and in violation of law, or they may become the subject of a criminal
investigation and enforcement as a result of doing business with us, should they continue to do business with us in violation of
law, should we be become the subject of a criminal investigation and enforcement in the event of such repeal or amendment could
be expected to discourage them from doing business with us, prevent us from obtaining our products and depress our sales and prevent
us from achieving or maintaining profitability, should we achieve it. A prolonged inability to achieve profitability and to maintain
it thereafter, could be expected to close our business which could result in a complete loss of your investment.
In the event we offer our products for sale from a website
available in all states, we may be found to violate the laws of states in which all or certain uses of any cannabis containing
products are illegal, which could have an adverse impact on our reputation and ability to continue and expand sales of our products.
We currently offer our products for sale from
our website. The mere visibility of such a website in states where the sale of our CBD containing products is illegal could result
in a finding that we have violated the criminal laws of one or more of such states. Any criminal investigation, prosecution and
conviction would be expected to adversely impact our sales and our ability to remain in business.
In the event of repeal or adverse amendment of 7 US Code §5940
which reclassified cannabis/industrial hemp and its extracts as a Schedule I or Schedule II illegal drug, we would not be able
to deduct some of our business expenses for federal income tax purposes notwithstanding the legality of our products under state
law.
Section 280E of the Internal Revenue Code prohibits
businesses "trafficking" in Schedule I and Schedule II substances, as defined under the Controlled Substances Act,
21 U.S.C. § 802(16), forcing us to pay higher effective federal tax rates than similar companies in other industries. The
effective tax rate on such a "trafficking" business depends on how large its ratio of nondeductible expenses is to
its total revenues. Therefore, should we be deemed to be "trafficking" in Schedule I and Schedule II substances, which
we are not at the date of this prospectus, the tax burden on our business may cause us to be less profitable than we could be otherwise.
We may not be able to attract or retain a majority of independent
directors.
Our board of directors is not currently comprised
of a majority of independent directors. We may in the future desire to list our common stock on The New York Stock Exchange ("NYSE")
or The NASDAQ Stock Market ("NASDAQ"), both of which require that a majority of our board be comprised of independent
directors. We may have difficulty attracting and retaining independent directors because, among other things, we operate in the
broadly defined cannabis industry, and as a result we may be delayed or prevented from listing our common stock on the NYSE or
NASDAQ.
pg.
8
If we or our senior management would be subject to criminal
prosecution, we would expect to terminate our business and you would lose our entire investment.
If any of the laws and regulations described
in the preceding risk factors were to be repealed or amended such that our business would be deemed illegal and we and our senior
management subject to possible criminal prosecution, we would expect to terminate our business, in which event you could expect
to lose your entire investment.
We may be subject to licensing under possible future federal
and state laws and regulations, which could restrict or prevent us from engaging in business or could increase our costs of doing
business.
We cannot determine if future potential federal
and state laws and regulations may require us to obtain and maintain licenses, permits, authorizations, or accreditations for production,
distribution and sale of our products. We could be subject to licensure requirements in multiple state and local jurisdictions,
involving compliance with complex laws and regulations which may impose differing requirements from jurisdiction to jurisdiction.
You have no assurance that we will be able to comply with and obtain future licensure, if required, or that we could do so at reasonable
cost. Failure to comply with or to obtain the necessary licenses, permits, authorizations, or accreditations could result in prohibitions
or restrictions on our ability to conduct our business.
The acceptance of our products may depend on the general acceptance
and levels of use of medical and recreational marijuana and economic conditions in the medical and recreational marijuana industry,
over which we have no control.
Our revenues and profitability may be adversely
affected by social attitudes toward medical and recreational marijuana and by economic conditions and changes in the market for
medical and recreational marijuana. Loss of favor among users of medical and recreational marijuana or among society at large or
loss of financial viability for the medical and recreational marijuana industry could adversely affect our business and profitability.
We may have difficulty accessing the service of banks which
may make it difficult for us to operate.
Many banks will not accept deposits from and
credit card processors will not clear transactions for businesses involved with the broadly defined cannabis industry, notwithstanding
the legality of cannabis/industrial hemp derived products. Consequently, we may have difficulty finding a bank and credit card
processor willing to accept our business. The inability to open or maintain bank accounts or accept credit card payments from customers
could be expected to cause us difficulty processing transactions in the ordinary course of business, including paying suppliers,
employees and landlords, which could have a significant negative effect on our operations and your investment in our common stock.
We may be unable to obtain insurance against certain risks.
We do not maintain and believe we cannot obtain
product liability insurance. In the event we experience claims based on illness or adverse reaction to ingestion or topical use
of our products, we will pay legal fees, settlements and judgments out of our revenues and cash flow, which would reduce our profitability
or increase our losses, as may be the case.
RISKS RELATED TO OUR UNCERTAINTY OF PROFITABILITY
Our limited product line may hinder our business and contribute
to variable and unsteady revenues and profits.
We have and plan to further develop a limited
number of products at a time. A limited number of products may cause variability and unsteady profits and losses depending on the
products offered. Our business strategy may result in increased volatility of revenues and earnings. Because of the anticipated
nature of the products that we will attempt to develop, it is difficult to accurately forecast revenues and operating results and
these items could fluctuate in the future due to a number of factors. These factors may include, among other things, the following:
pg.
9
●
Our ability to raise sufficient capital to take
advantage of opportunities and generate sufficient revenues to cover expenses.
●
Our ability to source opportunities with sufficient
risk adjusted returns.
●
Our ability to manage our capital and liquidity
requirements based on changing market conditions generally and changes in the developing legal medical marijuana and recreational
marijuana industries.
●
The amount and timing of operating and other costs
and expenses.
●
The nature and extent of competition from other
companies that may reduce market share and create pressure on pricing and investment return expectations.
●
Adverse changes in the national and regional economies
in which we will participate, including, but not limited to, changes in our performance, capital availability, and market demand.
●
Adverse developments in the efforts to legalize
marijuana or increased federal enforcement of existing law.
●
Changes in laws, regulations, accounting, taxation,
and other requirements affecting our operations and business.
Our operating results may fluctuate from year to year due to the
factors listed above and others not listed. At times, these fluctuations may be significant.
Management of growth will be necessary for us to be competitive.
Successful expansion of our business will depend
on our ability to effectively attract and manage staff, strategic business relationships, and shareholders. Specifically, we will
need to hire skilled management and technical personnel as well as manage partnerships to navigate shifts in the general economic
environment. Expansion has the potential to place significant strains on financial, management and operational resources, yet failure
to expand will inhibit our profitability goals.
We are entering a potentially highly competitive market.
We face strong competition from larger companies
that may offer or plan to offer products similar to ours. Many of our current and potential competitors have longer operating histories,
significantly greater financial, marketing and other resources and larger client bases than we have (or may be expected to have).
If and as CBD infused bakery, cosmetic and confectionary products become more widely accepted, industry dominant cookie and candy
manufacturers may decide to enter our business sector and quickly gain significant market share. In such event, our growth, which
depends at present on a highly fragmented market for the types of products we offer, could suffer.
Given the rapid changes affecting the global, national, and
regional economies generally and the law and regulations governing medical marijuana and recreational marijuana industries, in
particular, we may not be able to create and maintain a competitive advantage in the marketplace.
Our success will depend on our ability to keep
pace with any changes in its markets, especially with legal and regulatory changes. Our success will depend on our ability to respond
to, among other things, changes in the economy, market conditions, competitive pressures and laws and regulations. Any failure
by us to anticipate or respond adequately to such changes could have a material adverse effect on our financial condition, operating
results, liquidity, cash flow and our operational performance.
pg.
10
There could be unidentified risks involved with an investment
in our common stock.
The foregoing risk factors are not a complete
list or explanation of the risks involved with an investment in our common stock. Additional risks will likely be experienced that
we are not presently able to foresee. Prospective investors must not construe this information provided herein as constituting
investment, legal, tax or other professional advice. Before making any decision to invest in our securities, you should read this
entire prospectus and consult with your own investment, legal, tax and other professional advisors. An investment in our securities
is suitable only for investors who can assume the financial risks of an investment for an indefinite period of time and who can
afford to lose their entire investment. We make no representations or warranties of any kind with respect to the likelihood of
the success of our business, the value of our securities, any financial returns that may be generated or any tax benefits or consequences
that may result from an investment in us.
Our failure to continue to attract, train, or retain highly
qualified personnel could harm our business.
Our success also depends on our ability to attract,
train, and retain qualified personnel, specifically those with management and product development skills. In particular, we must
hire additional skilled personnel to further our research and development efforts. Competition for such personnel is intense. If
we do not succeed in attracting new personnel or retaining and motivating our current personnel, our business could be harmed.
We may be unable to respond to the rapid technological change
in our industry and such change may increase costs and competition that may adversely affect our business.
Frequent new product introductions and evolving
industry standards characterize our market. The continued growth of the Internet and intense competition in our industry exacerbate
these market characteristics. Our future success will depend on our ability to adapt to rapidly changing technologies by continually
improving the performance features and reliability of our products and services. We may experience difficulties that could delay
or prevent the successful development, introduction or marketing of our products and services. In addition, any new enhancements
must meet the requirements of our current and prospective users and must achieve significant market acceptance. We could also incur
substantial costs if we need to modify our products and services or infrastructures to adapt to these changes.
We cannot guarantee we will succeed in achieving our goals,
and our failure to do so would have a material adverse effect on our business, prospects, financial condition and operating results.
Our products are new and are only in the early
stages of commercialization. We are not certain these products will be well received as anticipated. Some of our products may have
taste, texture and other features that may limit their appeal to consumers and put us at a competitive disadvantage. If our current
or future products fail to appeal to consumer tastes or we do not achieve or sustain market acceptance, we could lose customers
which could have a material adverse effect on our business, financial condition and operating results.
As is typical in a new and rapidly evolving
industry, demand and market acceptance for recently introduced products are subject to a high level of uncertainty and risk. Because
our markets are new and evolving, it is difficult to predict with any certainty the size of this market and its growth rate, if
any. You have no assurance that a market for our products will develop, grow or be sustainable. If the market fails to develop,
develops more slowly than expected or becomes saturated with competitors, our business, financial condition and operating results
would be materially adversely affected.
If we fail to establish and maintain an effective system of
internal control, we may not be able to report our financial results accurately or to prevent fraud. Any ability to report and
file our financial results accurately and timely could harm our reputation and adversely impact the future trading price of our
common stock.
Effective internal control is necessary for
us to provide reliable financial reports and prevent fraud. If we cannot provide reliable financial reports or prevent fraud, we
may not be able to manage our business as effectively as we would if an effective control environment existed, and our business
and reputation with investors may be harmed. As a result, our small size and any current internal control deficiencies may adversely
affect our financial condition, results of operation and access to capital. We currently have insufficient written policies and
procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure
requirements. Additionally, there is a lack of formal process and timeline for closing the books and records at the end of each
reporting period and such weaknesses restrict our ability to timely gather, analyze and report information relative to the financial
statements. Because of our limited resources, there are limited controls over information processing. There is inadequate segregation
of duties consistent with control objectives. Our management is composed of a small number of individuals resulting in a situation
where limitations on segregation of duties exist. In order to remedy this situation, we would need to hire additional staff. Currently,
we are unable to hire additional staff to facilitate greater segregation of duties.
pg.
11
RISKS RELATED TO OUR COMMON STOCK
Trading in our common stock on OTC Markets has been subject
to wide price and volume fluctuations.
Our common stock is currently quoted for public
trading on OTCMarkets.com. The trading price and volume of our common stock has been subject to wide fluctuations. Trading prices
of our common stock may fluctuate in response to a number of factors, many of which will be beyond our control. The stock market
has generally experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating
performance of companies with limited business operation. You have no assurance that trading prices and price earnings ratios previously
experienced by our common stock will be matched or maintained. These broad market and industry factors may adversely affect the
market price of our common stock, regardless of our operating performance. In the past, following periods of volatility in the
market price of a company's securities, securities class-action litigation has often been instituted. Such litigation, if
instituted, could result in substantial costs for us and a diversion of management's attention and resources.
Because our securities are subject to penny stock rules, you
may have difficulty reselling your shares.
Our common stock is in the category of penny
stocks because our shares are not traded on a national stock exchange, trade at less than $5.00 per share, we do not meet certain
other financial requirements specified by the Securities and Exchange Commission. Penny stocks are covered by Section 15(g) of
the Securities Exchange Act of 1934 which imposes additional sales practice requirements on broker/dealers who sell our common
stock, including the delivery of a standardized disclosure document; disclosure and confirmation of quotation prices; disclosure
of compensation the broker/dealer receives; and, furnishing monthly account statements. The rule requires brokers who sell "penny
stocks" to persons other than established customers and "accredited investors" to complete certain documentation,
make suitability inquiries of investors, and provide investors with certain information concerning the risks of trading in such
penny stocks. The rule may discourage or restrict the ability of brokers to sell our shares of common stock and may affect the
secondary market for our shares of common stock. These rules could also hamper our ability to raise funds in the primary market
for our shares of common stock.
FINRA sales practice requirements may also limit a stockholder's
ability to buy and sell our stock.
In addition to the "penny stock"
rules described above, the Financial Industry Regulatory Authority (known as "FINRA") has adopted rules that require
that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment
is suitable for that customer. Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers
must make reasonable efforts to obtain information about the customer's financial status, tax status, investment objectives
and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative
low-priced securities will not be suitable for at least some customers. FINRA requirements make it more difficult for broker-dealers
to recommend that their customers buy our common shares, which may limit your ability to buy and sell our stock and have an adverse
effect on the market for our shares.
pg.
12
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION
AND
RESULTS OF OPERATIONS
The following discussion and analysis of financial condition and
results of operations should be read in conjunction with the Consolidated Financial Statements and Notes thereto included elsewhere
in this prospectus.
RESULTS OF OPERATIONS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017
REVENUES:
For the Year Ended December 31,
2017
2016
Increase (Decrease)
Percent of Change
$
208,236
$
247,436
$
(39,200
)
(15.84
)%
Significant Customers
For the year ended December 31, 2017 and December 31, 2016, in the
aggregate, 2 customers and 4 customers, respectively, accounted for 58% and 72% of our total revenues for each respective period.
On a geographical basis, for the year ended December 31, 2017, approximately
99% and 1% of our total revenues were generated from the United States and Canada, respectively. For the year ended December 31,
2016, approximately 81% and19% of our total revenues for the period were generated from the United States and Canada, respectively.
COST OF REVENUES:
For the Year Ended December 31,
2017
2016
Increase (Decrease)
Percent of Change
$
94,773
$
203,643
$
(108,870
)
(53.46
)%
Almost all of the decrease in cost of goods
for the year ended December 31, 2017 as compared to year ended December 31, 2016 is that in 2016 the Company purchased the complete
product and re- sold it. For the year ended December 31, 2017, the Company produced the product that was sold, therefore, reducing
the cost of the goods sold.
GENERAL AND ADMINISTRATIVE EXPENSES:
For the Year Ended December 31,
2017
2016
Increase (Decrease)
Percent of Change
$
134,241
$
85,219
$
49,022
57.52
%
The increase in general and administrative
expenses for year ended December 31, 2017 as compared to the year ended December 31 of 2016 is primarily due to the following factors:
o
Approximately
$12,805 is the result of an increase in administrative and support staff.
o
Approximately $11,150
is the result of an increase in a trade show expense.
o
The remaining increase
is due to the normal business operations of the company such as automobile expense, dues, rent expense and other miscellaneous
expenses.
pg.
13
PROFESSIONAL FEES:
For the Year Ended December 31,
2017
2016
Increase (Decrease)
Percent of Change
$
21,717
$
—
$
21,717
100
%
This increase is due normal business operations
of the Company
We believe gross profit is our key indicator
of operating progress. Our operations generated the following gross profit, during the years ended December 31 of 2017 and 2016:
2017
2016
Revenue
$
208,236
$
247,436
Direct costs
94,773
203,643
Gross profit
$
113,463
$
43,793
Gross Profit Percent
54
%
18
%
Although our gross profit percentage during
the year ended December 31 of 2017 and 2016 was adequate, the volume of sales was not sufficient to cover the remaining expenses
after the direct costs were deducted. In order to reach our goal of ongoing profitability, our main priority is to increase revenues
while maintaining the current gross profit percentage.
RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2018 AND
2017
REVENUES:
For the Six Months Ended June 30,
2018
2017
Increase (Decrease)
Percent of Change
$
432,877
$
33,183
$
399,694
1,205
%
Significant Customers
During the six months ended June 30, 2018 and 2017, Elite had one
customer that approximated 35% of sales and one customer that approximated 26% of sales, respectively. One customer in 2018 is
also a minority shareholder of the Company.
On a geographical basis, for six month ended June 30, 2018, approximately
100% and 0% of our total revenues were generated from the United States and Canada, respectively.
For the year ended December 31, 2017, approximately 99% and 1% of
our total revenues for the period were generated from the United States and Canada, respectively.
COST OF REVENUES:
For the Six Months Ended June 30,
2018
2017
Increase (Decrease)
Percent Inc (Dec)
$
180,587
$
51,683
$
128,904
249
%
Almost all of the increased in cost of goods
for the six months ended June 30, 2018 as compared to six months ended June 30, 2017 is that in 2018 the Company purchased the
complete product and re- sold it. For the six months ended June 30, 2017, the Company produced the product that was sold, therefore,
reducing the cost of the goods sold.
pg.
14
GENERAL AND ADMINISTRATIVE EXPENSES:
For the Six Months Ended June 30,
2018
2017
Increase (Decrease)
Percent Inc (Dec)
$
383,803
$
60,312
$
323,491
536
%
The increase in general and administrative
expenses for the six months ended June 30, 2018 as compared to the six months ended June 30, 2017 is primarily due to the following
factors:
o
Approximately
                                         $54,000 is the result of an increase in a trade show expense.
o
Approximately
                                         $53,000 in the result of an increase in advertising expense.
o
Approximately
                                         $160,000 is the result of an increase in consulting expense.
o
The
                                         remaining increase is due to the normal business operations of the company such as automobile
                                         expense, dues, rent expense and other miscellaneous expenses.
PROFESSIONAL FEES:
For the Six Months Ended June 30,
2018
2017
Increase (Decrease)
Percent Inc (Dec)
$
118,209
$
—
$
118,209
100
%
This increase is due normal business operations
of the Company of which $ 90,000 related to consulting.
We believe gross profit is our key indicator
of operating progress. Our operations generated the following gross profit, during the six months ended June 30, 2018 and 2017:
2018
2017
Revenue
$
432,877
$
33,183
Direct costs
180,587
51,683
Gross profit
$
252,290
$
(18,500
)
Gross Profit Percent
58
%
(56
)%
Although our gross profit percentage during
the six months ended June 30, 2018, was adequate, the volume of sales was not sufficient to cover the remaining expenses after
the direct costs were deducted. In order to reach our goal of ongoing profitability, our main priority is to increase revenues
while maintaining the current gross profit percentage.
LIQUIDITY AND CAPITAL RESOURCES
"Liquidity" refers to our ability to generate adequate
amounts of cash to meet our needs for cash. We believe we will have adequate liquidity to maintain current operations during 2018,
but we may choose to locate additional sources of cash to facilitate growth and expansion.
We do not currently have material commitments for capital expenditures
and do not anticipate entering into any such commitments during the next twelve months. Our current commitments consist primarily
of lease obligations for office space, computer equipment and office equipment.
pg.
15
At December 31, 2017, we had a working capital surplus of $104,329
as opposed to a working capital deficit of $42,676 at the December 31, 2016, an increase of $147,005. This increase is due to a
combination of factors. The primary factors are increase in cash balance due to the stock sale proceeds, increase in prepaid expenses,
inventory and accounts receivable balances.
At June 30, 2018, we had a working capital surplus of $520,784,
an increase of $416,455 during the six-month period. This increase is due to a combination of factors. The primary factors are
increase in cash balance due to the stock sale proceeds, increase in prepaid expenses, inventory, accounts receivable balances
and loan receivable.
We anticipate that our primary uses of cash in the next year will
continue to be for general operating purposes and to facilitate growth and expansion by establishing a sales and marketing program.
We anticipate our operating cash requirements for the next twelve months to be in the range of $250,000 to $500,000.
For a statement of our critical accounting policies and use of estimates,
see the notes to our financial statements.
OUR BUSINESS
Overview
We manufacture, market, distribute and sell
products containing cannabidiol (CBD) extracts, including oils and powders, from cannabis/industrial hemp plants containing not
more than 0.3% of THC (tetrahydrocannabinol - the psychotropic compound of cannabis) on a dry weight basis. We sell cookies, candies,
creams, oils, salves and other products. We also have a line of products for house pets. We use cannabis/industrial hemp derived
CBD extracts that contain no or very little THC. We buy our raw materials from licensed producers. We conduct our business only
in states and countries where it is legal to do so under federal, state and applicable country laws and regulations. Cannabis/marihuana
or marijuana which contains THC, products that contain THC extracts and CBD extracts derived from cannabis/marijuana plants, as
distinguished from cannabis/industrial hemp, are Schedule I drugs (illegal drugs) under federal Controlled Substances Act (21 US
Code §802(16)).
Our Products.
We offer a diverse array of commonly utilized
product, including but not limited to edibles, such as candies, gummies, cookies, crystal pop, honey and multi-vitamins, oils,
tinctures, vapes, creams, and salves. Our products include a line of creams, and salves for house pets.
Our Market
We sell our products at wholesale and retail
throughout the United States, but only in states that have laws and regulations that qualify programs under 7 US Code §5940
and in Canada. At the date of this prospectus, thirty-nine states have adopted qualifying programs and represent a market for our
products.
Our Sales and Marketing
In addition to selling our products directly
to consumers from our website, we depend upon our network of distributors and resellers to represent our product in various markets.
We have approximately thirty distributors which distribute to retail distribution in the sixteen states where we presently have
retail sellers of our products at the date of this prospectus. No single distributor represents more than ten percent of our aggregate
sales volume. We are continuously evaluating the pricing as a primary factor in our distributors and sales channels and periodically
restructures or updates our agreements and methods of distribution. We recently established a distributor in Israel.
Where We Buy Our CBC Ingredients
We buy our cannabis/industrial hemp derived
CBD ingredients from one supplier in each of Colorado and South Carolina who are licensed in their respective states to cultivate
and process industrial hemp. We believe we are not dependent on these two suppliers, because there are many licensed sources of
cannabis/industrial hemp derived CBD ingredients in those and other states.
pg.
16
How We Produce Our Products
We provide our CBD raw ingredient and product
specifications to licensed manufacturers of food, cosmetic and candies who fill our orders and drop ship the particular products.
At the present we use several contractors for each product line. Our contractors are currently located in Florida and Colorado.
We believe we are not dependent on our current contractors, because there are many licensed bakers, formularies of cosmetic products,
confectioners and other contractors in thirty-nine states at the date of this prospectus.
Intellectual Property
We do not have a federal trademark for Elite
Products International, Inc. There is no assurance we will file for or receive trademark protection. We do not believe our business
is dependent on registration of our trademark, in which we claim common law trademark protections absent registration.
Competition
Our competitors include firms dedicated to the
regulated cannabis industry as well as suppliers of supplies utilized in the retail sale of CBD infused products. We compete in
markets where CBD infused products have been legalized and regulated, which includes thirty-nine states within the United States,
its territories and Canada, at the date of this prospectus. We expect that the composition of our competitive environment will
continue to evolve as the industry matures. Additionally, increased competition is possible to the extent that new states and geographies
enter the marketplace as a result of continued enactment of regulatory and legislative changes that de-criminalize and regulate
cannabis products. We believe that by being well established in the industry, our experience and success to date, and continued
expansion of product offerings in new and existing locations are factors that mitigate the risk associated with operating in a
developing competitive environment. Additionally, the contemporaneous growth of the industry as a whole will result in new customers
entering the marketplace, thereby further mitigating the impact of competition on our operations and results.
Government Regulation of Cannabis/Industrial Hemp and its derivatives.
The federal 2014 Farm Act contains a provision
codified as 7 US Code §5940 - Legitimacy of industrial hemp research – provides:
(a) In general notwithstanding the Controlled Substances
Act
(
21 U.S.C. 801
et seq.),
chapter
81 of title 41,
or any other Federal law, an institution of higher education (as defined in
section
1001 of title 20
) or a State department of agriculture may grow or cultivate industrial hemp if—
(1)
the
industrial
hemp
is grown or cultivated for purposes of research conducted under an
agricultural
pilot
program
or other agricultural or academic research; and
(2)
the growing or cultivating of
industrial
hemp
is allowed under the laws of the State in which such institution of higher education or
State
department of agriculture
is located and such research occurs.
(b)(1) [ defines
"
agricultural pilot program
"]
(b)(2) The term "
industrial
hemp
" means the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol
concentration of not more than 0.3 percent on a dry weight basis
At the date of this prospectus, thirty-nine
states have implemented laws and regulations in reliance on and in compliance with 7 US Code §5940. While these laws and regulations
vary widely from state to state, we are able to buy our cannabis/industrial hemp CBD raw materials and sell our products containing
those raw materials in and ship the raw materials and our products between all thirty-four states.
pg.
17
Notwithstanding the legality of cannabis/industrial
hemp derived CBD extracts containing less than 0.3% THC by dry weight, CBD extracts derived from the marihuana/marijuana plant,
also of the cannabis family but which typically contains higher levels of THC remains illegal even when the THC level is below
0.3%.
Employees
We have five full-time employees, including
our executive officers for sales, marketing, bookkeeping and production. None of our employees are represented by a labor union.
We believe we have a good relationship with our employees and are not aware of any employee disputes. We may expect disputes with
employees from time to time in the ordinary course of business.
Description of Our Property
We co-occupy 2,700 square feet of general office
space which we use for our headquarters and operations, under a three-year lease commencing February 28, 2018. The beginning annual
rent is $55,996, with annual increase of three percent. See, "Related Party Transactions and Relationships". We believe
that our existing office facilities are adequate for our needs. Should we require additional space at that time, or prior thereto,
we believe that such space can be secured on commercially reasonable terms.
Legal Proceedings
We are not engaged in any legal proceeding nor
are we aware of any threats or claims of legal action at the date of this prospectus.
OUR MANAGEMENT
At the date of this prospectus, we have only
one director and one officer. Mr. Oran is our director, chief executive officer, chief operating officer and chief financial officer,
beginning May 2017. Mr. Oran is 53 years of age.
Our stockholders elect our directors. Our directors
serve terms of one year and are generally elected at each annual stockholder meeting; provided, that there is no assurance we will
hold a stockholders' meeting annually. Each director will remain in office until his successor is elected. We do not have
an independent director using the definition of independence contained in the NASDAQ listing rules. Despite his lack of independence,
Mr. Oran would not qualify as an "audit committee financial expert". Our board of directors elects our executive and
their terms of office are at the discretion of the board of directors, subject to terms and conditions of employment agreements,
if any. We have the authority under Delaware law and our bylaws to indemnify our directors and officers against certain liabilities.
We have been informed by the U.S. Securities and Exchange Commission that indemnification against violations of federal securities
law is against public policy and therefore unenforceable.
Mr. Oran immigrated to the United States
from Israel in 1991. We expect Mr. Oran to devote thirty percent or approximately 60 hours per month of his working time to
our business. Mr. Oran is currently majority shareholder, director and chief executive officer of Blackpoll Fleet
International, Inc., a publicly traded company ("BPOL") which has been engaged in aviation parts sales. The
following table sets forth the additional business activities of Mr. Oran during the last five years and other pertinent
information about his employment and employer.
EMPLOYER
POSITION
NATURE
REVENUES
EMPLOYEES
DATES OF EMPLOYMENT
CS America OP LLC
CEO
Consulting
$
419,960.00
5
3-15-13 to present
Cybertec Group LLC
MGR
Cell Phones
$
123,347.00
0
8-20-14 to present
GFS World
CEO
Travel Sales
$
2,564,407.00
10
5-31-13 to present
BOARD COMMITTEES
With a single director, our board of directors
does not have compensation, nominating, audit committees or any other committees. Our board of directors has not adopted a code
of ethics.
pg.
18
HOW WE COMPENSATE OUR MANAGEMENT
Dore S. Perler was our sold director, chief
executive office and chief financial officer in fiscal years 2016 and 2017, resigning December 14, 2017. We did not pay Mr. Perler
any compensation for his services in 2016 and 2017, including salary, bonus, stock awards, option awards, non-equity incentive
plan compensation or any other compensation.
We paid Mr. Oran a salary of $14,100 for his
service as our sole director, chief executive office and chief financial officer in 2017. We did not pay Mr. Oran bonus, stock
awards, option awards, non-equity incentive plan compensation or any other compensation. We do not currently and have an agreement
to provide Mr. Oran, and to not presently intend to provide any additional executive officers, with supplemental or other retirement
benefits, equity awards or stock-based compensation.
We do not have any pension or nonqualified deferred
compensation plans.
EMPLOYMENT AGREEMENTS
We do not have employment agreement
with Mr. Oran. Mr. Oran has a Consulting Agreement with our subsidiary through October 31, 2020, to provide general advice
on current standard practices and trends at an annual base salary of $90,000. Mr. Oran participates in all benefit
programs made available to our executive and/or salaried employees, paid vacation and reimbursement for business related expenses.
The Consulting Agreement automatically extends for one additional term of three years, if neither party gives notice during
the last thirty days of the initial term that the agreement will not be extended.
We do not pay compensation to Mr. Oran for his
service as a director in addition to his compensation as an executive officer. We may compensate future directors who are not also
executive officers. We have not determined the amount of we may pay to future directors.
KEY EMPLOYEE
Shimon Fhima has been the chief executive
officer of our subsidiary since February 2016. Our subsidiary has an employment agreement with Mr. Fhima beginning November 1,
2017 and ending October 30, 2020 at an annual base salary of $90,000. Mr. Fhima participates in all benefit programs made available
to our executive and/or salaried employees, paid vacation and reimbursement for business related expenses. From May 2013 through
November 2015, Mr. Fhima was Operations Manager at Super Outlet Store of Miami, LLC. From December 2013 through January 2015,
Mr. Fhima was Operations Manager at GFS Worldwide, LLC.
WHO OWNS OUR COMMON STOCK
The following table sets forth certain information
about the common stock ownership, including common stock a named person has a right to acquire within six months, by (i) each
director and executive officer; (ii) directors and executive officers as a group, and (iii) by persons who own five percent or
more of our common stock. The address of our directors and officers is our address.
Name and Address of Beneficial Owner
Number of Shares
Percentage
of Class
Dan Oran, Executive Officer (1)
314,208,334
40.7
%
All directors and officers, as a group (one person)
314,208,334
40.7
%
Leonard Tucker
113,000,000
14.6
%
F6-123, 20423 State Road 7, Boca Raton, FL 33498
Shimon Fhima
60,000,000
7.8
%
427 Coconut Circle, Weston, FL 33326
S & H Land Development, LLC
38,874,023
5.0
%
2860 Center Port Circle, Pompano Beach, FL 33064
Lael Investments, LLC
38,874,023
5.0
%
Apartment # 2805, 3201 NE 183rd Street, Aventura, FL 33160
Shimi Beg
60,000,000
7.8
%
Apartment # 10, 123 Rothschild Street, Rishon Letsiyon Israel 75236
(1)
Includes 8,000,000 shares beneficially owned by Nataliya Kirk, Mr. Oran's wife.
Beneficial ownership is determined in accordance
with Securities and Exchange Commission rules and generally includes voting or investment power with respect to shares of common
stock.
pg.
19
RELATED PARTY TRANSACTIONS AND RELATIONSHIPS
We have not engaged in any related party transactions
in our last fiscal year and current year to date of this prospectus, except as follows:
Our landlord, CSA8411, LLC., is owned by Mr. Oran's wife,
Nataliya Kirk. Our rental rate is $20.90 per square foot. We believe this rate is competitive in the market for general office
space of the class of office space we lease from our landlord.
MARKET INFORMATION AND RELATED STOCKHOLDER
MATTERS
Market information
Our common stock trades on in the over-the-counter
markets on alternative trading platforms, including OTCMarkets.com. Our ticker symbol is "PSIQ". The following table
sets forth the quarterly high and low sale prices for our common shares for the last two completed fiscal years and the subsequent
interim periods. The prices set forth below represent interdealer quotations, without retail markup, markdown or commission and
may not be reflective of actual transactions. The following table sets forth, for the periods indicated, the high and low sales
prices of our common stock as reported on OTCMarkets.com:
High
Low
2018 - Quarter Ended
March 31
$
0.272
$
0.018
June 30
$
0.188
$
0.043
September 30
$
0.282
$
0.025
High
Low
High
Low
2017 - Quarter Ended
2016 - Quarter Ended
March 31
$
0.024
$
0.010
March 31
none
none
June 30
$
0.010
$
0.024
June 30
$
0.028
$
0.014
September 30
$
0.016
$
0.010
September 30
$
0.028
$
0.014
December 31
$
0.024
$
0.010
December 31
$
0.021
$
0.012
On October 17, 2018, the closing
sales price of our common stock as reported by the OTC Markets Group was $0.200 per share.
As of October, 17, 2018, we had seventy-six
holders of record of our common stock.
Dividends
We have not paid any cash dividends to our shareholders.
The declaration of any future cash dividends is at the discretion of our Board and depends upon our earnings, if any, our capital
requirements and financial position, our general economic conditions, and other pertinent conditions. It is our present intention
not to pay any cash dividends in the foreseeable future, but rather to reinvest earnings, if any, in our business operations. Dividend
rights of both our common and preferred shareholders will entitle them to the same dividend that other shareholders of the same
class receive.
Our Transfer Agent
Our transfer agent is Action Stock Transfer
Corporation, whose address is Suite 214, 2469 E. Fort Union Boulevard, Salt Lake City, UT 84121, whose telephone number is 801-274-1088
and whose website is www.actionstocktransfer.com.
pg.
20
DESCRIPTION OF OUR SECURITIES
The following description of our common stock
is qualified in our entirety by reference to our Articles of Incorporation, as amended, our bylaws and Delaware corporation law.
We are authorized to issue 1,000,000,000 shares of common stock, $0.001 par value per share. At the date of this prospectus, we
have 772,808,793 shares issued and outstanding. Holders of our common stock:
●
Have
one vote per share on election of each director and other matters submitted to a vote of stockholders;
●
Have
equal rights with all holders of issued and outstanding common stock to receive dividends from funds legally available therefore,
if any, when, as and if declared from time to time by the board of directors;
●
Are
entitled to share equally with all holders of issued and outstanding common stock in all of our assets remaining after payment
of liabilities, upon liquidation, dissolution or winding up of our affairs;
●
Do
not have preemptive, subscription or conversion rights; and
●
Do
not have cumulative voting rights.
Our board of directors, without further stockholder
approval, may issue up to ten million shares of preferred stock in one or more series from time to time and fix or alter the designations,
relative rights, priorities, preferences, qualifications, limitations and restrictions of the shares of each series. The rights
granted to the holders of any series of preferred stock could adversely affect the voting power of the holders of common stock
and issuance of preferred stock may delay, defer or prevent a change in our control.
SELLING STOCKHOLDERS
This prospectus relates to the resale of 167,583,443
shares of our common stock, par value $0.001 per share. The following table sets forth certain information regarding the beneficial
ownership of shares of common stock by the selling stockholders as of October 17, 2018 and the number of shares of our
common stock being offered pursuant to this prospectus. None of the selling stockholders are our directors, officers or otherwise
our affiliates legally or beneficially owning ten percent or more of our common stock within the past three years. We do not expect
the selling stockholders to sell all of the shares they own and to own none of our shares in the event they are successful in
completing the offering of their shares.
Name
Number of Shares Owned and Offered
Capri International Ventures, LLC.
1,000,000
Alon Elezra
1,000,000
Alina Burlaka
20,000,000
Azran Enterprises
400,000
Yakov Blives
4,000,000
Vladimir Kudyakov
4,714,286
Viki Menahem
4,000,000
Avi Menahem
4,000,000
Kfir Nahum
4,000,000
Kevin Hagen
4,000,000
Yoram Shaaltiel
1,000,000
LAEL Investments, LLC.
38,874,023
S & H Land Development, LLC.
38,874,023
Henry Rengifo
100,000
Galit Sagiv
100,000
Robbie G. Hicks
100,000
Tomas Felipe Luengas Sanchez
100,000
Liana Yangirova
14,285,714
Eyal Mehaber
11,153,400
Shayna Tucker
10,815,757
Vladimir Kudyakov
4,714,286
pg.
21
HOW WE EXPECT THE SELLING STOCKHOLDERS TO
DISTRIBUTE THEIR SHARES
This prospectus relates to the resale by the
selling stockholders of 167,583,443 shares of our common stock, par value $0.001 per share.
The selling stockholders may, from time to time,
sell any or all of shares of common stock covered hereby on OTC Markets, or any other stock exchange, market or trading facility
on which the shares are traded or in private transactions. A selling stockholder may sell all or a portion of the shares being
offered pursuant to this prospectus at fixed prices, at prevailing market prices at the time of sale, at varying prices or at negotiated
prices. A selling stockholder may use any one or more of the following methods when selling securities:
●
ordinary brokerage transactions and transactions
in which the broker-dealer solicits purchasers
●
block trades in which the broker-dealer will attempt
to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
●
purchases by a broker-dealer as principal and resale
by the broker-dealer for its account;
●
an exchange distribution in accordance with the
rules of the applicable exchange;
●
privately negotiated transactions;
●
in transactions through broker-dealers that agree
with the selling stockholder to sell a specified number of such securities at a stipulated price per security;
●
through the writing or settlement of options or
other hedging transactions, whether through an options exchange or otherwise;
●
a combination of any such methods of sale; or
●
any other method permitted pursuant to applicable
law.
pg.
22
The selling stockholders may also sell securities
under Rule 144 under the Securities Act of 1933, if available, rather than under this prospectus.
Broker-dealers engaged by the selling stockholder
may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling
stockholder (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to be negotiated,
but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in excess of a customary
brokerage commission in compliance with FINRA Rule 2440; and in the case of a principal transaction a markup or markdown in compliance
with FINRA IM-2440. To our knowledge, no selling stockholder is not broker-dealers or a registered representative or affiliates
of a broker-dealer. We may require the selling stockholders to suspend the sales of the shares of common stock being offered pursuant
to this prospectus upon the occurrence of any event that makes any statement in this prospectus or the related registration statement
untrue in any material respect or that requires the changing of statements in those documents in order to make statements in those
documents not misleading.
In connection with the sale of the securities
or interests therein, the selling stockholder may enter into hedging transactions with broker-dealers or other financial institutions,
which may in turn engage in short sales of the securities in the course of hedging the positions they assume. The selling stockholder
may also sell securities short and deliver these securities to close out its short positions, or loan or pledge the securities
to broker-dealers that in turn may sell these securities. The selling stockholder may also enter into an option or other transactions
with broker-dealers or other financial institutions or create one or more derivative securities which require the delivery to such
broker-dealer or other financial institution of securities offered by this prospectus, which securities such broker- dealer or
other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).
The selling stockholders will be subject to
the prospectus delivery requirements of the Securities Act of 1933 including Rule 172 thereunder.
The resale securities will be sold only through
registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the
resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable state
or an exemption from the registration or qualification requirement is available and is complied with.
Under applicable rules and regulations under
the Securities Exchange Act of 1934, any person engaged in the distribution of the resale securities may not simultaneously engage
in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M,
prior to the commencement of the distribution. In addition, the selling stockholder will be subject to applicable provisions of
the Securities Exchange Act of 1934 and the rules and regulations thereunder, including Regulation M, which may limit the timing
of purchases and sales of securities of the common stock by the selling stockholder or any other person. We will make copies of
this prospectus available to the selling stockholder and will inform it of the need to deliver a copy of this prospectus to each
purchaser at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act of 1933).
To our knowledge, the selling stockholders are
not broker-dealers or affiliates of broker-dealers. We may require the selling stockholders to suspend the sales of the shares
of common stock being offered pursuant to this prospectus upon the occurrence of any event that makes any statement in this prospectus
or the related registration statement untrue in any material respect or that requires the changing of statements in those documents
in order to make statements in those documents not misleading.
LEGAL MATTERS
Certain legal matters with respect to the validity
of the shares of common stock offered hereby will be passed upon for us by Jackson L. Morris, Attorney at Law, Tampa, Florida.
pg.
23
EXPERTS
Our financial statements at and for the years
ended and at December 31, 2017 and 2016 have been included in this prospectus in reliance on the report of Daszkal Bolton, LLP,
Sunrise, Florida, an independent registered certified public accounting firm, given on the authority of such firm as experts in
auditing and accounting.
WHERE YOU CAN FIND MORE INFORMATION ABOUT
US
We have filed a registration statement on Form
S-1 under the Securities Act with the U.S. Securities and Exchange Commission for the common stock offered by this prospectus.
This prospectus does not include all of the information contained in the registration statement. You should refer to the registration
statement and our exhibits for additional information. Whenever we make reference in this prospectus to any of our contracts, agreements
or other documents, the references are not necessarily complete and you should refer to the exhibits attached to the registration
statement for copies of the actual contract, agreement or other document. When we complete this offering, we will also be required
to file annual, quarterly and special reports and other information with the SEC.
You can read our SEC filings, including the
registration statement of which this prospectus is a part, and exhibits thereto and reports subsequently filed, over the Internet
at the SEC's website at www.sec.gov. You may also read and copy any document we file with the SEC at our Public Reference
Room located at 100 F Street, N.E., Washington, D.C. 20549. You may also obtain copies of the documents at prescribed rates by
writing to the Public Reference Room of the SEC at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330
for further information on the operation of the Public Reference Room.
INDEX
TO FINANCIAL STATEMENTS
Page
At
and for the Years Ended December 31, 2017 and 2016
Report
of Independent Registered Public Accountant
25
Consolidated
Balance Sheets
26
Consolidated
Statements of Operations
27
Consolidated
Statements of Stockholders' Equity (Deficit)
28
Consolidated
Statements of Cash Flows
29
Notes
to Consolidated Financial Statements
30
At
and for the Six Months Ended June 30, 2018 and 2017 (unaudited)
Consolidated
Balance Sheets
39
Consolidated
Statements of Operations
40
Consolidated
Statements of Cash Flows
41
Notes
to Condensed Consolidated Financial Statements
42
pg.
24
Report of Independent Registered Public
Accounting Firm
To the Board of Directors and
Stockholders of Profile Solutions, Inc.
Sunrise, Florida
Opinion on the Financial Statements
We have audited the accompanying consolidated
balance sheets of Profile Solutions, Inc. (the "Company") at December 31, 2017 and 2016, and the related consolidated
statements of operations, changes in stockholders' equity, and cash flows for each of the years in the two-year period ended
December 31, 2017, and the related notes (collectively referred to as the financial statements). In our opinion, the financial
statements present fairly, in all material respects, the financial position of the Company at December 31, 2017 and 2016, and the
results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2017, in conformity
with accounting principles generally accepted in the United States of America.
The accompanying consolidated financial statements
have been prepared assuming that the Company will continue as a going concern. As described in Note 3 to the consolidated financial
statements, the Company has sustained recurring losses from operations and net cash used in operations and accumulated deficits
that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters
are described in Note 3. The consolidated financial statements do not include any adjustments that might result from the outcome
of this uncertainty. Our opinion is not modified with respect to this matter.
Basis for Opinion
These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based
on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with
the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have,
nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required
to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the
effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to
assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a
reasonable basis for our opinion.
/s/ Daszkal Bolton LLP
We have served as the Company's auditor
since 2018.
Fort Lauderdale, Florida
August 30, 2018
pg.
25
PROFILE SOLUTIONS, INC.
CONSOLIDATED
BALANCE SHEETS
ASSETS
December 31 2017
December 31 2016
Current Assets:
Cash
$
47,857
$
70
Accounts receivable, net
59,917
—
Prepaid expenses
12,539
—
Inventory
16,650
4,526
Total current assets
136,963
4,596
Other Assets:
Deposits
1,250
1,250
Total other assets
1,250
1,250
Total Assets
$
138,213
$
5,846
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities
$
32,634
$
6,912
Due to related parties
—
40,360
Acquisition payable
—
—
Total current liabilities
32,634
47,272
Total liabilities
32,634
47,272
Stockholders' Equity:
Preferred shares, par value $0.001 per share, 10,000,000 shares authorized; 0 shares issued and outstanding as of December 31, 2017 and December 31, 2016 respectively
—
—
Common stock, par value $0.001 per share, 1,000,000,000 shares authorized; 757,233,793 and 600,000,000 shares issued and outstanding as of December 31, 2017 and December 31, 2016 respectively
757,234
600,000
Additional paid-in capital
(567,734
)
(600,000
)
Accumulated deficit
(83,921
)
(41,426
)
Total stockholders' equity
105,579
(41,426
)
Total Liabilities and Stockholders' Equity
$
138,213
$
5,846
The notes are an integral part of these
financial statements.
pg.
26
PROFILE SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Year Ended
December 31,
2017
2016
Revenue
$
208,236
$
247,436
Cost of revenues
94,773
203,643
Gross Profit
113,463
43,793
Operating Expenses:
General and administrative
134,241
85,219
Professional fees
21,717
—
Total operating expenses
155,958
85,219
Loss from operations
(42,495
)
(41,426
)
Net loss before provision for income taxes
(42,495
)
(41,426
)
Provision for income taxes
—
—
Net loss
$
(42,495
)
$
(41,426
)
Loss per common share:
Loss per common share - Basic and Diluted
$
—
$
(0.00
)
Weighted Average Common Shares Outstanding:
Basic and Diluted
604,738,553
600,000,000
The notes are an integral part of these
financial statements.
pg.
27
PROFILE SOLUTIONS, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS'
DEFICIT
FOR THE YEARS ENDED DECEMBER 31, 2017
AND 2016
Additional
Common Stock
Preferred Stock
Paid-in
Stock
Accumulated
Shares
Amount
Shares
Amount
Capital
Payable
Deficit
Total
Balance - December 31, 2015
600,000,000
600,000
—
—
(600,000
)
—
—
—
Net loss for the twelve months ended December 31, 2016
—
—
—
—
—
—
(41,426
)
(41,426
)
Balance - December 31, 2016
600,000,000
600,000
—
—
(600,000
)
—
(41,426
)
(41,426
)
Recapitalization
157,233,793
157,234
32,266
189,500
Net loss for the twelve months ended December 31, 2017
—
—
—
—
—
—
(42,495
)
(42,495
)
Balance - December 31, 2017
757,233,793
757,234
—
—
(567,734
)
—
(83,921
)
105,579
The notes are an integral part of these
financial statements.
pg.
28
PROFILE SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
2017
2016
Cash Flow From Operating Activities:
Net loss
$
(42,495
)
$
(41,426
)
Adjustments to reconcile net loss to net cash from operating activities:
Changes in operating assets and liabilities:
Increase in deposits
—
(1,250
)
Increase in prepaid expenses
(12,539
)
(4,526
)
Increase in inventory
(12,124
)
—
Increase in accounts receivable, net
(59,917
)
—
Increase in accounts payable
25,722
6,913
Net Cash Used in Operating Activities
(101,353
)
(40,289
)
Net Cash Used in Investing Activities
—
—
Financing Activities:
Proceeds from advances from related party
80,366
65,567
Repayment of advances from related party
(29,541
)
(25,208
)
Contributions
35,000
—
Distributions
(38,270
)
—
Net cash received from recapitalization
101,585
—
Net Cash Provided by Financing Activities
149,140
40,359
Net Increase
47,787
70
Cash - Beginning of Period
70
0
Cash - End of Period
$
47,857
$
70
Supplemental cash flow information:
Conversion of debt to equity
$
91,185
$
—
Recapitalization
$
189,500
$
—
The notes are an integral part of these
financial statements.
pg.
29
PROFILE SOLUTIONS, INC.
Notes to Consolidated Financial Statements
At and for the Years Ended December 31, 2017
and 2016
NOTE 1 - ORGANIZATION OF OPERATIONS
Profile Solutions, Inc. ("Profile") is a Delaware corporation
originally incorporated as YaFarm Technologies, Inc. on July 31, 2006.
On December 14, 2017, Profile entered into a Share Exchange Agreement
with Elite Products International, Inc., a Florida corporation ("Elite") incorporated on February 15
th
,
2016 issuing an aggregate total of 600,000,000 shares in exchange for 100% ownership of Elite. As part of the transaction, the
Company filed a certificate of amendment with the State of Delaware increasing the authorized shares of common stock to 1,000,000,000
(one billion) shares of common stock. The transaction was accounted for as a corporate reorganization between entities under common
control. These consolidated financial statements reflect the reorganized capital structure retrospectively for all periods presented
for Profile and Elite, collectively ("the Company), the Company has presented earnings per share based on the Company shares
issued to the former shareholders of Elite.
Profile through its subsidiary Elite is a distributor
and manufacturer in the cannabinoid (CBD) industry. The Company's products contain CBD Hemp extracts in the
form of edibles, creams, oils, and salves.
The Company's fiscal year end is December 31. Essentially
all the operations of the Company are conducted through the Company's wholly owned subsidiary in Sunrise, Florida.
Change in officers
On December 14, 2017, Officer and Director Dore S.
Perler resigned and appointed Dan Oran as Officer and Director.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation and consolidation
The comparative amounts presented in these
consolidated financial statements are the historical results Elite for 2016 and for Elite and Profile for 2017 from the date of
the reorganization, all intercompany balances and transactions have been eliminated in consolidation. The Company's accounting
policies used in the presentation of the accompanying consolidated financial statements conform to accounting principles generally
accepted in the United States of America ("US GAAP") as promulgated by the Financial Accounting Standards Board ("FASB")
Accounting Standards Codification ("ASC") and with the rules and regulations of the U.S. Securities and Exchange Commission
("SEC") and have been consistently applied.
Use of estimates and assumptions
The preparation of consolidated financial
statements in conformity with a US GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period.
The Company's significant estimates
and assumptions include the fair value of financial instruments; income tax rate, income tax provision and valuation allowance
of deferred tax assets; stock-based compensation, valuation of inventory and the assumption that the Company will continue
as a going concern. Those significant accounting estimates or assumptions bear the risk of change due to the fact that there are
uncertainties attached to those estimates or assumptions, and certain estimates or assumptions are difficult to measure or value.
pg.
30
Management bases its estimates on historical
experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the
basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.
Management regularly reviews its estimates
utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions.
After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those
estimates.
Fair value of financial instruments
The Company follows paragraph 825-10-50-10
of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37
of the FASB Accounting Standards Codification ("Paragraph 820-10-35-37") to measure the fair value of its financial
instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted
in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency to
quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The
three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:
Level 1
Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.
Level 2
Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.
Level 3
Pricing inputs that are generally observable inputs and not corroborated by market data.
Financial assets are considered Level 3
when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least
one significant model assumption or input is unobservable.
The fair value hierarchy gives the highest
priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable
inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the
categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.
The carrying amount of the Company's
financial assets and liabilities, such as cash, prepaid expenses, deposits, accounts payable and accrued expenses approximate their
fair value because of the short maturity of those instruments.
Transactions involving related parties
cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings
may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions
were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be
substantiated.
It is not however practical to determine
the fair value of advances from stockholders due to their related party nature.
Cash and cash equivalents
The Company considers all highly liquid
investments with a maturity of three months or less to be cash and cash equivalents. There were no cash and cash equivalents at
December 31, 2017 and 2016.
Related parties
The Company follows subtopic 850-10 of
the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.
pg.
31
Pursuant to Section 850-10-20 the
related parties include (i) affiliates of the Company; (ii) Entities for which investments in their equity securities
would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15,
to be accounted for by the equity method by the investing entity; (iii) trusts for the benefit of employees, such as pension
and profit-sharing trusts that are managed by or under the trusteeship of management; (iv) principal owners of the Company; (v)
management of the Company; (vi) other parties with which the Company may deal if one party controls or can significantly influence
the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully
pursuing its own separate interests; and (vii) Other parties that can significantly influence the management or operating policies
of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence
the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.
Commitments and contingencies
The Company follows subtopic 450-20 of the
FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date
the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when
one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently
involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against
the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal
proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.
If the assessment of a contingency indicates
that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated
liability would be accrued in the Company's consolidated financial statements. If the assessment indicates that a potential
material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of
the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.
Loss contingencies considered remote are
generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe,
based upon information available at this time, that these matters will have a material adverse effect on the Company's consolidated
financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and
adversely affect the Company's business, financial position, and results of operations or cash flows.
Revenue recognition
The Company applies paragraph 605-10-S99-1
of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable
and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive
evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii)
the sales price is fixed or determinable, and (iv) collectability is reasonably assured.
The Company derives its revenues from sales
contracts with its customer with revenues being generated upon rendering of products. Persuasive evidence of an arrangement is
demonstrated via invoice; products are considered provided when the product is delivered to the customers; and the sales price
to the customer is fixed upon acceptance of the purchase order and there is no separate sales rebate, discount, or volume incentive.
Accounts Receivable, net
The Company recognizes an allowance for losses on accounts receivable
in an amount equal to the estimated probable losses net of recoveries. The allowance is based on an analysis of historical bad
debt experience, current receivables aging, and expected future write-offs, as well as an assessment of specific identifiable customer
accounts considered at risk or uncollectible. The Company recorded an allowance of doubtful accounts of $2,920 and $0, for the
years ended December 31, 2017 and 2016.
pg.
32
Inventories
Inventories are stated at the lower of cost or market using the
first in, first out (FIFO) method. Provisions have been made to reduce excess or obsolete inventories to their net realizable value.
Costs of Revenue
Components of costs of revenue include product costs, shipping costs
to customers and any inventory adjustments.
Shipping and Handling Costs
The Company includes shipping and handling fees billed to customers
as revenues and shipping and handling costs for shipments to customers as cost of revenues.
Income taxes
The Company is governed by the income tax laws of the United States
of America. The Company accounts for income tax using the liability method prescribed by ASC 740, "
Income Taxes
".
Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and
tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected
to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence,
it is more-likely- than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred
taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date.
The Company applies the provisions of ASC 740-10-50, "Accounting
for Uncertainty in Income Taxes", which provides clarification related to the process associated with accounting for uncertain
tax positions recognized in our financial statements. Audit periods remain open for review until the statute of limitations has
passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment
to the Company's liability for income taxes. Any such adjustment could be material to the Company's results of operations
for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of December 31,
2017, and, 2016, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future.
The Company is subject to U.S. Federal income tax examinations for the tax years ended December 31, 2014 through 2016.
On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the Tax Act)
was enacted into law and the new legislation contains several key tax provisions that affected us, including a one-time mandatory
transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21% effective January 1, 2018,
among others. We are required to recognize the effect of the tax law changes in the period of enactment, such as determining the
transition tax, re-measuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred
tax assets and liabilities. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting
Implications of the Tax Cuts and Jobs Act (SAB 118), which allows us to record provisional amounts during a measurement period
not to extend beyond one year of the enactment date. Since the Tax Act was passed late in the fourth quarter of 2017, and ongoing
guidance and accounting interpretation are expected over the next 12 months, we consider the accounting of the transition tax,
deferred tax re-measurements, and other items to be incomplete due to the forthcoming guidance and our ongoing analysis of final
year-end data and tax positions. We expect to complete our analysis within the measurement period in accordance with SAB 118.
The Company's ability to utilize its net operating loss (NOL)
carryforwards may be substantially limited due to ownership changes that may have occurred on December 14, 2017, as required by
Section 382 of the Internal Revenue Code of 1986, as amended (the Code), as well as similar state provisions. These ownership
changes may limit the amount of NOL carryforwards that can be utilized annually to offset future taxable income and tax, respectively.
In general, an "ownership change," as defined by Section 382 of the Code, results from a transaction or series
of transactions over a three-year period resulting in an ownership change of more than 50 percent of the outstanding stock
of a company by certain stockholders or public groups.
If the Company has experienced an ownership change, utilization
of the NOL carryforwards would be subject to an annual limitation, which is determined by first multiplying the value of the Company's
stock at the time of the ownership change by the applicable long-term, tax-exempt rate, and then could be subject to additional
adjustments, as required. Any such limitation may result in the expiration of a portion of the NOL carryforwards before utilization.
Until a study is completed, and any limitation known, no amounts are being considered as an uncertain tax position or disclosed
as an unrecognized tax benefit under ASC-740. Any carryforwards that expire prior to utilization as a result of such limitations
will be removed from deferred tax assets with a corresponding reduction of the valuation allowance. Due to the existence of the
valuation allowance, it is not expected that any possible limitation will have an impact on the results of operations of the Company.
pg.
33
Tax returns for Profile Solutions, Inc. have not been prepared and
filed for the years ended December 31, 2016 and 2017 through 2018 and may be subject to penalties for delinquent and non-compliance
requirements, in addition, to the NOL carryover changes from prior years.
Net loss per common share
The Company follows ASC Topic 260 to account
for earnings per share. Basic earnings per common share ("EPS") calculations are determined by dividing net income
by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations
are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding.
During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.
There were no potentially dilutive shares
outstanding as of December 31, 2017.
Cash flows reporting
The Company adopted paragraph 230-10-45-24
of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether
they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect
or reconciliation method ("Indirect method") as defined by paragraph 230-10-45-25 of the FASB Accounting Standards
Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from
operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals
of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating
cash receipts and payments.
Subsequent events
The Company follows the guidance in Section
855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company evaluates subsequent
events through the date when the financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards
Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users,
such as through filing them on EDGAR.
Recently issued accounting pronouncements
We have reviewed all new accounting
pronouncements and, except as set forth below, do not expect any new pronouncements or guidance to have an impact on our
results of operations or financial position:
All other newly issued accounting pronouncements,
but not yet effective, have been deemed either immaterial or not applicable.
NOTE 3 – LIQUIDTY AND GOING CONCERN
The accompanying consolidated financial
statements have been prepared assuming that the Company will continue as a going concern. As reflected in the accompanying
consolidated financial statements, the Company had Revenues of $ 208,236 and $ 247,436, Loss from Operations of $ 42,495 and $
41,426 and net cash used in operations of $101,353 and $40,289 and for the years ended December 31, 2017 and December 31,
2016 respectively
pg.
34
While the Company is attempting to generate
sufficient revenues, the Company's cash position may not be sufficient enough to support the Company's daily operations.
Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently
being taken to further implement its business plan and generate sufficient revenues provide the opportunity for the Company to
continue as a going concern. While the Company believes in the viability of its strategy to generate sufficient revenues and in
its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going
concern is dependent upon the Company's ability to further implement its business plan and generate sufficient revenues.
The consolidated financial statements do
not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
The independent auditors' report
on our consolidated financial statements for the years ended December 31, 2017 and 2016 contain explanatory paragraphs expressing
substantial doubt as to our ability to continue as a going concern.
NOTE 4 – RELATED PARTY TRANSACTIONS
In March 2016, Elite entered into a three-year lease agreement with
a related party for an aggregate rent of $46,091. This lease was amended in February 2018 for a monthly rent of approximately $4,000
with an annual escalation of 3% per year expiring on December 31, 2021 with the option to renew for two additional years. The Company
owed this related party approximately $5,000 as of December 31, 2017 and 2016, respectively. The amounts owed to this related party
were 45% and 75% of accounts payable as of December 31, 2017 and 2016, respectively.
Elite owed two related parties an aggregate of approximately $40,000
as of December 31, 2016. These amounts were repaid and converted to equity during 2017.
In November 2017, Elite entered into consulting agreements with
three related parties for a monthly fee of $7,500 for three years. Two of the three agreements call for a percentage of future
generations of sales and equity funding or acquisition of or by the Companies. Elite paid approximately $40,000 to these related
parties in 2017. In February 2018, Elite entered into an additional consulting agreement with a related party for a monthly fee
of $7,500 and 10% future generation of sales on a month to month basis.
Note 5 – CONCENTRATION ON CREDIT RISK
Major Customers
In 2017 and 2016, Elite had two customers that approximated 58%
of sales and four customers that approximated 72% of sales. One customer in 2017 is also a minority shareholder of the Company.
At December 31, 2017, the Company had a concentration of accounts
receivable from one customer, totaling 90%. This customer is also a minority shareholder of the Company.
Major Vendors
In 2017 and 2016, Elite had four vendors that approximated
57% of purchases and two vendors that approximated 70% of purchases.
NOTE 6 – EQUITY
As noted in Note one on December 14, 2017, the Company
acquired all of the issued and outstanding shares of Elite. The acquisition was accounted for as a recapitalization of the Company.
The former shareholders of Elite received 600,000,000 shares in the new parent entity Profile
Preferred Stock
The Company has 10,000,000 preferred shares authorized
with a par value of $0.001 per share with no issued and outstanding at December 31, 2017 and 2016.
Common Stock
The Company has 1,000,000,000 common shares authorized
with a par value of $0.001 per share with 757,233,793 and 600,000,000 shares issued and outstanding at December 31, 2017 and 2016.
pg.
35
During the year ended December 31, 2017, the
company issued 600,000,000 shares of common stock to former shareholders of Elite for 100% of the issued and outstanding
shares of Elite
NOTE 7 – PREPAID EXPENSES
Prepaid Expense represents the payment tendered to a manufacturer
to produce product. For the year ended December 31, 2017 and December 31
st
2016, the company had $ 12,539 and $ 0 respectively.
NOTE 8 - COMMITMENTS
Royalty agreements
On December 14, 2017, the Company entered
into a Royalty Agreement with former shareholders. The purpose of this Agreement is to develop produce, market, promote, distribute
and enhance the CannaSafe prototype. Royalty payments of 8 % will be tendered on a quarterly basis on February 1, May1, August
1 and November 1 of each year during the term of this agreement.
Lease agreements
On March 1, 2016 the Company's wholly owned subsidiary, Elite
entered into a three year lease agreement in Sunrise, Florida through February 28, 2019 for aggregate rent of $46,091. The amount
is to be paid monthly over the term of the lease term along with 3 percent increases per annum. A deposit of $1,250 was tendered
to secure the lease.
Future minimum lease payments for this office space are as follows:
Year
Amount
2018
15,669
2019
2,662
$
18,331
Employment agreement
During the year ended December 31, 2017, the Company entered into
an employment agreement dated November 1, 2017 with the Company's CEO. As part of this agreement, the Company agreed to annual
compensation of $ 90,000 with a 3-year term. Refer to Note 4 for additional future commitments related to this agreement.
Consulting agreements
During the year ended December 31, 2017, the Company entered into
two separate consulting agreements dated November 1, 2017. As part of these agreements, the Company agreed to annual compensation
of $ 90,000 each with 3-year terms. The Consultants will provide strategic business development ideas as well as public company
expertise and management. Refer to Note 4 for additional future commitments related to these agreements.
NOTE 9 – INCOME TAXES
The Company maintains deferred tax assets and liabilities that
reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. The deferred tax assets at December 31, 2017 and 2016 consist of net operating
loss carryforwards. The net deferred tax asset has been fully offset by a valuation allowance because of the uncertainty of the
attainment of future taxable income. The items accounting for the difference between income taxes at the effective statutory rate
and the provision for income taxes for the years ended December 31, 2017 and 2016 were as follows:
pg.
36
December 31, 2017
December 31, 2016
Expected tax (benefit) - Federal
$
(8,433
)
$
(14,085
)
Expected tax (benefit) - State
(2,337
)
(2,278
)
Tax effect of expenses that are not deductible for income tax purposes (net of other amounts deductible for tax purposes)
1,019
—
Change in valuation allowance
9,751
16,363
Total provision for income tax
$
—
$
—
The net deferred taxes in the accompanying balance sheets includes the following amounts of deferred tax assets and liabilities:
Gross deferred tax assets:
Temporary Difference
$
—
$
—
Net operating loss carryforwards
(20,253
)
(10,501
)
Total deferred tax assets
20,253
10,501
Less: valuation allowance
(20,253
)
(10,501
)
Net deferred tax asset recorded
$
—
$
—
The estimated net operating loss carryforward was approximately
$79,900 at December 31, 2017. The Company's net operating loss carryforward may be limited on the usage of such net operating
loss carryforwards due to a change in ownership in accordance with Section 382 of the Internal Revenue Code. The Company provided
a valuation allowance equal to the net deferred income tax asset for the year ended December 31, 2017 and 2016 because it was not
known whether future taxable income will be sufficient to utilize the loss carryforward. The increase in the valuation allowance
was $20,253 from the year ended December 31, 2016. The potential tax benefit arising from tax loss carryforwards will expire in
2037.
NOTE 10 – SUBSEQUENT EVENTS
On February 1, 2018 the Company's wholly owned subsidiary,
Elite entered into a three year lease agreement in Sunrise, Florida commencing February 28, 2018 through December 31, 2021 for
an annual rent totaling $51,996 with annual increase of 3 percent. The amount is to be paid monthly over the term of the lease
term. A deposit of $4,333 was tendered to secure the lease.
Between January 1, and February 23, 2018, the Company raised gross
proceeds of $520,000 from subscription agreements between $0.035 to $0.05 per share.
On March 2, 2018, the Company issued 714,286 shares with a fair
value of $25,000 ($0.035/share) to a consultant as consideration for consulting services.
The Company's total issued and outstanding shares of common
stock as August 31, 2018 is 772,633,793
pg.
37
On June 15, 2018, the Company entered into Royalty Participation
Agreement with Stemtech Corporation. The Company loaned $100,000 to Stemtech Corporation to be used as working capital. The loan
is interest free and due twelve months from the effective date. In consideration for the $100,000 loan from the Company Stemtech
will pay a percentage from the sales, licensing or disposition of its products or other revenue. The royalty payments equal the
greater of $10,000 or one percent of all "gross revenue" received by the company during the month based on (i) the
sale, license, development, commercialization or monetization of the products and (ii) all gains on disposition of any products
or assets or other income until the earlier of (A) the closing of the Reorganization and purchase and Sale Agreement between the
Stemtech Corporation and the Company or (B) 12 months from execution of this agreement.
On June 22, 2018, the Company entered into Royalty Participation
Agreement with Stemtech Corporation. The Company loaned $50,000 to Stemtech Corporation to be used as working capital. The loan
is interest free and due twelve months from the effective date. In consideration for the $50,000 loan from the Company, Stemtech
will pay a percentage from the sales, licensing or disposition of its products or other revenue. The royalty payments equal the
greater of $5,000 or one half percent of all "gross revenue" received by the company during the month based on (i)
the sale, license, development, commercialization or monetization of the products and (ii) all gains on disposition of any products
or assets or other income until the earlier of (A) the closing of the Reorganization and purchase and Sale Agreement between the
Stemtech Corporation and the Company or (B) 12 months from execution of this agreement.
[Remainder of page left blank.]
pg.
38
PROFILE SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
At June 30, 2018 (unaudited) and December 31, 2017
ASSETS
June 30,
2018
December 31,
2017
Current Assets:
(unaudited)
Cash
$
194,425
$
47,857
Accounts receivable, net
71,555
59,917
Loan receivable
150,000
—
Prepaid expenses
59,653
12,539
Inventory
101,045
16,650
Total current assets
576,678
136,963
Other Assets:
Deposits
10,378
1,250
Total other assets
10,378
1,250
Total Assets
$
587,056
$
138,213
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities
$
55,894
$
32,634
Total current liabilities
55,894
32,634
Total liabilities
55,894
32,634
Stockholders' Equity:
Preferred shares, par value $0.001 per share, 10,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2018 and December 31, 2017 respectively
—
—
Common stock, par value $0.001 per share, 1,000,000,000 shares authorized; 772,808,793 and 757,233,793 shares issued and outstanding as of June 30, 2018 and December 31, 2017 respectively
772,809
757,234
Additional paid-in capital
117,341
(567,734
)
Accumulated deficit
(358,988
)
(83,921
)
Total stockholders' equity
531,162
105,579
Total Liabilities and Stockholder's Equity
$
587,056
$
138,213
The notes are an integral part of these
condensed consolidated financial statements.
pg.
39
PROFILE SOLUTIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(UNAUDITED)
For the Three Months Ended
For the Six Months Ended
June 30,
June 30,
2018
2017
2018
2017
Consolidated
Consolidated
Consolidated
Consolidated
Revenue
$
170,600
$
12,860
$
432,877
$
33,183
Cost of revenues
79,668
50,538
180,587
51,683
Gross Profit
90,932
(37,678
)
252,290
(18,500
)
Operating Expenses:
Compensation - officers
25,346
—
25,346
—
General and administrative
126,848
5,934
383,803
60,312
Professional fees
111,780
—
118,209
—
Total operating expenses
263,974
5,934
527,358
60,312
Loss from operations
(173,042
)
(43,612
)
(275,068
)
(78,812
)
Net loss before provision for income taxes
(173,042
)
(43,612
)
(275,068
)
(78,812
)
Provision for income taxes
—
—
—
—
Net loss
$
(173,042
)
$
(43,612
)
$
(275,068
)
$
(78,812
)
Loss per common share:
Loss per common share - Basic and Diluted
$
(0.00
)
$
(0.00
)
$
(0.00
)
$
(0.00
)
Weighted Average Common Shares Outstanding:
Basic and Diluted
772,656,870
107,585,747
770,599,776
107,585,747
The notes are
an integral part of these financial statements.
pg.
40
PROFILE SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
For the Six Months Ended June 30, 2018 (unaudited) and December 31, 2017
Six Months Ended
Year Ended
June 30, 2018
December 31, 2017
(unaudited)
Cash Flow From Operating Activities:
Net loss
$
(275,067
)
$
(42,495
)
Adjustments to reconcile net loss to net cash from operating activities:
Stock-based compensation
25,000
—
Changes in operating assets and liabilities:
Increase in prepaid expenses
(56,242
)
(12,539
)
Increase in inventory
(84,395
)
(12,124
)
Increase in accounts receivable
(11,638
)
(59,917
)
Increase in accounts payable
23,260
25,722
Net Cash Used in Operating Activities
(379,082
)
(101,353
)
Investing Activities:
Issuance of note receivable
(150,000
)
—
Net Cash Used in Investing Activities
(150,000
)
—
Financing Activities:
Proceeds from advances from related party
—
80,366
Repayment of advances from related party
—
(29,541
)
Contributions
—
35,000
Distributions
—
(38,270
)
Net cash received from stock sold
527,000
—
Net cash received as part of deposit in transit
148,650
101,585
Net Cash Provided by Financing Activities
675,650
149,140
Net Increase (Decrease in Cash)
146,568
47,787
Cash - Beginning of Period
47,857
70
Cash - End of Period
$
194,425
$
47,857
The notes are an integral part of these
financial statements.
pg.
41
PROFILE SOLUTIONS, INC.
Condensed Notes to Consolidated Financial Statements
June 30, 2018
(unaudited)
NOTE 1 - ORGANIZATION OF OPERATIONS
Profile Solutions, Inc. ("Profile") is a Delaware corporation
originally incorporated as YaFarm Technologies, Inc. on July 31, 2006.
On December 14, 2017, Profile entered into a Share Exchange Agreement
with Elite Products International, Inc., a Florida corporation ("Elite") incorporated on February 15
th
,
2016 issuing an aggregate total of 600,000,000 shares in exchange for 100% ownership of Elite. As part of the transaction, the
Company filed a certificate of amendment with the State of Delaware increasing the authorized shares of common stock to 1,000,000,000
(one billion) shares of common stock. The transaction was accounted for as a corporate reorganization between entities under common
control. These consolidated financial statements reflect the reorganized capital structure retrospectively for all periods presented
for Profile and Elite, collectively ("the Company), the Company has presented earnings per share based on the Company shares
issued to the former shareholders of Elite.
Profile through its subsidiary Elite is a  distributor
and manufacturer in the cannabinoid (CBD) industry. The Company's products contain CBD Hemp extracts in the
form of edibles, creams, oils, and salves.
The Company's fiscal year end is December 31. Essentially
all the operations of the Company are conducted through the Company's wholly owned subsidiary in Sunrise, Florida.
Change in officers
On December 14, 2017, Officer and Director Dore S.
Perler resigned and appointed Dan Oran as Officer and Director.
The Company's fiscal year end
is December 31. Essentially all the operations of the Company are conducted through the Company's subsidiary Elite.
Change in officers
On December 14, 2017, former Officer and Director Dore
S. Perler resigned and appointed Dan Oran as Officer and Director.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation and consolidation
The Company's condensed consolidated financial statements
have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Accordingly, they
do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements.
In our opinion the unaudited condensed consolidated financial statements include all adjustments (consisting of normal recurring
accruals) necessary to make the unaudited condensed consolidated financial statements not misleading. Operating results for the
three and six months ended June 30, 2018 are not necessarily indicative of the final results that may be expected for the
year ending December 31, 2018. For more complete financial information, these unaudited condensed financial statements should be
read in conjunction with the audited financial statements for the year ended December 31, 2017. A summary of our significant
accounting policies consistently applied in the preparation of the accompanying condensed consolidated financial statements follows.
pg.
42
Principle of consolidation
All intercompany balances and transactions
have been eliminated on consolidation.
Use of estimates and assumptions
The preparation of consolidated financial
statements in conformity with accounting principles generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
The Company's significant estimates
and assumptions include the fair value of financial instruments; the carrying value, recoverability and impairment, if any, of
long-lived assets, including the values assigned to and the estimated useful lives of fixed assets; income tax rate, income tax
provision and valuation allowance of deferred tax
assets; stock-based compensation, valuation
of inventory and the assumption that the Company will continue as a going concern.
Those significant accounting estimates
or assumptions bear the risk of change due to the fact that there are uncertainties attached to those estimates or assumptions,
and certain estimates or assumptions are difficult to measure or value.
Management bases its estimates on historical
experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the
basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.
Management regularly reviews its estimates
utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions.
After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those
estimates.
Fair value of financial instruments
The Company follows paragraph 825-10-50-10
of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37
of the FASB Accounting Standards Codification ("Paragraph 820-10-35-37") to measure the fair value of its financial
instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted
in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency ' to
quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.
The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:
Level 1
Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.
Level 2
Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.
Level 3
Pricing inputs that are generally observable inputs and not corroborated by market data.
Financial assets are considered Level 3
when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least
one significant model assumption or input is unobservable.
The fair value hierarchy gives the highest
priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable
inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the
categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.
pg.
43
The carrying amount of the Company's
financial assets and liabilities, such as cash, prepaid expenses, deposits, accounts payable and accrued expenses approximate their
fair value because of the short maturity of those instruments.
Transactions involving related parties
cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings
may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions
were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be
substantiated.
It is not however practical to determine
the fair value of advances from stockholders due to their related party nature.
Cash and cash equivalents
The Company considers all highly liquid
investments with a maturity of three months or less to be cash and cash equivalents.
Related parties
The Company follows subtopic 850-10 of
the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.
Pursuant to Section 850-10-20 the
related parties include a. affiliates of the Company; b. Entities for which investments in their equity securities would be
required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15,
to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension
and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company;
e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence
the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully
pursuing its own separate interests; and g. Other parties that can significantly influence the management or operating policies
of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence
the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.
Commitments and contingencies
The Company follows subtopic 450-20 of the
FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date
the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when
one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently
involves an exercise of Judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company
or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or
unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.
If the assessment of a contingency indicates
that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated
liability would be accrued in the Company's consolidated financial statements. If the assessment indicates that a potential
material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of
the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.
Loss contingencies considered remote are
generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe,
based upon information available at this time, that these matters will have a material adverse effect on the Company's consolidated
financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and
adversely affect the Company's business, financial position, and results of operations or cash flows.
pg.
44
Revenue recognition
The Company applies paragraph 605-10-S99-1
of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable
and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive
evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii)
the sales price is fixed or determinable, and (iv) collectability is reasonably assured.
The Company derives its revenues from sales
contracts with its customer with revenues being generated upon rendering of products. Persuasive evidence of an arrangement is
demonstrated via invoice; products are considered provided when the product is delivered to the customers; and the sales price
to the customer is fixed upon acceptance of the purchase order and there is no separate sales rebate, discount, or volume incentive.
Accounts
Receivable, net
The Company recognizes an allowance for losses
on accounts receivable in an amount equal to the estimated probable losses net of recoveries. The allowance is based on an analysis
of historical bad debt experience, current receivables aging, and expected future write-offs, as well as an assessment of specific
identifiable customer accounts considered at risk or uncollectible. The Company recorded an allowance of doubtful accounts of $2,920
and $0, for the six months ended June 30, 2018 and 2017.
Inventories
Inventories are stated at the lower of cost or market using the
first in, first out (FIFO) method. Provisions have been made to reduce excess or obsolete inventories to their net realizable value.
Costs of Revenue
Components of costs of sales include product costs, shipping costs
to customers and any inventory adjustments.
Shipping and Handling Costs
The Company includes shipping and handling fees billed to customers
as revenues and shipping and handling costs for shipments to customers as cost of revenues.
Income taxes
The Company is governed by the income tax laws
of the United States of America. The Company accounts for income tax using the liability method prescribed by ASC 740, "
Income
Taxes
". Under this method, deferred tax assets and liabilities are determined based on the difference between the financial
reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences
are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available
evidence, it is more-likely- than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on
deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date.
The Company applies the provisions of ASC 740-10-50, "Accounting
for Uncertainty in Income Taxes", which provides clarification related to the process associated with accounting for uncertain
tax positions recognized in our financial statements. Audit periods remain open for review until the statute of limitations has
passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment
to the Company's liability for income taxes. Any such adjustment could be material to the Company's results of operations
for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of June 30, 2018,
and December 31, 2017, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the
future. The Company is subject to U.S. Federal income tax examinations for the tax years ended December 31, 2014 through 2016.
pg.
45
On December 22, 2017, the 2017 Tax Cuts and
Jobs Act (the Tax Act) was enacted into law and the new legislation contains several key tax provisions that affected us, including
a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21% effective
January 1, 2018, among others. We are required to recognize the effect of the tax law changes in the period of enactment, such
as determining the transition tax, re-measuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability
of our deferred tax assets and liabilities. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income
Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which allows us to record provisional amounts during a
measurement period not to extend beyond one year of the enactment date. Since the Tax Act was passed late in the fourth quarter
of 2017, and ongoing guidance and accounting interpretation are expected over the next 12 months, we consider the accounting of
the transition tax, deferred tax re-measurements, and other items to be incomplete due to the forthcoming guidance and our ongoing
analysis of final year-end data and tax positions. We expect to complete our analysis within the measurement period in accordance
with SAB 118.
The Company's ability to utilize its
net operating loss (NOL) carryforwards may be substantially limited due to ownership changes that may have occurred on December
14, 2017, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the Code), as well as similar state
provisions. These ownership changes may limit the amount of NOL carryforwards that can be utilized annually to offset future taxable
income and tax, respectively. In general, an "ownership change," as defined by Section 382 of the Code, results
from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percent
of the outstanding stock of a company by certain stockholders or public groups.
If the Company has
experienced an ownership change, utilization of the NOL carryforwards would be subject to an annual limitation, which is determined
by first multiplying the value of the Company's stock at the time of the ownership change by the applicable long-term, tax-exempt
rate, and then could be subject to additional adjustments, as required. Any such limitation may result in the expiration of a portion
of the NOL carryforwards before utilization. Until a study is completed, and any limitation known, no amounts are being considered
as an uncertain tax position or disclosed as an unrecognized tax benefit under ASC-740. Any carryforwards that expire prior to
utilization as a result of such limitations will be removed from deferred tax assets with a corresponding reduction of the valuation
allowance. Due to the existence of the valuation allowance, it is not expected that any possible limitation will have an impact
on the results of operations of the Company
.
Tax returns for Profile Solutions, Inc. have
not been prepared and filed for the years ended December 31, 2016 and 2017 through 2018 and may be subject to penalties for delinquent
and non-compliance requirements, in addition, to the NOL carryover changes from prior years.
Net loss per common share
The Company follows ASC Topic 260 to account
for earnings per share. Basic earnings per common share ("EPS") calculations are determined by dividing net income
by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations
are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding.
During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.
There were no potentially dilutive shares
outstanding as of June 30, 2018.
Cash flows reporting
The Company adopted paragraph 230-10-45-24
of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether
they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect
or reconciliation method ("Indirect method") as defined by paragraph 230-10-45-25 of the FASB Accounting Standards
Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from
operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals
of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating
cash receipts and payments.
pg.
46
Recently issued accounting pronouncements
We have reviewed all new accounting pronouncements
and, except as set forth below, do not expect any new pronouncements or guidance to have an impact on our results of operations
or financial position.
All other newly issued accounting pronouncements,
but not yet effective, have been deemed either immaterial or not applicable.
Note 3 –Liquidity and Going Concern
The accompanying consolidated financial
statements have been prepared assuming that the Company will continue as a going concern. As reflected in the accompanying
consolidated financial statements, the Company had an accumulated deficit of $358,988 at June 30, 2018, a net loss of $275,068
and net cash used in operating activities of $379,082 for the six months ended June 30, 2018.
While the Company is attempting to generate
sufficient revenues, the Company's cash position may not be sufficient enough to support the Company's daily operations.
Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently
being taken to further implement its business plan and generate sufficient revenues provide the opportunity for the Company to
continue as a going concern. While the Company believes in the viability of its strategy to generate sufficient revenues and in
its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going
concern is dependent upon the Company's ability to further implement its business plan and generate sufficient revenues.
The consolidated financial statements do
not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
NOTE 4 – RELATED PARTY TRANSACTIONS
In March 2016, Elite
entered into a three-year lease agreement with a related party for an aggregate rent of $46,091. This lease was amended in February
2018 for a monthly rent of approximately $4,000 with an annual escalation of 3% per year expiring on December 31, 2021 with the
option to renew for two additional years. The Company owed this related party approximately $5,000 as of June 30, 2018 and December
31, 2017, respectively. The amounts owed to this related party were 15% and 45% of accounts payable as of June 30, 2018 and December
31, 2017, respectively.
Elite owed two related
parties an aggregate of approximately $40,000 as of December 31, 2016. These amounts were repaid and converted to equity during
2017.
In November 2017,
Elite entered into consulting agreements with three related parties for a monthly fee of $7,500 for three years. Two of the three
agreements call for a percentage of future generations of sales and equity funding or acquisition of or by the Companies. Elite
paid approximately $40,000 to these related parties in 2017. In February 2018, Elite entered into an additional consulting agreement
with a related party for a monthly fee of $7,500 and 10%
future generation of sales on a month to month basis
On March 31, 2018, $80,000 was paid as a good
faith refundable deposit for a potential acquisition by the Company.
On May 14, 2018, the $ 80,000 deposit was paid
back to the Company.
NOTE 5 - CONCENTRATION ON CREDIT
RISK
Major Customers
During the six months ended June 30, 2018 and
2017, Elite had one customer that approximated 35% of sales and one customers that approximated 26% of sales, respectively. One
customer in 2018 is also a minority shareholder of the Company.
pg.
47
At June 30, 2018 the Company had a concentration
of accounts receivable from two customers, totaling 79%. One customer is also a minority shareholder of the Company.
At December 31, 2017, the Company had a concentration
of accounts receivable from one customer, totaling 90%. This customer is also a minority shareholder of the Company.
Major Vendors
During the six months ended June
30, 2018 and 2017, Elite had four vendors that approximated
59% of purchases and four vendors
that approximated 73% of purchase, respectively.
NOTE 6 – EQUITY
As noted in Note one on December
14, 2017, the Company acquired all of the issued and outstanding shares of Elite. The acquisition was accounted for as a recapitalization
of the Company. The former shareholders of Elite received 600,000,000 shares in the new parent entity Profile
Preferred Stock
The Company has 10,000,000 preferred
shares authorized with a par value of $0.001 per share with no issued and outstanding at June 30, 2018 and December 31, 2017.
Common Stock
The Company has 1,000,000,000
common shares authorized with a par value of $0.001 per share with 772,808,793 and 757,233,793 shares issued and outstanding at
June 30, 2018 and December 31, 2017.
For the six months ended June 30, 2018, the
Company issued 14,860,714 shares of common stock in consideration of $527,000 pursuant to certain subscription agreements. In addition,
714,286 shares of the Company's common stock were issued for services rendered with a fair value of $25,000.
During the year ended December
31, 2017, the company issued 600,000,000 shares of common stock to former shareholders of Elite for 100% of the issued and outstanding
shares of Elite
NOTE 7 – PREPAID EXPENSES
Prepaid Expense represents the payment tendered
to a manufacturer to produce product. For the six months ended June 30, 2018 and year ended December 31, 2017, the company had
$59,653 and $12,539 respectively
NOTE 8 – LOAN RECEIVABLE
On June 15, 2018, the Company entered into Royalty Participation
Agreement with Stemtech Corporation. The Company loaned $100,000 to Stemtech Corporation to be used as working capital. The loan
is interest free and due twelve months from the effective date. In consideration for the $50,000 loan from the Company Stemtech
will pay a percentage from the sales, licensing or disposition of its products or other revenue. The royalty payments equal to
the great of $10,000 or one percent of all "gross revenue" received by the company during the month based on (i) the
sale, license, development, commercialization or monetization of the products and (ii) all gains on disposition of any products
or assets or other income until the earlier of (A) the closing of the Reorganization and purchase and Sale Agreement between the
Stemtech Corporation and the Company or (B) 12 months from execution of this agreement.
pg.
48
On June 22, 2018, the Company entered into Royalty Participation
Agreement with Stemtech Corporation. The Company loaned $50,000 to Stemtech Corporation to be used as working capital. The loan
is interest free and due twelve months from the effective date. In consideration for the $50,000 loan from the Company Stemtech
will pay a percentage from the sales, licensing or disposition of its products or other revenue. The royalty payments equal to
the great of $5,000 or one half percent of all "gross revenue" received by the company during the month based on (i)
the sale, license, development, commercialization or monetization of the products and (ii) all gains on disposition of any products
or assets or other income until the earlier of (A) the closing of the Reorganization and purchase and Sale Agreement between the
Stemtech Corporation and the Company or (B) 12 months from execution of this agreement.
For the six months ended June 30, 2018, the Company recorded loan
receivable of $150,000.
NOTE 9 - COMMITMENTS
Royalty agreements
On December 14, 2017, Profile Solutions,
Inc. entered into a Royalty Agreement with a group of unrelated investors. The purpose of this Agreement is for Profile Solutions
to utilize this license to develop produce, market, promote, distribute and enhance the existing prototype for its use within
the United States of America. Royalty payments will be tendered on a quarterly basis beginning February 1, May1, August 1, and
November 1 of each year during the term of this agreement.
Lease agreements
On February 1, 2018 the Company's entered into a three year
lease agreement with a related party in Sunrise, Florida commencing February 1, 2018 through January 31, 2021 for aggregate rent
of $155,988 The amount is to be paid monthly over the term of the lease term along with 3 percent increases per annum. A deposit
of $1,250 was tendered to secure the lease.
Future minimum lease payments for this office
space are as follows:
Year
Amount
2018
47,663
2019
51,996
2020
51,996
2021
4,333
$
155,988
Employment agreement
During the year ended December 31, 2017, the
Company entered into an employment agreement dated November 1, 2017 with the Company's wholly owned subsidiary CEO. As
part of this agreement, the Company agreed to annual compensation of $ 90,000 with a 3-year term. On May 1, 2018, the Agreement
has been modified to annual compensation of $48,000 plus 5% of sales over $50,000 per month. Refer to Note 4 for additional future
commitments related to this agreement.
Consulting agreements
During the year ended December 31, 2017, the
Company entered into two separate consulting agreements dated November 1, 2017. As part of these agreements, the Company agreed
to annual compensation of $ 90,000 each with 3-year terms. The Consultants will provide strategic business development ideas as
well as public company expertise and management. Refer to Note 4 for additional future commitments related to these agreement.
In
February 2018, Elite entered into an additional consulting agreement with a related party for a monthly fee of $7,500 and 10%
future generation of sales on a month to month basis.
On March 2, 2018, the Company entered into
an Advisory Board Agreement with an individual that has expertise in the Hemp business and also has expertise in public companies.
This agreement is for four months and consideration is for $25,000 worth of the Company's common stock payable at $0.035
a share.
pg.
49
[Outside back cover of prospectus]
Dealer Prospectus
Delivery Obligation
Until (
insert date
), all dealers that effect transactions
in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition
to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments
or subscriptions.
Profile Solutions, Inc.
167,583,443 Shares of Common Stock Prospectus
___________, 2018
pg.
50
Part II
Information Not Required in Prospectus
Item 13. Other Expenses of Issuance and Distribution
The following table sets forth the costs and
expenses payable by us in connection with the issuance and distribution of the securities being registered hereunder. The selling
stockholder will bear no expenses associated with this offering except for any broker discounts and commissions or equivalent expenses
and expenses of the selling stockholder's legal counsel applicable to the sale of its shares. All of the amounts shown are
estimates, except for the Securities and Exchange Commission registration fees.
Securities and Exchange Commission registration fees
$
*
Accounting fees and expenses
$
*
Legal fees and expenses
$
*
Miscellaneous fees and expenses
$
*
Total
$
*To be filed by amendment.
Item 14. Indemnification of Directors and Officers.
Section 102(b)(7) of the Delaware General Corporation
Law, or DGCL, allows a corporation to provide in its certificate of incorporation that a director of the corporation will not be
personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except
where the director breached the duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated
a law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law or obtained an
improper personal benefit. Our amended and restated certificate of incorporation will provide for this limitation of liability.
Section 145 of the DGCL, or Section 145, provides,
among other things, that a Delaware corporation may indemnify any person who was, is or is threatened to be made, party to any
threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than
an action by or in the right of such corporation), by reason of the fact that such person is or was an officer, director, employee
or agent of such corporation or is or was serving at the request of such corporation as a director, officer, employee or agent
of another corporation or enterprise. The indemnity may include expenses (including attorneys' fees), judgments, fines and
amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding,
provided such person acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the corporation's
best interests and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his or her conduct
was illegal. A Delaware corporation may indemnify any persons who were or are a party to any threatened, pending or completed action
or suit by or in the right of the corporation by reason of the fact that such person is or was a director, officer, employee or
agent of another corporation or enterprise. The indemnity may include expenses (including attorneys' fees) actually and reasonably
incurred by such person in connection with the defense or settlement of such action or suit, provided such person acted in good
faith and in a manner he or she reasonably believed to be in or not opposed to the corporation's best interests, provided
further that no indemnification is permitted without judicial approval if the officer, director, employee or agent is adjudged
to be liable to the corporation. Where an officer or director is successful on the merits or otherwise in the defense of any action
referred to above, the corporation must indemnify him against the expenses which such officer or director has actually and reasonably
incurred.
Section 145 further authorizes a corporation
to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation
or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or enterprise,
against any liability asserted against him and incurred by him in any such capacity, or arising out of his or her status as such,
whether or not the corporation would otherwise have the power to indemnify him or her under Section 145.
pg.
51
Our bylaws provide that we must indemnify our
directors and officers to the fullest extent authorized by the DGCL and must also pay expenses incurred in defending any such proceeding
in advance of its final disposition upon delivery of an undertaking, by or on behalf of an indemnified person, to repay all amounts
so advanced if it should be determined ultimately that such person is not entitled to be indemnified under this section or otherwise.
Notwithstanding the foregoing, we shall not be obligated to indemnify a director or officer in respect of a proceeding (or part
thereof) instituted by such director or officer, unless such proceeding (or part thereof) has been authorized by the Board of Directors
pursuant to the applicable procedure outlined in the bylaws.
Section 174 of the DGCL provides, among other
things, that a director, who willfully or negligently approves of an unlawful payment of dividends or an unlawful stock purchase
or redemption, may be held jointly and severally liable for such actions. A director who was either absent when the unlawful actions
were approved or dissented at the time may avoid liability by causing his or her dissent to such actions to be entered in the books
containing the minutes of the meetings of the board of directors at the time such action occurred or immediately after such absent
director receives notice of the unlawful acts.
The indemnification rights set forth above shall
not be exclusive of any other right which an indemnified person may have or hereafter acquire under any statute, provision of our
amended and restated certificate of incorporation, our bylaws, agreement, vote of stockholders or disinterested directors or otherwise.
We maintain standard policies of insurance that
provide coverage (1) to our directors and officers against losses arising from claims made by reason of breach of duty or other
wrongful act and (2) to us with respect to indemnification payments that we may make to such directors and officers.
Item 15. Recent Sales of Unregistered Securities.
On October 3, 2016, we issued 5,500,000 shares of common stock to
a consultant for services rendered. These common shares were valued on the measurement date at $27,500 based on estimated fair
value of services rendered and we recorded compensation expense of $27,500.
On December 14, 2017, we issued 360,000,000 shares of common stock
pursuant to a Reorganization and Stock Purchase Agreement in exchange for $ 105,935.12
On December 14, 2017, we issued 120,000,000 shares of common stock
to a consultant for services rendered. These common shares were valued on the measurement date at $10,000 based on estimated fair
value of services rendered and we recorded compensation expense of $10,000.
On December 14, 2017, we issued 60,000,000 shares of common stock
to a consultant for services rendered. These common shares were valued on the measurement date at $5,000 based on estimated fair
value of services rendered and we recorded compensation expense of $5,000.
On December 14, 2017, we issued 60,000,000 shares of common stock
pursuant to a Reorganization and Stock Purchase Agreement in exchange for $ 25,000
On December 14, 2017, we issued 1,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $5,000.
On December 14, 2017, we issued 1,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $5,000.
On December 14, 2017, we issued 20,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $100,000.
On December 14, 2017, we issued 400,000 shares of common stock to
pursuant to a Stock Subscription Agreement for $2,000.
On December 14, 2017, we issued 4,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $20,000.
pg.
52
On December 14, 2017, we issued 4,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $20,000.
On December 14, 2017, we issued 4,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $20,000.
On December 14, 2017, we issued 4,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $20,000.
On December 14, 2017, we issued 4,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $20,000.
On December 14, 2017, we issued 4,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $20,000.
On December 14, 2017, we issued 1,000,000 shares of common stock
to pursuant to a Stock Subscription Agreement for $5,000.
On December 14, 2017, we issued 38,874,023 shares of common stock
to pursuant to a Stock Subscription Agreement for $35,000.
On December 14, 2017, we issued 38,874,023 shares of common stock
to pursuant to a Stock Subscription Agreement for $35,000.
On December 14, 2017, we issued 100,000 shares of common stock to
a consultant for services rendered. These common shares were valued on the measurement date at $500 based on estimated fair value
of services rendered and we recorded compensation expense of $500.
On December 14, 2017, we issued 100,000 shares of common stock to
a consultant for services rendered. These common shares were valued on the measurement date at $500 based on estimated fair value
of services rendered and we recorded compensation expense of $500.
On December 14, 2017, we issued 100,000 shares of common stock to
a consultant for services rendered. These common shares were valued on the measurement date at $500 based on estimated fair value
of services rendered and we recorded compensation expense of $500.
On December 14, 2017, we issued 100,000 shares of common stock to
a consultant for services rendered. These common shares were valued on the measurement date at $500 based on estimated fair value
of services rendered and we recorded compensation expense of $500.
On December 14, 2017, we issued 100,000 shares of common stock to
a consultant for services rendered. These common shares were valued on the measurement date at $500 based on estimated fair value
of services rendered and we recorded compensation expense of $500.
On December 14, 2017 we cancelled 9,250,000 shares of common stock
pursuant to a Common Stock Re-Purchase Agreement for $9,000.
On December 14, 2017 we cancelled 10,000,000 shares of common stock
pursuant to a Common Stock Re-Purchase Agreement for $9,138.58.
On December 14, 2017, we cancelled 56,750,000 shares of
common stock pursuant to a Common Stock Re-Purchase Agreement for $51,861.42.
On March 2, 2018, we issued 714,286 shares of common stock pursuant
to a consulting agreement for services rendered valued at $ 25,000
pg.
53
Each of the above issuances were offered in reliance on an exemption
from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act") and none of
the issuances were registered or qualified in any jurisdictions and were offered pursuant to applicable exemptions from registration.
The shares, when issued, were restricted securities and contained a restrictive legend stating that the shares were not registered
under the Securities Act. We did not pay anyone any compensation, commission, fee or other consideration in connection with the
sale of our shares.
Item 16. Exhibits and Financial Schedules.
Exhibit Number
Title or Description
3(i)
Articles of Incorporation
3(ii)
Bylaws
5
Opinion re: legality
10(i)
Consulting Agreement between subsidiary and Dan Oran
10(ii)
Employment Agreement between subsidiary and Chief Executive Officer
21
Subsidiaries of the registrant
23(i)
Consent of Independent Public Accountant
23(ii)
Consent of Counsel (included in Exhibit 5)
Item 17. Undertakings.
The undersigned Registrant hereby undertakes:
To file, during any period in which offers,
or sales are being made, a post-effective amendment to this registration statement:
To include any prospectus required by section
10(a)(3) of the Securities Act of 1933;
To reflect in the prospectus any facts or events
arising after the effective date of the registration statement (or the most recent post- effective amendment thereof) which, individually
or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding
the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would
not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be
reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration
Fee" table in the effective registration statement.
To include any material information with respect
to the plan of distribution not previously disclosed in the registration statement or any material change to such information in
the registration statement;
That, for the purpose of determining any liability
under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide
offering thereof.
To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the termination of the offering.
Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to
the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim
for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
pg.
54
Each prospectus filed pursuant to Rule 424(b)
as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than
prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the
date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus
that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior
to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of
the registration statement or made in any such document immediately prior to such date of first use.
The undersigned registrant undertakes that in
a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting
method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of
the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell
such securities to such purchaser:
Any preliminary prospectus or prospectus of
the undersigned registrant relating to the offering required to be filed pursuant to Rule 424 (§ 230.424 of this chapter);
Any free writing prospectus relating to the
offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
The portion of any other free writing prospectus
relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf
of the undersigned registrant; and
Any other communication that is an offer in
the offering made by the undersigned registrant to the purchaser.
Signatures
Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized in the City of Sunrise, State of Florida, on October 19, 2018.
PROFILE SOLUTIONS, INC.
By:
/s/Dan Oran
Dan Oran
Chief Executive Officer
Chief Financial Officer
Date:
October 19,
    2018
In accordance with the requirements of
the Securities Act of 1933, this registration statement was signed by the following persons in the capacities and on the dates
stated:
Signature and Name
Capacity in which signed
Date
/s/
Dan Oran
Director, Chief Executive Officer and Chief
Financial Officer
October 19, 2018
Dan Oran
pg. 55