<HTML>
<head><title>Filed by Ched Corporate Solutions - www.chedcorp.com - 1-888-567-CHED (2433) - Development Capital Group - Form 10-Q</title> </head> <body style="MARGIN-TOP:0px; FONT-FAMILY:Times New Roman; COLOR:#000000; FONT-SIZE:10pt"> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=center><b><font style=FONT-SIZE:11pt>UNITED STATES</font></b></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=center><b><font style=FONT-SIZE:11pt>SECURITIES AND EXCHANGE COMMISSION</font></b></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=center><b><font style=FONT-SIZE:11pt>Washington, D.C. 20549</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=center><br></p></font> <p style="MARGIN:0px; FONT-SIZE:12pt" align=center><b><font style=FONT-SIZE:11pt>FORM 10-Q</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=center><br></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><b><font style=FONT-SIZE:11pt>(Mark One)</font></b></p> <p style="MARGIN:0px; FONT-FAMILY:Wingdings; FONT-SIZE:12pt" align=center><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font face="Times New Roman"><b><font face=Wingdings>x</font>&nbsp;</b><font style="FONT-FAMILY:Times New Roman"><b>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></font></font></font></font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=center><br></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt>For the quarterly period ended <b><u>December 31, 2014</u></b></font></font></font></p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><b><font style=FONT-SIZE:11pt>OR</font></b></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=center>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Wingdings; FONT-SIZE:12pt" align=center><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font face="Times New Roman"><b><font face=Wingdings>o</font>&nbsp;</b><font style="FONT-FAMILY:Times New Roman"><b>TRANSITIONAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></font></font></font></font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=center><br></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>For the transition period from ___________ to _____________</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=center><br></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><u><font style=FONT-SIZE:11pt>Commission file number 000-54566</font></u></p> <p style=MARGIN:0px align=center>&nbsp;</p> <p style=MARGIN:0px align=center>&nbsp;</p> <p style="MARGIN:0px; FONT-SIZE:18pt" align=center><b><u><font style=FONT-SIZE:18pt>Development Capital Group, Inc.</font></u></b></p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>(Name of Registrant as specified in its charter)</font></p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center>&nbsp;</p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><br></p></font> <div align=justify> <table bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0 align=center> <tr style=FONT-SIZE:0px> <td width=359> <td width=29> <td width=228> <td /> </tr><tr> <td width=359 style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><b><u>Florida<br></u></b>(State or Other Jurisdiction of Incorporation or Organization)</font></font></font></p></td> <td width=29 style=MARGIN-TOP:0px> <p style="MARGIN:0px; FONT-SIZE:11pt"><font style=FONT-SIZE:11pt>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; </font></p></td> <td width=228 style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><b><u><font style=FONT-SIZE:11pt>27-3746561</font></u></b></p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>(IRS Employer Identification Number)</font></p></td> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table></div> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify>&nbsp;</p> <div align=justify> <table bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0 align=center> <tr style=FONT-SIZE:0px> <td width=326 /> </tr><tr> <td width=326 height=19 style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr> <tr> <td width=326 height=19 style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><b><u><font style=FONT-SIZE:11pt>(888) 415-7758</font></u></b></p></td></tr> <tr> <td width=326 height=53 style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>(Registrant's telephone number)</font></p> <p style=MARGIN:0px align=center><font style=FONT-SIZE:11pt><br></font></p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><b><font style=FONT-SIZE:11pt>1932 Kellogg Ave</font></b></p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><b><font style=FONT-SIZE:11pt><u>Carlsbad, CA 92008</u></font></b></p></td></tr> <tr> <td width=326 height=38 style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-SIZE:11pt"><font style=FONT-SIZE:11pt>(Address of principal executives offices) (Zip Code)</font></p></td></tr></table></div> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [X] Yes [ ] No</font></p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center>&nbsp;</p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (&#167; 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ ] No [X] </font> <p style=MARGIN:0px align=center><br><font style=FONT-SIZE:11pt>Indicate by check mark whether the registrant is a large accelerated filed, an accelerated filer, a non-accelerated filer, or a smaller reporting company.</font></p> <p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center>&nbsp;</p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company<b> </b>[X](Do not check if a smaller reporting company)Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=center><br></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>State the number of shares outstanding of each of the issuer<font face="Times New Roman"><font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font></font>s classes of common stock, as of the latest practicable date: 72,542,735 common shares as of February 15, 2015.</font></font></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify>&nbsp;</p> <div align=justify> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:7px; MARGIN-BOTTOM:7px; FONT-SIZE:12pt" align=center>&nbsp;</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table></div> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=center><b><u><font style=FONT-SIZE:11pt>TABLE OF CONTENTS</font></u></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><br></p></font> <div align=justify> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td width=73> <td> <td width=37 /> </tr><tr> <td width=73 style=MARGIN-TOP:0px> <p style=MARGIN:6px><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td> <td width=37 style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr> <tr> <td width=539 colspan=2 style="BORDER-BOTTOM:medium none; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><b><font style=FONT-SIZE:11pt><u>PART I <font face="Times New Roman"><font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#150;</font> FINANCIAL INFORMATION</font></u></font></b></p></td> <td width=37 style="BORDER-BOTTOM:medium none; MARGIN-TOP:0px" valign=top><p align=center><font style=FONT-SIZE:11pt><u>Page</u></font></p></td></tr> <tr> <td width=73 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;</p></td> <td width=37 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt>ITEM 1</font></p></td> <td style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt>Financial Statements (Unaudited)</font></p></td> <td width=37 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px align=center><font style=FONT-SIZE:11pt>3</font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px>&nbsp;</p></td> <td style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td> <td width=37 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt>ITEM 2</font></p></td> <td style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt>Management<font face="Times New Roman"><font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#146;</font>s Discussion and Analysis of Financial Condition and Results of Operations.</font></font></p></td> <td width=37 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px align=center><font style=FONT-SIZE:11pt>4</font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px>&nbsp;</p></td> <td style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td> <td width=37 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt>ITEM 3</font></p></td> <td style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt>Quantitative and Qualitative Disclosures About Market Risk</font></p></td> <td width=37 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px align=center><font style=FONT-SIZE:11pt>6</font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px>&nbsp;</p></td> <td style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td> <td width=37 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt>ITEM 4</font></p></td> <td style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt>Controls and Procedures</font></p></td> <td width=37 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px align=center><font style=FONT-SIZE:11pt>6</font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px>&nbsp;</p></td> <td style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td> <td width=37 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr> <tr> <td width=539 colspan=2 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><b><font style=FONT-SIZE:11pt><u>PART II <font face="Times New Roman"><font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#150;</font> OTHER INFORMATION</font></u></font></b></p></td> <td width=37 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style="PADDING-BOTTOM:0px; MARGIN:0px; PADDING-LEFT:0px; PADDING-RIGHT:0px; PADDING-TOP:0px">&nbsp;</p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px>&nbsp;</p></td> <td style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td> <td width=37 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt>ITEM 1</font></p></td> <td style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt>Legal Proceedings</font></p></td> <td width=37 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px align=center><font style=FONT-SIZE:11pt>7</font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px>&nbsp;</p></td> <td style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td> <td width=37 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt>ITEM 1A</font></p></td> <td style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt>Risk Factors</font></p></td> <td width=37 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px align=center><font style=FONT-SIZE:11pt>7</font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px>&nbsp;</p></td> <td style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td> <td width=37 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt>ITEM 2</font></p></td> <td style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt>Unregistered Sales of Equity Securities and Use of Proceeds</font></p></td> <td width=37 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px align=center><font style=FONT-SIZE:11pt>7</font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px>&nbsp;</p></td> <td style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td> <td width=37 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt>ITEM 3</font></p></td> <td style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt>Defaults Upon Senior Securities</font></p></td> <td width=37 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px align=center><font style=FONT-SIZE:11pt>7</font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px>&nbsp;</p></td> <td style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td> <td width=37 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt>ITEM 4</font></p></td> <td style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt>Mine Safety Disclosures</font></p></td> <td width=37 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px align=center><font style=FONT-SIZE:11pt>7</font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px>&nbsp;</p></td> <td style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td> <td width=37 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt>ITEM 5</font></p></td> <td style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt>Other Information</font></p></td> <td width=37 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px align=center><font style=FONT-SIZE:11pt>7</font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px>&nbsp;</p></td> <td style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td> <td width=37 style="BACKGROUND-COLOR:#ffffff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr> <tr> <td width=73 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px><font style=FONT-SIZE:11pt>ITEM 6</font></p></td> <td style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px><font style=FONT-SIZE:11pt>Exhibits</font></p></td> <td width=37 style="BACKGROUND-COLOR:#cceeff; MARGIN-TOP:0px" valign=top><p style=MARGIN:0px align=center><font style=FONT-SIZE:11pt>8</font></p></td></tr></table></div> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify>&nbsp;</p> <div align=justify> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:6px; MARGIN-BOTTOM:6px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>2</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table></div><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px; FONT-SIZE:11pt" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><b><font style=FONT-SIZE:11pt>PART I - FINANCIAL INFORMATION</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Item 1. Financial Statements</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Our financial statements included in this Form 10-Q are as follows:</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><br></p></font> <div align=justify> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr> <td width=48 style="BORDER-LEFT:#000000 1px solid; MARGIN-TOP:0px; BORDER-TOP:#000000 1px solid" valign=top> <p style="MARGIN:0px; FONT-SIZE:11pt"><font style=FONT-SIZE:11pt>F-1&nbsp;</font></p></td> <td style="BORDER-LEFT:#000000 1px solid; MARGIN-TOP:0px; BORDER-TOP:#000000 1px solid; BORDER-RIGHT:#000000 1px solid" valign=top> <p style="MARGIN:0px; FONT-SIZE:11pt"><font style=FONT-SIZE:11pt>Condensed Consolidated Balance Sheets as of December 31, 2014 and June 30 2014 (unaudited);</font></p></td></tr> <tr> <td width=48 style="BORDER-LEFT:#000000 1px solid; MARGIN-TOP:0px; BORDER-TOP:#000000 1px solid" valign=top> <p style="MARGIN:0px; FONT-SIZE:11pt"><font style=FONT-SIZE:11pt>F-2</font></p></td> <td style="BORDER-LEFT:#000000 1px solid; MARGIN-TOP:0px; BORDER-TOP:#000000 1px solid; BORDER-RIGHT:#000000 1px solid" valign=top> <p style="MARGIN:0px; FONT-SIZE:11pt"><font style=FONT-SIZE:11pt>Condensed&nbsp;Consolidated Statements of Operations for the three and nine months ended December 31, 2014 and December 31, 2013 (unaudited);</font></p></td></tr> <tr> <td width=48 style="BORDER-LEFT:#000000 1px solid; MARGIN-TOP:0px; BORDER-TOP:#000000 1px solid" valign=top> <p style="MARGIN:0px; FONT-SIZE:11pt"><font style=FONT-SIZE:11pt>F-3</font></p></td> <td style="BORDER-LEFT:#000000 1px solid; MARGIN-TOP:0px; BORDER-TOP:#000000 1px solid; BORDER-RIGHT:#000000 1px solid" valign=top> <p style="MARGIN:0px; FONT-SIZE:11pt"><font style=FONT-SIZE:11pt>Condensed&nbsp;Consolidated Statements of Cash Flow for the three and nine&nbsp;months ended December 31, 2014 and&nbsp;December 31, 2013 (unaudited);</font></p></td></tr> <tr> <td width=48 style="BORDER-BOTTOM:#000000 1px solid; BORDER-LEFT:#000000 1px solid; MARGIN-TOP:0px; BORDER-TOP:#000000 1px solid" valign=top> <p style="MARGIN:0px; FONT-SIZE:11pt"><font style=FONT-SIZE:11pt>F-4</font></p></td> <td style="BORDER-BOTTOM:#000000 1px solid; BORDER-LEFT:#000000 1px solid; MARGIN-TOP:0px; BORDER-TOP:#000000 1px solid; BORDER-RIGHT:#000000 1px solid" valign=top> <p style="MARGIN:0px; FONT-SIZE:11pt"><font style=FONT-SIZE:11pt>Notes to Condensed Consolidated&nbsp;Financial Statements (unaudited).</font></p></td></tr></table></div><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>These condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q. &nbsp;In the opinion of management, all adjustments considered necessary for a fair presentation have been included. &nbsp;Operating results for the interim period ended December 31, 2014 are not necessarily indicative of the results that can be expected for the full year.</font></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify>&nbsp;</p> <div align=justify>&nbsp;</div> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:6px; MARGIN-BOTTOM:6px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>3</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table> <p style=MARGIN:0px align=justify><br><br> <table width=100% bordercolor=transparent style="WIDTH:100%; BORDER-COLLAPSE:collapse" cellpadding=0 cellspacing=0> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=5 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2><strong><br><font style=FONT-SIZE:11pt>DEVELOPMENT CAPITAL GROUP, INC. AND SUBSIDIARIES</font></strong></font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=5 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt><strong>CONDENSED CONSOLIDATED BALANCE SHEETS</strong></font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=5 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><strong><font size=2 style=FONT-SIZE:11pt>(unaudited)</font></strong></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center /></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center /></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>December 31,</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>March 31,</font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>2014</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>2014</font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>ASSETS</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Current assets:</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Cash and cash equivalents</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>18,044 </font></font></font></font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>297,146 </font></font></font></font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Marketable securities</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2>&nbsp;&nbsp;&nbsp; &nbsp;</font></font></font></font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>3,724 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Prepaid expenses</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2>&nbsp;&nbsp;&nbsp; &nbsp;</font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>163,400 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Inventory</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>44,624 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>131,854 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Note receivable</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2>&nbsp;&nbsp;&nbsp; &nbsp;</font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>76,420 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Note receivable - related party</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>95,745 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>230,365 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Merchant reserve account</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>34,262 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>196,325 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Total current assets</font></td> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:windowtext 0.5pt solid; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>192,675 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:windowtext 0.5pt solid; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>1,099,234 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Fixed assets:</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Office equipment, net of accumulated depreciation of $2,204 and $818</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>3,447 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>4,538 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Other assets:</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Other assets, net of amortization of $2,218 and $0</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>5,432 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>7,650 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Deposits held</font></td> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>4,935 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>4,935 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Total other assets</font></td> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>10,367 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>12,585 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=18 style=HEIGHT:13.5pt> <td height=18 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:13.5pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Total assets</font></td> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>206,489 </font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>$1,116,357 </font></td></tr> <tr height=18 style=HEIGHT:13.5pt bgcolor=#ddf8ff> <td height=18 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:13.5pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>LIABILITIES AND STOCKHOLDERS' (DEFICIT)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Current liabilities:</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Accounts payable and accrued expenses</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>1,708,906 </font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>$1,929,642 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Accrued interest</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>106,090 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>33,821 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Reserve for returns and allowances</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>10,000 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>15,000 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Convertible notes payable</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>603,000 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>603,000 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Convertible notes payable - related party</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>380,000 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>196,988 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Total current liabilities</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:windowtext 0.5pt solid; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>2,807,996 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:windowtext 0.5pt solid; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>2,778,451 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Contingencies</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp; </font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2 style=FONT-SIZE:11pt>-&nbsp;&nbsp;&nbsp; </font></font></font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Total liabilities</font></td> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>2,807,996 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>2,778,451 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Stockholders' (deficit):</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Common stock, $0.001 par value, 490,000,000 shares</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=3 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=left><font size=2 style=FONT-SIZE:11pt>authorized, 105,542,735 and 105,542,735 shares issued and outstanding</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>as of December 31, 2014 and March 31, 2014, respectively</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>105,543 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>105,543 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Additional paid in capital</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>392,553 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>344,580 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Accumulated (deficit)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(3,099,603)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(2,112,217)</font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Total stockholders' (deficit)</font></td> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:windowtext 0.5pt solid; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(2,601,507)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:windowtext 0.5pt solid; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(1,662,094)</font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=18 style=HEIGHT:13.5pt bgcolor=#ddf8ff> <td height=18 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:13.5pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Total liabilities and stockholders' (deficit)</font></td> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>206,489 </font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>$1,116,357 </font></td></tr> <tr height=18 style=HEIGHT:13.5pt> <td height=18 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:13.5pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /></tr></table></p><br><br> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:6px; MARGIN-BOTTOM:6px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>F-1</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table><br> <p align=justify> <table width=100% bordercolor=transparent style="WIDTH:100%; BORDER-COLLAPSE:collapse" cellpadding=0 cellspacing=0> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=9 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><br> <p align=center><font size=2 style=FONT-SIZE:11pt><strong>DEVELOPMENT CAPITAL GROUP, INC. AND SUBSIDIARIES</strong></font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=9 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt><strong>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</strong></font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=9 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><strong><font size=2 style=FONT-SIZE:11pt>(unaudited)<br></font></strong></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center /></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>For the</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>April 22, 2013</font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td colspan=3 style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>For the three months ended</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>nine months</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>(Inception)</font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>ended</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>to</font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>December 31,</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>December 31,</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>December 31,</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>December 31,</font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>2014</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>2013</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>2014</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>2013</font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Revenue</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Sales, net of allowances</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>130,832 </font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>1,827,587 </font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>609,877 </font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>2,075,003 </font></font></font></font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Cost of goods sold</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>63,522 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>1,120,516 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>324,188 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>1,320,750 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Gross profit</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>67,310 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>707,071 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>285,689 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>754,253 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Operating expenses:</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Selling expenses</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>60,740 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>135,817 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>203,313 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>167,596 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Promotional and marketing expenses</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>2,510 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>997,082 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>10,923 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>1,832,502 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>General and administrative expenses</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>13,810 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>45,343 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>622,422 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>70,089 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Salaries and wages</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>110,141 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>177,634 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>363,801 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>187,904 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Total operating expenses</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>187,201 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>1,355,876 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>1,200,459 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>2,258,091 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Net (loss) from operating activites</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(119,891)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(648,805)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(914,770)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(1,503,838)</font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Other (expense):</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Interest expense, net</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(24,218)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(15,931)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(72,616)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(15,931)</font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Total other (expense)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(24,218)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(15,931)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(72,616)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(15,931)</font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Provision for income tax</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2> </font>&nbsp;&nbsp;&nbsp; </font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2> </font>&nbsp;&nbsp;&nbsp; </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2> </font>&nbsp;&nbsp;&nbsp; </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2>&nbsp;&nbsp;&nbsp; &nbsp;</font></font></font></font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=18 style=HEIGHT:13.5pt> <td height=18 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:13.5pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Net (loss)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>(144,109)</font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>(664,736)</font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>(987,386)</font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>(1,519,769)</font></font></font></font></td></tr> <tr height=18 style=HEIGHT:13.5pt bgcolor=#ddf8ff> <td height=18 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:13.5pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <tr height=18 style=HEIGHT:13.5pt bgcolor=#ddf8ff> <td height=18 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:13.5pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Net loss per share - basic and diluted</font></td> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>(0.00)</font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>(0.01)</font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>(0.01)</font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>(0.02)</font></font></font></font></td></tr> <tr height=18 style=HEIGHT:13.5pt> <td height=18 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:13.5pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Weighted average number of common</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <tr height=18 style=HEIGHT:13.5pt> <td height=18 colspan=2 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:13.5pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>shares outstanding - basic and diluted</font></td> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>105,542,735 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>85,785,452 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>105,542,735 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>82,313,204 </font></td></tr> <tr height=18 style=HEIGHT:13.5pt bgcolor=#ddf8ff> <td height=18 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:13.5pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /></tr></table></p><br><br> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:6px; MARGIN-BOTTOM:6px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>F-2</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table><br> <p align=justify> <table width=100% bordercolor=transparent style="WIDTH:100%; BORDER-COLLAPSE:collapse" cellpadding=0 cellspacing=0> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=5 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2><strong><br><font style=FONT-SIZE:11pt>DEVELOPMENT CAPITAL GROUP, INC. AND SUBSIDIARIES</font></strong></font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=5 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt><strong>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</strong></font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 colspan=5 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><strong><font size=2 style=FONT-SIZE:11pt>(unaudited)</font></strong></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center /></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>For the</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>April 22, 2013</font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>nine months</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>(Inception)</font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>ended</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>to</font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>December 31,</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>December 31,</font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>2014</font></p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <p align=center /></td> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=center><font size=2 style=FONT-SIZE:11pt>2013</font></p></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><strong><font size=2 style=FONT-SIZE:11pt>CASH FLOWS FROM OPERATING ACTIVITIES</font></strong></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Net (loss)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>(987,386)</font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>(1,519,769)</font></font></font></font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Adjustments to reconcile net (loss)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>to net cash used in operating activities:</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Options issued for services</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>47,973 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2>&nbsp;&nbsp;&nbsp; &nbsp;</font></font></font></font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Depreciation</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>3,604 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2>&nbsp;&nbsp;&nbsp; &nbsp;</font></font></font></font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Changes in operating assets and liabilities:</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Decrease in prepaid expenses</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>163,400 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(37,500)</font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Decrease in inventory</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>87,230 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(20,836)</font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Decrease in merchant reserve</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>162,063 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2>&nbsp;&nbsp;&nbsp; &nbsp;</font></font></font></font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>(Increase) in other assets</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>3,724 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(1,493)</font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>(Decrease) in accounts payable</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(220,736)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>1,587,243 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Increase in accrued interest</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>75,281 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2>&nbsp;&nbsp;&nbsp; &nbsp;</font></font></font></font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>(Decrease) in allowance for returns</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(5,000)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2>&nbsp;&nbsp;&nbsp; &nbsp;</font></font></font></font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Net cash used in operating activities</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(669,847)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>7,645 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><strong><font size=2 style=FONT-SIZE:11pt>CASH FLOWS FROM INVESTING ACTIVITIES</font></strong></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Repayments for notes receivable</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>211,040 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2>&nbsp;&nbsp;&nbsp; &nbsp;</font></font></font></font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Purchase of fixed assets</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(295)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(3,359)</font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Net cash used in investing activities</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>210,745 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(3,359)</font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><strong><font size=2 style=FONT-SIZE:11pt>CASH FLOWS FROM FINANCING ACTIVITIES</font></strong></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Cash advance - related party</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>2,000 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2 style=FONT-SIZE:11pt>-&nbsp;&nbsp;&nbsp; </font></font></font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Proceeds from convertible notes payable - related party</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>178,000 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>292,860 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Proceeds from the sale of common stock</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2> </font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2>&nbsp;&nbsp;&nbsp; &nbsp;</font></font></font></font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Net cash provided by financing activities</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>180,000 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>292,860 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>NET CHANGE IN CASH</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>(279,102)</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>297,146 </font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>CASH AT BEGINNING OF PERIOD</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font size=2 style=FONT-SIZE:11pt>297,146 </font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>-</font><font size=2>&nbsp;&nbsp;&nbsp; &nbsp;</font></font></font></font></td></tr> <tr height=17 style=HEIGHT:12.75pt bgcolor=#ddf8ff> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=18 style=HEIGHT:13.5pt> <td height=18 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:13.5pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>CASH AT END OF PERIOD</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>18,044 </font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font><font size=2>297,146 </font></font></font></font></td></tr> <tr height=18 style=HEIGHT:13.5pt bgcolor=#ddf8ff> <td height=18 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:13.5pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /> </tr><tr height=17 style=HEIGHT:12.75pt> <td height=17 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:12.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>SUPPLEMENTAL DISCLOSURES:</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <tr height=18 style=HEIGHT:13.5pt bgcolor=#ddf8ff> <td height=18 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:13.5pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Interest paid</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2> </font>&nbsp;&nbsp;&nbsp; <font size=2>-&nbsp;&nbsp;&nbsp; </font></font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2>&nbsp;&nbsp;&nbsp; &nbsp;</font><font size=2>-&nbsp;&nbsp;&nbsp; </font></font></font></font></td></tr> <tr height=19 style=HEIGHT:14.25pt> <td height=19 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:14.25pt; BORDER-TOP:0px; BORDER-RIGHT:0px"><font size=2 style=FONT-SIZE:11pt>Income taxes paid</font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2>&nbsp;</font>&nbsp;&nbsp; &nbsp;-&nbsp;&nbsp;&nbsp;</font></font></font></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font size=2>$</font><font size=2>&nbsp;</font>&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;<font size=2> </font></font></font></font></td></tr> <tr height=18 style=HEIGHT:13.5pt bgcolor=#ddf8ff> <td height=18 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:13.5pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right /></tr></table></p> <p align=justify> <p style=MARGIN:0px align=justify><br> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:6px; MARGIN-BOTTOM:6px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>F-3</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table></p> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify>&nbsp;</p> <p> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px; FONT-FAMILY:Arial" align=center><b><font style=FONT-SIZE:11pt face="Times New Roman">DEVELOPMENT CAPITAL GROUP, INC. AND SUBSIDIARIES</font></b></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=center><b><font style=FONT-SIZE:11pt face="Times New Roman">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></b></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=center><b><font style=FONT-SIZE:11pt face="Times New Roman">(UNAUDITED)</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><br></p></font><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><b><font style=FONT-SIZE:11pt face="Times New Roman">NOTE 1 <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><u><font style=FONT-SIZE:11pt face="Times New Roman">Basis of presentation</font></u></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The accompanying unaudited condensed interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The unaudited interim financial statements should be read in conjunction with the Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s Annual Report on Form 10-K, which contains the audited financial statements and notes thereto, together with the Plan of Operations for the year ended March 31, 2014.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Certain information or footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted, pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial reporting.&nbsp;&nbsp;Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows.&nbsp;&nbsp;It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation.&nbsp;&nbsp;The interim results for the three and nine months ended December 31, 2014 are not necessarily indicative of results for the full fiscal year.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><u><font style=FONT-SIZE:11pt face="Times New Roman">Nature of business</font></u></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The Company was incorporated on September 27, 2010 under the laws of the State of Florida, as Development Capital Group, Inc. The Company has two wholly-owned subsidiaries, Clearance.Co, and Development Tech, Inc. The Company seeks to identify and invest in early-stage technology companies that have the potential to revolutionize traditional industries and transform markets.&nbsp;Clearance.Co, a California corporation, was incorporated on April 22, 2013 (Date of Inception) and is an online retailer offering discount brand name, non-brand name and closeout merchandise for sale on its website to primarily consumers. Development Tech, Inc., a Nevada corporation, operates the website RealtyValuator.com., an application that supports real estate investors by identifying available properties and providing tools to easily evaluate prospective investment properties. &nbsp;</font></p><font style=FONT-SIZE:11pt> <p style="LINE-HEIGHT:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On March 31, 2014, the Company completed a reverse merger with privately-held Clearance.Co. In exchange for all of Clearance.Co<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s outstanding shares, the Company issued 77,527,735 shares common shares for approximately 73.5% interest in the Company. Clearance.Co<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s convertible note obligations totaling $799,988&nbsp;were also assumed by the Company as part of the transaction. </font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America, and are expressed in U.S. dollars. </font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><u><font style=FONT-SIZE:11pt face="Times New Roman">Year end</font></u></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s year-end is March 31.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><u><font style=FONT-SIZE:11pt face="Times New Roman">Use of estimates</font></u></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The preparation of financial statements in conformity with generally accepted accounting principles 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 revenue and expenses during the reporting period. Actual results could differ significantly from those estimates.</font></p><font style=FONT-SIZE:11pt> <p style="LINE-HEIGHT:9.5pt; MARGIN:0px" align=justify><font style=FONT-SIZE:11pt><br></font></p></font><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:6px; MARGIN-BOTTOM:6px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>F-4</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table></font></p></font><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><br></p></font><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px; FONT-FAMILY:Arial" align=justify><b><font style=FONT-SIZE:11pt face="Times New Roman">NOTE 1 <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><u><font style=FONT-SIZE:11pt face="Times New Roman">Cash and cash equivalents</font></u></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The carrying value of these investments approximates fair value.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN-TOP:1px; FONT-FAMILY:Arial; MARGIN-BOTTOM:0px" align=justify><u><font style=FONT-SIZE:11pt face="Times New Roman">Concentration of credit risk</font></u></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The Company primarily transacts its business with one financial institution. The amount on deposit in that one institution may from time to time exceed the federally-insured limit.</font></p><font style=FONT-SIZE:11pt> <p style="LINE-HEIGHT:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><u><font style=FONT-SIZE:11pt face="Times New Roman">Stock-based compensation</font></u></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. &nbsp;This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.&nbsp;</font></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><u><font style=FONT-SIZE:11pt face="Times New Roman">Fair value of financial instruments</font></u></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2014. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, prepaid expenses, bank overdraft and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Level 1:<b> </b>The preferred inputs to valuation efforts are <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font>quoted prices in active markets for identical assets or liabilities,<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font> with the caveat that the reporting entity must have access to that market. &nbsp;Information at this level is based on direct observations of transactions involving the same assets and liabilities, not assumptions, and thus offers superior reliability. However, relatively few items, especially physical assets, actually trade in active markets.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Level 2<font style="FONT-FAMILY:Times New Roman">: </font>FASB acknowledged that active markets for identical assets and liabilities are relatively uncommon and, even when they do exist, they may be too thin to provide reliable information. To deal with this shortage of direct data, the board provided a second level of inputs that can be applied in three situations.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Level 3: If inputs from levels 1 and 2 are not available, FASB acknowledges that fair value measures of many assets and liabilities are less precise. The board describes Level 3 inputs as <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font>unobservable,<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font> and limits their use by saying they <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font>shall be used to measure fair value to the extent that observable inputs are not available.<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font> This category allows <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font>for situations in which there is little, if any, market activity for the asset or liability at the measurement date<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font>. Earlier in the standard, FASB explains that <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font>observable inputs<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font> are gathered from sources other than the reporting company and that they are expected to reflect assumptions made by market participants.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font><font style=FONT-SIZE:11pt> <p style="LINE-HEIGHT:11pt; MARGIN:0px" align=justify></font><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:6px; MARGIN-BOTTOM:6px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>F-5</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table><font style=FONT-SIZE:11pt><br><br></font></p></font> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px; FONT-FAMILY:Arial" align=justify><b><font style=FONT-SIZE:11pt face="Times New Roman">NOTE 1 <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><u><font style=FONT-SIZE:11pt face="Times New Roman">Fair value of financial instruments (continued)</font></u></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">As of December 31, 2014:</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <div align=justify> <table width=80% bordercolor=transparent style="MARGIN-TOP:0px; WIDTH:80%; FONT-SIZE:10pt" cellpadding=0 cellspacing=0 align=center> <tr style=FONT-SIZE:0px> <td> <td> <td> <td> <td> <td /> </tr><tr> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td colspan=4 style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=center>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=center><font style=FONT-SIZE:11pt face="Times New Roman">Fair Value Measurements</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=center>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=center><font style=FONT-SIZE:11pt face="Times New Roman">Level 1</font></p></td> <td style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=center>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=center><font style=FONT-SIZE:11pt face="Times New Roman">Level 2</font></p></td> <td style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=center>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=center><font style=FONT-SIZE:11pt face="Times New Roman">Level 3</font></p></td> <td style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=center>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=center><font style=FONT-SIZE:11pt face="Times New Roman">Total Fair Value</font></p></td></tr> <tr bgcolor=#ddf8ff> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Assets</font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Notes Receivable</font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right><font style=FONT-SIZE:11pt face="Times New Roman">$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95,745</font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right><font style=FONT-SIZE:11pt face="Times New Roman">$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right><font style=FONT-SIZE:11pt face="Times New Roman">$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95,745</font></p></td></tr> <tr bgcolor=#ddf8ff> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Liabilities</font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=right><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=right><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=right><font style=FONT-SIZE:11pt><br></font></p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial">&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial"><font style=FONT-SIZE:11pt face="Times New Roman">Convertible Notes <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> Related Party</font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=bottom> <p style=MARGIN:0px align=center><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=bottom> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right><font style=FONT-SIZE:11pt face="Times New Roman">380,000</font></p></td> <td style=MARGIN-TOP:0px valign=bottom> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right><font style=FONT-SIZE:11pt face="Times New Roman">-</font></p></td> <td style=MARGIN-TOP:0px valign=bottom> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right><font style=FONT-SIZE:11pt face="Times New Roman">380,000</font></p></td></tr> <tr bgcolor=#ddf8ff> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Convertible Notes Payable</font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right><font style=FONT-SIZE:11pt face="Times New Roman">$ &nbsp;&nbsp;&nbsp;&nbsp;603,000</font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right><font style=FONT-SIZE:11pt face="Times New Roman">$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right><font style=FONT-SIZE:11pt face="Times New Roman">$ &nbsp;&nbsp;&nbsp;&nbsp;603,000</font></p></td></tr></table></div><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN-TOP:1px; FONT-FAMILY:Arial; MARGIN-BOTTOM:0px" align=justify><u><font style=FONT-SIZE:11pt face="Times New Roman">Inventory</font></u></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Inventories consist of merchandise held for sale in the ordinary course of business, including cost of freight &nbsp;and &nbsp;other &nbsp;miscellaneous &nbsp;acquisition &nbsp;costs, &nbsp;and &nbsp;are &nbsp;stated &nbsp;at &nbsp;the &nbsp;lower &nbsp;of &nbsp;cost, &nbsp;or &nbsp;market determined on the first-in-first-out basis. The Company records a write-down for inventories, which have become obsolete or are in excess of anticipated demand or net realizable value. The Company performs a detailed review of inventory each period that considers multiple factors including demand forecasts, market conditions, product life cycle status, product development plans and current sales levels. If future demand or market conditions for the Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s products are less favorable than forecasted or if unforeseen changes negatively affect the utility of the Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s inventory, it may be required to record additional write-downs, which would negatively affect gross margins in the period when the write-downs are recorded. If actual market conditions are more favorable, the Company may have higher gross margins when products incorporating inventory that were previously written down are sold.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><u><font style=FONT-SIZE:11pt face="Times New Roman">Property and equipment</font></u></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The Company records all property and equipment at cost less accumulated depreciation. &nbsp;Improvements are capitalized while repairs and maintenance costs are expensed as incurred. &nbsp;Depreciation is calculated using the straight-line method over the estimated useful life of the assets or the lease term, whichever is shorter. Leasehold improvements include the cost of the Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s internal development and construction department. Depreciation periods are as follows:</font></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify>&nbsp;</p> <table width=15% bordercolor=transparent style=WIDTH:15% cellspacing=0 align=left> <tr> <td><font style=FONT-SIZE:11pt>Computer equipment</font></td> <td><font style=FONT-SIZE:11pt>3 years</font></td></tr> <tr> <td><font style=FONT-SIZE:11pt>Furniture and fixtures</font></td> <td><font style=FONT-SIZE:11pt>7 years</font></td></tr></table> <p style="LINE-HEIGHT:12pt; MARGIN:0px" align=justify>&nbsp;</p> <p style="LINE-HEIGHT:12pt; MARGIN:0px" align=justify>&nbsp;</p> <p style="LINE-HEIGHT:12pt; MARGIN:0px" align=justify>&nbsp;</p> <p style="LINE-HEIGHT:12pt; MARGIN:0px" align=justify>&nbsp;</p><font style=FONT-SIZE:11pt><u>Revenue recognition</u> </font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Revenue is recognized in accordance with Staff Accounting Bulletin (<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font>SAB<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font>) No. 101, <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font>Revenue Recognition in Financial Statements,<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font> as revised by SAB No. 104. As such, the Company recognizes revenue when persuasive evidence of an arrangement exists, title transfer has occurred, the price is fixed or readily determinable, and collectability is probable. Sales are recorded net of sales discounts.</font></p><font style=FONT-SIZE:11pt> <p style="LINE-HEIGHT:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The Company allows refunds for only incorrect items or a damaged or defective item within 15 days of receiving the product. &nbsp;The Company does not honor warranties for damaged or defective items beyond</font></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">15 days of receiving the product.</font></p><font style=FONT-SIZE:11pt> <p style="LINE-HEIGHT:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><u><font style=FONT-SIZE:11pt face="Times New Roman">Advertising and marketing costs</font></u></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The Company expenses all costs of advertising and marketing costs as incurred. &nbsp;Advertising and marketing costs totaled $10,923 and $1,832,502 for the nine months ended December 31, 2014 and for the period of inception (April 22, 2013) to December 31, 2013, respectively.<br><br></font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:6px; MARGIN-BOTTOM:6px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>F-6</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table><br><br></font></p></font> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px; FONT-FAMILY:Arial" align=justify><b><font style=FONT-SIZE:11pt face="Times New Roman">NOTE 1 <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</font></b></p><font style=FONT-SIZE:11pt> <p style="MARGIN-TOP:2px; MARGIN-BOTTOM:0px" align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN-TOP:1px; FONT-FAMILY:Arial; MARGIN-BOTTOM:0px" align=justify><u><font style=FONT-SIZE:11pt face="Times New Roman">Loss per common share</font></u></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Net loss per share is provided in accordance with ASC Subtopic 260-10. We present basic loss per share (<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font>EPS<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font>) and diluted EPS on the face of the statements of operations. &nbsp;Basic EPS is computed by dividing reported losses by the weighted average shares outstanding. &nbsp;Loss per common share has been computed using the weighted average number of common shares outstanding during the year.</font></p><font style=FONT-SIZE:11pt> <p style="LINE-HEIGHT:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN-TOP:1px; FONT-FAMILY:Arial; MARGIN-BOTTOM:0px" align=justify><u><font style=FONT-SIZE:11pt face="Times New Roman">New recent pronouncements</font></u></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s financials properly reflect the change. There are no new accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC did not or are not believed by management to have a material impact on the Company's present or future financial statements.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><b><font style=FONT-SIZE:11pt face="Times New Roman">NOTE 2 <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> GOING CONCERN</font></b></p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. Since its inception, the Company has been engaged substantially in financing activities and developing its business plan and marketing. As a result, the Company incurred accumulated net losses for the period of inception (April 22, 2013) to December 31, 2014 of $3,099,603. In addition, the Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s development activities for the period of inception (April 22, 2013) to December 31, 2014 have been financially sustained through convertible debt financing and sales of common stock.</font></p><font style=FONT-SIZE:11pt> <p style="LINE-HEIGHT:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital from the sale of common stock or through debt financing and, ultimately, the achievement of significant operating revenues and cost control measures. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><b><font style=FONT-SIZE:11pt face="Times New Roman">NOTE 3 <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> NOTES RECEIVABLE</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On October 30, 2013, the Company loaned $20,000 to an entity as part of a convertible promissory note with a related party. &nbsp;The entity is a limited liability company owned and controlled by the President of the Company. &nbsp;The note bears interest at 5% per annum and is due the earlier of October 3, 2014 or on the next equity financing raise of at least $200,000. &nbsp;The principal and accrued interest shall be converted at the Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s option at 30% discount on the price per share of the next equity financing raise. &nbsp;During the three months ended December 31, 2014, the note receivable was distributed to a former officer and director of the Company.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On December 19, 2013, the Company loaned $54,500 to an entity as part of a convertible promissory note. &nbsp;The note bears interest at 10% per annum and is due the earlier of June 18, 2014 or upon merger or share exchange with a public entity. &nbsp;The principal and accrued interest shall be converted into 250,000 shares of post-merger shares with a public entity. &nbsp;During the nine months ended December 31, 2014, the Company received repayment of $51,762 and in connections with the merger, the note receivable was distributed to a former officer and director of the Company.<br></font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><br><font style=FONT-SIZE:11pt>&nbsp;</font></p></font><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:6px; MARGIN-BOTTOM:6px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>F-7</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table><br><br></font></p></font> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px; FONT-FAMILY:Arial" align=justify><b><font style=FONT-SIZE:11pt face="Times New Roman">NOTE 3 <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> NOTES RECEIVABLE (CONTINUED)</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On December 30, 2013, the Company loaned $349,097 to an entity controlled by the CEO as part of a non-interest bearing promissory note. &nbsp;The note balance at December 31, 2014 was $95,745.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><b><font style=FONT-SIZE:11pt face="Times New Roman">NOTE 4 <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> INVENTORY</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The following is a summary of inventories:</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <div align=justify> <table width=20% bordercolor=transparent style="MARGIN-TOP:0px; WIDTH:20%; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td> <td> <td /> </tr><tr> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=center>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=center><font style=FONT-SIZE:11pt face="Times New Roman">December 31, 2014</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Finished goods</font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right><font style=FONT-SIZE:11pt face="Times New Roman">$ &nbsp;&nbsp;&nbsp;44,624</font></p></td></tr></table></div> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><b><font style=FONT-SIZE:11pt><br><font style=FONT-SIZE:11pt face="Times New Roman">NOTE 5 <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> FIXED ASSETS</font></font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The following is a summary of fixed assets:</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <div align=justify> <table width=20% bordercolor=transparent style="MARGIN-TOP:0px; WIDTH:20%; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td> <td> <td /> </tr><tr> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=center>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=center><font style=FONT-SIZE:11pt face="Times New Roman">December 31, 2014</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Computer equipment</font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right><font style=FONT-SIZE:11pt face="Times New Roman">$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,651</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Less: accumulated depreciation</font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right><font style=FONT-SIZE:11pt face="Times New Roman">(2,204)</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Fixed assets, net</font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></td> <td style=MARGIN-TOP:0px valign=top> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right>&nbsp;</p> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=right><font style=FONT-SIZE:11pt face="Times New Roman">$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,447</font></p></td></tr></table></div><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">Depreciation expense for the nine months ended December 31, 2014 was $2,218.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><b><font style=FONT-SIZE:11pt><br><font style=FONT-SIZE:11pt face="Times New Roman">NOTE 6 <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> CONVERTIBLE NOTES PAYABLE<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> RELATED PARTY</font></font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On July 8, 2014, the Company executed an unsecured promissory note with a third party for $20,000. &nbsp;The loan is due upon demand and bears 0% interest.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On August 18, 2014, the Company executed an unsecured promissory note with a related party for $158,000. &nbsp;The loan is due upon demand and bears 0% interest.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><b><font style=FONT-SIZE:11pt face="Times New Roman">NOTE 7 <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> CONVERTIBLE NOTES PAYABLE <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> LONG TERM</font></b></p><font style=FONT-SIZE:11pt> <p style="LINE-HEIGHT:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On September 1, 2013, the Company executed an unsecured promissory note with a third party for $303,000. &nbsp;&nbsp;The loan bears 12% interest and is due on September 1, 2015 with a balloon payment of principal and accrued interest. &nbsp;The note is convertible into shares of the Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s common stock at $0.1389 per share. &nbsp;During the nine months ended December 31, 2014, accrued interest expense was $27,270.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On December 12, 2013, the Company executed an unsecured promissory note with a third party for $200,000. The loan bears 12% interest and is due on December 12, 2015 with a balloon payment of principal and accrued interest. &nbsp;The note is convertible into shares of the Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s common stock at $0.1389 per share. &nbsp;During the nine months ended December 31, 2014, accrued interest expense was $18,000.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On February 1, 2014, the Company executed an unsecured promissory note with a third party for $300,000. The loan bears 12% interest and is due on February 1, 2016 with a balloon payment of principal and accrued interest. &nbsp;The note is convertible into shares of the Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s common stock at $0.1389 per share. &nbsp;During the nine months ended December 31, 2014, accrued interest expense was $27,000.</font></p><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><br><font style=FONT-SIZE:11pt>&nbsp;</font></p></font></font><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:6px; MARGIN-BOTTOM:6px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>F-8</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table><br><br></font></p></font> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px; FONT-FAMILY:Arial" align=justify><b><font style=FONT-SIZE:11pt face="Times New Roman">NOTE 8 <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> STOCK OPTIONS</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; PADDING-RIGHT:5px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On July 17, 2014, the Company approved and adopted an incentive and nonqualified Stock Option Plan of 2014 and reserved 20,000,000 shares for issuance under the plan. </font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">During the nine months ended December 31, 2014, the Company granted 2,000,000 stock options to an officer of the Company. &nbsp;Of the total, 500,000 stock options vested immediately and the remaining 1,500,000 stock options vest quarterly over the next three years. &nbsp;Once the stock options are vested, the individual has two years to exercise at $0.08. &nbsp;The Company recorded compensation of $47,973 for the nine months ended December 31, 2014.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><b><font style=FONT-SIZE:11pt face="Times New Roman">NOTE 9 <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> LEASE OBLIGATIONS</font></b></p><font style=FONT-SIZE:11pt> <p style="LINE-HEIGHT:11pt; MARGIN-TOP:1px; MARGIN-BOTTOM:0px" align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">The Company leases its office space under an operating lease agreement that expires August 12, 2014. Future minimum lease payments for the upcoming year through lease expiration are approximately $20,200. </font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><b><font style=FONT-SIZE:11pt face="Times New Roman">NOTE 10 <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> RELATED PARTY TRANSACTIONS</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On August 1, 2013, the Company entered into a consulting agreement with an entity that is owned and controlled by the President of the Company which is effective until Mr. Ricard is removed as an officer of the Company. &nbsp;The monthly fee was $5,000. The payments were ceased in May 2014. </font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On August 1, 2013, the Company entered into a consulting agreement with an entity that is a shareholder of the Company which is effective until either party provides 30 days<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font> notice of termination. &nbsp;The monthly fee was $4,500. The payments were ceased in May 2014.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">As of December 31, 2014, the Company had notes receivable due a related party limited liability company controlled by the CEO and shareholder totaling $95,745. &nbsp;The note receivable is due upon demand and bears no interest.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">As of June 30, 2014, the Company had a notes receivable of $20,000 and accrued interest receivable of $660 due from a related party. &nbsp;The related party is a limited liability company owned and controlled by the President of the Company. &nbsp;During the three months ended December 31, 2014, the note receivable was distributed to a former officer and director of the Company.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On August 18, 2014, the Company executed an unsecured promissory note with a related party for $158,000. &nbsp;The loan is due upon demand and bears 0% interest.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><b><font style=FONT-SIZE:11pt face="Times New Roman">NOTE 11 <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> MATERIAL AGREEMENTS</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On July 29, 2014, the registrant Development Capital Group, Inc. (the <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font>Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font>) entered into a separation agreement with its president and director Joseph Ricard, along with his affiliated entities Plum Investors, LLC and Tunebash, Inc., whereby (i) Mr. Ricard resigned as a director and president of the Company, (ii) the consulting agreement with Plum Investors, LLC, dated August 1, 2013, for payment to Mr. Ricard as our president was terminated without liability to the Company, and any amounts owing to Mr. Ricard under the consulting agreement were waived, (iii) the convertible note held by the Company from Tunebash, Inc, was terminated without liability to Tunebash, Inc. and any amounts owed to the Company under such convertible note were waived, and (iv) the Compapy transferred all assets and intellectual property rights in connection with <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font>Realty Valuator<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font> to Mr. Ricard.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On July 29, 2014, the Company and Plum Investors, LLC terminated the consulting agreement between the parties dated August 1, 2013.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On July 29, 2014, Joseph Ricard, pursuant to the terms of the Settlement Agreement discussed above in Item 1, resigned as the Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s President and member of the Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s Board of Directors.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial" align=justify><b><font style=FONT-SIZE:11pt face="Times New Roman">NOTE 12 <font style="FONT-FAMILY:Arial Unicode MS,Arial">&#150;</font> SUBSEQUENT EVENTS</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-FAMILY:Arial; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt face="Times New Roman">On January 9, 2015, in connection with the resignation of the Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s officer and director Shahbod Rastegar, the Company entered into (i) a Cancellation of Promissory Note and his wholly owned-entity Metrix360, whereby the Company<font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font>s former CEO agreed to cancel &nbsp;33,000,000 shares of his common stock in exchange for the cancellation of his note receivable in the amount of $95,775. Additionally, the Company entered into a Lock-Up Agreement whereby 6,000,000 shares of Company common stock held by the former officer is subject to certain leak-out provisions over a period of 39 months.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:6px; MARGIN-BOTTOM:6px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>F-9</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table></p></font> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify> <p style=MARGIN:0px align=justify>&nbsp;</p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><b>Item 2. &nbsp;Management</b><font style="FONT-FAMILY:Arial Unicode MS,Arial"><b><font style="FONT-FAMILY:Arial Unicode MS,Arial" face="Times New Roman">&#146;</font></font>s Discussion and Analysis of Financial Condition and Results of Operations</font></font></font></font></font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Forward-Looking Statements</font></b></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are <font face="Times New Roman"><font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>forward-looking statements<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> within the meaning of the Private Securities Litigation Reform Act of 1995, Section&nbsp;27A of the Securities Act of 1933 and Section&nbsp;21E of the Securities Exchange Act of 1934.&nbsp;&nbsp;&nbsp;These forward-looking statements generally are identified by the words <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>believes,<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>project,<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>expects,<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>anticipates,<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>estimates,<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>intends,<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>strategy,<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>plan,<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>may,<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>will,<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>would,<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>will be,<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>will continue,<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>will likely result,<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> and similar expressions.&nbsp;&nbsp;We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of complying with those safe-harbor provisions. &nbsp;However, the safe harbors of forward-looking statements provided by Section 21E of the Securities Exchange Act of 1934 are unavailable to issuers of penny stock. Our shares may be considered penny stock and such safe harbors set forth under the Private Securities Litigation Reform Act of 1995 may not be available to us.&nbsp;&nbsp;</font></font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain.&nbsp;&nbsp;Factors which could have a material adverse effect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.&nbsp;&nbsp;We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.&nbsp;&nbsp;Further information concerning our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Overview</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>We incorporated on September 27, 2010 under the laws of the state of Florida as Development Capital Group, Inc. (<font face="Times New Roman"><font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>Company<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font>). For the years ended March 31, 2012 and 2011, we provided transportation and logistics services for a wide range of manufacturing, industrial and retail customers. &nbsp;In February 2013, there was a change of control of the Company and we discontinued old operations and commenced business focusing on the development of RealtyValuator.com, a multi-platform application that supports real estate investors by sourcing available properties in the market and providing tools to easily evaluate and capitalize on prospective property investments. On March 31, 2014, we acquired Clearance.co to diversify our portfolio of operations. Clearance.co offers customers an opportunity to shop for bargains conveniently while creating an atmosphere that encourages customers to visit and purchase frequently by continually adding new, sometimes limited inventory to its Website. &nbsp;</font></font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>We identify and invest in early-stage technology companies that have the potential to disrupt traditional industries and transform markets.&nbsp; With experience building successful businesses, we expect our team to help companies who either have undervalued assets or whose existing businesses require capital investment in order to achieve scale.<br></font></p> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Clearance.co </font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt>Our wholly owned subsidiary, Clearance.co, a California corporation (<font face="Times New Roman"><font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>Clearance<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font>), owns and operates the website Clearance.co. The website is an e-commerce website, which deals exclusively in discount, clearance and closeout merchandise offered exclusively to registered members. &nbsp;Working directly with suppliers, or <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>fulfillment partners<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font>, Clearance provides its registered users with a destination for closeout and clearance products, while giving our fulfillment partners a one-stop liquidation channel.<font style=COLOR:#202020> Once users register on our website, they are then able to access our offered merchandise 24 hours a day, with the convenience of the use of a computer or internet-enabled devices. &nbsp;Clearance.co</font><font style=COLOR:#202020> is an online shopping experience that offer</font><font style=COLOR:#202020>s</font><font style=COLOR:#202020> registered members not only savings on products, but also</font><font style=COLOR:#202020> access to our responsive customer</font><font style=COLOR:#202020> service</font><font style=COLOR:#202020> team</font><font style=COLOR:#202020>.</font><font style=COLOR:#202020> &nbsp;</font><font style=COLOR:#202020>Nearly all of our sales are to customer</font><font style=COLOR:#202020>s located in the United States. &nbsp;</font><font style=COLOR:#202020>During the </font><font style=COLOR:#202020>period ended</font><font style=COLOR:#202020> </font><font style=COLOR:#202020>December 31,December 31,</font><font style=COLOR:#202020> </font><font style=COLOR:#202020>2014 </font><font style=COLOR:#202020>no single customer accounted for more than 1% of our total net revenue. </font></font></font></font></font></font></font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; COLOR:#202020; FONT-SIZE:11pt" align=justify><i><font style=FONT-SIZE:11pt>Fulfillment Partners</font></i></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; COLOR:#202020; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>With our <font face="Times New Roman"><font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>Fulfillment partners<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font>, we sell such merchandise and products through our website. &nbsp;We are considered to be the primary obligor for the majority of these sales transactions and we record revenue from the majority of these sales transactions on a gross basis. Our use of the term <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>supplier<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font>, "partner" or "fulfillment partner" does not mean that we have formed any legal partnerships with any of our fulfillment partners. We currently have relationships with approximately 15 third parties who supply approximately 500 products, as well as most of the eleven groups of products, on our website. These third-party fulfillment partners, suppliers, perform such tasks as order picking and shipping; however, we handle returns and customer service related to substantially all orders placed through our website. Revenue generated from sales on our website from fulfillment partner businesses is recorded net of returns, coupons and other discounts.</font></font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; COLOR:#202020; FONT-SIZE:11pt" align=justify><i><font style=FONT-SIZE:11pt>Products</font></i></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; COLOR:#202020; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Our website shopping and product section is organized into 11 main tabs: For Super Clearance!, Just-In, Women, Men, Home, Electronics, Kids, Outdoors, <font face="Times New Roman"><font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>Seasonal<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font>, Jewelry and Pets. &nbsp;We offer discount brand name and non brand name merchandise and sell these products through our internet website located at www.clearance.co. &nbsp;We currently offer hundreds of products ranging from home d&#233;cor, bedding, jewelry, watches, apparel, electronics, and sporting goods, among other products. &nbsp;From time to time, as the number of products and product categories change, we may reorganize our departments and/or categories to better reflect our current product offerings. </font></font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; COLOR:#202020; FONT-SIZE:11pt" align=justify><i><font style=FONT-SIZE:11pt>Shipping Fees</font></i></p> <p style="MARGIN:0px; COLOR:#202020; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>We charge shipping rates that vary in price, dependent on the weight and size of the product that is purchased and shipped. The shipping rates currently vary in price between $3.00 and $7.95 per item shipped. At times we offer promotional incentives that may include free shipping regarding certain items or days that the item is sold. </font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; COLOR:#202020; FONT-SIZE:11pt" align=justify><i><font style=FONT-SIZE:11pt>Payment</font></i></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; COLOR:#202020; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Generally, we require verification of receipt of payment, or authorization from credit card or other payment vendors whose services we offer to our users (such as PayPal), before we ship products to consumers or business purchasers. For sales in our fulfillment partner business, we generally receive payments from our customers before our payments to our suppliers are due. However, certain merchant account providers routinely hold back a percentage of our credit sales for periods ranging from 4-6 months to offset any potential returns or refunds initiated by customers. </font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><i><font style=FONT-SIZE:11pt>E-Commerce and Technology</font></i></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Through e-commerce, we sell products at a significant discount than to those offered by traditional outlets. &nbsp;More specifically, discount deals sites and flash sales sites have experience growth, due to a combination of factors, in particular, these e-commerce businesses have taken advantage of lower disposable incomes in conjunction with businesses trying to draw in customers. &nbsp;Furthermore, the growing number of mobile internet connections has promoted a demand for discount deal websites. &nbsp;&nbsp;</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>We use our internally developed e-commerce website and a combination of proprietary technologies and commercially available licensed technologies and solutions to support our operations. We use the services of multiple telecommunications companies to obtain connectivity to the Internet. Currently, our primary computer infrastructure is located in a dedicated facility in Dallas, Texas. &nbsp;Also, at our hosting infrastructure we have computer infrastructure, which we use primarily for backups, development, and testing.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><i><font style=FONT-SIZE:11pt>Advantages to E-Commerce</font></i></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt>Our users take advantage of our e-commerce platform by making their purchases directly from their computer or device with internet access, and then have their products delivered directly to their specified address. <font style=COLOR:#1c1c1c>Clearance<font face="Times New Roman"><font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#146;</font>s keys to success</font></font><font style=COLOR:#1c1c1c> via e-commerce</font><font style=COLOR:#1c1c1c> include:</font></font></font></font></font></font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <div align=justify> <p style="MARGIN-TOP:0px; TEXT-INDENT:24px; WIDTH:48px; FONT-FAMILY:Symbol; MARGIN-BOTTOM:-2px; FLOAT:left; FONT-SIZE:12pt"><font style=FONT-SIZE:11pt face="Times New Roman">&#183;</font></p></div> <p style="TEXT-INDENT:-2px; MARGIN:0px; PADDING-LEFT:48px; COLOR:#1c1c1c; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Driving traffic to an inviting and user-friendly homepage.</font></p> <div align=justify> <p style="MARGIN-TOP:0px; TEXT-INDENT:24px; WIDTH:48px; FONT-FAMILY:Symbol; MARGIN-BOTTOM:-2px; FLOAT:left; CLEAR:left; FONT-SIZE:12pt"><font style=FONT-SIZE:11pt face="Times New Roman">&#183;</font></p></div> <p style="TEXT-INDENT:-2px; MARGIN:0px; PADDING-LEFT:48px; COLOR:#1c1c1c; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Building excellent vendor relationships to offer great products at attractive prices with responsive customer service.</font></p> <div align=justify> <p style="MARGIN-TOP:0px; TEXT-INDENT:24px; WIDTH:48px; FONT-FAMILY:Symbol; MARGIN-BOTTOM:-2px; FLOAT:left; CLEAR:left; FONT-SIZE:12pt"><font style=FONT-SIZE:11pt face="Times New Roman">&#183;</font></p></div> <p style="TEXT-INDENT:-2px; MARGIN:0px; PADDING-LEFT:48px; COLOR:#1c1c1c; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Building excellent merchant account relationships.</font></p> <div align=justify> <p style="MARGIN-TOP:0px; TEXT-INDENT:24px; WIDTH:48px; FONT-FAMILY:Symbol; MARGIN-BOTTOM:-2px; FLOAT:left; CLEAR:left; FONT-SIZE:12pt"><font style=FONT-SIZE:11pt face="Times New Roman">&#183;</font></p></div> <p style="TEXT-INDENT:-2px; MARGIN:0px; PADDING-LEFT:48px; COLOR:#1c1c1c; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Sourcing quality and unique products that offer great value to our registered users yielding high margins of profits.</font></p> <div align=justify> <p style="MARGIN-TOP:0px; TEXT-INDENT:24px; WIDTH:48px; FONT-FAMILY:Symbol; MARGIN-BOTTOM:-2px; FLOAT:left; CLEAR:left; FONT-SIZE:12pt"><font style=FONT-SIZE:11pt face="Times New Roman">&#183;</font></p></div> <p style="TEXT-INDENT:-2px; MARGIN:0px; PADDING-LEFT:48px; COLOR:#1c1c1c; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Clearly listing products on the website with concise descriptions and pricing. </font></p> <div align=justify> <p style="MARGIN-TOP:0px; TEXT-INDENT:24px; WIDTH:48px; FONT-FAMILY:Symbol; MARGIN-BOTTOM:-2px; FLOAT:left; CLEAR:left; FONT-SIZE:12pt"><font style=FONT-SIZE:11pt face="Times New Roman">&#183;</font></p></div> <p style="TEXT-INDENT:-2px; MARGIN:0px; PADDING-LEFT:48px; COLOR:#1c1c1c; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Configuring placement of products according to our planned strategy including loss leader, highest margin, and brand recognition concepts.</font></p> <div align=justify> <p style="MARGIN-TOP:0px; TEXT-INDENT:24px; WIDTH:48px; FONT-FAMILY:Symbol; MARGIN-BOTTOM:-2px; FLOAT:left; CLEAR:left; FONT-SIZE:12pt"><font style=FONT-SIZE:11pt face="Times New Roman">&#183;</font></p></div> <p style="TEXT-INDENT:-2px; MARGIN:0px; PADDING-LEFT:48px; COLOR:#1c1c1c; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Highly encouraging membership registration in order to market back to our registered users via email to entice repeat customer business.</font></p> <div align=justify> <p style="MARGIN-TOP:0px; TEXT-INDENT:24px; WIDTH:48px; FONT-FAMILY:Symbol; MARGIN-BOTTOM:-2px; FLOAT:left; CLEAR:left; FONT-SIZE:12pt"><font style=FONT-SIZE:11pt face="Times New Roman">&#183;</font></p></div> <p style="TEXT-INDENT:-2px; MARGIN:0px; PADDING-LEFT:48px; COLOR:#1c1c1c; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Creating an effective social media strategy to offer testimonials, coupons and contests across all relevant social media platforms.</font></p> <div align=justify> <p style="MARGIN-TOP:0px; TEXT-INDENT:24px; WIDTH:48px; FONT-FAMILY:Symbol; MARGIN-BOTTOM:-2px; FLOAT:left; CLEAR:left; FONT-SIZE:12pt"><font style=FONT-SIZE:11pt face="Times New Roman">&#183;</font></p></div> <p style="TEXT-INDENT:-2px; MARGIN:0px; PADDING-LEFT:48px; COLOR:#1c1c1c; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Creating an effective marketing and search engine optimization strategy.</font></p> <div align=justify> <p style="MARGIN-TOP:0px; TEXT-INDENT:24px; WIDTH:48px; FONT-FAMILY:Symbol; MARGIN-BOTTOM:-2px; FLOAT:left; CLEAR:left; FONT-SIZE:12pt"><font style=FONT-SIZE:11pt face="Times New Roman">&#183;</font></p></div> <p style="TEXT-INDENT:-2px; MARGIN:0px; PADDING-LEFT:48px; COLOR:#1c1c1c; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Consistently analyzing the competitive landscape.</font></p> <div align=justify> <p style="MARGIN-TOP:0px; TEXT-INDENT:24px; WIDTH:48px; FONT-FAMILY:Symbol; MARGIN-BOTTOM:-2px; FLOAT:left; CLEAR:left; FONT-SIZE:12pt"><font style=FONT-SIZE:11pt face="Times New Roman">&#183;</font></p></div> <p style="TEXT-INDENT:-2px; MARGIN:0px; PADDING-LEFT:48px; COLOR:#1c1c1c; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Efficiently managing all logistics of the website to ensure prompt deliver, inventory control and return of merchandise.</font></p> <div align=justify> <p style="MARGIN-TOP:0px; TEXT-INDENT:24px; WIDTH:48px; FONT-FAMILY:Symbol; MARGIN-BOTTOM:-2px; FLOAT:left; CLEAR:left; FONT-SIZE:12pt"><font style=FONT-SIZE:11pt face="Times New Roman">&#183;</font></p></div> <p style="TEXT-INDENT:-2px; MARGIN:0px; PADDING-LEFT:48px; COLOR:#1c1c1c; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Hiring a team of bright and motivated employees, and creating a successful company culture.</font></p><font style=FONT-SIZE:11pt> <p style="MARGIN:0px; CLEAR:left" align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><i><font style=FONT-SIZE:11pt>Sales and Marketing</font></i></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>We use a variety of methods for our sales and marketing to target our consumer audience, including online campaigns, such as advertising through portals, keywords, search engines, affiliate marketing programs, social coupon websites, banners, e-mail, direct mail and viral and social media campaigns. We generally hire third parties to develop our campaigns and advertising.</font> <p><i><font style=FONT-SIZE:11pt>Seasonality</font></i></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Based upon our historical experience, revenue typically increases during our fiscal fourth quarter because of the holiday retail season and gross margin decreases due to increased sales of certain lower margin products, such as electronics. The actual quarterly results for each quarter could differ materially depending upon consumer preferences, availability of product and competition, among other risks and uncertainties. Accordingly, there can be no assurances that seasonal variations will not materially affect our results of operations in the future.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify></font><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><i><font style=FONT-SIZE:11pt>Customers and Customer Service</font></i></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Customers are the lifeblood of every business, whether a company is selling B2C, B2B or B2B2C. &nbsp;&nbsp;Market analysis is necessary to understand our customer segmentation and how relevant and closely the offered products on our website are aligned with market customers. &nbsp;Our goal is to secure and price quality products so that our customers span across all market segments.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>We are committed to providing superior customer service. Our customer service team with dedicated in-house and outsourced professionals respond to e-mail inquiries on products, ordering, shipping status, returns and other areas of customer inquiry through the website.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><u>RealtyValuator.com</u> </font></font></font></font></font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>We operated our real estate website RealtyValuator.com through July 29, 2014, at which time we sold it to our prior officer and director Joseph Ricard.</font></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify>&nbsp;</p><br> <div align=justify> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:6px; MARGIN-BOTTOM:6px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>4</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table></div><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt><br><font style=FONT-SIZE:11pt>Results of Operations for the Three Months Ended December 31, 2014</font></font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style="BACKGROUND-COLOR:#ffffff; FONT-SIZE:11pt">Our primary focus is to continue the development and growth of Clearance.co. For the period ended December 31, 2014, we earned revenue from e-commerce retail sales under our new business model. Revenues in Q3 2014 decreased 93% compared to Q3 2013. &nbsp;&nbsp;The decline in revenue was due primarily to the internal changes in management and business model. &nbsp;We have generated $130,832 in gross revenue &nbsp;in connection with our business operations for the three months ended December 31, 2014. </font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style="BACKGROUND-COLOR:#ffffff; FONT-SIZE:11pt">Gross profit in Q3 2014 decreased 90 % compared to Q3 2013 which is directly related to our decline in revenue. </font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style="BACKGROUND-COLOR:#ffffff; FONT-SIZE:11pt">Operating Expenses as a percentage of revenue increased from 74% in Q3 2013 to 143 % in Q3 2014, primarily due to our decreased revenue in proportion to our fixed overhead costs. </font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style="BACKGROUND-COLOR:#ffffff; FONT-SIZE:11pt">We had operating expenses of $187,201 for the three months ended December 31, 2014 and consisted of advertising and marketing expenses, general and administrative expenses, staff salaries and wages, and selling expenses. &nbsp;</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>We recorded a net loss of $144,109 from operations for the three months ended December 31, 2014 compared to a net loss of $664,736 from operations for the three months ended December 31, 2013.</font> <p><font style="BACKGROUND-COLOR:#ffffff; FONT-SIZE:11pt">We anticipate our operating expenses will increase as we implement our business plan and continue to drive growth. The increase will be attributable to expenses to implement our business plan, and the professional fees to be incurred in connection with our ongoing filing requirements as a reporting company under the Securities Exchange Act of 1934.</font></p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:11pt 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px"><b>Results of Operations for the Nine Months Ended December 31, 2014</b></p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:13px 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px"><br></p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:11pt 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px" align=justify><font style=BACKGROUND-COLOR:rgb(255,255,255)>Our primary focus is to continue the development and growth of Clearance.co. For the period ended December 31, 2014, we earned revenue from e-commerce retail sales under our new business model. Revenues for the nine months ended December 31, 2014 decreased 71% compared to the period April 22, 2013 (inception) to December 31, 2013. The decline in revenue was due primarily to the internal changes in management and business model. &nbsp;We have generated $609,877 in gross revenue in connection with our business operations for the nine months ended December 31, 2014.</font></p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:13px 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px" align=justify><br></p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:11pt 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px" align=justify><font style=BACKGROUND-COLOR:rgb(255,255,255)>Gross profit for the nine months ended December 31, 2014 decreased 62% compared to the period April 22, 2013 (inception) to December 31, 2013, which is directly related to our decline in revenue.</font></p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:13px 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px" align=justify><br></p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:11pt 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px" align=justify><font style=BACKGROUND-COLOR:rgb(255,255,255)>Operating Expenses as a percentage of revenue increased from 109% in the period April 22, 2013 (inception) to December 31, 2013 to 197% for the nine months ended December 31, primarily due to our decreased revenue in proportion to our fixed overhead costs.</font></p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:13px 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px" align=justify><br></p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:11pt 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px" align=justify><font style=BACKGROUND-COLOR:rgb(255,255,255)>We had operating expenses of $1,200,459 for the nine months ended December 31, 2014 and consisted of advertising and marketing expenses, general and administrative expenses, staff salaries and wages, and selling expenses. &nbsp;</font></p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:13px 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px" align=justify><br></p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:11pt 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px" align=justify><font style=BACKGROUND-COLOR:rgb(255,255,255)>We recorded a net loss of $914,770 from operations for the nine months ended December 31, 2014 compared to a net loss of $1,503,838 from operations for the period April 22, 2013 (inception) to December 31, 2013.</font></p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:13px 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px" align=justify><br></p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:11pt 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px" align=justify><font style=BACKGROUND-COLOR:rgb(255,255,255)>We anticipate our operating expenses will increase as we implement our business plan and continue to drive growth. The increase will be attributable to expenses to implement our business plan, and the professional fees to be incurred in connection with our ongoing filing requirements as a reporting company under the Securities Exchange Act of 1934.</font></p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:11pt 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px">&nbsp;</p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Liquidity and Capital Resources</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style="BACKGROUND-COLOR:#ffffff; FONT-SIZE:11pt">As of December 31, 2014, we had total current assets of $192,675 and current liabilities of $2,807,996. &nbsp;Thus, we have a working capital deficit of $2,615,321 as of December 31, 2014.</font></p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style="BACKGROUND-COLOR:#ffffff; FONT-SIZE:11pt">Operating activities used $669,847 in cash for the three months ended December 31, 2014. Our net loss was the main reason for our negative operating cash flow offset mainly by a decrease in prepaid expenses, decrease in merchant reserve, increase in other assets and decrease in accounts payable.</font></p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify>&nbsp;</p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:11pt 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px"><font style=BACKGROUND-COLOR:rgb(255,255,255)>Net cash from investing activities was $210,74 for the nine months ended December 31, 2014. Cash Flows from investing activities consisted of notes receivable in the amount of $211,040 and purchase of fixed assets in the amount of (-$295).</font></p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:13px 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px"><br></p> <p style="TEXT-TRANSFORM:none; TEXT-INDENT:0px; MARGIN:0px; LETTER-SPACING:normal; FONT:11pt 'Times New Roman'; WHITE-SPACE:normal; COLOR:rgb(0,0,0); WORD-SPACING:0px; -webkit-text-stroke-width:0px"><font style=BACKGROUND-COLOR:rgb(255,255,255)>Net cash provided by financing activities was $180,000 for the nine months ended December 31, 2014. Cash Flows from financing activities consisted of convertible notes payable in the amount of $178,000 and a cash advance from a related party in the amount of $2,000.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style="BACKGROUND-COLOR:#ffffff; FONT-SIZE:11pt">As of December 31, 2014, we have insufficient cash to operate our business at the current level for the next twelve months and insufficient cash to achieve our business goals. &nbsp;The success of our business plan beyond the next 12 months is contingent upon us obtaining additional financing. We intend to fund operations through debt and/or equity financing arrangements, which may be insufficient to fund our capital expenditures, working capital, or other cash requirements. We do not have any formal commitments or arrangements for the sales of stock or the advancement or loan of funds at this time. There can be no assurance that such additional financing will be available to us on acceptable terms, or at all.</font></p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify>&nbsp;</p><br> <div align=justify> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:6px; MARGIN-BOTTOM:6px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>5</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table></div> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><br><br><b><font style=FONT-SIZE:11pt>Off Balance Sheet Arrangements </font></b></font></font></font></font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>As of December 31, 2014, there were no off balance sheet arrangements. </font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Critical Accounting Policies</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>In December 2001, the SEC requested that all registrants list their most <font face="Times New Roman"><font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>critical accounting polices<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> in the Management Discussion and Analysis. The SEC indicated that a <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>critical accounting policy<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> is one which is both important to the portrayal of a company<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font></font>s financial condition and results, and requires management<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font></font>s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.</font></font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Our critical accounting policies are set forth in Note 2 to the financial statements. </font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Recently Issued Accounting Pronouncements</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company<font face="Times New Roman"><font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font></font>s results of operation, financial position or cash flow.</font></font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Item 3. Quantitative and Qualitative Disclosures About Market Risk</font></b></p> <p style=MARGIN:0px align=justify>&nbsp;</p> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>A smaller reporting company is not required to provide the information required by this Item.</font></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Item 4. Controls and Procedures</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Disclosure Controls and Procedures</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>As required by Rule 13a-15 under the Securities Exchange Act of 1934, we have carried out an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this annual report, being March 31, 2014. This evaluation was carried out under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer.</font></p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission<font face="Times New Roman"><font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#146;</font>s rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our company<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#146;</font>s reports filed under the Securities Exchange Act of 1934 is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.</font></font></p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify>&nbsp;</p> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Based upon that evaluation, including our Chief Executive Officer, we have concluded that our disclosure controls and procedures were ineffective as of the end of the period covered by this annual report</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Remediation Plan to Address the Material Weaknesses in Internal Control over Financial Reporting</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Our company plans to take steps to enhance and improve the design of our internal controls over financial reporting. &nbsp;During the period covered by this quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we plan to implement the following changes during our fiscal year ending March 31, 2016: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and (ii) adopt sufficient written policies and procedures for accounting and financial reporting. The remediation efforts set out are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner. </font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Changes in Internal Control over Financial Reporting</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>There were no changes in our internal control over financial reporting during the three months ended December 31, 2014 that have materially affected, or are reasonable likely to materially affect, our internal control over financial reporting.</font></p><br> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify>&nbsp;</p> <div align=justify> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:6px; MARGIN-BOTTOM:6px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>6</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table></div> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify>&nbsp;</p><br> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><b>PART II </b><font style="FONT-FAMILY:Arial Unicode MS,Arial"><b><font style="FONT-FAMILY:Arial Unicode MS,Arial" face="Times New Roman">&#150;</font></font> OTHER INFORMATION</font></font></font></font></font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Item 1. Legal Proceedings</font></b></p> <p style=MARGIN:0px align=justify>&nbsp;</p> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Item 1A: Risk Factors</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>A smaller reporting company is not required to provide the information required by this Item.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Item 2. Unregistered Sales of Equity Securities and Use of Proceeds</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>None.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Item 3. Defaults upon Senior Securities</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>None.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Item 4. Mine Safety Disclosure</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>This Item is not applicable.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Item 5. Other Information</font></b></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>None.&nbsp;</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <div align=justify> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:6px; MARGIN-BOTTOM:6px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>7</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table></div><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify></font><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><br>&nbsp;</p></font> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px; FONT-SIZE:11pt" align=justify><b><font style=FONT-SIZE:11pt>Item 6. Exhibits</font></b></p> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px; FONT-SIZE:11pt" align=justify>&nbsp;</p> <table width=100% bordercolor=transparent cellspacing=0> <tr> <td style="BORDER-LEFT:#000000 1px solid; BORDER-TOP:#000000 1px solid"> <p style=MARGIN:0px align=center><b><font style=FONT-SIZE:11pt><u>Exhibit Number</u></font></b></p></td> <td style="BORDER-LEFT:#000000 1px solid; BORDER-TOP:#000000 1px solid; BORDER-RIGHT:#000000 1px solid"> <p style=MARGIN:0px align=left><b><font style=FONT-SIZE:11pt><u>Description of Exhibit</u></font></b></p></td></tr> <tr bgcolor=#ddf8ff> <td style="BORDER-LEFT:#000000 1px solid; BORDER-TOP:#000000 1px solid"> <p align=center><font style=FONT-SIZE:11pt>31.1</font></p></td> <td style="BORDER-LEFT:#000000 1px solid; BORDER-TOP:#000000 1px solid; BORDER-RIGHT:#000000 1px solid"> <p style=MARGIN:0px><font style="LINE-HEIGHT:107%; FONT-FAMILY:'Times New Roman','serif'; FONT-SIZE:11pt" lang=EN-US>Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</font></p></td></tr> <tr> <td style="BORDER-LEFT:#000000 1px solid; BORDER-TOP:#000000 1px solid"> <p align=center><font style=FONT-SIZE:11pt>32.1</font></p></td> <td style="BORDER-LEFT:#000000 1px solid; BORDER-TOP:#000000 1px solid; BORDER-RIGHT:#000000 1px solid"> <p style="MARGIN:0px; FONT-SIZE:11pt"><font style=FONT-SIZE:11pt>Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</font></p></td></tr> <tr bgcolor=#ddf8ff> <td style="BORDER-BOTTOM:#000000 1px solid; BORDER-LEFT:#000000 1px solid; BORDER-TOP:#000000 1px solid"> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>101**</font></p></td> <td style="BORDER-BOTTOM:#000000 1px solid; BORDER-LEFT:#000000 1px solid; BORDER-TOP:#000000 1px solid; BORDER-RIGHT:#000000 1px solid"> <p style="MARGIN:0px; FONT-SIZE:11pt"><font style=FONT-SIZE:11pt>The following materials from the Company<font face="Times New Roman"><font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#146;</font></font>s Quarterly Report on Form 10-Q for the quarter ended December 31, 2014 formatted in Extensible Business Reporting Language (XBRL).</font></font></p></td></tr></table> <p style="MARGIN:0px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>**Provided herewith, however, pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.</font></p><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:11pt><br><br></font>&nbsp;</p></font><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=center></font></font> <p style="MARGIN:0px; FONT-SIZE:11pt" align=center><b><font style=FONT-SIZE:11pt>SIGNATURES</font></b></p><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt> <p style=MARGIN:0px align=justify><br></p></font></font> <p style="MARGIN-TOP:0px; MARGIN-BOTTOM:9px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</font></p> <p style="MARGIN-TOP:0px; MARGIN-BOTTOM:9px; FONT-SIZE:11pt" align=justify>&nbsp;</p> <p style="MARGIN-TOP:0px; MARGIN-BOTTOM:9px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Development Capital Group, Inc.</font></p> <p style="MARGIN-TOP:0px; MARGIN-BOTTOM:9px; FONT-SIZE:11pt" align=justify>&nbsp;</p> <div align=justify> <p style="MARGIN-TOP:0px; WIDTH:192px; MARGIN-BOTTOM:-2px; FLOAT:left; FONT-SIZE:11pt"><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt><font style=FONT-SIZE:11pt>By: <u>/s/ &nbsp;</u><i><u>Ray Reyes</u></i></font></font></font></font></font></p></div> <p style="TEXT-INDENT:-2px; MARGIN:0px; FONT-SIZE:11pt" align=justify>&nbsp;</p> <p style="MARGIN:0px; CLEAR:left; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>Ray Reyes, President</font></p><font style=FONT-SIZE:11pt> <p style="MARGIN-TOP:0px; MARGIN-BOTTOM:9px" align=justify><font style=FONT-SIZE:11pt><br></font></p></font> <p style="MARGIN-TOP:0px; MARGIN-BOTTOM:9px; FONT-SIZE:11pt" align=justify><font style=FONT-SIZE:11pt>February 23, 2015</font></p><font style=FONT-SIZE:11pt> <p style="MARGIN-TOP:0px; MARGIN-BOTTOM:9px" align=justify><br></p></font> <p style="MARGIN-TOP:0px; MARGIN-BOTTOM:9px" align=justify> <table width=100% bordercolor=transparent style="MARGIN-TOP:0px; FONT-SIZE:10pt" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-TOP:6px; MARGIN-BOTTOM:6px; FONT-SIZE:11pt" align=center><font style=FONT-SIZE:11pt>8</font></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><font style=FONT-SIZE:11pt><br></font></p></td></tr></table></p></body>
<!-- EDGAR Validation Code: 1A69E7FC -->
</HTML>
[{"type": "10-Q", "sequence": "1", "filename": "dlpm02191510q.htm", "description": "FORM 10-Q", "secsgml_size_bytes": 251436}]
{"company-data": {"conformed-name": "Development Capital Group, Inc.", "cik": "0001517992", "assigned-sic": "5961", "irs-number": "273746561", "state-of-incorporation": "FL", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "000-54566", "film-number": "15639298"}, "business-address": {"street1": "9190 WEST OLYMPIC BLVD., STE.200", "city": "BEVERLY HILLS", "state": "CA", "zip": "90212", "phone": "(888) 415-7758"}, "mail-address": {"street1": "9190 WEST OLYMPIC BLVD., STE.200", "city": "BEVERLY HILLS", "state": "CA", "zip": "90212"}, "former-company": {"former-conformed-name": "Development Capital Group", "date-changed": "20110412"}}
Filed by Ched Corporate Solutions - www.chedcorp.com - 1-888-567-CHED (2433) - Development Capital Group - Form 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
December 31, 2014
OR
o
TRANSITIONAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to _____________
Commission file number 000-54566
Development Capital Group, Inc.
(Name of Registrant as specified in its charter)
Florida
(State or Other Jurisdiction of Incorporation or Organization)
27-3746561
(IRS Employer Identification Number)
(888) 415-7758
(Registrant's telephone number)
1932 Kellogg Ave
Carlsbad, CA 92008
(Address of principal executives offices) (Zip Code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [X] Yes [ ] No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ ] No [X]
Indicate by check mark whether the registrant is a large accelerated filed, an accelerated filer, a non-accelerated filer, or a smaller reporting company.
Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company
[X](Do not check if a smaller reporting company)Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]
State the number of shares outstanding of each of the issuer
'
s classes of common stock, as of the latest practicable date: 72,542,735 common shares as of February 15, 2015.
TABLE OF CONTENTS
PART I
–
FINANCIAL INFORMATION
Page
ITEM 1
Financial Statements (Unaudited)
3
ITEM 2
Management
'
s Discussion and Analysis of Financial Condition and Results of Operations.
4
ITEM 3
Quantitative and Qualitative Disclosures About Market Risk
6
ITEM 4
Controls and Procedures
6
PART II
–
OTHER INFORMATION
ITEM 1
Legal Proceedings
7
ITEM 1A
Risk Factors
7
ITEM 2
Unregistered Sales of Equity Securities and Use of Proceeds
7
ITEM 3
Defaults Upon Senior Securities
7
ITEM 4
Mine Safety Disclosures
7
ITEM 5
Other Information
7
ITEM 6
Exhibits
8
2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Our financial statements included in this Form 10-Q are as follows:
F-1
Condensed Consolidated Balance Sheets as of December 31, 2014 and June 30 2014 (unaudited);
F-2
Condensed Consolidated Statements of Operations for the three and nine months ended December 31, 2014 and December 31, 2013 (unaudited);
F-3
Condensed Consolidated Statements of Cash Flow for the three and nine months ended December 31, 2014 and December 31, 2013 (unaudited);
F-4
Notes to Condensed Consolidated Financial Statements (unaudited).
These condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q.  In the opinion of management, all adjustments considered necessary for a fair presentation have been included.  Operating results for the interim period ended December 31, 2014 are not necessarily indicative of the results that can be expected for the full year.
3
DEVELOPMENT CAPITAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
December 31,
March 31,
2014
2014
ASSETS
Current assets:
Cash and cash equivalents
$
18,044
$
297,146
Marketable securities
-
3,724
Prepaid expenses
-
163,400
Inventory
44,624
131,854
Note receivable
-
76,420
Note receivable - related party
95,745
230,365
Merchant reserve account
34,262
196,325
Total current assets
192,675
1,099,234
Fixed assets:
Office equipment, net of accumulated depreciation of $2,204 and $818
3,447
4,538
Other assets:
Other assets, net of amortization of $2,218 and $0
5,432
7,650
Deposits held
4,935
4,935
Total other assets
10,367
12,585
Total assets
$
206,489
$1,116,357
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Current liabilities:
Accounts payable and accrued expenses
$
1,708,906
$1,929,642
Accrued interest
106,090
33,821
Reserve for returns and allowances
10,000
15,000
Convertible notes payable
603,000
603,000
Convertible notes payable - related party
380,000
196,988
Total current liabilities
2,807,996
2,778,451
Contingencies
-
-
Total liabilities
2,807,996
2,778,451
Stockholders' (deficit):
Common stock, $0.001 par value, 490,000,000 shares
authorized, 105,542,735 and 105,542,735 shares issued and outstanding
as of December 31, 2014 and March 31, 2014, respectively
105,543
105,543
Additional paid in capital
392,553
344,580
Accumulated (deficit)
(3,099,603)
(2,112,217)
Total stockholders' (deficit)
(2,601,507)
(1,662,094)
Total liabilities and stockholders' (deficit)
$
206,489
$1,116,357
F-1
DEVELOPMENT CAPITAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
For the
April 22, 2013
For the three months ended
nine months
(Inception)
ended
to
December 31,
December 31,
December 31,
December 31,
2014
2013
2014
2013
Revenue
Sales, net of allowances
$
130,832
$
1,827,587
$
609,877
$
2,075,003
Cost of goods sold
63,522
1,120,516
324,188
1,320,750
Gross profit
67,310
707,071
285,689
754,253
Operating expenses:
Selling expenses
60,740
135,817
203,313
167,596
Promotional and marketing expenses
2,510
997,082
10,923
1,832,502
General and administrative expenses
13,810
45,343
622,422
70,089
Salaries and wages
110,141
177,634
363,801
187,904
Total operating expenses
187,201
1,355,876
1,200,459
2,258,091
Net (loss) from operating activites
(119,891)
(648,805)
(914,770)
(1,503,838)
Other (expense):
Interest expense, net
(24,218)
(15,931)
(72,616)
(15,931)
Total other (expense)
(24,218)
(15,931)
(72,616)
(15,931)
Provision for income tax
-
-
-
-
Net (loss)
$
(144,109)
$
(664,736)
$
(987,386)
$
(1,519,769)
Net loss per share - basic and diluted
$
(0.00)
$
(0.01)
$
(0.01)
$
(0.02)
Weighted average number of common
shares outstanding - basic and diluted
105,542,735
85,785,452
105,542,735
82,313,204
F-2
DEVELOPMENT CAPITAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
For the
April 22, 2013
nine months
(Inception)
ended
to
December 31,
December 31,
2014
2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss)
$
(987,386)
$
(1,519,769)
Adjustments to reconcile net (loss)
to net cash used in operating activities:
Options issued for services
47,973
-
Depreciation
3,604
-
Changes in operating assets and liabilities:
Decrease in prepaid expenses
163,400
(37,500)
Decrease in inventory
87,230
(20,836)
Decrease in merchant reserve
162,063
-
(Increase) in other assets
3,724
(1,493)
(Decrease) in accounts payable
(220,736)
1,587,243
Increase in accrued interest
75,281
-
(Decrease) in allowance for returns
(5,000)
-
Net cash used in operating activities
(669,847)
7,645
CASH FLOWS FROM INVESTING ACTIVITIES
Repayments for notes receivable
211,040
-
Purchase of fixed assets
(295)
(3,359)
Net cash used in investing activities
210,745
(3,359)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash advance - related party
2,000
-
Proceeds from convertible notes payable - related party
178,000
292,860
Proceeds from the sale of common stock
-
-
Net cash provided by financing activities
180,000
292,860
NET CHANGE IN CASH
(279,102)
297,146
CASH AT BEGINNING OF PERIOD
297,146
-
CASH AT END OF PERIOD
$
18,044
$
297,146
SUPPLEMENTAL DISCLOSURES:
Interest paid
$
-
$
-
Income taxes paid
$
-
$
-
F-3
DEVELOPMENT CAPITAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1
–
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying unaudited condensed interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information.
The unaudited interim financial statements should be read in conjunction with the Company
'
s Annual Report on Form 10-K, which contains the audited financial statements and notes thereto, together with the Plan of Operations for the year ended March 31, 2014.
Certain information or footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted, pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial reporting.  Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows.  It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation.  The interim results for the three and nine months ended December 31, 2014 are not necessarily indicative of results for the full fiscal year.
Nature of business
The Company was incorporated on September 27, 2010 under the laws of the State of Florida, as Development Capital Group, Inc. The Company has two wholly-owned subsidiaries, Clearance.Co, and Development Tech, Inc. The Company seeks to identify and invest in early-stage technology companies that have the potential to revolutionize traditional industries and transform markets. Clearance.Co, a California corporation, was incorporated on April 22, 2013 (Date of Inception) and is an online retailer offering discount brand name, non-brand name and closeout merchandise for sale on its website to primarily consumers. Development Tech, Inc., a Nevada corporation, operates the website RealtyValuator.com., an application that supports real estate investors by identifying available properties and providing tools to easily evaluate prospective investment properties.
On March 31, 2014, the Company completed a reverse merger with privately-held Clearance.Co. In exchange for all of Clearance.Co
'
s outstanding shares, the Company issued 77,527,735 shares common shares for approximately 73.5% interest in the Company. Clearance.Co
'
s convertible note obligations totaling $799,988 were also assumed by the Company as part of the transaction.
The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America, and are expressed in U.S. dollars.
Year end
The Company
'
s year-end is March 31.
Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles 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 revenue and expenses during the reporting period. Actual results could differ significantly from those estimates.
F-4
NOTE 1
–
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Cash and cash equivalents
For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The carrying value of these investments approximates fair value.
Concentration of credit risk
The Company primarily transacts its business with one financial institution. The amount on deposit in that one institution may from time to time exceed the federally-insured limit.
Stock-based compensation
The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards.  This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.
The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.
Fair value of financial instruments
Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2014. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, prepaid expenses, bank overdraft and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand.
Level 1:
The preferred inputs to valuation efforts are
"
quoted prices in active markets for identical assets or liabilities,
"
with the caveat that the reporting entity must have access to that market.  Information at this level is based on direct observations of transactions involving the same assets and liabilities, not assumptions, and thus offers superior reliability. However, relatively few items, especially physical assets, actually trade in active markets.
Level 2
:
FASB acknowledged that active markets for identical assets and liabilities are relatively uncommon and, even when they do exist, they may be too thin to provide reliable information. To deal with this shortage of direct data, the board provided a second level of inputs that can be applied in three situations.
Level 3: If inputs from levels 1 and 2 are not available, FASB acknowledges that fair value measures of many assets and liabilities are less precise. The board describes Level 3 inputs as
"
unobservable,
"
and limits their use by saying they
"
shall be used to measure fair value to the extent that observable inputs are not available.
"
This category allows
"
for situations in which there is little, if any, market activity for the asset or liability at the measurement date
"
. Earlier in the standard, FASB explains that
"
observable inputs
"
are gathered from sources other than the reporting company and that they are expected to reflect assumptions made by market participants.
F-5
NOTE 1
–
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fair value of financial instruments (continued)
As of December 31, 2014:
Fair Value Measurements
Level 1
Level 2
Level 3
Total Fair Value
Assets
Notes Receivable
$              -
$       95,745
$                -
$       95,745
Liabilities
Convertible Notes
–
Related Party
380,000
-
380,000
Convertible Notes Payable
$              -
$     603,000
$                -
$     603,000
Inventory
Inventories consist of merchandise held for sale in the ordinary course of business, including cost of freight  and  other  miscellaneous  acquisition  costs,  and  are  stated  at  the  lower  of  cost,  or  market determined on the first-in-first-out basis. The Company records a write-down for inventories, which have become obsolete or are in excess of anticipated demand or net realizable value. The Company performs a detailed review of inventory each period that considers multiple factors including demand forecasts, market conditions, product life cycle status, product development plans and current sales levels. If future demand or market conditions for the Company
'
s products are less favorable than forecasted or if unforeseen changes negatively affect the utility of the Company
'
s inventory, it may be required to record additional write-downs, which would negatively affect gross margins in the period when the write-downs are recorded. If actual market conditions are more favorable, the Company may have higher gross margins when products incorporating inventory that were previously written down are sold.
Property and equipment
The Company records all property and equipment at cost less accumulated depreciation.  Improvements are capitalized while repairs and maintenance costs are expensed as incurred.  Depreciation is calculated using the straight-line method over the estimated useful life of the assets or the lease term, whichever is shorter. Leasehold improvements include the cost of the Company
'
s internal development and construction department. Depreciation periods are as follows:
Computer equipment
3 years
Furniture and fixtures
7 years
Revenue recognition
Revenue is recognized in accordance with Staff Accounting Bulletin (
"
SAB
"
) No. 101,
"
Revenue Recognition in Financial Statements,
"
as revised by SAB No. 104. As such, the Company recognizes revenue when persuasive evidence of an arrangement exists, title transfer has occurred, the price is fixed or readily determinable, and collectability is probable. Sales are recorded net of sales discounts.
The Company allows refunds for only incorrect items or a damaged or defective item within 15 days of receiving the product.  The Company does not honor warranties for damaged or defective items beyond
15 days of receiving the product.
Advertising and marketing costs
The Company expenses all costs of advertising and marketing costs as incurred.  Advertising and marketing costs totaled $10,923 and $1,832,502 for the nine months ended December 31, 2014 and for the period of inception (April 22, 2013) to December 31, 2013, respectively.
F-6
NOTE 1
–
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Loss per common share
Net loss per share is provided in accordance with ASC Subtopic 260-10. We present basic loss per share (
"
EPS
"
) and diluted EPS on the face of the statements of operations.  Basic EPS is computed by dividing reported losses by the weighted average shares outstanding.  Loss per common share has been computed using the weighted average number of common shares outstanding during the year.
New recent pronouncements
The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company
'
s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company
'
s financials properly reflect the change. There are no new accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC did not or are not believed by management to have a material impact on the Company's present or future financial statements.
NOTE 2
–
GOING CONCERN
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. Since its inception, the Company has been engaged substantially in financing activities and developing its business plan and marketing. As a result, the Company incurred accumulated net losses for the period of inception (April 22, 2013) to December 31, 2014 of $3,099,603. In addition, the Company
'
s development activities for the period of inception (April 22, 2013) to December 31, 2014 have been financially sustained through convertible debt financing and sales of common stock.
The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital from the sale of common stock or through debt financing and, ultimately, the achievement of significant operating revenues and cost control measures. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.
NOTE 3
–
NOTES RECEIVABLE
On October 30, 2013, the Company loaned $20,000 to an entity as part of a convertible promissory note with a related party.  The entity is a limited liability company owned and controlled by the President of the Company.  The note bears interest at 5% per annum and is due the earlier of October 3, 2014 or on the next equity financing raise of at least $200,000.  The principal and accrued interest shall be converted at the Company
'
s option at 30% discount on the price per share of the next equity financing raise.  During the three months ended December 31, 2014, the note receivable was distributed to a former officer and director of the Company.
On December 19, 2013, the Company loaned $54,500 to an entity as part of a convertible promissory note.  The note bears interest at 10% per annum and is due the earlier of June 18, 2014 or upon merger or share exchange with a public entity.  The principal and accrued interest shall be converted into 250,000 shares of post-merger shares with a public entity.  During the nine months ended December 31, 2014, the Company received repayment of $51,762 and in connections with the merger, the note receivable was distributed to a former officer and director of the Company.
F-7
NOTE 3
–
NOTES RECEIVABLE (CONTINUED)
On December 30, 2013, the Company loaned $349,097 to an entity controlled by the CEO as part of a non-interest bearing promissory note.  The note balance at December 31, 2014 was $95,745.
NOTE 4
–
INVENTORY
The following is a summary of inventories:
December 31, 2014
Finished goods
$    44,624
NOTE 5
–
FIXED ASSETS
The following is a summary of fixed assets:
December 31, 2014
Computer equipment
$        5,651
Less: accumulated depreciation
(2,204)
Fixed assets, net
$        3,447
Depreciation expense for the nine months ended December 31, 2014 was $2,218.
NOTE 6
–
CONVERTIBLE NOTES PAYABLE
–
RELATED PARTY
On July 8, 2014, the Company executed an unsecured promissory note with a third party for $20,000.  The loan is due upon demand and bears 0% interest.
On August 18, 2014, the Company executed an unsecured promissory note with a related party for $158,000.  The loan is due upon demand and bears 0% interest.
NOTE 7
–
CONVERTIBLE NOTES PAYABLE
–
LONG TERM
On September 1, 2013, the Company executed an unsecured promissory note with a third party for $303,000.   The loan bears 12% interest and is due on September 1, 2015 with a balloon payment of principal and accrued interest.  The note is convertible into shares of the Company
'
s common stock at $0.1389 per share.  During the nine months ended December 31, 2014, accrued interest expense was $27,270.
On December 12, 2013, the Company executed an unsecured promissory note with a third party for $200,000. The loan bears 12% interest and is due on December 12, 2015 with a balloon payment of principal and accrued interest.  The note is convertible into shares of the Company
'
s common stock at $0.1389 per share.  During the nine months ended December 31, 2014, accrued interest expense was $18,000.
On February 1, 2014, the Company executed an unsecured promissory note with a third party for $300,000. The loan bears 12% interest and is due on February 1, 2016 with a balloon payment of principal and accrued interest.  The note is convertible into shares of the Company
'
s common stock at $0.1389 per share.  During the nine months ended December 31, 2014, accrued interest expense was $27,000.
F-8
NOTE 8
–
STOCK OPTIONS
On July 17, 2014, the Company approved and adopted an incentive and nonqualified Stock Option Plan of 2014 and reserved 20,000,000 shares for issuance under the plan.
During the nine months ended December 31, 2014, the Company granted 2,000,000 stock options to an officer of the Company.  Of the total, 500,000 stock options vested immediately and the remaining 1,500,000 stock options vest quarterly over the next three years.  Once the stock options are vested, the individual has two years to exercise at $0.08.  The Company recorded compensation of $47,973 for the nine months ended December 31, 2014.
NOTE 9
–
LEASE OBLIGATIONS
The Company leases its office space under an operating lease agreement that expires August 12, 2014. Future minimum lease payments for the upcoming year through lease expiration are approximately $20,200.
NOTE 10
–
RELATED PARTY TRANSACTIONS
On August 1, 2013, the Company entered into a consulting agreement with an entity that is owned and controlled by the President of the Company which is effective until Mr. Ricard is removed as an officer of the Company.  The monthly fee was $5,000. The payments were ceased in May 2014.
On August 1, 2013, the Company entered into a consulting agreement with an entity that is a shareholder of the Company which is effective until either party provides 30 days
'
notice of termination.  The monthly fee was $4,500. The payments were ceased in May 2014.
As of December 31, 2014, the Company had notes receivable due a related party limited liability company controlled by the CEO and shareholder totaling $95,745.  The note receivable is due upon demand and bears no interest.
As of June 30, 2014, the Company had a notes receivable of $20,000 and accrued interest receivable of $660 due from a related party.  The related party is a limited liability company owned and controlled by the President of the Company.  During the three months ended December 31, 2014, the note receivable was distributed to a former officer and director of the Company.
On August 18, 2014, the Company executed an unsecured promissory note with a related party for $158,000.  The loan is due upon demand and bears 0% interest.
NOTE 11
–
MATERIAL AGREEMENTS
On July 29, 2014, the registrant Development Capital Group, Inc. (the
"
Company
"
) entered into a separation agreement with its president and director Joseph Ricard, along with his affiliated entities Plum Investors, LLC and Tunebash, Inc., whereby (i) Mr. Ricard resigned as a director and president of the Company, (ii) the consulting agreement with Plum Investors, LLC, dated August 1, 2013, for payment to Mr. Ricard as our president was terminated without liability to the Company, and any amounts owing to Mr. Ricard under the consulting agreement were waived, (iii) the convertible note held by the Company from Tunebash, Inc, was terminated without liability to Tunebash, Inc. and any amounts owed to the Company under such convertible note were waived, and (iv) the Compapy transferred all assets and intellectual property rights in connection with
"
Realty Valuator
"
to Mr. Ricard.
On July 29, 2014, the Company and Plum Investors, LLC terminated the consulting agreement between the parties dated August 1, 2013.
On July 29, 2014, Joseph Ricard, pursuant to the terms of the Settlement Agreement discussed above in Item 1, resigned as the Company
'
s President and member of the Company
'
s Board of Directors.
NOTE 12
–
SUBSEQUENT EVENTS
On January 9, 2015, in connection with the resignation of the Company
'
s officer and director Shahbod Rastegar, the Company entered into (i) a Cancellation of Promissory Note and his wholly owned-entity Metrix360, whereby the Company
'
s former CEO agreed to cancel  33,000,000 shares of his common stock in exchange for the cancellation of his note receivable in the amount of $95,775. Additionally, the Company entered into a Lock-Up Agreement whereby 6,000,000 shares of Company common stock held by the former officer is subject to certain leak-out provisions over a period of 39 months.
F-9
Item 2.  Management
'
s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are
"
forward-looking statements
"
within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.   These forward-looking statements generally are identified by the words
"
believes,
"
"
project,
"
"
expects,
"
"
anticipates,
"
"
estimates,
"
"
intends,
"
"
strategy,
"
"
plan,
"
"
may,
"
"
will,
"
"
would,
"
"
will be,
"
"
will continue,
"
"
will likely result,
"
and similar expressions.  We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of complying with those safe-harbor provisions.  However, the safe harbors of forward-looking statements provided by Section 21E of the Securities Exchange Act of 1934 are unavailable to issuers of penny stock. Our shares may be considered penny stock and such safe harbors set forth under the Private Securities Litigation Reform Act of 1995 may not be available to us.
Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain.  Factors which could have a material adverse effect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.  We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.  Further information concerning our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.
Overview
We incorporated on September 27, 2010 under the laws of the state of Florida as Development Capital Group, Inc. (
"
Company
"
). For the years ended March 31, 2012 and 2011, we provided transportation and logistics services for a wide range of manufacturing, industrial and retail customers.  In February 2013, there was a change of control of the Company and we discontinued old operations and commenced business focusing on the development of RealtyValuator.com, a multi-platform application that supports real estate investors by sourcing available properties in the market and providing tools to easily evaluate and capitalize on prospective property investments. On March 31, 2014, we acquired Clearance.co to diversify our portfolio of operations. Clearance.co offers customers an opportunity to shop for bargains conveniently while creating an atmosphere that encourages customers to visit and purchase frequently by continually adding new, sometimes limited inventory to its Website.
We identify and invest in early-stage technology companies that have the potential to disrupt traditional industries and transform markets.  With experience building successful businesses, we expect our team to help companies who either have undervalued assets or whose existing businesses require capital investment in order to achieve scale.
Clearance.co
Our wholly owned subsidiary, Clearance.co, a California corporation (
"
Clearance
"
), owns and operates the website Clearance.co. The website is an e-commerce website, which deals exclusively in discount, clearance and closeout merchandise offered exclusively to registered members.  Working directly with suppliers, or
"
fulfillment partners
"
, Clearance provides its registered users with a destination for closeout and clearance products, while giving our fulfillment partners a one-stop liquidation channel.
Once users register on our website, they are then able to access our offered merchandise 24 hours a day, with the convenience of the use of a computer or internet-enabled devices.  Clearance.co
is an online shopping experience that offer
s
registered members not only savings on products, but also
access to our responsive customer
service
team
.
Nearly all of our sales are to customer
s located in the United States.
During the
period ended
December 31,December 31,
2014
no single customer accounted for more than 1% of our total net revenue.
Fulfillment Partners
With our
"
Fulfillment partners
"
, we sell such merchandise and products through our website.  We are considered to be the primary obligor for the majority of these sales transactions and we record revenue from the majority of these sales transactions on a gross basis. Our use of the term
"
supplier
"
, "partner" or "fulfillment partner" does not mean that we have formed any legal partnerships with any of our fulfillment partners. We currently have relationships with approximately 15 third parties who supply approximately 500 products, as well as most of the eleven groups of products, on our website. These third-party fulfillment partners, suppliers, perform such tasks as order picking and shipping; however, we handle returns and customer service related to substantially all orders placed through our website. Revenue generated from sales on our website from fulfillment partner businesses is recorded net of returns, coupons and other discounts.
Products
Our website shopping and product section is organized into 11 main tabs: For Super Clearance!, Just-In, Women, Men, Home, Electronics, Kids, Outdoors,
"
Seasonal
"
, Jewelry and Pets.  We offer discount brand name and non brand name merchandise and sell these products through our internet website located at www.clearance.co.  We currently offer hundreds of products ranging from home décor, bedding, jewelry, watches, apparel, electronics, and sporting goods, among other products.  From time to time, as the number of products and product categories change, we may reorganize our departments and/or categories to better reflect our current product offerings.
Shipping Fees
We charge shipping rates that vary in price, dependent on the weight and size of the product that is purchased and shipped. The shipping rates currently vary in price between $3.00 and $7.95 per item shipped. At times we offer promotional incentives that may include free shipping regarding certain items or days that the item is sold.
Payment
Generally, we require verification of receipt of payment, or authorization from credit card or other payment vendors whose services we offer to our users (such as PayPal), before we ship products to consumers or business purchasers. For sales in our fulfillment partner business, we generally receive payments from our customers before our payments to our suppliers are due. However, certain merchant account providers routinely hold back a percentage of our credit sales for periods ranging from 4-6 months to offset any potential returns or refunds initiated by customers.
E-Commerce and Technology
Through e-commerce, we sell products at a significant discount than to those offered by traditional outlets.  More specifically, discount deals sites and flash sales sites have experience growth, due to a combination of factors, in particular, these e-commerce businesses have taken advantage of lower disposable incomes in conjunction with businesses trying to draw in customers.  Furthermore, the growing number of mobile internet connections has promoted a demand for discount deal websites.
We use our internally developed e-commerce website and a combination of proprietary technologies and commercially available licensed technologies and solutions to support our operations. We use the services of multiple telecommunications companies to obtain connectivity to the Internet. Currently, our primary computer infrastructure is located in a dedicated facility in Dallas, Texas.  Also, at our hosting infrastructure we have computer infrastructure, which we use primarily for backups, development, and testing.
Advantages to E-Commerce
Our users take advantage of our e-commerce platform by making their purchases directly from their computer or device with internet access, and then have their products delivered directly to their specified address.
Clearance
'
s keys to success
via e-commerce
include:
·
Driving traffic to an inviting and user-friendly homepage.
·
Building excellent vendor relationships to offer great products at attractive prices with responsive customer service.
·
Building excellent merchant account relationships.
·
Sourcing quality and unique products that offer great value to our registered users yielding high margins of profits.
·
Clearly listing products on the website with concise descriptions and pricing.
·
Configuring placement of products according to our planned strategy including loss leader, highest margin, and brand recognition concepts.
·
Highly encouraging membership registration in order to market back to our registered users via email to entice repeat customer business.
·
Creating an effective social media strategy to offer testimonials, coupons and contests across all relevant social media platforms.
·
Creating an effective marketing and search engine optimization strategy.
·
Consistently analyzing the competitive landscape.
·
Efficiently managing all logistics of the website to ensure prompt deliver, inventory control and return of merchandise.
·
Hiring a team of bright and motivated employees, and creating a successful company culture.
Sales and Marketing
We use a variety of methods for our sales and marketing to target our consumer audience, including online campaigns, such as advertising through portals, keywords, search engines, affiliate marketing programs, social coupon websites, banners, e-mail, direct mail and viral and social media campaigns. We generally hire third parties to develop our campaigns and advertising.
Seasonality
Based upon our historical experience, revenue typically increases during our fiscal fourth quarter because of the holiday retail season and gross margin decreases due to increased sales of certain lower margin products, such as electronics. The actual quarterly results for each quarter could differ materially depending upon consumer preferences, availability of product and competition, among other risks and uncertainties. Accordingly, there can be no assurances that seasonal variations will not materially affect our results of operations in the future.
Customers and Customer Service
Customers are the lifeblood of every business, whether a company is selling B2C, B2B or B2B2C.   Market analysis is necessary to understand our customer segmentation and how relevant and closely the offered products on our website are aligned with market customers.  Our goal is to secure and price quality products so that our customers span across all market segments.
We are committed to providing superior customer service. Our customer service team with dedicated in-house and outsourced professionals respond to e-mail inquiries on products, ordering, shipping status, returns and other areas of customer inquiry through the website.
RealtyValuator.com
We operated our real estate website RealtyValuator.com through July 29, 2014, at which time we sold it to our prior officer and director Joseph Ricard.
4
Results of Operations for the Three Months Ended December 31, 2014
Our primary focus is to continue the development and growth of Clearance.co. For the period ended December 31, 2014, we earned revenue from e-commerce retail sales under our new business model. Revenues in Q3 2014 decreased 93% compared to Q3 2013.   The decline in revenue was due primarily to the internal changes in management and business model.  We have generated $130,832 in gross revenue  in connection with our business operations for the three months ended December 31, 2014.
Gross profit in Q3 2014 decreased 90 % compared to Q3 2013 which is directly related to our decline in revenue.
Operating Expenses as a percentage of revenue increased from 74% in Q3 2013 to 143 % in Q3 2014, primarily due to our decreased revenue in proportion to our fixed overhead costs.
We had operating expenses of $187,201 for the three months ended December 31, 2014 and consisted of advertising and marketing expenses, general and administrative expenses, staff salaries and wages, and selling expenses.
We recorded a net loss of $144,109 from operations for the three months ended December 31, 2014 compared to a net loss of $664,736 from operations for the three months ended December 31, 2013.
We anticipate our operating expenses will increase as we implement our business plan and continue to drive growth. The increase will be attributable to expenses to implement our business plan, and the professional fees to be incurred in connection with our ongoing filing requirements as a reporting company under the Securities Exchange Act of 1934.
Results of Operations for the Nine Months Ended December 31, 2014
Our primary focus is to continue the development and growth of Clearance.co. For the period ended December 31, 2014, we earned revenue from e-commerce retail sales under our new business model. Revenues for the nine months ended December 31, 2014 decreased 71% compared to the period April 22, 2013 (inception) to December 31, 2013. The decline in revenue was due primarily to the internal changes in management and business model.  We have generated $609,877 in gross revenue in connection with our business operations for the nine months ended December 31, 2014.
Gross profit for the nine months ended December 31, 2014 decreased 62% compared to the period April 22, 2013 (inception) to December 31, 2013, which is directly related to our decline in revenue.
Operating Expenses as a percentage of revenue increased from 109% in the period April 22, 2013 (inception) to December 31, 2013 to 197% for the nine months ended December 31, primarily due to our decreased revenue in proportion to our fixed overhead costs.
We had operating expenses of $1,200,459 for the nine months ended December 31, 2014 and consisted of advertising and marketing expenses, general and administrative expenses, staff salaries and wages, and selling expenses.
We recorded a net loss of $914,770 from operations for the nine months ended December 31, 2014 compared to a net loss of $1,503,838 from operations for the period April 22, 2013 (inception) to December 31, 2013.
We anticipate our operating expenses will increase as we implement our business plan and continue to drive growth. The increase will be attributable to expenses to implement our business plan, and the professional fees to be incurred in connection with our ongoing filing requirements as a reporting company under the Securities Exchange Act of 1934.
Liquidity and Capital Resources
As of December 31, 2014, we had total current assets of $192,675 and current liabilities of $2,807,996.  Thus, we have a working capital deficit of $2,615,321 as of December 31, 2014.
Operating activities used $669,847 in cash for the three months ended December 31, 2014. Our net loss was the main reason for our negative operating cash flow offset mainly by a decrease in prepaid expenses, decrease in merchant reserve, increase in other assets and decrease in accounts payable.
Net cash from investing activities was $210,74 for the nine months ended December 31, 2014. Cash Flows from investing activities consisted of notes receivable in the amount of $211,040 and purchase of fixed assets in the amount of (-$295).
Net cash provided by financing activities was $180,000 for the nine months ended December 31, 2014. Cash Flows from financing activities consisted of convertible notes payable in the amount of $178,000 and a cash advance from a related party in the amount of $2,000.
As of December 31, 2014, we have insufficient cash to operate our business at the current level for the next twelve months and insufficient cash to achieve our business goals.  The success of our business plan beyond the next 12 months is contingent upon us obtaining additional financing. We intend to fund operations through debt and/or equity financing arrangements, which may be insufficient to fund our capital expenditures, working capital, or other cash requirements. We do not have any formal commitments or arrangements for the sales of stock or the advancement or loan of funds at this time. There can be no assurance that such additional financing will be available to us on acceptable terms, or at all.
5
Off Balance Sheet Arrangements
As of December 31, 2014, there were no off balance sheet arrangements.
Critical Accounting Policies
In December 2001, the SEC requested that all registrants list their most
"
critical accounting polices
"
in the Management Discussion and Analysis. The SEC indicated that a
"
critical accounting policy
"
is one which is both important to the portrayal of a company
'
s financial condition and results, and requires management
'
s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.
Our critical accounting policies are set forth in Note 2 to the financial statements.
Recently Issued Accounting Pronouncements
The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company
'
s results of operation, financial position or cash flow.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
A smaller reporting company is not required to provide the information required by this Item.
Item 4. Controls and Procedures
Disclosure Controls and Procedures
As required by Rule 13a-15 under the Securities Exchange Act of 1934, we have carried out an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this annual report, being March 31, 2014. This evaluation was carried out under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer.
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission
'
s rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our company
'
s reports filed under the Securities Exchange Act of 1934 is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.
Based upon that evaluation, including our Chief Executive Officer, we have concluded that our disclosure controls and procedures were ineffective as of the end of the period covered by this annual report
Remediation Plan to Address the Material Weaknesses in Internal Control over Financial Reporting
Our company plans to take steps to enhance and improve the design of our internal controls over financial reporting.  During the period covered by this quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we plan to implement the following changes during our fiscal year ending March 31, 2016: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and (ii) adopt sufficient written policies and procedures for accounting and financial reporting. The remediation efforts set out are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting during the three months ended December 31, 2014 that have materially affected, or are reasonable likely to materially affect, our internal control over financial reporting.
6
PART II
–
OTHER INFORMATION
Item 1. Legal Proceedings
We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.
Item 1A: Risk Factors
A smaller reporting company is not required to provide the information required by this Item.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3. Defaults upon Senior Securities
None.
Item 4. Mine Safety Disclosure
This Item is not applicable.
Item 5. Other Information
None.
7
Item 6. Exhibits
Exhibit Number
Description of Exhibit
31.1
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101**
The following materials from the Company
'
s Quarterly Report on Form 10-Q for the quarter ended December 31, 2014 formatted in Extensible Business Reporting Language (XBRL).
**Provided herewith, however, pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Development Capital Group, Inc.
By:
/s/
Ray Reyes
Ray Reyes, President
February 23, 2015
8